M A R C H
M A R K E T
2 0 1 9
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
MARCH 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 M A R C H
NZ MARKET UPDATE
02-03
2 0 1 9
PREPARING TO SELL
Capital gains tax talk is still just that.
5 key things that will help sell your home.
Century 21 New Zealand National Manager,
Home Beautiful Magazine Editor, Kathryn Madden
06-07
Ryan Mitchell
C21 LIFESTYLE ON TOP IN TURANGI
04
What to consider when going through the open home process.
27% lift for Turangi caps off great year for C21. SCOOP Business
LATEST PROPERTY STATISTICS
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Number of houses sold across NZ falls by 9.5% in February. REINZ CEO, Bindi Norwell
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N Z M A R K E T U P DAT E
CAPITAL GAINS TAX TALK IS STILL JUST THAT!
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
There’s been much discussion about New Zealand adopting a Capital Gains Tax (CGT) with possible targets including property investors, farms, and holiday homes.
Only the Green Party seemed to
for sure the Tax Working Group
welcome the prospect of a CGT
won’t get their way on everything.
with open arms.
Industry numbers keep rolling out,
Opposition parties National
with nothing terrible newsworthy
and Act are having a field day
to report. Auckland has cooled
winding everyone up about a CGT
while parts of regional New Zealand
destroying ‘the Kiwi way of life’, with
continue to enjoy strong price
many New Zealanders probably
growth.
thinking it’s somewhat fait accompli. But far from it. The public reaction
Notably and importantly the Tax
has been largely negative, and
Working Group recommended
with a General Election next year,
keeping the family home out of any
Government MPs will no doubt
CGT scheme.
tread cautiously.
Another key factor to note is that
However, the biggest concern
while the Government-established
probably still lies with investment
Tax Working Group wrote a report
properties. If investors get stung
and made recommendations, it’s
with a CGT, the likes of the Real
now up to the three political parties
Estate Institute of New Zealand
in Government to come to some
believe many landlords will simply
consensus. That’s the tricky part.
exit the market, just when the
The leading governing party, Labour, has been increasingly
our capital city and 2018 another great year for Century 21 in Wellington, with the office taking out several titles at our recent Annual Awards Gala Dinner in
country needs a strong supply of rental stock more than ever.
lukewarm about a far-reaching
Again, let’s wait and see. Come
CGT, while coalition partner New
April we’ll apparently know more
Zealand First has historically been
once the Government has formally
vehemently opposed to the idea.
considered the report. One thing’s
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Real estate continues to do well in
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Auckland. I want to take the opportunity to single out one of Century 21’s rising stars. In 2016 Jeh Wasti started his real estate career at Century 21 First Choice Realty in Wellington. By the end of 2018 he was Century 21 New Zealand’s Top Salesperson for the Year (for Gross Closed Commission). The 33-year-old salesperson was not only honoured for this, but he also took away the prestigious
Centurion Award. This puts him
awards for 2018 was the North
among the top two percent of
Waikato town of Huntly – just over
Century 21’s global workforce of
one hour south of Auckland.
over 130,000 salespeople in over
Cambridge in the Waikato. Improving roading and public transport options is gold for our
Based on Huntly’s Main Street,
small towns. Kiwis priced out of our
Century 21 Rural and Residential
cities will continue to be attracted
Attracting, retaining, and growing
Real Estate was awarded Top Office
by the lifestyle and prices they
young and talented salespeople
for the Quarter for Units (the
offer, helped by ever improving
like Jeh is huge for Century 21. It’s
number of properties listed and
technology making the likes of
certainly what drives me, and I can’t
sold), beating all other Century 21
remote working only more viable.
wait to see more of it.
offices in New Zealand.
Having franchise owners like Joe
Co-owner of the Huntly franchise
been proven or disproven, is that
Lupi in Wellington who passionately
Ian Pepper won all-round Top
the Americans offered to build a
believe in the brand and genuinely
Principal for the Quarter. His
highway all the way from Auckland
love real estate can only rub off on
business partner and salesperson
to Wellington while they were
a team. It’s also great energy for
Barbara Craig was also recognised
stationed here during World War
buyers and sellers alike.
for her considerable sales success.
Two. As the story goes, the New
While New Zealand Rookie of the
Zealand Government of day turned
Year went to rising Huntly star,
down the offer, believing the
Pescha Eccles.
country would never need such
7,500 locations.
Blitzing the 2018 awards, the Wellington office has well and truly cemented themselves as market
One urban myth, that’s never
infrastructure.
leaders. Importantly they have
For Huntly, like many of New
also shown themselves as being
Zealand’s smaller towns that are in
Regardless if that exchange was
prepared to invest in the future
commuter proximity to our cities,
true or not, New Zealand is finally
and develop and support news
the future only looks bright. While
getting a motorway and state
salespeople coming through.
having Auckland up the motorway,
highway network it well and truly
Hamilton City is only about 30
needs. Infrastructure improvements
minutes down the road.
are always welcomed news in the
Getting around the country as National Manager since October last year, what’s really blown me
As well as good proximity, Huntly
away is how all our franchises work
will benefit from the weekday
collectively and positively as a
Hamilton to Auckland passenger
family. No one’s out trying to steal
train service that’s proposed
listings or undermine colleagues
from next year.
as you can witness with other
Then there’s
companies.
the ongoing
Century 21 franchise owners, salespeople and support staff all put their clients, the properties, and their community first. That’s what gives us a point of difference in what is an increasingly competitive and tough industry. Not to mention of course our far-reaching global spread and all the technology and support we have in place! Another area that featured prominently in Century 21 New Zealand’s fourth quarter and annual
multi-billiondollar State Highway One extensions and improvements. For the upper North Island this will mean in the next couple of years we’ll have one motorway from Warkworth in North Auckland to south of
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world of real estate. As to whether there’ll be more tax demands, we’ll all find out soon enough. Pictured below: Young gun Jeh Wasti (right) collects his Centurion Award.
ON TOP IN TUR ANGI
27% LIFT FOR TURANGI CAPS OFF GREAT YEAR FOR C21
SCOOP BUSINESS W W W . S C O O P. C O . N Z
Turangi was one of New Zealand’s strongest performers in real estate for 2018 according to the latest OneRoof Property Report, capping off a great year for Century 21 Premier (Turangi).
Median property values in Turangi rose by a staggering 27% in 2018, with a rise of 13% in the last quarter
quarter for Turangi, Century 21 also
Asher broadening its expertise and
enjoyed a strong end to the year
the geographical area it services.
locally.
She says one key factor to Century
In fact, for the fourth quarter
21’s success has been their support
Roger Webb won both Units and
for local charities and volunteer
GCC (Gross Closed Commission)
services. Next month they’re
categories nationwide. This saw him
hosting an Easter charity auction
finish the year as Century 21’s all-
and evening on 20 April in Turangi
round leading salesperson across
to raise money for the Greenlea
the country. He also took away the
Rescue Helicopter.
real estate company’s prestigious Centurion Award.
“Turangi is a stunning performer and Century 21 Premier is right at
“Turangi has enjoyed a significant
the centre of it. They’re a fantastic
lift in house prices and demand in
team focused on service, the
the past few years. Nonetheless it
community, and getting results.
remains one of the most affordable
2019 is already looking like another
areas in New Zealand. For Roger to
good year for Turangi,” says Ryan
over $34 million.
list and sell the most properties for
Mitchell, National Manager of
The news follows local salesperson
the company nationwide in 2018
Century 21 New Zealand.
highlights just how good he really
alone. A total of 159 Turangi sales were recorded for 2018, with the median property value at $232,000 as of 1 November 2018. The total value of Turangi sales for 2018 was
Roger Webb of Century 21 Premier (Turangi) being named Century 21 New Zealand’s Top Salesperson for 2018 for Units (the number of properties listed and sold) at the company’s Annual Awards Gala
is,” says Wai Johnson, franchise owner of Century 21 Premier (Turangi). Ms Johnson says the extra activity has meant Century 21 Premier
Dinner in Auckland last month.
(Turangi) has recently employed
With the OneRoof Property Report
Gilbert, John Smith and Marina
pointing to a very strong fourth
three more team members, Logan
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L AT E ST P R O P E R T Y STAT I ST I C S
NUMBER OF HOUSES SOLD ACROSS NZ FALLS BY 9.5% IN FEBRUARY
BY BINDI NORWELL, REINZ CEO
The number of residential properties sold in February fell by 9.5% from the same time last year to 5,954 (down from 6,576) 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. The last time sales volumes fell this much on an annual basis was 16 months ago. For New Zealand excluding
Regions that saw an annual increase
“The lower level of sales volumes
Auckland, the number of properties
in sales volumes during February
compared to the same time last
sold fell by 6.6% when compared to
were:
year can be attributed to a number
the same time last year (from 4,922 to 4,596). In Auckland, the number of properties sold in February fell by 17.9% year-on-year (from 1,654 to 1,358) – the lowest for a nonJanuary month since October 2010.
•
Marlborough: +5.5% (from 91 to 96 – an additional 5 houses)
•
Southland: +2.9% (from 174 to 149 – an additional 5 houses)
•
Hawke’s Bay: +0.4% (from 231 to 232 – an additional house).
Regions with the lowest percentage change in annual sales volumes during February were: •
Northland: -27.2% (from 232 to 169 – 63 fewer houses)
•
Nelson: -20.0% (from 120 to 96 – 24 fewer houses)
•
Bindi Norwell, Chief Executive at REINZ says: “At a time when sales volumes are normally strong, when we look across the country, 13 out of 16 regions actually saw an annual fall in the number of properties sold. Traditionally children go back
Otago: -14.9% (from 422 to
to school and people return from
359 – 63 fewer houses) – the
their holidays and housing activity
lowest for 11 months.
picks up, however, February 2019 has been an exception to this rule.
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of things – the raft of legislative changes impacting the housing market at the moment, the increasing difficulty in accessing finance (despite a record low OCR and very low mortgage rates from the banks) and vendors’ pricing expectations.
Photographer: Chris Warnes
PREPARING TO SELL
5 KEY THINGS THAT WILL HELP SELL YOUR HOME BY K AT H R Y N M A D D E N ,
EDITOR, HOME BEAUTIFUL MAGAZINE
Images courtesy of Home Beautiful magazine.
It’s been touted one of life’s most stressful events: selling your home. There’s that neverending list of maintenance jobs, financial uncertainty, not to mention cupboards brimming with emotional baggage. And yet some careful preparation and professional advice can simplify the process and help channel your nervous energy into action. Here are our top 5 priorities when it comes to selling your property (and getting the result you want!).
1. A SPARKLING KITCHEN AND BATHROOM
regrout your tiles and give the
As the adage goes, kitchens and
the storage in both spaces – think
bathrooms sell houses. These
floating shelves, pull-out cabinet
purposeful spaces are generally
organisers and extra towel hooks –
the most expensive to renovate,
will also add value.
walls a fresh coat of paint (neutral hues are your friend). Amping up
so presenting future buyers with Photographer: Sue Stubbs
rooms that are ready to move into will pay dividends. If you don’t have the budget for an all-out reno, opt for smart cosmetic updates: install shiny new tapware, retrofit a modern vanity or walk-in shower,
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2. THE RIGHT AGENT They’ll be your go-to throughout the whole sales process, so take the time to find the right real estate agent – namely an experienced
professional who knows the
when it’s time to have your home
market, conducts themselves
photographed for campaign
ethically and listens to you. Do your
advertising.
As the saying goes, empty rooms
research, ask friends and family for recommendations, and look for results; it’s not about which agent has the most For Sale signs in your neighbourhood, but which boasts the highest portion of Sold signs.
FUNCTIONALITY don’t sell houses. “Your home
4. A GRAND ENTRANCE Note: grand doesn’t necessarily mean ostentatious. Rather, whether you live in a cottage or a castle, first impressions count, and your goal is to create an exterior that beckons buyers inside. Mow the lawn, hide the bins, arrange some pot plants and repaint the front door, fence and even your home’s facade. Once inside, continue to set the tone with a coat rack (sans clutter), drop zone for keys and bunch of fresh flowers – the mix of practicality and
should be presented as a fulluse home,” notes Charles. “Every unused area creates an opportunity for you to demonstrate the property’s versatility.” So that third bedroom that’s become a veritable dumping ground? Turn it into a study, playroom or super-covetable dressing room. Or, transform an unused zone by a window into a cosy reading retreat. The key is to make use of every nook and cranny – and remember that you’re selling a lifestyle, not just a pile of bricks and mortar.
panache will have buyers swooning. Honey, I’m home!
Photographer: Aaron Perkins
3. SAVVY STYLING Call in the professionals – a home stager comes equipped with clever styling hacks designed to broaden your home’s appeal. They might rearrange the furniture, create a chic vignette or neutralise a space to help prospective buyers feel more at home. “There’s a standard that can appeal to the majority,” explains Charles Tarbey, CEO of global real estate network Century 21 in Australasia. “It might seem expensive to have your home styled, but it may ultimately be more expensive – by lowering the sale price – not to.” A stager will also be of unparalleled value
Photographer: Armelle Habib
6. FABULOUS
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C21 LIFESTYLE
WHAT TO CONSIDER WHEN GOING THROUGH THE OPEN HOME PROCESS For most of us, attending open homes each week is a right of passage we must endure if we want to secure the right property at the right price.
Consider these four tips when looking going through the open home process:
3. AVOID EMOTIONAL ATTACHMENT It can be tempting to become
1. KNOW WHAT YOUR ARE LOOKING FOR
emotionally attached to a house
Spend some time before you attend
points above you may be able to
but this can result in overstepping your budget. By using the two
A vital part of the search for a new
an open home to make a list of the
home is attending open homes. It
attributes you want in a property.
can be a little daunting and often
Check items off the list while you
time consuming, but it represents
are going through the home. You
an important part of the research
might strike it lucky and find that
process in finding a home. It also
the home fulfils all your needs and
If you have any questions about the
allows you to get inside a property
wants. If not, you will be able to see
property, make sure that you ask
and really assess its suitability for
what is missing from the property
them. The agents who are showing
your needs.
and move on to another property or
the home are there to help. You may
adjust any forthcoming offer.
be able to glean some important
keep a level head when inspecting a property.
4. ASK QUESTIONS
information such as the sellers’
2. BE SYSTEMATIC
reason for listing the property or
Work your way systematically
been on the market.
through a property when visiting an open home. Find a method that works for you and try and stick to it. If the agent supplies a floor plan of the house, use it and cross rooms off as you inspect them. This will help you avoid missing any features of, or issues with the property.
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how many days the property has
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