A P R I L
M A R K E T
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P U L S E
C21
PUBLISHER Century 21 New Zealand Ltd
CONTRIBUTORS Derryn Mayne Bindi Norwell Cameron Brewer
EDITORIAL ENQUIRIES Century 21 New Zealand +64 9414 6041
ADVERTISING ENQUIRIES Century 21 New Zealand +64 9414 6041
WELCOME TO THE
APRIL 2020 ISSUE OF
C21 MARKET PULSE
DISCLAIMER 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.com.au/privacy
C O N T E N T S A P R I L
C21 NEW ZEALAND NEWS
02-03
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PROPERTY MARKET UPDATE
Real estate industry witnesses’ impressive
Auckland and NZ hit record median prices before
compassion.
COVID-19 hit.
CEO, Century 21 New Zealand, Derryn Mayne
REINZ CEO, Bindi Norwell
BUYERS ONLINE
04-05
HOME HUB
Positive that Kiwis are busy online house hunting.
Future-proof the heart of your home.
Cameron Brewer
As featured in the latest edition of Home Beautiful Magazine
EXPANDING NETWORK
06-07
Two new offices for Century 21 New Zealand. Cameron Brewer
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CENTURY 21
08-09
10-11
C21 NEW ZEAL AND NEWS
REAL ESTATE INDUSTRY WITNESSES’ IMPRESSIVE COMPASSION
B Y D E R R Y N M AY N E , C E O, C E N T U R Y 2 1 N E W Z E A L A N D
It’s incredibly impressive how Kiwis have dealt with the Covid-19 lockdown restrictions and uncertainty, with the real estate industry witnessing first-hand some great examples of people stepping up.
Most of our Century 21 franchises
between tenants now struggling
have significant rental portfolios,
to pay the rent while landlords
with the property management work ongoing and in many cases, busier. Having that diversity is an incredible strength for a real estate business at a time when
While real estate transactions may
house sales
have gone into hibernation, our
have effectively
company continues to experience
halted.
plenty of activity including two new Century 21 franchises opening in Papatoetoe and Queenstown during March.
Property managers
fixed costs, including insurance and
“We’re seeing neighbours and communities coming together like never before, with the likes of groceries being dropped off at the doors of elderly.”
council rates, and of course rely on the property income to meet their own cost of living. So many landlords are responding so
are quickly finding
positively. I’ve had a
themselves negotiators
C21 MARKET PULSE
continue to face a number of
02
CENTURY 21
number who we work with in my own franchise offering significant rent reductions for the coming weeks, with some even offering rent free periods. It’s incredibly heartening, particularly when
Will landlords really get a mortgage holiday?
landlords traditionally receive a lot of unwarranted flak and they’re not getting the financial relief many think they are. Century 21 has this week blitzed social media with an explanation of the recently announced mortgage holiday scheme and what it means for eligible landlords experiencing a drop in income due to Covid-19. While many can defer their mortgage payments for up to six months, this is no holiday. Landlords will continue to accrue interest, meaning over the longer term their debt will only be larger and their mortgage will take longer to repay. Once tenants understand this, they’re more willing to land at a reasonable place as they can see landlords are not getting off lightly. Century 21’s salespeople continue to liaise with both vendors and buyers, while the principals of each franchise are regularly catching up via teleconference, with those under the Century 21 brand supported and keen to support others. We’re still getting enquiries and questions from prospective buyers, and we’re continually amazed at how philosophical our vendors remain, not to mention the genuine care many landlords are showing in these unsettling times. We’re seeing neighbours and communities coming together like never before, with the likes of groceries being dropped off at the doors of elderly. It’s an incredibly
COVID-19 Update: Alert Level 4 Restrictions As you are no doubt aware, all Kiwis are currently facing the recent challenge presented by the Coronavirus (COVID-19) outbreak. Here at CENTURY 21 we have implemented cautionary procedures to ensure the safety of not only our staff, but that of our vendors and buyer community. Please rest assured that we will dedicate the same level of care, expertise and professionalism that you have come to know. No face-to-face interaction at Alert Level 4 In addition to phone calls, CENTURY 21 is well equipped technologically to service you and your property through video conferencing, online apps and a variety of industry tools. We are facing unprecedented times and our priority is to keep everyone safe and healthy, and up-to-date on property matters to ensure your goals are achieved. Our team is across all the required health practices and will always act in the best interests of your property.
heartening time to be in real estate.
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BUYERS ONLINE
Positive that Kiwis are busy online house hunting
C21 MARKET PULSE
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“Despite a nationwide property report showing new listings in March down 16.5% on the same time last year, it’s great that serious buyers have remained active online during the lockdown,” says Derryn Mayne, Owner of Century 21 New Zealand.
“We’re all taking a wait and see
The Century 21 real estate boss
approach, but it’s really encouraging
is under no illusion that it will be
that many Kiwis are using this time
challenging but believes there could
to look at property via the internet.
be a flurry of activity post-lockdown
The quality of a vendor’s online
with Kiwis keen to get out, assess
marketing strategy is suddenly even
their options, and make decisions.
more important.
“A lot of people are clearly doing
She says including the likes of virtual
their homework now. Not only is
tours, floor plans, video and drone
it positive for prospective buyers
footage can only help when potential
to be using this time wisely, but
buyers are forced to surf the net
prospective sellers should also
from home. What’s more, the likes
use the lockdown to prepare their
of videos can be easily circulated
property inside and out for a future
on social media, increasing a
appraisal and sale,” she says.
property's exposure.
She says while this latest property
Ms Mayne says despite real estate
report confirms a significant hit
transactions in hibernation and open
for listings, it also highlights that
homes banned, there remain plenty
prior to the lockdown the industry
of Kiwi families needing to move or
experienced a busy start to 2020
find a bigger home, empty nesters
with a rising market.
wanting to downsize, and first-home buyers keen to make the most of the record-low interest rates.
“We went into the lockdown with all the real estate fundamentals looking strong and housing stock in clear
“We’re seeing major widespread
demand. If we can come out of it in a
disruption, but that won’t stop
timely and positive way, we may just
people buying and selling houses
be surprised by the level of activity
when we come out of the lockdown.
that returns,” says Derryn Mayne.
People’s aspirations will continue, and their housing needs and
Her comments follow realestate.
circumstances will keep changing.”
co.nz releasing its New Zealand Property Report for March. While the country’s level 4 restrictions to combat the Covid-19 pandemic had an immediate impact on new listings at the end of March, average asking prices last month remained buoyant across the country - up 5% on a year ago. The popular real estate website also reported that the average time Kiwis spend on realestate.co.nz has increased significantly since the lockdown was put in place.
THINKING ABOUT BUYING PROPERTY? We can help you, talk to us today or CLICK HERE to start your search.
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EXPANDING NETWORK
TWO NEW OFFICES FOR CENTURY 21 NEW ZEALAND
Century 21 New Zealand continues to sustainably expand, with two new franchises opening in South Auckland and Queenstown.
More recently he worked as a
Mr Kumar looks forward to
project manager for some South
recruiting salespeople and being an
Auckland residential property
effective team leader, supporting
developments, giving him great
the sales team to reach their full
experience and exposure to the
potential and making every real
construction sector. However, the
estate transaction as easy as
attraction of selling property again
possible. Areas they will cover
was too strong. “The opening of a new office in Papatoetoe further strengthens our strong presence in South Auckland. We’re also delighted to now have an office in central Queenstown, marking Century 21’s return to the South Island,” says Derryn Mayne,
include Papatoetoe, Otahuhu, Mangere,
“Century 21’s
“Century 21 remains in good shape helped by our strong community connections and the considerable business experience our franchise owners bring.”
rebranding really appealed to me, and once an opening came up in
and Manukau. The Century 21 Shane & Co owner already has a well-
Owner of Century 21 New Zealand.
Papatoetoe,
Born and bred South Aucklander
Century 21’s
Shane Kumar is the principal of
head office and
Century 21 Shane & Co, located at
things got rolling
37 Charles Street in Papatoetoe.
really quickly. There
The franchise owner has a Bachelor
will be some challenging
of Property degree from the
times ahead, but Century 21
University of Auckland and has
is well established to ride out
of online platform PropertyTree
worked for several years in the
any storm, and the New Zealand
is a huge advantage to owners,
wider South Auckland area as a
property market will always return
managers and tenants.
successful real estate agent.
with vigour,” he says.
I contacted
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06
established residential property portfolio and considerable
experience in all aspects of property
CENTURY 21
management. He says his use
At the same time at the other end of
finance sector, gaining considerable
represent more momentum for
the country, Century 21 Aurora Real
experience in IPOs and asset
the real estate company following
Estate has opened its doors at 1 - 7
management, and then as a real
a high-profile global rebrand,
Earl Street in Queenstown.
estate salesperson for Century 21 in
and New Zealand regaining
Shanghai and Beijing.
more ownership and autonomy
Principal Ria Leung says throughout
of Century 21 on this side of the
the Covid-19 lockdown, enquiries
The new franchise owner is an
about new residential builds from
experienced specialist in property
international investors continued,
investment, with a strong focus on
“Century 21 remains in good shape
with New Zealand seen as a safe
professional advice and outstanding
helped by our strong community
bet when it comes to property
customer service. Century 21
connections and the considerable
investment.
Aurora Real Estate is also
business experience our franchise
focused on growing its property
owners bring. We continue to take
management portfolio.
a positive approach when it comes
Ms Leung loves the Central Otago lifestyle and looks forward to seeing
Tasman last year.
to New Zealand’s property market,
the buzz return to Queenstown -
“I really enjoy working with overseas
New Zealand’s tourism jewel. An
buyers and advising them on New
already established real estate
Zealand’s investment rules and
name in Central Otago, her focus
legal requirements. I know first-
is on Queenstown, Arrowtown,
hand just how well recognised and
Pictured above:
Cromwell and Wanaka.
regarded Century 21 is in China for
Left - Shane Kumar, Principal
Moving to New Zealand in 2012, she has been a successful real estate agent in the South Island
international sales, so I’m delighted to fly the flag in Queenstown,” says Ms Leung.
for six years. Prior to that, she
Ms Mayne says the new Papatoetoe
worked for over a decade in China’s
and Queenstown franchises
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supporting our franchises, vendors, buyers, landlords and tenants as best we can,” says Derryn Mayne.
C21 Shane & Co papatoetoe.century21.co.nz
Right - Ria Leung, Pincipal C21 Aurora Real Estate queenstown.century21.co.nz
P R O P E R T Y M A R K E T U P DAT E
AUCKLAND AND NZ HIT RECORD MEDIAN PRICES BEFORE COVID-19 HIT
BY BINDI NORWELL, REINZ CEO
Median house prices across New Zealand increased by 13.7% in March to a new record median price of $665,000, up from $585,000 in March 2019 and eight regions saw new record medianprices, according to the latest data from the Real Estate Institute of New Zealand (REINZ). Median house prices for New
28.7% increase to $431,250 up
in a row where every region in the
Zealand excluding Auckland
from $335,000 at the same time
country saw an annual increase
increased by 13.3% to a new record
last year
in median prices; it also marked a
median price of $555,000, up from $490,000 in March last year. In Auckland, median house prices increased by 11.1% to a new record median price of $950,000 – up from $855,000 at the same time last year, and a $65,000 uplift on February 2020. In addition to Auckland, record median prices were recorded in: • Northland with a 14.1% increase
to $565,000 up from $495,000
at the same time last year
• Waikato with a 13.4% increase to
$600,000 up from $529,000 at
the same time last year
• Manawatu/Wanganui with a
• Taranaki with a 13.3% increase to
$425,000 up from $375,000 at
the same time last year
• Tasman with a 10.7% increase to
$670,000 up from $605,000 at
the same time last year
• Canterbury with a 6.8% increase
to $490,000 up from $459,000
at the same time last year
• Southland with a 28.2% increase
to $374,580 up from $292,105 at
the same time last year.
Bindi Norwell, Chief Executive at REINZ says: “March was an extremely buoyant month for residential property across the country. March marked four months
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new record median price for the country at $665,000 and record median prices in 8 regions including Auckland and saw 12 out of 16 regions with doubledigit annual median price increases. “What we can say is that before COVID-19 hit New Zealand’s shores, the property market was in a strong period of growth which now includes the Auckland market, which had 5 consecutive months of year-on-year growth, following two years of stable prices,” she continues. “How big the effects of COVID-19 are is up for debate, but the impact will depend on a huge
number of factors including how
The number of properties sold
impact of the lockdown week on
long the country is in an Alert
in March across New Zealand
sales volumes,” says Norwell.
Level 4 lockdown for, the level of
decreased by -4.8% from the same
unemployment, consumer and
time last year – from 7,213 to 6,866
business confidence levels, people’s
– 347 fewer properties and the
ability to access finance (and
lowest number of properties sold in
finance their own mortgages) and
the month of March in 9 years.
how long the wider economy takes to recover. Property is a long-term investment and the market will recover; however, the question is, how long it takes to recover. “The Auckland region eclipsed its
“Right now, in the Alert Level 4 lockdown period, people are still able to list their property for sale, but inspections can only be carried out online or via means such as
For New Zealand excluding
virtual reality or ‘walk-through’ type
Auckland, the number of properties
tours. Going forward, we expect
sold decreased by -11.1% when
people will take a bit of a ‘wait and
compared to the same time last
see’ approach when it comes to
year (from 5,130 to 4,559) – 571
listing their property for sale. But
fewer properties.
for those who have decided
previous record median price set
$
ANNUAL ME DIAN PRICE CHANGES $
$
AUCKLAND
$
Record Median Price
$
9.5% $
MEDIAN DAYS TO SELL:
9.2%
30 Source: REINZ Monthly Property Report 15 April 2020.
back in March 2017 ($900,000) with a $65,000 uplift on February
across the Auckland region, new record medians were set in Auckland City where prices increased by more than a quarter (26.3%) from the same time last year to $1,200,000, Manukau City (up 11.1% to $930,000) and Waitakere City (up 8.9% to $841,000),” continues Norwell.
1.3% GISBORNE
28.7%
10.8%
MANAWATU / WANGANUI
HAWKE’S BAY
13.4%
10.7%
10.3%
TASMAN
WELLINGTON
MARLBOROUGH
$
WEST COAST
$
$2,097 a day in March. Looking
13.4%
NELSON
13.7%
meaning that house prices rose
$
TARANAKI
$665,000
13.7% BAY OF PLENTY
WAIKATO
13.3%
NATIONAL MEDIAN PRICE:
2020 to hit the $950,000 mark,
11.1%
14.1% NORTHLAND
6.8% CANTERBURY
28.2%
11.3%
SOUTHLAND
OTAGO
“The first quarter of the year has
after 4 weeks of being locked in
seen 2,000 fewer new listings
their ‘bubble’ that they don’t like
come to the market than the same
their house anymore, they will
time last year, so when you take
be desperate for the chance to
that into account, plus the impact
move, so there may be some great
of 6 days of lockdown because of
opportunities for those wanting to
the impact of COVID-19 then it’s
buy and sell in the coming months,”
understandable why the number of
continues Norwell.
properties sold in March has fallen nearly 5%. This is backed up by REINZ’s seasonally adjusted sales volumes figures, which show based on what happened in February we would have expected a much better result in March and this is likely the
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Click here to read the entire report
AS SEEN IN THE L AT E S T E D I T I O N O F
HOME HUB FUTURE-PROOF THE HEART OF YOUR HOME AND ADD VALUE WITH A ST YLISH KITCHEN RENOVATION IN ASSOCIATION WITH
A
modern kitchen can breathe new life and personality into your home. But renovating one is no small task and you need to think long-term. Not only do you want a kitchen that won’t date, you also want to make sure it adds value to your home. Even if you’re not planning on selling any time soon, you should always consider your future buyers to maximise your home’s potential value. We asked a property expert for his view on the key items to add to your kitchen renovation list, for maximum return on your investment.
FOR HELP WITH BUYING AND SELLING PROPERTY VISIT C21.co.nz
A DV E RT I S E M E N T A DV E RT I S E M E N T
GET VISUAL We’re not suggesting that manifestation is the answer to all your property aspirations, but visualisation is a savvy starting point. Envision your perfect home in all experienced its“Over glory –thetheyears size,I have the style, the suburb… Keep it semisituations whereyour people buyvilla thepipedreams kitchen for now), realistic (shelve Tuscan and the rest of the home comes withinto your desires but still think freely. This will help tap it!”get saysyou Charles Tarbey, and thinking aboutChairman how you of want to live. Sure, Century 21 Australia. “This the budget, heart but perhaps ocean views may fall outsideisyour of a home as such, theaccess better to thea beach or bay. you’d settle and instead for easy kitchen, the better the opportunity for a Scrawl down all your ideas to refer back to later. quick sale and a better price.”
1. ADD ANNICE-TO-HAVES ISLAND ADD THE BENCH Below your must-haves, start noting down the features Thedeem number one thing you appealing, butonnotbuyers’ essential. A walk-in kitchen wish lists is ample bench space, wardrobe? You wouldn’t turn it down, but it’s not make notes Charles. An island is a great way to achieve extra bench, storage space and seating, while also optimising your existing floor plan. “A kitchen that allows GO BACK TO BASICS a family the space to move around together, and is set up in such a way considerations that a familyImportant can all casually eat in it atare the minimum number of bedrooms, the same time will always be attractive,” number of bathrooms their says Charles. When choosing anand island, minimum size. look for a storage-savvy design that has an overhanging countertop formight stoolsinclude to a Other must-haves slide underneath. powerpoints garden or Built-in deck, off-street parking or are a must. an internal laundry.
or break. It might be the same for a pool. Interior features could also fall into this category – think hardwood flooring and stone countertops, as well as central air conditioning or a fireplace. Check in with your above-mentioned visualisation notes as you go, picking out the elements that are enticing, but also attainable.
CONSULT THE EXPERTS Finally, round out your list with a little expert intel. The agents at real estate organisation Century 21 will share some “value” items to consider tacking onto your list. As the name suggests, these are features that will add value to your property over time. Think a great bathroom, dual-pane windows, or close proximity to top schools. While these items shouldn’t take over your wants and wishes, they’re nevertheless worth keeping in mind as you navigate the inspection circuit (now armed with a handy priority list, so you never swerve off course again!)
2. UPGRADE YOUR Location may be paramount – 3. SPLURGE ON HIGH COUNTERTOP perhaps you want to be within walkingEND APPLIANCES
A tired countertop down school the – orGood appliances anchor a kitchen distance ofcan yourbring children’s whole vibe of your kitchen. While it mayon a and enhance its functionality. Stainless maybe you have your heart set be tempting to look to of what’s trending, steel is a failsafe option that always certain cluster suburbs. Charles recommends going for a feels luxe. Matching your appliances Also consider liveability: is timeless option. “Kitchens are personal. from the same collection or brand renovating an option, or are you keengives a cohesive look. Built-in One that’s neutral can be decorated to find atouch, homewhich and move straight with a personal is ideal,” he in? appliances are appealing and room for advises. It’s not just the buyers who will a double fridge is a must. If you can appreciate it – a classic look gives you only splurge on one item, make it a gas more flexibility to update your styling cooktop, as it’s one of the most-used regularly, too. Using engineered stone, appliances in the kitchen. Finally, don’t marble and porcelain benchtops is forget the dishwasher. It can be a dealmoney well spent. breaker for some buyers. FOR HELP WITH BUYING AND SELLING PROPERTY FOR HELP WITH BUYING AND SELLING PROPERTY VISIT C21.com.au VISIT C21.com.au
CROWD PLEASER A KITCHEN WITH ENOUGH ROOM FOR A FAMILY TO MOVE AROUND AND SHARE A MEAL TOGETHER HAS TIMELESS APPEAL