J U L Y
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 Cameron Brewer Jen Baird Home Beautiful
EDITORIAL ENQUIRIES Century 21 New Zealand +64 9414 6041
ADVERTISING ENQUIRIES Century 21 New Zealand +64 9414 6041
WELCOME TO THE
JULY 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 J U L Y
C21 NEW ZEALAND NEWS
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PROPERTY MARKET UPDATE
Survey reveals cooling policies still not working.
House prices continue to rise across the country,
Century 21 New Zealand, Derryn Mayne
defying expectations.
06
CEO, REINZ, Jen Baird
COUNCIL VALUATIONS
03 BATHROOM TIPS
Release of council valuations can’t come soon enough.
Seven ways to make the most of a small bathroom.
Cameron Brewer
Home Beautiful
ROCKETING REALTORS
04
Pakura realtors rocketing with trademark energy. Cameron Brewer
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C21 NEW ZEAL AND NEWS
SURVEY REVEALS COOLING POLICIES STILL NOT WORKING Government and Reserve Bank policies aimed at cooling down the housing market have seemingly lost some of their impact, with real estate agents now reporting a bounce.
B Y D E R R Y N M AY N E , CENTURY 21 NEW ZEALAND
tax deductibility for investors. It
its extra rules and restrictions, is
has also extended the bright-line
seeing ‘mum and dad’ property
test to 10 years which sees any
investors opting for the likes of
capital gains taxed if an investment
commercial property syndications
property is sold within a decade.
instead.
While fewer investors arelooking,
An ongoing housing shortage and
the survey notably reported there
record low interest rates continue to
is ‘no wave of investor selling
drive buyer demand.
July’s REINZ & Tony Alexander
underway’.
Real Estate Survey was recently
Investors haven’t all gone. There
home buyers, as well as next-home
released. It revealed a net 53%
are still plenty buying and very few
buyers making the most of the
of agents continue to feel that prices are rising in their area, compared to 32% last month. At the same time, a gross 60% feel that FOMO (fear of missing out) remains a factor for buyers
We’re still seeing plenty of first-
are selling! Residential property remains a
The survey showed there is still a high net 52% of agents who say they are seeing fewer investors in the market.
– up from 51%. The survey showed there is still a high net 52% of agents who
very safe haven for returns over the medium to long term. However, without doubt Government policy is squeezing investors
and that’s really starting to impact their decision making.
say they are seeing fewer investors
Many of Century 21’s franchises
in the market.
nationwide oversee large property
That is to be expected given the
management portfolios. Some
Government is scrapping interest
report the new Residential Tenancies Amendment Act, with
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low interest rates. For as long as servicing a mortgage remains, in many cases, cheaper than paying rent, there will be plenty of buyers. All eyes will be on REINZ’s median sales price statistics for June. One prediction, however, looks at odds with reality. Treasury’s forecast of house price growth falling to 0.9% by June 2022, as announced in May’s Budget, seems increasingly unlikely. It’s a very positive real estate market for the middle of winter, with many agents reporting prices on the up and strong buyer FOMO. The biggest problem for now is the lack of listings. www.century21.co.nz
C O U N C I L VA L U AT I O N S
RELEASE OF COUNCIL VALUATIONS CAN’T COME SOON ENOUGH “The sooner Auckland Council releases the latest capital values, or CVs, for the region’s 560,000-plus properties, the sooner more Aucklanders can buy and sell,” says one real estate principal.
Mayne, Century 21 New Zealand. She says the most disadvantaged by the delay are those property
date. Revised values will reflect a property’s estimated worth on 1 June 2021.
owners who may have bought a
While the council says it uses these
newbuild or built a house since 2017
valuations as ‘a guide for setting
and have been trying to sell without
your rates’, it also cautions that ‘a
a CV at all.
change in a property’s capital value
“It’s not the end of the world, because independent and market valuations can be easily sought.
does not automatically mean rates will increase or decrease because of that change’.
It has been one year since Auckland
Nonetheless, when you’re a vendor
Ms Mayne says while 2021
Council officially asked the Valuer
hoping for top dollar in this current
valuations will help many, there’s
General if it could delay its triennial
price boom, it’s harder to argue
nothing to panic about, particularly
revaluation of properties. It followed
when there’s no baseline in the
around rates. Aucklanders’ property
Covid-19’s impact last year on the
sand,” says Ms Mayne.
CVs are likely to change a lot, but as
council’s ability to source reliable market data.
Ms Mayne says the company’s franchises and agents are also
in the past, their subsequent rates bill will likely be moderated.
Permission to delay by 12 months
hearing from frustrated property
“There’s no need to race off and
was granted, with Auckland Council
purchasers, particularly first-home
buy or sell on the sole basis of what
set to issue CVs from October this
buyers.
might happen to your rate’s bill.
year. It has been four years since Auckland’s properties received their last CVs, with many sales prices up over 35% since then.
“Buyers sitting in the bank trying to borrow for a million-dollar property have to try and explain away its $650,000 CV. Everyone knows
After the 2021 CVs land, how the burden of rates is spread is a debate and decision for Auckland Council next year.
“For different reasons, plenty of
the CVs are 2017 and outdated,
“Given it’s also the local body
Aucklanders are hanging out for
nonetheless their mere appearance
elections next year, the 12-month
these new CVs. For buyers, CVs can
can be frustrating,” she says.
delay in CVs could in the end prove
help determine how much money they can borrow. For sellers, an upto-date CV can help them achieve the best market price,” says Derryn
Auckland Council says revaluations will be available via aucklandcouncil.
very useful to ratepayers,” says Derryn Mayne.
govt.nz from October and sent to all rates properties after that
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www.century21.co.nz
ROCKETING REALTORS
PAPAKURA REALTORS ROCKETING WITH TRADEMARK ENERGY Century 21 Local Realty in Papakura is not even two years old, yet the South Auckland franchise has taken away many Australasian sales awards, including Century 21 New Zealand’s Top Office for 2020. The first inkling of success was the energy in the room when
Local Realty
coming on stream in Papakura,
hard to better understand and
Takanini, Karaka and Drury –
connect with the different
identified in Auckland’s Unitary Plan
communities and the many
as some of the region’s most critical
residential developments underway
residential growth areas.
or planned. Subsequently, their
After a stunning start in 2019, the country then saw lockdowns in 2020. Given the huge business
sales team has sold plenty of townhouses to very happy firsthome buyers.
jump they’d just taken, not to
“We never want to be those agents
mention their total commitment to
where vendors have to tell them
their close-knit sales and support
everything that’s going on locally.
team, they were worried. It didn’t,
We want to be the guys who have all
however, last long.
the information at their fingertips. Given the speed of growth and
franchise owners Gary Bal and
Their big blitz of social media and
Iresh Tennakoon officially opened
bus-back marketing paid off. New
their offices. The 2019 occasion
Zealand’s real estate rallied more
saw a huge crowd in attendance for
than anyone could anticipate, and
the ribbon cutting on Papakura’s
the Local Realty team well and truly
Broadway by local MP Judith
rose to the occasion.
Collins.
“We both have a huge passion
Since then, their rise has been
for sales and marketing, and it’s
meteoric, including the Papakura
fair to say we’ve taken it to the
franchise being named in the
next level. People ring us up and
Top 21 offices across Century 21
say ‘you guys are everywhere.
Australasia - no small feat given
We love your enthusiasm, and so
“Gary and Iresh had fantastic
the strength of the brand across the
can you appraise our house?’ We
business foresight to establish a
Tasman.
love it when people notice the
new franchise in such a strategic
genuine effort we put in,” says Iresh
part of Auckland, cementing
Tennakoon.
Century 21 as an increasingly
In fact, it was Century 21’s global rebranding and image refresh that
change in the south, knowing what’s planned for the wider neighbourhood is really important to both vendors and buyers alike,” says Mr Bal. Derryn Mayne, Century 21 New Zealand, says the arrival of Local Realty has been hugely positive for the industry and has been well noted by competitor companies.
powerhouse in the south.
attracted the experienced realtors
Gary Bal says behind all the fun
to take a C21 NZ franchise. Another
and social media videos, the Local
“Not only are they superior
key factor was the sheer activity
Realty team has worked incredibly
marketers, but they offer incredible
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personalised service which sees them getting a tonne of referral and return business,” says Ms Mayne. She says Century 21’s global reputation and reach will continue to attract other high-performing salespeople to consider franchise ownership. In fact, opportunities to set up new and successful Century 21 businesses are available in many other parts of the country.
If you would like to get in touch with either Gary or Iresh you can contact them via: Gary Bal - Owner of Century 21 Local Realty - (027) 604-0504 Iresh Tennakoon – Owner of Century 21 Local Reality - (027) 453-0333
papakura.century21.co.nz
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Above: Local MP Judith Collins officially cuts the ribbon on Century 21 Local Realty on Broadway, Papakura in 2019. Below: Century 21’s Derryn Mayne with Papakura’s franchise owners Iresh Tennakoon and Gary Bal.
P R O P E R T Y M A R K E T U P DAT E
HOUSE PRICES CONTINUE TO RISE ACROSS THE COUNTRY, DEFYING EXPECTATIONS
BY J E N B A I R D, REINZ CEO
Median prices for residential property across New Zealand increased by 28.7% from $637,000 in June 2020 to $820,000 in June 2021, 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. Additionally, 5 out of 16 regions
Additionally, Matamata-Piako
reached new record median prices,
District ($665,500), Taupo District
1 region saw an equal record and
($730,000), Waikato District
20 districts reached new record
($785,000) and Waitomo District
median highs.
($420,000) all reached record
The median house price for New
median highs.
Even the month-on-month data has shown a slight uplift (+0.3% nationally), and more than half of the regions saw an uplift when compared to May suggesting that
Zealand excluding Auckland
• Taranaki: with a 41.5% increase
increased by 25.9% from $540,000
from $410,000 in June 2020 to
in June last year to $680,000 in
$580,000 in June 2021.
June 2021.
outright records in June.
the market is refusing to cool. “Once more, we’re seeing this story echoed by some very strong results
• Marlborough: with a 56.0%
in the REINZ House Price Index
Auckland’s median house price
increase from $452,000 in June
(HPI), which again reached a new
increased by 25.0% from $920,000
2020 to $705,000 in June 2021.
high on the index. Every region saw
in June 2020 to $1,150,000 in June 2021 – another new record for Auckland. Additionally, Manukau City ($1,070,000), Rodney District ($1,194,000) and Waitakere City ($1,065,000) reached new record median prices. In addition to Auckland, 4 other regions reached record median prices and 1 region was a record equal. They were: • Waikato: with a 19.7% increase from $615,000 in June 2020 to $736,000 in June 2021.
• Southland: with a 23.2% increase from $341,000 in June 2020 to $420,000 in June 2021. • Manawatu/Wanganui: with a 35.6% increase from $427,600 in June 2020 to record equal high of $580,000 in June 2021. Jen Baird, Chief Executive at REINZ says: “House price rises have continued to defy expectations with every region in the country seeing an uplift in median house prices when compared to the same time last year, and five regions seeing
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an uplift in HPI values compared to the previous month – and the three months prior – suggesting that the market will hold strong for a few more months yet,” continues Baird. “Those buyers hoping for a bargain over winter might be disappointed, and today’s data really points to how important it is to address the housing supply issues we have,” she continues. “We’ve talked about FONFA (the fear of not finding anything) before, but with less than 14,000 properties
ANNUAL ME DIAN PRICE CHANGES $
$
32.6%
25.0%
NORTHLAND
AUCKLAND
Record Median Price
$
$
NATIONAL MEDIAN PRICE:
15.3%
37.5% GISBORNE
$
TARANAKI
28.7%
19.7% WAIKATO
41.5%
$820,000
31.3% BAY OF PLENTY
35.6%
25.1%
MANAWATU / WANGANUI
HAWKE’S BAY
29.2%
NELSON
MEDIAN DAYS TO SELL:
$ WELLINGTON
25.4%
31 29.1%
56.0%
TASMAN
MARLBOROUGH
21.1%
WEST COAST
$
CANTERBURY
23.2%
17.3%
SOUTHLAND
OTAGO
Source: REINZ Monthly Property Report 13 July 2021 .
available for sale, this is becoming
29.0% year-on-year (from 2,144 to
Hawke’s Bay: -23.0% (from 243 to
a real issue across parts of the
2,766) – the highest for the month
187 – 56 fewer houses) – the lowest
country – especially when houses
of June in 15 years.
for a June month in 7 years.
In June, 6 regions out of 16 saw
Southland: -22.7% (from 203 to 157
annual increases in sales volumes.
– 46 fewer houses)
are selling as quickly as they are at the moment,” points out Baird. “Looking at the Auckland picture,
In addition to Auckland, regions
we’ve seen another record median
with increases were:
price and three districts reach new record medians showing how strong the Auckland market is,” she continues. The number of residential properties sold in June across New Zealand increased by 6.2% when compared to the same time last year (from 6,913 to 7,345) – the
10 fewer houses) – the lowest for a
• Northland: +16.1% (from 174 to 202 – 28 more houses) – the highest for a June month in 5 years.
cool the property market, June saw
June month in 5 years.
the highest number of properties
• Tasman: +7.8% (from 64 to 69 – 5 more houses) – the highest for a
• Nelson: +2.7% (from 75 to 77 – 2
For New Zealand excluding
more houses).
Auckland, the number of properties
• Canterbury: +7.8% (from 952
lowest for a June month in 2 years. In Auckland, the number of properties sold in June increased by
LVRs just a few months ago and the
17 more houses) – the highest for a
years.
year (from 4,769 to 4,579) – the
“Despite the reintroduction of the 23 March announcements to try and
June month in 3 years.
compared to the same time last
June month in 7 years.
• Taranaki: +9.6% (from 178 to 195 –
highest for a June month for 5
sold decreased by 4.0% when
Gisborne: -18.5% (from 54 to 44 –
to 1,026 – 74 more houses) – the highest for a June month in 15 years. Regions with the biggest annual decrease in sales volumes were:
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sold across the country in a June month for 5 years highlighting the underlying strength in the market,” says Baird.
Click here to read the full report.
BAT H R O O M T I P S
SEVEN WAYS TO MAKE THE MOST OF A SMALL BATHROOM Make sure your cosy bathroom reaches its potential with savvy design ideas that push the boundaries to deliver big appeal.
BY HOME BEAUTIFUL
Sliding doors aren't intrusive and can
recess into a 900mm x 900mm
be pushed back when not in use.
space, but 900mm x 1200mm is far more comfortable
2. ADD LITTLE LUXURIES
• The dimensions of an average bath
Smaller proportions can offer big
are 1500mm x 720mm x 400mm
benefits. With less space your
deep
budget will stretch further, opening
• For comfort and ease of cleaning,
Space is often at a premium
up possibilities for bespoke finishes,
in powder rooms and second
designer tiles and tap-ware. Luxuries
bathrooms, yet this doesn't have
aren't lost either. Heated towel rails,
to affect style and functionality.
beautiful accessories and fragrant
When planning an update, start by
candles work wonderfully together
nearest wall or other objects
creating a floor plan to determine
to create a mini pamper zone. If it's a bathroom just for two, the
• The minimum distance between
the dimensions you have to work with and what will fit in. Here are
sense of intimacy can be further
seven key design ideas to stretch
accentuated with double shower
your space and inject plenty of
heads and basins, furniture for bath-
style.
side conversations and vanities with personalised features such as smart
1. TAKE STOCK Consider who will be using the room, how often and what you need. "If it
speakers and LED lighting.
and more durable finishes will be a
and comfortable, factor in sufficient
top priority," says Darren James of
spacing between fittings and
Interiors By Darren James. "If it's a
fixtures. Use these guidelines as a
guest bathroom or powder room, it's
rule of thumb:
more luxurious feel." Where space is limited, you'll need to consider all the angles. "Ensure you allow adequate clearance for bathroom and shower doors and don't forget vanity unit doors, too," advises Belinda Geels of Reece.
the back wall of the toilet and the opposite wall is generally 1500mm however, spacing requirements are influenced by the location of the doorway and position of the toilet.
the larger the room will feel, so opt for floating cabinetry and vanities and wall-mounted basins and accessories," suggests Lee Hardcastle of Enigma Interiors. "If you only have room for a shower,
• The standard size of a powder room with a toilet and small vanity is 2m x 1m. • The average size of a small bathroom is 3m x 2m, a standard bathroom 3.5m x 2.5m and a large one 4m x 5m. • At a squeeze, you can fit a shower
C21 MARKET PULSE
the front of the basin and the
"The more floor you can see,
3. KEY MEASUREMENTS For a bathroom to be user-friendly
the focus can shift to creating a
• Ideally, leave one metre between
4. SHOW OFF THE FLOOR
is a second family bathroom, storage
likely to be used less and therefore
allow 450mm either side of the toilet
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ensure it's as spacious as possible by creating a wet area with a frame-less screen." If you have room for a bath, free-standing styles with feet create a feeling of space. When it comes to toilets, in-wall cisterns are the least obtrusive on a floor plan.
Click here to read the full article
Visit: C21.co.nz
CELEBRATING 50 YEARS