J u n e
M A R K E T
2 0 2 2
P U L S E
C21
PUBLISHER Century 21 New Zealand Ltd
CONTRIBUTORS Tim Kearins Jen Baird Cameron Brewer
EDITORIAL ENQUIRIES Century 21 New Zealand +64 9414 6041
ADVERTISING ENQUIRIES Century 21 New Zealand +64 9414 6041
DISCLAIMER
WELCOME TO THE
June 2022
ISSUE OF
C21 MARKET PULSE
We have in preparing this information used our best endeavours to ensure that the information contained therein is true and accurate, but accept no responsibility and disclaim all liability in respect of any errors, inaccuracies or misstatements contained herein. Prospective buyers and sellers should make their own enquiries to verify the information contained herein. All information contained in the CENTURY 21 New Zealand Ltd website is provided as a convenience to clients. All links to property prices displayed on the website are current at the time of issue, but may change at any time and are subject to availability. For more information on our Privacy Policy please refer to: www.century21.co.nz/disclaimer
Cover image: Spacejoy on Unsplash
C O N T E N T S J une
C21 NEW ZEALAND NEWS
03
2 0 2 2
HOME GRANTS
Prices softening but opportunities increase
What to think about when moving out for the
Century 21 New Zealand, Tim Kearins
first time
PROPERTY MARKET UPDATE
04
SELLING
Buyers step back, annual median house price
The two hotspot rooms that sell homes
growth recides
Century 21
REINZ CEO, Jen Baird
REAL ESTATE STARS
06
Century 21 names its biggest stars
C21 MARKET PULSE
01
CENTURY 21
08
10
WE ARE ABOUT PEOPLE NOT JUST PROPERTY
At Century 21 it’s not just about selling a property. It’s about finding the right buyers and delivering the best sale results for our customers. Contact your local C21 Agent today for your no obligation FREE property appraisal. Visit: C21.co.nz
Licensed Agent 2008 REAA
C21 NEW ZEAL AND NEWS
PRICES SOFTENING BUT OPPORTUNITIES INCREASE
BY TIM KEARINS,
CENTURY 21 NEW ZEALAND
Unsurprisingly, the Real Estate Institute’s latest statistics confirm house prices are softening. However, it’s not all doom and gloom. Overall prices remain up on this time last year and a quieter market creates opportunities for more Kiwis to give homeownership a shot. Recently REINZ released its
now have greater access to
will see an opportunity to finally get
Monthly Property Report for May –
government help.
on the property ladder.
Following last month’s Budget
Another silver lining will be the
2022, more assistance has been
imminent changes to the Credit
targeted at first-home buyers.
Contract & Consumer Finance
House price caps for the First Home
Act (CCCFA) which since late last
Grant were increased and the First
year has seen banks apply ultra-
Home Loan scheme price caps were
conservative assessments on new
entirely removed. The changes
mortgage applications.
a month which saw median house prices across New Zealand increase 2.4% annually. At $840,000, the national median house price is up from $820,000 in May 2021. Month-on-month, saw a 4.0% decrease from $875,000 in April. REINZ noted: ‘Tighter credit
potentially enable thousands more
conditions, higher mortgage rates
Kiwis into the property market.
and increased housing supply continue to affect the New Zealand property market. Sales are slower to complete, property is staying on the market longer and upward pressure on prices is easing.’ The median number of days to sell now sits at 43. Properties are languishing for longer, but new listings continue to attract attention. This more moderate pace also opens the doors for first-home buyers, many of which have felt locked out of the property market in recent years. Further, prospective purchasers
Recent expansions to the Government’s first-home buyer
Across New Zealand, the number
schemes are positive, and with
of residential property sales in
the CCCFA soon dialled back,
May decreased annually by 28.4%
we’ll hopefully see more young
from 7,758 in May 2021 to 5,556.
people secure finance and seal
At the same time, the total number
deals. Yes, the 2020 and 2021 froth
of properties available for sale
is coming off, but the flip side is
nationally increased 77.6%, from
homeownership is becoming more
14,883 in May 2021 to 26,435.
attainable for more Kiwis.`
For those looking to sell their
Tim Kearins – Century 21 New
property, demand for good
Zealand – (0274) 495-547
properties remains strong. For those
tim.kearins@century21.co.nz
contemplating buying, yes interest rates are rising but so too are rents – now at record highs. It you can get a deposit together, and with prices getting more realistic, many
C21 MARKET PULSE
03
CENTURY 21
www.c21.co.nz
P R O P E R T Y M A R K E T U P DAT E
BUYERS STEP BACK, ANNUAL MEDIAN HOUSE PRICE GROWTH RECIDES
BY J E N B A I R D, REINZ CEO
Tighter credit conditions, higher mortgage rates and increased housing supply continue to affect the New Zealand property market. Sales are slower to complete, property is staying on the market longer and upward pressure on prices is easing, according to the latest data and insights from the Real Estate Institute of New Zealand (REINZ), home of the most complete, accurate and up-to-date real estate data in New Zealand. Across New Zealand, median prices
and North Shore City (-1.9%), and
Wairoa District has the least with
for residential property increased
the up-and-coming Papakura
no median price records in the past
2.4% annually, from $820,000 in
District (-4.0%) all saw decreases.
year. More information on activity
May 2021 to $840,000 in May
Conversely, all other districts
by region and TA record median
2022. Month-on-month, this
were up, most notably Franklin
prices can be found in the regional
represents a 4.0% decrease from
District (+19.2%) and Rodney
commentaries below.
$875,000 in April.
District (+13.2%).
The median residential property
Hawke’s Bay’s May 2022 median
REINZ, comments: “Looking at
price for New Zealand excluding
price mirrored May 2021’s median
New Zealand as a whole, median
Auckland increased 7.6% annually
showing no annual median
prices increased 2.4% annually to
from $678,500 in May 2021 to
price movement.
$840,000 in May 2022. Month-
$730,000 in May 2022. There was a month-on-month decrease of 3.3% from $755,000.
Jen Baird, Chief Executive at
In May 2022, the West Coast was the only region to achieve a new record median price, reaching
One region showed negative annual
$395,000 — up 30.8% from
median price growth. Auckland
$302,000 at the same time last
was down 2.2% compared to May
year. This was the first record price
last year, from $1,150,000 to
in the region since December 2021.
$1,125,000. The last time the annual median price dropped in Auckland was October 2019 (-0.1%). The region also recorded a month-onmonth decrease of 3.9% — down from $1,171,000 in April. There was variance across the Auckland districts; well-established areas such as Auckland City (-12.9%)
Overall, May 2022 had the least number of record median prices in a May month since 2019. Five territorial authorities (TAs) achieved record medians. Selwyn District and Waitaki District are the TAs with the most record months in the past 12 months (8), and C21 MARKET PULSE
04
CENTURY 21
on-month, there was a 4.0% decrease in median price. Moving from April to May, we tend to see a marginal dip in median property prices. This month, the seasonally adjusted figures show a decrease of 3.1%, indicating a greater drop than expected as we moved from April to May. “With the exception of the West Coast, median prices in the regions have come off their peak. Auckland was the only region to see an annual decrease in median price — down 2.2% on the same period last year. The region has seen a
ANNUAL ME DIAN PRICE CHANGES $
Record Median Price
6.2%
-2.2%
NORTHLAND
AUCKLAND
NATIONAL MEDIAN PRICE:
$840,000
BAY OF PLENTY
9.6%
2.4%
GISBORNE
5.6%
TARANAKI
43
7.0%
7.3%
WAIKATO
18.9%
MEDIAN DAYS TO SELL:
10.7%
0%
MANAWATU / WANGANUI
HAWKE’S BAY
1.2%
NELSON
1.0% 30.8%
$
8.5%
TASMAN
WELLINGTON
MARLBOROUGH
18.1%
WEST COAST
CANTERBURY
12.3%
7.5%
SOUTHLAND
OTAGO Source: REINZ Monthly Property Report 15 June 2022 .
significant shift in market dynamics,
“Over the course of 2021, house
by the conflict in Ukraine, we may
with the median price across the
prices soared, largely due to
see market activity settle this winter
Auckland region decreasing 13.5%
supply not being able to meet
at its new, slightly slower, pace.
since its peak of $1,300,000 in
demand, supported by historically
November 2021. In the six months
low interest rates and access to
prior, median property prices had
capital. Measures introduced by
increased 13.0%.
the Government — including the
“A similar story can be seen in other regions. However, a few are bucking the trend. The West Coast, which saw an annual increase in median prices of 30.8% from May last year, has had a 12.9% increase in median prices since November 2021, off the back of a 15.9% increase over the six
reintroduction of LVRs and changes to the Credit Contracts and Consumer Finance Act (CCCFA) — and the Reserve Bank OCR hikes have affected market dynamics, and we are now seeing the reverse play out. The price growth of last year is receding.
months prior. Otago has seen a 4.4%
“With further increases to interest
increase since November 2021,
rates to counter inflation expected
following a 7.5% increase in the
and global economic uncertainty
six months prior.
and supply chain disruption caused
C21 MARKET PULSE
05
CENTURY 21
“Real estate professionals across the country note potential buyers are taking their time to make decisions, have more confidence to negotiate prices, and vendors are recognising the market has changed and are adjusting their expectations to meet the market,” Baird observes.
Click here to read the full report
C21 NEW ZEAL AND NEWS
CENTURY 21 NAMES ITS BIGGEST STARS
Century 21 New Zealand has named its real estate stars for 2021, following the company hosting its Annual Awards evening in Auckland over the weekend - delayed by the global pandemic. Among attendees were Chairman and Owner of Century 21 Australasia, Charles Tarbey, and Chief Executive Officer of Century 21 Australasia, James Bell. “It was great to finally celebrate
says Tim Kearins, Owner of Century
(the number of properties listed
2021’s success together. Century
21 New Zealand.
and sold). Local Realty also took out
21 enjoyed a strong 2021 despite pandemic restrictions, the credit crunch in the last quarter, and growing economic uncertainties,”
Century 21 Local Realty in Papakura won Top Office for the Year for both GCC (Gross Closed Commission) and Units
awards for Highest Business Growth, Top Auction Office, Excellence In E-Business and the Golden Gavel, with franchise co-owner Iresh Tennakoon named the Top Auction Lister for 2021. Alen Moshi, of Century 21 The Moshi Group in Central Wellington, was named Top Principal for the Year for Units while Rupinder Kaur, of Dhatt & Co in Manukau, was Top Principal for the Year for GCC. Top Salesperson for the Year for both Units and GCC went to Winson He of Century 21 Queen Street Realty in Auckland Central. Centurion Office went to both Wellington’s The Moshi Group and Manukau’s Dhatt & Co, while Local Realty picked up the Double Centurion Office. Alen Moshi, Iresh
C21 MARKET PULSE
06
CENTURY 21
Tennakoon, and Rupinder Kaur were
managements) went to Local
Masters Entry was achieved by
named Grand Centurion Producers,
Realty in Papakura.
Aman Kaushal, Paul Wheeler,
with Local Realty’s franchise coowner Gary Bal a Double Centurion Producer.
The Recognition Award went to Ambi Basati of Dhatt & Co in Manukau. Administration Team
Rupinder Kaur, Kanwar Dhillon, Nidhi Chadha, Ian Nicholas, Ria Leung, Komal Gill, Katy Luo, Patrick Barry, Chatty Verma, Anjali
Centurion Producers for 2021
Member of the Year was Julie
were Christine Stevens (Century
Verrall of Edwards Realty in Botany.
21 Stevens Realty, Mangakino);
Personal Sales Assistant of the Year
Ian Pepper (Century 21 Rural
went to Komal Gill of Local Realty,
“Century 21 delivered some great
Residential Real Estate in Huntly),
The Quality Service Award went to
results in 2021 across real estate
Winson He (Queen Street Realty),
Eli Gadsby of Century 21 Gadsby
sales and property management.
Ambi Basati (Dhatt & Co), and
Realty in Te Awamutu, with Rookie
With the borders now opening
Kanwar Dhillon, Aman Kaushal,
of the Year going to Aman Kaushal
and expats returning, Century 21
Chatty Verma, Ishan Sikka, Param
of Local Realty.
is well placed to work with buyers
Randhawa, and Anjali Amarasinghe of Local Realty.
Internationally recognised Century 21 sales status was also bestowed
Vicki Southgate of Century 21
on several agents nationwide at the
Edwards Realty in Botany Downs
annual awards evening. Life Master:
won Property Manager of the
Alen Moshi, Diamond Master:
Year, with Edwards Realty also Top
Christine Stevens and Ian Pepper.
Property Management Office (over
Emerald Master: Eli Gadsby. Ruby
250 managements). Top Property
Masters: Iresh Tennakoon, Gary Bal,
Management Office (under 250
Rebecca Fraser, and Winson He. C21 MARKET PULSE
07
CENTURY 21
Amarasinghe, Ambi Basati, Ishan Sikka, and Param Randhawa.
and sellers from around the world given our unbeatable international website, brand, network, and service,” says Tim Kearins. www.c21.co.nz
HOME GRANTS
GOVT NEEDS TO BETTER PROMOTE ITS FIRST-HOME BUYER SUPPORT "The Government estimates recent changes to First Home Grants and First Home Loans will help thousands more first-home buyers every year. However, most Kiwis don’t even know these opportunities exist. There must be more promotion,” says Tim Kearins, Owner of Century 21 New Zealand. His comments follow the
deposit to get finance due to the
Auckland (from $700,000 to
Government’s Budget 2022
Reserve Bank’s Loan-To-Value
$875,000), Hamilton ($600,00 to
announcement on 19 May aimed at
Ratio restrictions (LVRs). Further,
$725,000), Tauranga ($600,000 to
assisting more first-home buyers.
banks have been conducting
$875,000), Wellington ($650,000 to
It increased the house price caps for
ultra-conservative assessments
$925,000), Christchurch ($550,000
the First Home Grant and entirely
on borrowers, largely because
to $750,000) and Queenstown
removed house price caps from the
of Credit Contract & Consumer
($650,000 to $925,000).
First Home Loan.
Finance Act (CCCFA) requirements.
“Coming up with a sufficient
“Raising the price caps for the loan
but so too are opportunities for
deposit is often the big problem so
scheme opens the door to first-
first-home buyers this winter.
that’s what these two schemes help
home buyers with a five percent
Thousands more now have access
to address. They’re not the silver
deposit who can now purchase
to two key Government schemes
bullet to home ownership but they’ll
at any price if they can afford to
designed to get them on the
certainly help many young Kiwis get
service the lending. The old price
property ladder. That’s a positive,
over the line,” says Mr Kearins.
caps, like $400,000 for Taupo, saw
but they should be better promoted
virtually no properties qualify. It’s
otherwise that extra support in
great that many more people and
Budget 2022 will simply be
properties now qualify,” he says.
not taken up.
caps having been now raised to
The Government has estimated that
“Hopefully securing a mortgage
better reflect market prices. First
these changes mean funding is now
will soon not be as difficult with
Home Loans allow eligible buyers to
available for approximately 7,000
imminent changes to the CCCFA.
purchase a home with a five percent
extra First Home Grants and 2,500
House prices are also softening
deposit with no price caps.
extra First Home Loans every year.
which will gives entry-level buyers
Mr Kearins says since late last year
Since 1 June, house price caps
there have been fewer opportunities
on First Home Grants increased
The Century 21 leader says in
for buyers with less than a 20%
in most major cities, including
recent years first-home buyers have
First Home Grants give eligible first-home buyers up to $20,000 for a deposit with property price
C21 MARKET PULSE
08
CENTURY 21
“Yes, interest rates are increasing,
more chances and choices,” he says.
increasingly been locked out of the property market. While it remains difficult, he says, it’s arguably more achievable this winter and that’s one silver lining in the current real estate market. “Rents are at a record high but opportunities for first-home buyers are more plentiful. If a tenant can become a homeowner that will help their lives considerably over the longer term,” says Mr Kearins. www.c21.co.nz
C21 MARKET PULSE
09
CENTURY 21
SELLING
THE TWO HOTSPOT ROOMS THAT SELL HOMES When selling your home, it's important to make sure that the spaces which have the biggest impact on buyers and will add the most value are upgraded and looking their best. Not surprisingly, the most closely
for family and friends, a place to
can have a big impact and are an
inspected and anticipated rooms
relax and chat, and a room where
inexpensive way to change the
of a property are the kitchen and
memories are made.
look of your kitchen without any
master bathroom.
major financial outlay.
In this article, we'll give you some
I F YOU ARE UNSURE OF WHO
tips on how to upgrade these
YOUR TARGET BUYER IS, IT’S
spaces without breaking the bank!
BEST TO CONSULT WITH A REAL
DO YOUR HOMEWORK Making upgrades without knowing your target buyer can be costly and may not result in a higher sale price. It’s important to do your research and plan ahead if you want to get the most out of your home sale.
ESTATE AGENT WHO CAN HELP YOU UNDERSTAND YOUR LOCAL MARKET.
3. Add some new lighting: Some new fixtures or even just changing out the bulbs can brighten up your kitchen space and make it look more inviting. 4. Update the appliances:
When preparing your home for sale, ensuring the kitchen looks its best should be your #1 priority. There are plenty of cost-effective
Replacing old and outdated appliances can significantly improve the look of your kitchen. But if you're not ready for a full replacement, try painting them
Upgrades to your kitchen or
upgrades that will improve the look
bathroom are often specific to the
of your kitchen without breaking
type of buyer you are targeting. If
the bank. Here are four ideas to get
you are unsure of who your target
you started:
MASTER THE BATHROOM
1. Paint the walls: A fresh coat of
The master bathroom is a place
buyer is, it’s best to consult with a real estate agent who can help you understand your local market.
KITCHEN QUICK WINS For most people the kitchen is one of the most important rooms in their home. It's not just a place to cook – it's also a gathering spot
or adding new hardware to give them a fresh look.
paint is one of the quickest and
where homeowners can relax and
easiest ways to give any room a
escape the stresses of the day, so
facelift. Choose a light, neutral
it's important to make it appealing
colour will help make your
to potential buyers.
kitchen look bigger and brighter. 2. Replace the hardware: Cabinet knobs and drawer pull updates C21 MARKET PULSE
10
CENTURY 21
By making small changes, you can dramatically improve the look and feel of your bathroom.
Photo by R ARCHITECTURE on Unsplash
Most of the updates to your bathroom are similar to what you can achieve in your kitchen so think about how these two spaces can share the costs. For example, choose a paint colour that works in both rooms. Here are five quick ideas to get you started: 1. Paint the walls a light, neutral colour.
2. Update the hardware on the cabinets and fixtures.
spending money on upgrades; on the other hand, if you don’t spruce
3. Install a new shower curtain and liner. 4. Add some new towels and a bath mat to the bathroom.
up these key interiors, your home might lag on the market. Consulting a local property expert at the start of your selling process
5. Place a vase of fresh flowers
will make a big difference to your
or indoor plant(s) on the
sale outcome and experience. Our
bathroom counters.
C21 agents are happy to help in any
If you are thinking of selling your
way to maximise your results and
home, it might seem hard to justify
achieve your property goals.
C21 MARKET PULSE
11
CENTURY 21
