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 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
JUNE 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 J U N E
C21 NEW ZEALAND NEWS
02-03
2 0 2 0
TIME TO BUY
Now's the time for ideas and action.
Winter ripe for first-home buyers.
CEO, Century 21 New Zealand, Derryn Mayne
Century 21 New Zealand
WINNING WELLINGTON
04
PROPERTY MARKET UPDATE
Wellington well positioned for any storm!
May showed signs of recovery but COVID tail
Cameron Brewer
still impacting property market. REINZ CEO, Bindi Norwell
EXPANDING NETWORK
05
Shane & Co hits the ground running. Cameron Brewer
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CENTURY 21
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08-09
C21 NEW ZEAL AND NEWS
NOW'S THE TIME FOR IDEAS AND ACTION 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
We are not short of buyers. Nonetheless, the Government needs to think of new ways to encourage property purchases. I believe those in KiwiSaver should be now able to use the scheme to help buy an investment property. Presently, you have to be an owneroccupier for a period of time, but the reality is a lot of people simply can’t afford to buy where they want to live.
What’s more, a rule can easily
average values were also up - 2.7%
ensure people using KiwiSaver have
over the last quarter and by 5.4%
to hold onto to their investment
year-on-year.
property for certain amount of time. Regardless, as a country we need to think laterally if we’re to keep our housing market ticking along.
relatively encouraging with nothing
Waikato’s property
May, which will
market is claiming
hopefully
"Long-term property will always deliver a strong capital gain, and you're helping our economy in the meantime."
entice more to people list their properties as many
of Auckland, but can’t afford to
agents are
buy there, you should be able to
crying out
drawdown on your KiwiSaver to
for stock.
interest rates.
However, the month of May was
relatively well for
areas and
making the most of rock-bottom
We just don’t know to what extent.
changing fast.
House prices held up
If you live in the eastern suburbs
buy a rental property in Waikato,
We all know things will change.
a Covid-19 hangover yet, with latest statistics from realestate.co.nz showing the average asking price in Waikato hit an all-time high in May, with an 8.7% year-
Earlier this month
on-year increase.
we saw the release of QV’s House Price Index, which
Long-term property will always
puts the average value of homes
deliver a strong capital gain, and
nationwide up by 2.4% over the past
you’re helping our economy in
three months and by 7.7% year-
the meantime.
on-year. In the Auckland region,
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no signs of
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Other regions seeing all-time high asking prices were Northland, Hawke’s Bay, Taranaki, Canterbury, Central North Island, and Manawatu/Whanganui.
Nationally, average asking prices increased 10.3% in 12 months, with all regions seeing an increase except for the Central Otago-Lakes area. Industry numbers for May show listings and sale volumes getting a solid lift since April, but nationwide they remain well down compared to May last year. We’re keen to see the data on sales prices as asking prices are somewhat different. Record-high asking prices could reflect that vendors are still possibly a little optimistic and may need to adjust their thinking because many buyers certainly have. Nonetheless, these numbers show confidence remains in many regions. Many Century 21 offices and salespeople are now crying out for more stock to match the buyer enquiries they’re getting. It’s not only first-home buyers sick of paying high rents and wanting to make the most of record-low interest rates and lower deposit requirements. Mum and dad property investors are also back, wanting a better return on their money than the bank can offer them. Winter’s not normally the season to list property, but this one is an exception. Despite things so far holding up, most commentators, economists and surveys predict that to change in the coming months. If I was thinking about selling my property, I’d be listing now. We have the buyers and we’re still achieving good prices.
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WINNING WELLINGTON
WELLINGTON WELL POSITIONED FOR ANY STORM! One of Century 21 New Zealand’s best performing franchises has been Century 21 The Moshi Group based on Courtney Place in Central Wellington.
In recent years Wellington has enjoyed some solid residential property price growth and an incredibly competitive rental market.
Principal Alen Moshi says the
truly cosmopolitan with genuine
capital city will of course be
personality and artistic flare. The
impacted in the coming months and
city is home to many high-profile
years but is insulated more than
events and cultural celebrations
others thanks to the government
and plays host to many artistic and
sector not going anywhere.
cultural organisations.
Situated near the country’s
Based in Wellington Oscar-winning
geographic centre, Wellington has
filmmakers Sir Peter Jackson and Sir
been the home of the New Zealand
Richard Taylor along with a growing
Government, Parliament and
team of creative professionals and
much of the country’s civil service
businesses, have given rise to the
since 1865. As of last year, the
moniker “Wellywood”. Jackson’s
Crown occupied 45% of the office
Weta Workshop is of course best
buildings in the central city.
known for delivering the Lord of the
Pictured: Alen Moshi, C21 The Moshi Group
Despite being
Rings trilogy.
much smaller than
“Modern-day Wellington is an
Auckland, Wellington
exciting place, and in recent years
now also boasts
the local property sector has seen
the title of New
some substantial growth. The
Zealand's cultural
city is now well placed to weather
capital and has been
the economic fall-out from the
ranked one of the
Covid-19 pandemic, and we are still
world's most liveable
getting great results for our clients,”
cities.
says Mr Moshi.
Famous for a vibrant
The Moshi Group featured
creative culture
prominently in Century 21’s first
fuelled by great food,
quarter awards for 2020, with Alen
wine, craft beer,
Moshi taking out Top Principal for
coffee and events,
the Quarter.
Wellington today is
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EXPANDING NETWORK
SHANE & CO HITS THE GROUND RUNNING Century 21’s newest franchise owner Shane Kumar was off to a bumpy start, having to postpone his opening due to the country going into Level 4 lockdown, but he’s well and truly now making up for lost time..
manager for some South Auckland
“The arrival of Shane & Co is
residential property developments,
another example of Century 21’s
giving him great experience and
momentum in New Zealand,”
exposure to the construction sector.
she says.
However, the pull to again sell real estate was too strong for Shane, and so he’s back! Century 21’s new branding also appealed to him. Shane & Co has a well-established residential property portfolio and
The principal of Century 21 Shane & Co is located at 37 Charles Street in Papatoetoe. He is a born and bred South Aucklander and has worked for several years in the wider South Auckland area as a successful real estate agent. “The opening of Shane & Co in Papatoetoe further strengthens our strong presence in South Auckland. Shane’s been working really hard and is already achieving some great results for clients,” says Derryn Mayne, Owner of Century 21 New Zealand. The franchise owner has a Bachelor of Property degree from the University of Auckland. Recently
considerable experience in all aspects of property management. He says his use of online platform PropertyTree is a huge advantage to owners, managers and tenants. Mr Kumar looks forward to recruiting other salespeople, with Shane & Co covering the South Auckland areas of Papatoetoe, Otahuhu, Mangere, and Manukau. “Century 21 is in good shape helped by our strong community connections and the considerable business experience our franchise owners bring. We continue to take a positive approach when it comes to the property market,” says Derryn Mayne.
he’s been working as a project
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TIME TO BUY
WINTER RIPE FOR FIRST-HOME BUYERS
This winter young Kiwis have the best opportunity to get on the housing ladder in more than a decade, says Derryn Mayne, Owner of Century 21 New Zealand.
see banks more willing to take on
“Commentators agree that real
new lending,” she says.
estate will take some kind a hit, but equally there’s debate on how
The Century 21 boss says prospective first-home buyers with good job security or a couple who are both working, should seriously
far away the recovery is. Also, different parts of the country will be impacted differently.
consider this winter as a good time
“Rental incomes and property
to take the home ownership plunge.
values are vulnerable in areas like those heavily dependent on
Rents may have been frozen and
“Next-home buyers have a natural
there’s more choice for tenants
inclination to market their homes
with the likes of many Airbnbs
in summer. However, the season
now long-term rentals. However,
is irrelevant for first-home buyers,
rents are likely to stay relatively
and both buyers and vendors
high when compared to the falling
should now seriously
cost of servicing a mortgage for
consider that fact.
those renters living outside our
First-home
international tourism destinations
buyers don’t
or downtown Auckland,” says
have to
"...winter may also prove
Ms Mayne.
worry about
a prudent time for first-
With many interest rates now well below three percent, and with the Reserve Bank scrapping its mortgage loan-to-value ratio (LVR) restrictions, lower deposits are now required to secure a mortgage and ongoing repayments have never been cheaper. “Banks will still be tough when assessing loan applications and people’s ongoing ability to service a mortgage, but when all this starts settling down and property valuations become clearer, you’ll
selling their property
international tourism or foreign students. In saying that, if domestic tourism rallies, an Australasian travel bubble is opened, and our export education sector is salvaged, then the likes of downtown Auckland and Queenstown may fare better than anticipated,”
home buyers to purchase,
she says.
first,
as house prices might
Derryn Mayne
they can
rebound sooner than
says as well as
secure pre-
expected."
approval for a
home buyer interest, Century
loan, then buy.
21 salespeople are
It’s a powerful
reporting plenty of next-
proposition.” She says this winter may also prove a prudent time for first-home buyers to purchase, as house prices might rebound sooner than expected.
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strong first-
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home buyers, eyeing a bigger or better home, and keen to take advantage of record low interest rates and vendors increasingly willing to negotiate
Put your property on the global stage
CENTURY 21 agents are able to showcase your home to more buyers through our global web portal www.century21global.com. Contact us today to open a world of opportunity.
C21 MARKET PULSE
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C21.co.nz/sell
P R O P E R T Y M A R K E T U P DAT E
MAY SHOWED SIGNS OF RECOVERY BUT COVID TAIL STILL IMPACTING PROPERTY MARKET
BY BINDI NORWELL, REINZ CEO
The number of properties sold in May across New Zealand decreased by 46.6% from the same time last year – from 7,477 to 3,990 – as Alert Level 3 restrictions on the real estate market still made it difficult for property sales to occur, according to the latest data from the Real Estate Institute of New Zealand (REINZ). Yet there was a strong uplift from
residential properties sold across
get the market returning to a
sales activity from April to May, with
New Zealand decreased by 46.6%
sense of normality more quickly,”
the number of properties selling
in May when compared to the
continues Norwell.
nearly trebling from during Alert
same time last year which is not
Level 4 – from 1,371 to 3,990 – a
surprising given we had the Alert
191.0% increase.
Level 3 restrictions for the first
For New Zealand excluding
12 days of May.
“In a positive sign, there has been a good uplift in sales activity as we moved from April to May, with 15 out of 16 regions across the country
Auckland, the number of properties
These restrictions meant only two
seeing triple figure percentage
sold decreased by -47.4% when
property viewings, per property,
increases in their month-on-month
compared to the same time last
per day were allowed, making it
sales activity. The only exception
year (from 5,464 to 2,873).
difficult to get interested parties
was Auckland, but the city did
through a property in a timely and
still see a 98.8% increase when
efficient manner.
compared to April,” she continues.
by -44.5% year-on-year (from
“With the Government initially
“We’re still seeing a shortage of
2,013 to 1,117).
wanting to restrict private viewings
new listings come to the market
in Level 3, this would have had an
which continues to impact sales
even greater financial impact on
volumes. Hopefully, as people’s
people wanting to buy and sell
confidence starts to lift as we
property. So, we are pleased that
move through the Alert Level
some real estate activity was able to
systems the listings shortage will
go ahead, thereby starting to
start to change.
In Auckland, the number of properties sold in May decreased
Again, there were no regions with annual increases in sales volumes during May. But all regions had an uplift in sales volumes from April. Bindi Norwell, Chief Executive at REINZ says: “The number of
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Median house prices across New
are still regions with increases in
Zealand increased by 6.9% in May
median price and that there are still
to $620,000, up from $580,000 in
regions experiencing record median
May 2019.
prices – a far cry from some of the
seeing lifts,” she continues. “The listings shortage in the Wellington Region which has been evident for months now, has seen
doom and gloom predictions that
Median house prices for New
Wellington City hit a new record
were immediately touted when
Zealand excluding Auckland increased by 9.4% to a median price
median price of $830,000; a
COVID-19 first hit the country.
$31,000 increase on April’s price
of $535,000, up from $489,000 in
“While it still may be too early for
and a $10,000 lift on the previous
May last year.
the full impact of price declines to
record median price set in October
be showing through, the reality is
last year,” continues Norwell.
In Auckland, median house prices
that the majority of regions in New
increased by 7.1% to $910,000 up from $850,000 at the same time
ANNUAL ME DIAN PRICE CHANGES
the changing value of property in
14.0%
7.1%
NORTHLAND
AUCKLAND
$
Record Median Price
$
9.5%
6.0%
-5.7% GISBORNE
18.9%
TARANAKI
$620,000
4.2% BAY OF PLENTY
WAIKATO
16.7%
NATIONAL MEDIAN PRICE:
16.0%
MANAWATU / WANGANUI
HAWKE’S BAY
9.3%
NELSON
6.9%
$
MEDIAN DAYS TO SELL:
4.8%
58
19.9%
17.9%
TASMAN
WELLINGTON
MARLBOROUGH
3.4%
WEST COAST
CANTERBURY
22.8% Source: REINZ Monthly Property Report 15 June 2020.
New Zealand, which measures
price increases from April to May
last year – the third highest price
$
The REINZ House Price Index for
Zealand (11 out of 16) saw median
5.2%
SOUTHLAND
OTAGO
on record. However, median prices
and all bar one region (Gisborne)
the market, increased 7.9% year-
compared to April were quite mixed,
saw annual increases in price –
on-year to 2,962. The HPI for
with the country overall seeing an
likely a continuing effect of demand
New Zealand excluding Auckland
8.8% drop compared to last month
for good properties outstripping
increased 8.8% from May 2019 to
but 11 out of 15 regions saw monthly
supply,” continues Norwell.
2,956 and Auckland’s HPI increased
increases in median price.
“Looking at the Auckland market,
by 6.8% year-on-year to 2,970.
“Median house prices in May were
the region recorded its third highest
However, looking at the shorter-
slightly more reflective of what we
median price on record, but prices
term picture to get a greater
would expect to see as a result of
were quite mixed looking across
understanding of how COVID-19
a global pandemic, in that there
the Districts.
impacted the underlying value of
was some volatility in prices with fi ve regions seeing prices fall from April to May. But what continues to surprise us, is the fact that there
Four Districts saw falls in price when compared to April (Auckland City, North Shore, Papakura and Waitakere) with the remaining three
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the market, there were no record high index levels recorded in May – the first time in 88 months.
Click here to read the entire report
