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P U L S E
F E B R U A R Y
M A R K E T
C21
PUBLISHER Century 21 New Zealand Ltd
CONTRIBUTORS Derryn Mayne Cameron Brewer Bindi Norwell
EDITORIAL ENQUIRIES Century 21 New Zealand +64 9414 6041
ADVERTISING ENQUIRIES Century 21 New Zealand +64 9414 6041
WELCOME TO THE
FEBRUARY 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 F E B R U A R Y
C21 NEW ZEALAND NEWS
02-03
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LOCAL REALTY ON TOP
It’s confirmed, property jets will be cooled.
Papakura’s Local Realty leads Century 21 awards.
CEO, Century 21 New Zealand, Derryn Mayne
Cameron Brewer
COASTAL BOOM
05
PROPERTY MARKET UPDATE
Covid ignites coastal property boom.
NZ’s housing market continues apace despite
Cameron Brewer
summer holidays. REINZ CEO, Bindi Norwell
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06-07
08-09
C21 NEW ZEAL AND NEWS
IT’S CONFIRMED, PROPERTY JETS WILL BE COOLED 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
Right now will arguably prove to be the best time to sell your house this year. Those contemplating listing a property would be wise to act sooner rather than later.
As I write, the Reserve Bank has announced what will happen to loan-to-value ratios (LVRs), which were removed temporarily last year after the first Covid-19 lockdown. Lower deposit requirements have since contributed to a surge in buyers and house prices, but their end is in sight. From 1 March, the Reserve Bank’s re-instated LVR regime will see 20% minimum deposit requirements for most owner-occupiers and 30% for property investors. However, from 1 May, 40% deposits will be required from 95% of investors.
With property investors now
Heading towards the end of
making up about 27% of all buyers,
summer demand remains strong,
putting the brakes on them will have
fuelled by record low interest rates
a demonstrable impact as has been
and considerably fewer properties
seen in the past.
available for sale.
Five years ago, when property
However, another Reserve Bank
investors were hit with a 40%
policy - the mortgage holiday
deposit requirement, it took many of
scheme - is coming to an end
them out of the market and helped
which will add pressure to tens
cool the jets somewhat. Combined
of thousands of Kiwi families. For
with major tenancy law changes,
nearly a year many have benefitted
which took effect on 11 February,
from the scheme, but it is set to
I think we’ll soon see many Kiwis
expire on 31 March.
pull back from buying a residential investment property.
Banks will endeavour to work positively with their customers, but
With REINZ reporting the
sadly there will be plenty of cases
median house price in Auckland
where banks or homeowners have
hit $1,040,000 in December,
little choice but to sell the
a mandatory 20% deposit
property. If we see a noticeable
requirement for first-home buyers
rise in exit or mortgagee sales, that
could mean over $200,000 for a
will only have a negative impact on
relatively humble house.
overall house prices.
Putting the brakes on first-home
With the Reserve Bank set to act, so
buyers will be hard on many young
too is the Government.
Kiwis. Sadly, it could mark the end of the road for them, unless the Government has a plan.
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Finance Minister Grant Robertson has made it clear the Government will take bold action when it comes
CENTURY 21
to housing – to be unveiled in
When you weigh up economic
May’s Budget. ‘The market has
uncertainty for the year ahead,
moved quickly and rapidly in a way
a shrinking buyer pool due to
that is not sustainable. We have to
borrowing restrictions, and more
confront some tough decisions, and
Kiwis surrendering their mortgages,
we will do that,’ Mr Robertson told
it’s easy to see why right now may
a business breakfast on 9 February.
well prove to be the best time to
We await with interest, as will
sell in 2021.
increasingly frustrated firsthome buyers.
One thing is definitely looking likely: Time is fast running out for
While REINZ’s sales data for
many first-home purchasers and
December had the country’s
property investors to get
average median house price up by
into the market with a smaller
19.3% compared to a year earlier, all
deposit. Note to prospective sellers:
things considered, I expect property
Don’t miss out on these highly
rises in 2021 to return to a more
motivated buyers!
sustainable track.
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CENTURY 21
50 YEARS OF SUPERIOR RESULTS For 50 years Century 21 has set the standard in real estate, achieving great results every time we sell a property. Thinking about selling? Get your free property appraisal and find out what your property is really worth.
Visit: https://www.C21.co.nz/request-an-appraisal
CELEBRATING 50 YEARS
C21 MARKET PULSE
05
CENTURY 21
COASTAL BOOM
COVID IGNITES COASTAL PROPERTY BOOM Covid-19 has been a key instigator in the explosion of interest for coastal properties over the past year. Owner of Century 21 New Zealand, Derryn Mayne, says Covid-19 has fast-tracked more people working remotely and lured more people to the coast. “Last year’s lockdowns showed a lot of Kiwis, and their employers or clients, that remote working is not only achievable, but a lot more acceptable. What’s more, the pandemic has spurred on a global appreciation for coastal living, greater human space, and the healthy outdoors generally,” says Ms Mayne. She says not only are coastal properties now popular, but so too are lifestyle blocks, and semi-rural communities with Century 21’s five Waikato franchises frantic albeit listings are still at a premium. “When you also consider that overseas travel is out, while interest rates remain at record low levels, the attraction of waterfront and coastal real estate makes total sense.
“People are also conscious that
Kapiti Coast. With remote working
the Reserve Bank is re-introducing
more achievable, even for many of
loan to value ratios (LVRs) in March.
the Capital’s public servants, more
With holiday homes viewed as
and more Wellingtonians are buying
investment properties, Kiwis are
a bolthole north of the city. New
keen to get in now before banks
Zealand’s babyboomers are now at
require bigger deposits from most
retirement age, meaning the likes
investors,” she says.
of Waikanae will only get bigger.
The Century 21 leader says as well as very low debt servicing costs, a coastal property is now more
Transmission Gully will further open up the wider Kapiti and Horowhenua area.
doable for many Kiwis thanks to
Inside of two hours for Aucklanders,
the likes of Bookabach, Bachcare,
and inside an hour for many in
and Airbnb. People can cover
Waikato, Raglan’s appeal continues
their expenses by letting out their
to get stronger, cementing itself as
holiday homes with domestic
the leading west coast surf town in
tourism demand strong.
New Zealand
“Sure, many people factor in
Not coastal as such, but Omori is
uncertainties about sea level rise
also worth singling out given the
and insurance, but in the end
rising prices Turangi’s Century 21
the pure attraction of waterfront
office in has experienced in the
property will always heavily
past year around the southern end
outweigh any future risks.”
of Lake Taupo. The Omori, Kuratau
Ms Mayne says over the past nine months the industry has observed Aucklanders getting priced out of Coromandel and Rodney. Many bach buyers are looking further afield, with the Bay of Islands, Coopers Beach, and Karikari Peninsula now taking off.
Century 21’s office in Raumati South is reporting a very buoyant
05
attract holidaymakers from all over the North Island, with many bach buyers now priced out of Taupo township. Mangakino too has enjoyed a significant boost in popularity in recent years. Derryn Mayne says while
At the other end of the North Island,
C21 MARKET PULSE
and Pukawa lakeside communities
CENTURY 21
uncertainties remain over 2021, those waiting for property prices to fall could be very disappointed.
LOCAL REALTY ON TOP
PAPAKURA’S LOCAL REALTY LEADS CENTURY 21 AWARDS Century 21 New Zealand has announced its real estate winners for the fourth quarter of 2020, which saw its high-energy Papakura franchise take out some key awards.
Local Realty sales stars Ishan Sikka,
Gadsby Realty, Te Awamutu); and
Anjali Amarasinghe, Kanwar Dhillon
Ishan Sikka (Local Realty, Papakura).
and Aman Kaushal also featured in the fourth quarterly awards. At the same time, Local Realty won Property Management Office for the Quarter under 250 (the highest number of new managements by an office with less than 250 managements).
“Franchise owners Gary Bal and Iresh Tennakoon only opened Century 21 Local Realty in late 2019. The team had an incredible first year in and around Papakura and have now played a starring role in Century 21’s latest awards,” says Derryn Mayne, Owner of Century 21 New Zealand. Local Realty won Top Office for the Quarter for both (Gross Closed Commission) and Units (the number of properties listed and sold), while Local Realty salesperson Kevin Ratnayake won Top Salesperson for the Quarter for both GCC and Units. He was also a Diamond sales award recipient, as were Gary Bal and Iresh Tennakoon.
Silver Awards went to Anjali Amarasinghe and Kanwar Dhillon (Local Realty, Papakura); Dominic Fa’anoi (The Moshi Group, Wellington); Alan Young (Century 21 Sunrise Realty, Meadowlands); Andrew Pugh (Century 21 Premier, Palmerston North); and Patrick
Also featuring prominently in Century 21’s latest awards was Century 21 The Moshi Group in Wellington Central. Alen Moshi took out Top Principal for the Quarter for both GCC and Units and won a Diamond sales award. The Moshi Group’s Jeh Wasti also received a Diamond award.
Barry (Century 21 Premier, Turangi). “Century 21 in Turangi received huge publicity early in the fourth quarter, after Patrick Barry sold a former ‘hydro house’ for 137% more than what the vendor had paid in 2017. In fact, 2020 saw some huge price lifts, particularly among our regions and small towns,”
The Platinum sales award went to Ian Pepper (Century 21 Rural & Residential Real Estate, Huntly).
says Ms Mayne. Bronze Awards went to Barbara Craig (Rural & Residential Real
Gold Awards went to Winson He
Estate, Huntly); Rebecca Fraser
(Century 21 Queen Street Realty,
and Gaile Para (Gadsby Realty, Te
Auckland); Rod Hull (Century
Awamutu); Gary Matthews (Century
21 Platinum, Tuakau); Christine
21 Gold Real Estate, Manurewa);
Stevens (Century 21 Stevens Realty,
and Aman Kaushal (Local Realty,
Mangakino); Eli Gadsby (Century 21
Papakura).
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Property Management Office for
Administration Team Member of
franchises continued to excel,
the Quarter over 250 was awarded
the Quarter went to Molly Johnson
delivering great outcomes for
to Century 21 Edwards Realty
(Premier, Turangi) and Personal/
buyers and sellers alike. 2021 is now
in Botany. At the same time at
Sales Assistant of the Quarter was
off to a flying start,” says Derryn
Edwards Realty, Vicki Southgate
awarded to Emma Hey of Stevens
Mayne.
won Property Manager of the
Realty, Mangakino.
Quarter, Annette Edwards received the Quality Service Award, and the Recognition Award went to Nidhi Chadha.
Photos: Century 21 Local Realty’s official
“The fourth quarter saw a General
opening in Papakura, December 2019:
Election and property listings
Gary Bal, Local MP Hon Judith Collins,
incredibly limited. Nonetheless,
and Iresh Tennakoon.
Century 21’s salespeople and
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P R O P E R T Y M A R K E T U P DAT E
NZ’S HOUSING MARKET CONTINUES APACE DESPITE SUMMER HOLIDAYS
BY BINDI NORWELL, REINZ CEO
Despite most New Zealanders taking a summer holiday in January, the housing market was busier and more buoyant than we would usually see at this time of the year, 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 across
In January, four regions saw record
($621,000) all reached record
New Zealand increased by 19.3%
median prices and one region saw
median highs in January.
from $612,000 in January 2020
a record equal. Regions with record
to $730,300 in January 2021.
median prices were:
• Taranaki: with a 23.8% increase
While median prices were down
from $420,000 in January 2020
marginally from December, house
• Bay of Plenty: with a 13.1%
to $520,000 in January 2021.
prices held up better than we would
increase from $680,000 in January
Additionally, New Plymouth District
normally expect when moving from
2020 to $769,000 in January
($600,000) and South Taranaki
December to January as indicated
2021. Additionally, Kawerau
District ($395,000) reached record
by REINZ’s seasonally adjusted
District ($367,000), Rotorua
median highs in January.
median pricing data which
District ($600,000), Tauranga City
showed a 2.0% lift.
($854,000) and Western Bay of
• Nelson: with a 19.2% increase
Plenty District ($793,500)
from $597,500 in January 2020
Median house prices for New
all reached record median
to $712,500 in January 2021.
Zealand excluding Auckland
highs in January.
Manawatu/Wanganui was a
increased by 14.7% from $525,000 in January last year to $602,000.
record equal remaining on the • Hawke’s Bay: with a 25.9% increase
same median price as December
from $550,000 in January 2020
2020 at $525,000. Additionally,
Auckland’s median house price
to $692,500 in January 2021.
Horowhenua District ($530,000),
increased by 14.9% from $870,000
Additionally, Central Hawke’s Bay
Manawatu District ($560,000),
at the same time last year to
District ($590,000), Napier City
Palmerston North City ($650,000),
$1,000,000.
($770,000) and Wairoa District
Ruapehu District ($391,000) and
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ANNUAL ME DIAN PRICE CHANGES $
22.6%
14.9%
NORTHLAND
AUCKLAND
Record Median Price
BAY OF PLENTY
10.1% $
NATIONAL MEDIAN PRICE:
$730,300
GISBORNE
25.6%
TARANAKI
19.3%
$
19.2%
17.5%
WAIKATO
23.8%
25.9%
MANAWATU / WANGANUI
35
27.7%
13.0% 10.6%
$
HAWKE’S BAY
NELSON
MEDIAN DAYS TO SELL:
$
13.1%
14.6%
TASMAN
WELLINGTON
MARLBOROUGH
9.7%
WEST COAST
CANTERBURY
11.4%
15.0%
SOUTHLAND
OTAGO Source: REINZ Monthly Property Report 16 February 2021 .
Whanganui District ($485,000)
“Additionally, the fear of future
adjusted perspective, house prices
all reached record median highs
price rises and the fear of missing
were actually higher than we would
in January.
out lingers deep in buyers’ minds
normally expect at this time of
and is impacting people’s buying
the year (+1.7%). North Shore City
behaviour as January saw a
($1,255,000) and Rodney District
continuation of properties selling
($1,100,000) again reached new
at a rapid pace. Last month,
record median prices showing how
residential properties sold at t
there is still strong competition for
heir fastest pace for a January
good properties in the region and
month in 17 years, carrying on
how affordability continues to be an
the pattern we’ve seen over the
issue,” points out Norwell.
Bindi Norwell, Chief Executive at REINZ says: “Usually, in January the residential property market slows down, and prices ease off a bit as people head to the beach for their summer holidays. However, the first month of 2021 was anything but normal, as house prices across the country have continued to rise with January seeing four regions reach new record median prices and one region equal its December record. Furthermore, 27 districts around the country reached new record high median prices, with 13 of those districts exceeding last month’s record.
past few months and therefore continuing to impact pricing. “The Auckland market saw a slight cooling off in prices when compared to the record high we saw in December 2020, which is what we would expect at this time of the year. Interestingly, when we look at the data from a seasonally
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