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P U L S E
S E P T E M B E R
M A R K E T
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
SEPTEMBER 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 S E P T E M B E R
C21 NEW ZEALAND NEWS
02-03
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SPRING SELLING
Spring looking strong for real estate.
Property prices above expectations in regions.
CEO, Century 21 New Zealand, Derryn Mayne
Cameron Brewer
MORTGAGE DEFERRAL SCHEME
04
PROPERTY MARKET UPDATE
Mortgage holidays confirmed until end of March.
Record median house prices for half of NZ.
Cameron Brewer
REINZ CEO, Bindi Norwell
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SPRING LOOKING STRONG FOR REAL ESTATE 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
September is looking up, following a very strong August for real estate across New Zealand. Just months ago, few would’ve expected such positivity in and around property prices going into spring. In fact, Auckland’s latest lockdown is now a distant memory.
on 12 months ago. Amazingly, so
lower and prices in the regions
many regions, districts and cities
doing extremely well despite what
have also achieved record median
many pundits’ predicted.
prices in August. New Zealand’s property market is proving to be very resilient, with the
be stronger than many anticipated. The wage extensions,
Property Report for August which
the General
shows median house prices
Election’s
across New Zealand up by 16.4%,
deferral to 17
compared to August 2019.
October, and the
Auckland’s annual median house
mortgage holiday
while seven other regions also enjoyed record median prices
we operated safely
season set to
REINZ has released its Monthly
$950,000 - a new record high,
Century 21’s offices under Alert Level 2, and in Auckland
coming summer
subsidy
price increased by 16.0% to
Activity has remained strong for
"Trade Me data recently released showed property prices had their biggest year-on-year increase in over three years..."
Alert Level 3 for nearly three weeks last month. Under Level 2 the real estate industry has done well to observe the
likes of two-metre
scheme now running through to 31 March 2021 have all helped to keep real estate buoyant in August
during August. What’s more,
and September.
Auckland was up 3.5% on the
The property market’s key
previous month.
fundamentals remain in great
Every region has seen an increase
shape, with mortgage rates never
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and effectively in
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social distancing, ensure a contact tracing system is in place at an open homes, and restrict auction attendance numbers. Century 21 offices in the likes of Waikato have continued to experience high demand, with some great prices being achieved regardless of Level 2 or any
uncertainty caused by Covid-19. In
biggest year-on-year increase in
buyers securing record-low interest
fact, most of the regions continue
over three years, with the national
rates, and investors seeking better
to go from strength to strength.
asking price for July up 9% on the
returns.
Spring is always a good time to sell
same time last year.
It’s the perfect time to market your
property, and this one more so,
There’s no doubt that Auckland has
house with limited competing
particularly when you consider the
steadied in parts, but that in itself
listings, but strong buyer demand.
current lack of listings. It’s safe to
creates opportunities for the likes of
At the same time, any prospective
assume we’ll now see some extra
first-home buyers and investors.
buyer waiting for a big fall in prices
springtime activity, helped by some pent-up demand in Auckland after its August lockdown.
Industry statistics keep proving that property is holding up well and the time to act is now! There are plenty
Trade Me data recently released
of families keen to move, empty
showed property prices had their
nesters downsizing, first-home
probably needs to rethink their strategy. Securing a good property now will always prove a great investment.
AU G U S T AV E R AG E H O U S E VA L U E S Source: PropertyValue by CoreLogic (New Zealand) www.propertyvalue.co.nz/property-trends/residential-house-values
$750,000 $700,000 $650,000 $600,000 2016
2017
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2019
2020
MORTGAGE DEFERR AL SCHEME
MORTGAGE HOLIDAYS CONFIRMED UNTIL END OF MARCH “Extending mortgage holidays until the end of March is positive news for homeowners and the real estate industry generally. Things are now looking more workable,” says Derryn Mayne, Owner of Century 21 New Zealand.
for Australian homeowners by
“With a triple whammy averted for
another four months.
September, this could’ve been a spring of discontent for thousands
Initially the Reserve Bank announced on 24 March a sixmonth principal and interest payment holiday for mortgage holders and SME customers whose incomes had been affected by the economic disruption from Covid-19. As of 30 June, nearly 60,000 Kiwis
The real estate leader’s comments followed the Minister of Finance recently announcing a sixmonth extension to the
had deferred their payments on the likes of mortgages, while a further 79,000 had reduced their payments servicing home loans, personal lending or
mortgage deferral scheme. The Government, Reserve Bank and retail banks agreed to a six-month holiday which was due to expire on 27 September. It will now run until 31 March 2021.
“With the General Election and applications closing on the wage subsidy scheme still happening this spring, extending
mortgage holidays until the end of the first quarter next
This follows banks in Australia
year is a no-brainer. We need to
agreeing in July to extend their six-
first get over these two big humps,
month mortgage holiday scheme
and it will mean a brighter summer!
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extension of mortgage holidays will help preserve the real estate market and property values overall,” she says. The Century 21 boss says the underlying strength of New Zealand property continues to prove itself, with industry statistics still showing that any doom and gloom forecast back in March and April has yet to be seen. “There was a perfect storm brewing
debt.
"...this extension of mortgage holidays will help preserve the real estate market and property values overall."
of homeowners. However, this
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on the horizon this spring, but the Reserve Bank has again acted decisively which will only help overall confidence in the market,” says Derryn Mayne.
SPRING SELLING
PROPERTY PRICES ABOVE EXPECTATIONS IN REGIONS “Most regions are now seeing properties flying out the door and many houses fetching well above any asking price or expectation,” says Derryn Mayne, Owner of Century 21 New Zealand.
insulated by the likes of the wage
from our Waikato offices, of
subsidy and mortgage holiday
places selling within days via very
schemes. However, most of our
competitive multi-offers, with
offices in regional New Zealand
plenty of properties selling well
could not have foreseen such a
in excess of both the vendors and
buoyant spring. It will certainly help
agents’ expectations.
set up plenty of activity this coming summer,” says Ms Mayne.
Century 21 agents are also reporting people keen to move out of the
Recently ASB significantly revised
cities, with coastal and lifestyle
its forecast on house price falls. It
properties proving popular in the
Her comments come as REINZ
now expects national house prices
current Covid-19 environment.
released September’s REINZ &
will fall by 2.8% by March next year
Tony Alexander Real Estate Survey.
compared to their previous
Agents report more people are
forecast of a 6% drop overall.
attending auctions and open homes,
Others are expecting prices to
with listings still in short supply.
start rising again in 2021, with
Far fewer investors now believe that
economists anticipating the Reserve
they will find bargains, fewer b
Bank will cut the Official Cash Rate
uyers generally retain fears that
to below zero next year, pushing
prices will fall, and a net 81% of
already record-low interest rates
agents say that they are seeing
down further.
property prices rising.
Ms Mayne says recent REINZ
The Century 21 boss says six
figures show while Auckland
months ago economists thought the
property buyers are paying on
sky was going to fall when it came
average 5% over their 2017 CVs,
to the property market, but many
many regions are paying miles
are now revising their ‘doom and
higher with Gisborne seeing
gloom’ forecasts.
residential properties selling on
“Our Covid-19 economy has certainly got a long way to go and the market has been somewhat
average for 71% higher than current CVs - the highest in the country. “We are hearing stories, particularly
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“Many people now realise they can work from home very effectively and in many cases more productively and for cheaper. Subsequently, we’re seeing people selling up in the bigger cities, freeing up a bit of equity, and opting for an easier lifestyle with more space and less people. “What’s more, no overseas holidays in the foreseeable future sees more Kiwi families looking at holiday houses and baches instead, knowing that strong domestic travel will give them good ‘bookabach’ income too,” she says. It seems any vendor opting to sell their property this spring is set to get plenty of market attention.
P R O P E R T Y M A R K E T U P DAT E
RECORD MEDIAN HOUSE PRICES FOR HALF OF NZ BY BINDI NORWELL, REINZ CEO
Median house prices across New Zealand increased by 16.4% in August to $675,000, up from $580,000 in August 2019 and up from $659,000 in July (a 2.4% lift) and every region in the country saw an annual increase in median house prices, according to the latest data from the Real Estate Institute of New Zealand (REINZ). Median house prices for New
• Waikato with a 16.7% increase
• Canterbury with a 13.0%
Zealand excluding Auckland
to $628,000 up from $538,000
increase to $497,000 up from
increased by 14.2% to a new record
at the same time last year, and
$440,000 at the same time last
median price of $570,000, up from
the fourth record median price in
year. Additionally, 2 Districts
$499,000 in August last year and
a row. Additionally, 3 districts
within the Canterbury region saw
up from $557,500 in July this year.
in the Waikato region saw record
record median prices –
median prices – Matamata-Piako
Ashburton District ($391,500)
District ($587,000), Otorohanga
and Waimakariri District
District ($418,500) and Waipa
($515,000)
District ($715,000)
Additionally, Auckland’s median house price increased by 16.0% to $950,000 a new record high up from $819,000 at the same time
• Otago with a 17.2% increase to
last year, and up from $918,097 in
• Manawatu/Wanganui with a
$580,000 up from $495,000 at
July this year (a 3.5% increase).
the same time last year
Over and above Auckland, 7 regions saw record median prices during August: • Northland with a 16.6% increase
to $590,000 up from $506,000
at the same time last year.
Additionally, Whangarei District
saw a record median price of
$610,000
15.1% increase to $450,000 up
from $391,000 at the same time
last year. Additionally, 3 Districts
within the Manawatu/Wanganui
region saw record median prices
– Tararua ($320,000), Manawatu
($535,000) and Whanganui
($375,000) • Taranaki with a 15.3% increase to
$451,000 up from $391,000 at
the same time last year
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• Southland with a 20.3% increase
to $373,000 up from $310,000
at the same time last year.
Bindi Norwell, Chief Executive at REINZ says: “For the last few weeks we’ve been hearing reports from around the country of vendors achieving good prices for the sale of their homes; but we would never have guessed that 8 regions and 17
Districts/Cities across the country
“The combination of low interest
In Auckland, the number of
would see record median prices just
rates, the removal of LVRs, the lack
properties sold in August increased
4 months after the entire country
of listings, people’s aspiration to
by 44.2% year-on-year (from 1,812
was in lockdown. The housing
have more space/a bigger backyard,
to 2,612) – the highest for the
market’s recovery post-lockdown
catch up post lockdown and first
month of August in 5 years.
over the last few months has been
time buyers’ desire to get onto the
astonishing and has certainly
market have all contributed to the
surpassed many predictions.
uplift in prices we’ve seen over the
“For many parts of the country, August was an extremely busy month sales volume wise, with
last few months. Unless we see
“August saw record median prices
the highest number of properties
more listings come to the market
in Rotorua District ($510,000),
sold for the month of August in
before Christmas, we may start to
Tauranga City ($745,000), Lower
fi ve years bolstered by an uplift in
see additional pressure on house
Hutt City ($670,000), Upper
sales volumes in Auckland, Nelson,
prices and affordability,” points
Hutt City ($663,200), Papakura District ($775,000), Rodney District
Southland and Hawke’s Bay.
out Norwell.
$
ANNUAL ME DIAN PRICE CHANGES $
$
AUCKLAND
$
Record Median Price
$
$675,000
15.3% 2.2%
11.0% BAY OF PLENTY
16.7%
9.5%
WAIKATO
GISBORNE
$
TARANAKI
NATIONAL MEDIAN PRICE:
15.1%
20.1%
MANAWATU / WANGANUI
HAWKE’S BAY
12.8%
NELSON
16.4%
9.1%
MEDIAN DAYS TO SELL:
34
16.0%
16.6% NORTHLAND
18.1%
13.2%
TASMAN
MARLBOROUGH
$
WEST COAST
$
Source: REINZ Monthly Property Report 11 September 2020.
WELLINGTON
20.3%
$
SOUTHLAND
13.0% CANTERBURY
17.2% OTAGO
($961,000) and Waitakere City
The number of residential
Overall, there were 1,520 more
($890,000),” continues Norwell.
properties sold in August across
residential properties sold this
New Zealand increased by 24.8%
August than last August which
from the same time last year
equates to an additional 49
(from 6,132 to 7,652) – the highest
properties sold a day which is
number of properties sold in an
pretty incredible,” says Norwell.
“At this point last year, the Hawke’s Bay region had not had a median price over the $500,000 mark and now the region is extremely close to exceeding the $600,000 median
August month for 5 years.
mark. It’s a similar picture in Otago,
For New Zealand excluding
where the region had only seen one
Auckland, the number of properties
month with a median price over the
sold increased by 16.7% when
$500,000 mark and now, it’s closer
compared to the same time last year
to the $600,000 mark than the
(from 4,320 to 5,040) – the highest
$500,000 mark,” she continues.
for the month of August in 4 years.
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