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C21
PUBLISHER Century 21 New Zealand Ltd
CONTRIBUTORS Derryn Mayne Cameron Brewer Wendy Alexander
EDITORIAL ENQUIRIES Century 21 New Zealand +64 9414 6041
ADVERTISING ENQUIRIES Century 21 New Zealand +64 9414 6041
WELCOME TO THE
APRIL 2021 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
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PROPERTY MARKET UPDATE
06-07
SHB’s should be bright-line exempt on investment
House prices hit new highs, properties sell at fastest
properties.
pace ever.
Owner, Century 21 New Zealand, Derryn Mayne
REINZ Acting CEO, Wendy Alexander
NZ SALES
03
SUMMER STANDS Not the last of the Summer wine for property.
NZ Real estate still flying out the door according to
Cameron Brewer
latest survey. Cameron Brewer
BATHROOM BEAUTY
05
Luxe for less in the Bathroom. Home Beautiful Digital Content Editor, Diana Moore
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CENTURY 21
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C21 NEW ZEAL AND NEWS
SHBS SHOULD BE BRIGHTLINE EXEMPT ON INVESTMENT PROPERTIES Last month saw the Government announce some key housing initiatives. Updating the Home Start grant is long overdue. However, it’s better
B Y D E R R Y N M AY N E ,
OWNER, CENTURY 21 NEW ZEALAND
where they want to live and buy
In the 12 months to February,
an investment property in another
Auckland’s median house price
area. First-home buyers should be
increased by 24.3% to $1,100,000,
allowed to do that and not be taxed
according to REINZ figures. Yet for
like property investors because for
first-home buyers in Auckland to
many that’s the only way they can
qualify for Home Start they needed
get into the market.
to buy an existing property for $600,000 or less, or $650,000 for
late than never and will be well
The Home Start subsidy scheme
received by many desperate
enables qualifying first-home
first-home buyers.
buyers under certain income
Last year REINZ revealed that
caps to receive a grant to
only 12% of Auckland properties
purchase property under set
sold were below the Home Start
regional price caps.
price cap threshold. That number
As well as committing nearly $4 billion into accelerating the pace of new builds, the Government
a new build.
would’ve only reduced since.
has lifted the bright-line test from
On 1 April, both the income and
five years to 10 years for existing
house price thresholds lifted,
In many ways the market has run
homes. This means any capital
making more first-home buyers
away from first-home buyers. While
gains on a residential property that
eligible for Home Start.
these adjustments to Home Start
is not a family home will be taxed if
Century 21, along with REINZ, has
the property is sold within 10 years of purchase.
long been calling for the Home Start grant to be updated and
won’t be enough for some people, it’s definitely a step in the right direction and will undoubtedly enable more young Kiwis on the
I have no issue with the bright-line
made fit for purpose. As the market
being extended to 10 years, but I
rocketed, we saw fewer and fewer
strongly believe it should exclude
properties and first-home buyers
Given interest rates have never
all first-home buyers purchasing
qualify, which was killing the Kiwi
been lower, now’s the time to
investment properties.
homeownership dream for many.
enable and encourage as many
For years I’ve been telling Kiwis
Eligibility in Auckland, in particular,
that if they can’t afford to buy
became almost impossible.
where they want to live, then rent
property ladder.
first-home buyers into property as we can. After all, homeownership makes such a positive difference to people’s futures.
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NZ SALES
NZ REAL ESTATE STILL FLYING OUT THE DOOR ACCORDING TO LATEST SURVEY “Despite the Government’s housing initiatives announced last month, aimed particularly at cooling off investors, the country’s overall real estate market remains hot,” says Derryn Mayne, Owner of Century 21 New Zealand. Her comments come as REINZ released April’s REINZ & Tony Alexander Real Estate Survey. It revealed a net 56% of real estate agents continue to feel that prices are rising – the same proportion as August last year. At the same time, a net 66% feel that FOMO remains
The survey showed a net 41% of
home, next home, or investment
agents have reported seeing fewer
property. What’s more, high rents
investors. This is the weakest result
and low returns on offer in other
since our survey started in May last
sectors continue to make residential
year, but the survey notes the flow
property an attractive option for
of new investors has been easing
investors despite the tougher rules.
off since December.
“LVRs now at 30% for investors
The Century 21 leader
are also slowing a few down, but
acknowledges some softness
April’s holding up alright when it
has appeared in specific areas
comes to investment purchases.
with the bright-line test for
Let’s not forget many are now taking
investors extending to 10 years
their chance to get in before the
and the removal of interest cost
deposit requirement lifts to 40% for
deductibility undoubtably
investors on 1 May,” she says.
having some impact. However, generally the market continues to enjoy significant interest from buyers with strong sale prices still being achieved.
a factor for buyers – also a very
“I agree with REINZ’s conclusion
similar result to August.
that if the Government was seeking
“This is the first significant industry survey since the housing initiatives were announced on 23 March, and it supports what we’re hearing
a substantial and sustained slowing of the residential property market then its work is not complete,” she says.
and seeing anecdotally: Overall,
Derryn Mayne says record low
things are not slowing yet,” says Ms
interest rates continue to help drive
Mayne.
demand for those seeking their first
C21 MARKET PULSE
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CENTURY 21
PUT YOUR PROPERTY IN THE HANDS OF AN EXPERT After 50 years we know what it takes to achieve a great result each time we sell a property. Trust us with yours. Contact your local C21 agent today to discuss how we can achieve the best sale outcome for you.
Visit: C21.co.nz
CELEBRATING 50 YEARS
C21 MARKET PULSE
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CENTURY 21
BAT H R O O M B E A U T Y
LUXE FOR LESS IN THE BATHROOM
BY DIANA MOORE,
D I G I TA L C O N T E N T E D I TO R , H O M E B E AU T I F U L
Rather than just a room to address your daily personal care routine, bathrooms are increasingly becoming a sanctuary to escape from the busy lives we lead. The choice of fixtures and finishes to create a more high-end, luxurious look to your bathroom can create an atmosphere of calm luxury, but how can you stretch your budget to best effect? To avoid overspending on your bathroom renovation budget, here are some bathroom design ideas
visually. Invest in a feature tile
“Gold gives an affluent edge to
wall or vibrant vanity splashback
nearly anything, and nothing
in your bathroom to set the tone
screams high-end more than
- and they needn’t cost the earth.
striking matt black finishes.”
“Hexagons and penny rounds come in an array of shades and create a dramatic impact to any space,” says Beaumont Tiles design specialist Christie Wood. “They’re easy to lay as they generally come on a meshed backing – making them perfect for DIY projects.”
also lift the entire feel of the room. Tiling is an essential finish in a wet space but more than function alone,
than tiling a set-in tub - will be
second hand which could save
looks lighting into the bathroom for
hundreds of dollars. You might be
an unexpected statement of luxury.
surprised at what’s on the market
such as stone, brass and timber
point for your space, but it will
straightforward tiling job - rather
Add drama by taking the latest
simple, clean lines, with materials
not only create a gorgeous focal
that the money saved by a more
your research and consider buying
without the luxury price tag.
selecting one luxury feature will
from any angle and it is possible
factor of the design you choose. Do
2. BOLD LIGHTING
“We’re seeing a trend towards
Paring back bathroom styling by
A freestanding bath says luxury
better spent on the va-va-voom
to help achieve a luxurious space,
1. PICK ONE FEATURE
4. STATEMENT BATH
high on wish lists,” says design services manager Amy Harper-Pell
within your budget however, from a classic cast iron clawfoot bath to more sleek, contemporary designs.
5. LARGE FORMAT FINISHES
of Special Lights. “Another trend
Remove visual clutter in your
is to contrast minimalist bathroom
bathroom and create space
design with bright-coloured,
by choosing finishes that have
oversized or crystal lighting, which
‘expanding’ properties. “Large-
commands attention.”
format or slab tile designs should be your go-to here as sizes can go
3. STATEMENT TAPWARE
up to three meters,” says Christie.
carry a greater design load to see
“Beyond tiles, consider matt black
it punching well above its weight
or brushed gold tapware or a
https://www.homebeautiful.com.au//luxefor-less-in-the-bathroom
the style of tiles you choose can
statement bath,” Christie suggests.
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P R O P E R T Y M A R K E T U P DAT E
HOUSE PRICES HIT NEW HIGHS, PROPERTIES SELL AT FASTEST PACE EVER.
BY W E N DY A L E X A N D E R , REINZ ACTING CEO
Median prices for residential property across New Zealand increased by 24.3% from $665,000 in March 2020 to $826,300 in March 2021 a new record high for the country. Additionally, 12 out of 16 regions reached record median prices and so did 32 districts, according to the latest data from the Real Estate Institute of New Zealand (REINZ), source of the most complete and accurate real estate data in New Zealand. Median house prices for New
from $595,000 in March 2020
Whanganui District ($521,000) all
Zealand excluding Auckland
to $730,000 in March 2021.
reached record median highs.
increased by 23.6% from $550,000
Additionally, Hamilton City
in March last year to $680,000, a
($780,000), Hauraki District
new record high for the country.
($590,000), Matamata/Piako
Auckland’s median house price increased by 18.5% from $945,000 in March 2020 to $1,120,000 in
District ($680,000), Waikato District ($720,000) and Waipa District ($801,000) all reached
• Tasman: with a 19.6% increase from $670,000 in March 2020 to $801,000 in March 2021. • Marlborough: with a 27.7% increase from $520,000 in March
record median highs.
2020 to $664,000 in March 2021.
Auckland. Additionally, Auckland
• Gisborne: with a 56.9% increase
• West Coast: with a 36.4% increase
City, Manukau City, North Shore
from $401,618 in March 2020 to
City, Papakura District and Rodney
$630,000 in March 2021.
March 2021 – a new record for
District all reached new record median highs. In addition to Auckland, 11 other regions reached record median prices. They were:
• Hawke’s Bay: with a 30.5% increase from $545,000 in March 2020 to $711,000 in March 2021. • Manawatu/Wanganui: with a 31.9% increase from $430,000 in March 2020 to $567,000 in
from $560,000 in March 2020
March 2021 – the ninth record
to $710,000 in March 2021.
median price in a row. Additionally,
Additionally, Whangarei ($723,000)
Horowhenua District ($575,000),
reached a new record median price.
Manawatu District ($565,000), Rangitikei District ($440,000) and
C21 MARKET PULSE
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$300,000 in March 2021 – the second record median price in a row. Additionally, Grey District ($289,250) and Westland District ($405,000) were record median
Northland: with a 26.8% increase
• Waikato: with a 22.7% increase
from $220,000 in March 2020 to
CENTURY 21
highs. • Canterbury: with a 17.8% increase from $488,000 in March 2020 to $575,000 in March 2021. Additionally, Christchurch City ($600,000), Timaru District ($430,000) and Waimakariri District ($565,000) all reached
ANNUAL ME DIAN PRICE CHANGES $
$
26.8%
18.5%
Record Median Price
NORTHLAND
AUCKLAND
$
NATIONAL MEDIAN PRICE:
$826,300
$
TARANAKI
MEDIAN DAYS TO SELL:
13.7%
28
24.5% BAY OF PLENTY
22.7%
56.9%
WAIKATO
21.2%
24.3%
$
GISBORNE
31.9%
$
36.4%
HAWKE’S BAY
24.9% $ WELLINGTON
19.6%
27.7%
TASMAN
MARLBOROUGH
17.8%
WEST COAST
$
$
30.5%
MANAWATU / WANGANUI
NELSON
$
$
$
CANTERBURY
12.2%
30.8%
SOUTHLAND
OTAGO Source: REINZ Monthly Property Report 15 April 2021 .
record median highs in March. • Otago: with a 30.8% increase from $535,000 in March 2020 to $700,000 in March 2021. Additionally, Central Otago District ($770,000), Clutha
reached a new record, increasing by
highest percentage of auctions the
$46,300 since last month, showing
country has ever seen since REINZ
just how much pressure has been
began keeping records showing just
placed on house prices and how we
how quickly the market is moving,”
desperately need more supply to
she continues.
come to the market.
“Looking forward over the next
District ($400,000), Dunedin City
“The Manawatu/Wanganui region
couple of months, we would expect
($650,000) and Queenstown-
has now had 9 record median
house prices to continue rising,
Lakes District ($1,185,000) all reach
prices in a row, 10 of the last 12
but we hope this will be at a slower
record median highs.
months were record or equal record
pace than we’ve seen over the
prices for the Waikato region, 7
last 6 to 12 months. Hopefully the
of the last 8 months were records
re-implementation of the LVRs,
for the Canterbury region and the
changes in government policy and
Auckland region has hit another
the move towards winter will slow
record median price. These sorts
the rate of growth down a little, but
of price rises are unsustainable
only time will tell what effect they
and show just why New Zealand
will have,” points out Alexander.
• Southland: with a 12.2% increase from $370,000 in March 2020 to $415,000 in March 2021. Additionally, Invercargill District reached a record median high of $430,000. Wendy Alexander, Acting Chief Executive at REINZ says: “March was another incredibly strong month from a price perspective with 12 regions and 32 districts across the country seeing record median prices. The national median also
continues to top the league tables of most unaffordable nations in international studies,” continues Alexander. “Additionally, we’re seeing houses sell at their fastest pace in a March month ever and we’ve seen the
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Click here to read the full article
SUMMER STANDS
NOT THE LAST OF THE SUMMER WINE FOR PROPERTY
“Real estate had a great summer, with the hot market not over yet. We might’ve started March with an Auckland lockdown and the return of LVRs, but buyer demand remains strong and listings are still short,” says Derryn Mayne, Owner of Century 21 New Zealand.
The number of residential
investment opportunities look less
properties sold in February across
appealing, the allure of property will
New Zealand increased by 14.6% to
continue for owner-occupiers and
7,964 when compared to the same
landlords alike.
time last year – the highest for the month of February in 14 years, according to REINZ’s latest data.
“March is already looking good, but it will really rely on more listings. We know that if we can
“There’s been a lot of talk that
get the listings, we can definitely
after a strong summer, autumn will
turn them into great sales. Those
look quite different. That certainly
Kiwis contemplating selling should
isn’t Century 21’s experience so
seriously consider this side of
far. First-home buyers are still
winter. The market is holding up
keen to make the most of record-
really well with demand for housing
low interest rates and investors
still incredibly strong,” says Derryn
REINZ’s Monthly Property Report
are keen to beat the 40% deposit
Mayne.
for February showed that ‘the
requirement from 1 May and any
unrelenting pace of property sales
other handbrakes the Government
continued’.
might introduce,” she says.
Median house prices across
The Century 21 leader says no
New Zealand were up by 22.8%
doubt there was a surge in February
compared to February 2020. Now
partly due to restrictions on loan-
at $780,000, it’s a new record high
to-value ratios (LVRs) returning
for the country. Auckland’s median
and some lift in listings nationwide,
house price increased by 24.3%
but it’s by no means the last of the
to $1,100,000 – also a new record
summer wine.
for Auckland. In fact, 12 out of 16 regions reached record median prices as did 37 districts.
“As long as interest rates remain low, rents stay high, and other
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