J U N E
M A R K E T
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P U L S E
C21
PUBLISHER Century 21 New Zealand Ltd
CONTRIBUTORS Ryan Mitchell Bindi Norwell SCOOP Business Kathryn Madden
EDITORIAL ENQUIRIES Century 21 New Zealand +64 9414 6041
ADVERTISING ENQUIRIES Century 21 New Zealand +64 9414 6041
WELCOME TO THE
JUNE 2019 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 N E
C21 NEW ZEALAND NEWS
02-03
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PURCHASING PROPERTY
Great news on many fronts for C21 New Zealand
The number one thing you should do before
Century 21 New Zealand National Manager,
purchasing a property.
Ryan Mitchell
Home Beautiful Magazine Editor, Kathryn Madden
NEW OWNERSHIP
04
ENHANCING SPACE Making the most of a small backyard.
New owners for Te Awamutu’s Century 21. Scoop Business
LATEST PROPERTY STATISTICS
05
Gisborne House Prices Rose $2,645 a day in May. REINZ CEO, Bindi Norwell
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C21 NEW ZEAL AND NEWS
GREAT NEWS ON MANY FRONTS FOR C21 NEW ZEALAND
B Y R YA N M I T C H E L L ,
N AT I O N A L M A N AG E R , C E N T U R Y 2 1 N E W Z E A L A N D
Earlier this month we attended the Century 21 Australasian Convention on Hamilton Island. C21 Principals and Salespeople from across Australia and New Zealand were treated to internationally renowned speakers and some exciting company announcements including new cuttingedge training tools.
The annual convention came just weeks after we announced that following seven years in Australian ownership, Derryn Mayne, had bought a 25% stake of Century 21
After 11 years as a Century 21
also took home the Centurion
franchise owner herself, Derryn,
Office award.
said it was one of the company’s most inspiring, enjoyable and educational gatherings yet - helped by Hamilton Island being well away from any hustle and bustle. The first night of the convention saw us attend an exclusive Centurion Event for Australasian agents who had received this coveted award by placing within the top two per cent of Century 21 agents worldwide.
Century 21 Premier (Turangi) franchise owner, Wai Johnson, was presented with the 2100 Cup NZ Award. While the Turangi team were picking up their silverware in Australia, a OneRoof Property Report was released back home crowning Turangi as New Zealand’s “biggest riser’. This follows median values in the Central North Island town rising by a 41% in the past 12
One of the stars in attendance was
months, and by 73% in the past
Roger Webb from Turangi who
two years.
received the Centurion Producer Award after finishing up as Century 21 New Zealand’s Top Units Salesperson across the country last year.
Other good news in recent weeks has included the Century 21 New Zealand announcement that the Albany and Silverdale franchises have formally decided to work a
New Zealand from Charles Tarbey,
Other New Zealand Centurions
lot closer, ensuring unbeatable
Chairman and Owner of Century
were Alen Moshi and Jeh Wasti
coverage and service for clients.
21 Australasia. That development
of Century 21 First Choice Realty
definitely added to the buzz of what
in Wellington Central, and Sally
was a busy few days.
Wang of Century 21 Darrak Realty in Albany. The Wellington franchise
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North Auckland continues to experience massive residential growth. As well as considerable Century 21 success in Albany in
recent years, the Silverdale office
perfect decision-making time for
he was declared New Zealand’s
has been busy in the wider Hibiscus
people to try something different.
youngest real estate franchise
Coast and Bays area. This includes Millwater and now the massive Milldale development across the motorway.
Century 21 New Zealand is
owners.
expecting to make announcements
Without doubt Liam Collett is a
about significant new franchisees
Century 21 young gun and it’s that
in the coming months. The global
kind of energy and initiative we will
The closer connection sees Albany
recognition and reach of Century
continue to encourage across our
franchise owner Ivan Rakich of
21 is a key advantage, as are the
franchise network.
Century 21 Darrak Realty and
number of untapped locations
Silverdale franchise owner Clive
nationwide.
Goodman of Century 21 Crism
Finally, Century 21 New Zealand grabbed the headlines recently
Having a New Zealand co-owner
when we called on the Reserve
now in place is only helping to
Bank to formally review its six-year-
positively driving the new Century
old policy on loan-to-value ratios
Having Albany and Silverdale
21 brand up and down the country.
(LVRs). We thought such a call was
working together will seriously
And again, Derryn and I are
timely and many in the industry and
power up Century 21’s presence
absolutely focused on delivering
commentators agreed.
and cut-through in North Auckland.
growth. As well as attracting and
Our salespeople will be able to
encouraging high-performing
draw on more locations with the
salespeople to see the huge
brand’s presence reaching two
potential in Century 21 franchise
huge and fast-growing catchments
ownership, delivering strong
at once. It’s a really exciting sales
internal growth within our existing
proposition.
franchises is also critical.
The North Auckland co-operation
We continue to see some great
also provides a golden opportunity
initiative come out of our franchises
for real estate salespeople working
– take Century 21 Collett Realty
for other North Shore or Hibiscus
on Auckland’s North Shore. Owner
Coast companies who want a
Liam Collett is fast getting a
change for the better.
reputation for what can only be
Realty, and their respective teams, now working further afield.
In fact, all around Auckland and beyond Derryn and I continue to meet with salespeople wanting to
gaining huge exposure for his clients.
get onto franchise ownership and
Earlier this month, in the country’s
franchise owners from competitor
leading Sunday newspaper, Liam
companies wanting to explore their
and fellow salesperson Donna
options with the new C21 brand.
a’Beckett were splashed all over
There remain so many opportunities
it, along with a McLaren sportscar
to set up Century 21 franchises in
which was being thrown in for ‘free’
different parts of the country.
as part of a rural property sale.
Many of those contemplating
The media also loved it when Liam
franchise ownership have already
promoted the possibility of New
worked for the bigger players
Zealand’s first ever residential
and want a change to grow their
property sale using Bitcoin in May.
own business and brand. What’s
Last year, he was selling a coastal
more given the market has cooled,
property which came with a World
particularly in Auckland, it’s the
War Two bunker and prior to that
03
confirming Auckland’s slowdown both in the number of sales and prices reached. It also follows the Reserve Bank cutting the Official Cash Rate to a record low, with many banks now offering once-in-
described as innovation all while
C21 MARKET PULSE
It follows recent industry data
CENTURY 21
a-lifetime interest rates. The blanket high deposit requirements are sadly and simply keeping too many first-home buyers out of the housing market. Many couples could easily service a mortgage but struggle to come with the often required 20% deposit, not helped by high rents and living costs. In many cases a deposit in Auckland is at least $200,000! That’s a huge barrier to entry and one that we will continue to raise publicly. Until next month, take care out there.
NEW OWNERSHIP
NEW OWNERS FOR TE AWAMUTU’S CENTURY 21
SCOOP BUSINESS W W W . S C O O P. C O . N Z
Rebecca Fraser and Paul Wheeler are the proud new owners of Century 21 Gadsby Realty in Te Awamutu. They describe buying the well-known local real estate franchise as a once in a lifetime opportunity, which they knew immediately they had to take.
Limited. She also has extensive
meeting new people. As a former
legal experience as a Registered
legal executive, she also enjoys the
Legal Executive specialising in
paperwork and drafting contracts,
conveyancing with law firms in
hence moving into business
Te Awamutu and Hamilton.
ownership. She is also running the
Born and bred in Te Awamutu, Paul Wheeler, is a full-time rugby
portfolio.
coach and Community Rugby
Century 21 New Zealand Co-owner
Co-ordinator for Te Awamutu
and Director, Derryn Mayne, says
and surrounding districts. He
Century 21 is thrilled Rebecca and
spends time in schools working on
Paul have purchased the business,
kids’ rugby skills. His afternoons,
with the added bonus of Chris
evenings and weekends are spent
Gadsby staying on.
However, former owner and well-
coaching various teams, including
known local realtor, Chris Gadsby,
Te Awamutu College First XVGirls,
isn’t going far. He will remain on
Te Awamutu Sports Senior A’s and
as Century 21’s rural/lifestyle
Waikato Women’s U18.
salesperson.
business’s property management
“What’s more, Rebecca and Paul’s timing is perfect from a marketing perspective as Century 21 is rebranding globally and so the
“We love the team approach
Alexandra Street office is set for a
“I believe that with Chris’s years
Century 21 Gadsby Realty takes
signage makeover. It’s an exciting
in the industry and relationship
when it comes to sales, by drawing
time and the whole Century 21
building skills combined with my
on each individual’s strengths to
family wishes Rebecca and Paul
management and conveyancing
create the best possible results for
every success,” says Ms Mayne.
experience the business will go
all involved, with vendors always put
from strength to strength,” says
first. We are incredibly proud of the
new owner Rebecca Fraser.
great team we have inherited, and
Prior to owning Century 21 Gadsby Realty and now selling real estate
truly humbled by their support,” she says.
herself, Rebecca was the Business
Rebecca’s loving selling real estate,
Manager for Learning Matters
enjoying the appraisal process and
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To read the full article, visit: http://www.scoop.co.nz/stories/BU1906/ S00411/new-owners-for-te-awamutuscentury-21.htm
L AT E ST P R O P E R T Y STAT I ST I C S
GISBORNE HOUSE PRICES ROSE $2,645 A DAY IN MAY BY BINDI NORWELL, REINZ CEO
Median house prices across New Zealand increased by 3.2% in May to $578,000, up from $560,000 in May 2018. Median price increases for New Zealand excluding Auckland were even stronger, increasing by 7.2% to $487,770 up from $455,000 in May last year, according to the latest data from the Real Estate Institute of New Zealand (REINZ). Gisborne saw a new record median
showing just how strong regional
will tell if this is just the start of the
price increasing by a staggering
growth is in parts of New Zealand.
usual winter slow down,” points out
54.4% year-on-year to $440,000 up from $285,000 – a $155,000 increase. Even looking at the previous month showed a 22.9% increase in median price (from $358,000 to $440,000) an $82,000 increase or $2,645 per day. Median house prices in Auckland increased by 1.2% year-on-year from $850,000 to $860,000 the highest price the region has seen for 2019 so far. Bindi Norwell, Chief Executive at REINZ says: “Gisborne was the strongest of all the regions in May, with a 54.4% annual increase in the median house price and a 22.9% monthly increase which is the equivalent of $2,645 a day. We haven’t seen price rises on this scale for a number of years now,
“Looking at the country as a whole,
Norwell.
median prices increased annually
“May saw a slight resurgence in
in 11 out of 16 regions with strong
Auckland’s median price, with a
growth recorded in Southland
1.2% median increase – the highest
(+16.7%), Manawatu/ Wanganui
median price we’ve seen for the
(+14.4%), Hawke’s Bay (+9.3%) and
Auckland region so far this year.
Otago (+8.2%).”
Waitakere City saw the highest
Four regions saw annual falls in median price during May – West Coast (-14.0%), Tasman (-4.1%), Northland (-1.9%) and Marlborough (-1.2%). “The West Coast can be a very volatile market, particularly as we go into winter, so a -14.0% fall in median price isn’t entirely surprising for this time of year. Given the strength of Tasman, Northland and Marlborough over the last few months, these were relatively small declines in the bigger scheme of things, but time
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median price in 5 months with a 6.0% increase, Auckland City saw the highest median price in 3 months with a 3.8% increase in median price and despite a -0.6% year-on-year fall in median price Rodney District had the highest price in 12 months at $900,000, suggesting that despite the cooling weather there are some green shoots in the Auckland market and that confidence is returning to the City of Sails,” continues Norwell.
PURCHASING PROPERTY
The number one thing you should do before purchasing a property BY K AT H R Y N M A D D E N ,
EDITOR, HOME BEAUTIFUL MAGAZINE
Found your dream abode? Tick. Got your mortgage pre-approval? Sorted. Ready to make a bid and move straight in? Not just yet.
1. IT WILL PROTECT AGAINST (UNWANTED) SURPRISES DOWN THE TRACK
recommendations). After that, a
We’ve all heard the story about
you live in an area where pests are a
the couple who scored a charming
common problem.
pest inspection is advised to ensure creepy crawlies aren’t sharing the residence with you – particularly if
inner-city terrace for a steal, only to move in and discover rising damp or
Before you sign on the dotted line,
termites. A pre-purchase building
it’s imperative to book in a building
inspection will serve as your safety
inspection and get the 411 on the
net, unearthing issues pertaining to
property. Akin to a roadworthy for
maintenance, electricals, structure,
a car, it could uncover damage or
drainage, roofing, ventilation and
defects that have been hiding under
more. Always enlist a licensed
the home’s seemingly sparkling
professional to compile the report,
surfaces. Here’s why you should
says Charles Tarbey, Chairman of
never skip this step again…
Century 21 Australasia (if in doubt, turn to your real estate agent for
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2. IT COULD HELP YOU NEGOTIATE A BETTER PRICE Should your report reveal any minor defects (corrosion, for example) or major defects (such as structural issues), but you still have your heart set on the home, take heed. Knowledge is power: armed with evidence, you may be able to negotiate a lower price for the home,
noting that financial compensation is required to fix the problems. The completed report will also help you make informed decisions about what needs fixing immediately, and what you’ll need to budget for in the future. On that note, the cost of an inspection varies from state to state but generally comprises three figures, which seems a small price to pay in the scheme of hundreds of thousands of dollars.
3. SAFETY SHOULD ALWAYS COME FIRST Sure, a building inspection might save you money on maintenance long-term, but more importantly, it could save lives. The professional carrying out the review will alert you to any safety hazards in the home: inadequate pool fencing, missing balustrade, absent smoke alarms, the presence of asbestos, to name a few. The report will also check the build is compliant with current and local regulations – think stair heights and window openings – which could defend against legal issues down the track.
ABOUT THE CONTRIBUTOR Home Beautiful is chock-a-block with makeover ideas for indoors, outdoors, renovating, decorating plus food and entertaining, it’s a must-have mag and every home decorator’s best friend. Article Link: https://www.homebeautiful.com.au/thenumber-one-thing-you-should-do-beforepurchasing-a-property
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ENHANCING SPACE
MAKING THE MOST OF A SMALL BACKYARD Many Kiwis love their backyards, using the space to entertain, play outdoors with the family and to enjoy the good weather. Even if your backyard is on the smaller side, it is still possible to create a spacious impression. Here are some simple tips to make a small outdoor area more functional or enhance the space in preparation
what features are important, what
too much furniture. Choose pieces
you will use most and where they
wisely, such as folding chairs or
will best fit.
extendable tables that are stylish as well as functional.
HANGING GARDENS Rather than spreading out, consider spreading gardens up and down your fences and walls. Colourful
When choosing material for items
flowers, vines or even herbs planted
such as pavers, decking or outdoor
in hanging pots or baskets can add
paint, consider embracing lighter
the feel of greenery to your outdoor
colour schemes to create the
areas without taking up too much
impression of a more spacious
valuable room.
area. Sometimes, it may also help to continue indoor colour schemes
for sale.
and decorative styles into the
PRIORITISING FEATURES
STREAMLINE YOUR FURNITURE
It is important to carefully plan your
Avoid choosing large or bulky
space before you dive head first into a renovation. Don’t attempt to cram all the typical features of a backyard into a small area. Work out
CHOOSING THE RIGHT COLOURS
outdoor area, creating a seamless transition into what feels like one
outdoor furniture and instead opt for a more streamlined look. Clutter should be avoided in a small space, so try not to fill your backyard with
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large space.
DON’T SETTLE FOR AVERAGE
70% of homesellers settle for the first real estate agent they meet. Don’t settle, speak to a Century 21 agent today.
C21.co.nz Source: NAR Profile of Home Buyers and Sellers, 2017