M A R C H
M A R K E T
2 0 2 0
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
MARCH 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 M A R C H
C21 NEW ZEALAND NEWS
02-03
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BUYING OPPORTUNITY
Property remains an attractive safe haven.
Low rates present huge opportunity.
CEO, Century 21 New Zealand, Derryn Mayne
Cameron Brewer
PROPERTY FORECAST 2020
04-05
PROPERTY MARKET UPDATE
Vendors wrongly shying away from marketing spend.
House price increase largest in 53 months.
Cameron Brewer
REINZ CEO, Bindi Norwell
SELLING SEASON
06
08-09
PROPERTY 10-11
Autumn a good time to list.
How important is marketing your property?
Cameron Brewer
As featured in the March edition of Home Beautiful Magazine
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C21 NEW ZEAL AND NEWS
PROPERTY REMAINS AN ATTRACTIVE SAFE HAVEN
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
As I write, the medium to long-term impacts of the global Covid-19 outbreak remain unclear. We’re being told to brace for a significant economic shock, the global share market is in freefall, and we’re hearing a lot about social distancing and self-isolation.
has never looked more attractive as
wary of some bright and shiny
a long-term prospect.
finance schemes promising a top
Even if there are a couple of quarters of negative growth – which is technically an economic recession - the overall future of property in New Zealand remains strong. It always has been. 2020 was looking like
for housing in New Zealand has been strong, sales volumes and prices have been up, interest rates have never been lower, with rents everywhere from Westport to Wellington at all-time highs. With so much volatility on the financial markets, property remains a safe haven to put your money. Whether you’re a first-home buyer sick of paying rent or a retiree who’s barely getting a return from their savings in the bank, buying residential or commercial property
the financial service sector is now much more tightly controlled thanks to legislation passed after the GFC which adds protections and considerable transparency for investors. While commercial
the best year for
property continues
Auckland real estate we’d
However, at the same time demand
return. However, at the same time,
“Kiwis know that even if they have to be a little more patient, property will deliver strong capital gain.”
seen in the past three or four years. In fact, parts of the market and parts of the country may
many parts of New Zealand, property syndications are now proving popular with many Kiwis. They generally require a
still do relatively
lower investment and
well.
offer a solid and steady
Kiwis are conservative by nature and are looking for a safe bet to invest their life’s work. The Global Financial Crisis (GFC) of over a decade ago, makes many
C21 MARKET PULSE
to do well in
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return without the headache of being a landlord and all the stress and ongoing costs that come with that.
However, nothing beats 100%
assured Century 21 remains vigilant
15km Huntly bypass, then there
ownership and control. That has
with the public, with good policies
will be the Hamilton one, and the
never gone out of fashion, and in
and protocols in place to mitigate
nearly billion-dollar motorway
fact looks more appealing by the
any spread of Covid-19. We’ll
extension from Puhoi to Warkworth
day. Kiwis know that even if they
continue to stay absolutely attuned
in the next couple of years. These
have to be a little more patient,
to the Ministry of Health’s ongoing
kinds of projects will help to open
property will deliver strong
guidance for our industry
up Waikato, North Auckland,
capital gain.
I remain optimistic that there’s
and Northland for business and investment, and aren’t bad for local
Our franchisees are seeing
another good summer ahead of us.
first-home buyers taking their
Business and consumer confidence
opportunities, while many existing
will quickly return. We will be
Don’t let anyone talk down the New
homeowners view the record-low
through our General Election, and
Zealand property market. It has
interest rates as the perfect time to
the American presidential race, with
endured depression, world wars,
invest in a bigger or better property.
Auckland geared up to host the
recessions, and various economic
2021 America’s Cup and the high-
and health crises, and it will
profile APEC Leaders’ Meeting.
outperform anything thrown at it
Following the Reserve Bank’s major cut of the official cash rate, which it has committed to for at least 12
Regionally, some great major
months, open homes will get busier
infrastructure projects are coming
for some of our salespeople. Rest
on stream – the latest being the
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real estate either.
this year too.
SELLING PROPERTY
Vendors wrongly shying away from marketing spend Kiwi vendors are increasingly shying away from spending money on advertising their properties, but the benefits of investing in a strong marketing strategy can be huge, says Derryn Mayne, Owner of Century 21 New Zealand. “Serious and targeted marketing will help deliver a faster, more efficient sale. It will also give the property more exposure, generating greater interest, lifting competition,
and ultimately delivering a more
know who the potential buyers are
favourable financial outcome.
and will leverage their relationships
However, too many vendors think
and expertise to match appropriate
just listing a property on the internet
buyers to a vendor’s home.
will be enough to sell it. Sadly, those days have gone,” she says.
“An experienced agent will also know how and when to ramp up
Even if there is substantial interest
momentum, which is critical to
in a property within the first week
a successful sale. On marketing
or two, Ms Mayne says the intensity
choices, don’t let them tell you
of a marketing campaign should
that it should be either all digital or
not be reduced, but maintained, to
mostly traditional. It’s both!”
keep interest alive right through to its sale.
Using a combination of both traditional and digital tools will
She says before even contemplating
ensure a vendor’s property pops up
a marketing strategy, seek out an
wherever buyers are looking.
agent who not only has a strong database, but also maintains a line of contact with clients. They will
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“Digital platforms are generally the first port of call for buyers, and
can reach thousands of people
truly has its place. Print advertising
gives them a simple way to contact
instantaneously, so it's highly
is a great way of reaching people
the agent. 'For sale' signs on other
advisable to create a strong online
looking to buy in a specific area or
neighbourhood properties can also
presence using only professional
getting the attention of friends and
be helpful when considering
photographs to showcase the
family who may be casually looking
who to list with.
property at its best. And remember,
out on behalf of buyers. Again,
declutter for the photographer and
quality imagery is key, as is crafting
open homes, style with neutrality,
professional descriptions that will
and keep both inside and out
inspire,” she says.
very tidy.”
"Seek out agents in your area who have sold signs on properties, as they will surely have other buyers who missed out on a sale and are
The real estate boss says don’t
waiting for another property to
Another drawcard for an online
underestimate the humblest real-
come along.
campaign is the ability to include
estate marketing tool: The 'for sale'
virtual tours, with drone footage
sign. Perched outside your property,
also becoming popular. Videos
it’s still a very effective way to
can easily be pushed out on social
generate interest in your home.
media, which again increases your
Serious buyers will take the time
property's exposure.
to drive through areas they want
“Traditional marketing well and
to live in, and on-site advertising
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“But the golden rule remains: Go the extra mile with marketing. Even it if generates that one extra buyer needed to create serious competition, the sale result will be that much better," says Derryn Mayne.
SELLING SEASON
AUTUMN A GOOD TIME TO LIST
“Those considering listing their properties need to know it’s not too late, with extended summer weather now predicted. In fact, going on the market in autumn makes a lot of sense, particularly when you consider the lack of houses for sale,” says Derryn Mayne, Owner of Century 21 New Zealand. The real estate boss’s comments follow Niwa releasing its seasonal climate outlook for March to May. The national forecaster says summer-like temperatures will linger across the country. A very warm and humid start to autumn is expected with temperatures most likely to be above average for the next three months. “This summer we’ve seen a return of confidence in the housing market, strong economic indicators, and of course low interest rates. However, I suspect some potential vendors
are considering the impacts of the
to lock in the record low interest
drought and the global coronavirus
rates and frankly, driving around
and wonder whether they’d be
looking at open homes will appeal
better to wait and list next summer.
to a lot more families when it’s not
My advice is go now! Demand is
so blistering hot!
strong, there’s little competition on the market, and some great prices are being reached,” says
“Despite any economic uncertainty, I think we’ll still stronger sales volumes and
Ms Mayne.
prices compared
The Real Estate
“This autumn more buyers will come out of the woodwork too, keen to lock in the record low interest rates...”
Institute of New Zealand reports that this has been the busiest to start to the year for the property market in four
to last autumn. Those Kiwis considering selling, need to stop pondering and actually push play. They will quickly find
years. For Auckland
themselves part of
alone the number of
some real action we
residential properties sold in January was up nearly 10 percent compared to the previous January. Median sales prices in most regions are also well up, reflecting the shortage of housing stock and increasing urgency from buyers.
haven’t seen for a few years,” says Derryn Mayne. If you've been considering listing your property for sale, you may be interested to know what your property is really worth. Century 21 make it easy for homeowners to
“This autumn more buyers will
find out, simply visit:
come out of the woodwork too, keen
www.century21.co.nz/sell
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BUYING OPPORTUNITY
LOW RATES PRESENT HUGE OPPORTUNITY “People are flocking to the mortgage calculators and some will be pleasantly surprised at the falling cost to service a home loan compared to their rising rents,” says Derryn Mayne, Owner of Century 21 New Zealand.
“These record-low interest rates provide a real shot in the arm for real estate as we head into the cooler months, giving more people the confidence to borrow and buy. However, the biggest issue will be Source: century21financial.co.nz
getting enough stock. “As well as buyers, prospective vendors need to realise this period presents them with a great
“With interest rates now hitting rock bottom, I think we’ll see more first-
opportunity to sell well given demand will only rise.”
time buyers entering the market and
She says lower deposit
existing homeowners deciding to
requirements and wider eligibility in
borrow more to purchase their next
the Government-backed schemes
house,” she says.
for first-home buyers, announced
The real estate boss says regardless of how of much of any Official
last year, will also help more Kiwis to get on the housing ladder.
Cash Rate cuts are passed onto
“Without doubt, interest rates
borrowers, this unprecedented
slashed to the bone will help ensure
lending environment will provide
buoyancy in 2020 particularly
buyers and sellers extra motivation
at entry-level, which positively
as we track through 2020.
flows through to the whole market.
Across the country median house prices have increased every
QUICK TIPS BEFORE APPLYING FOR YOUR FIRST HOME LOAN
Borrowing for property has never been better,” says Derryn Mayne.
month for 100 months, summer sales volumes were the best in several years, and Auckland is rallying again.
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Take a good look at your spending When you’re getting ready to apply for a home loan, it’s a good idea to take a good look at your bank statements and if needed, take the opportunity to tidy up any money behaviours that aren’t showing just how reliable you are and can be.
Tidying up your debt Start by making a list of all your debts – how much you have left to pay, the regular repayment amounts, and how long you have until each is paid off in full. Then think about whether you can pay any debt off faster, and ideally before you apply for a home loan.
Create a budget list If you don’t have it already, create a budget that lists all of your regular and one-off costs across the year (groceries, petrol, utilities, insurances, credit card payments or other debt, car rego and maintenance etc) to arrive at a monthly average for your living costs.
P R O P E R T Y M A R K E T U P DAT E
HOUSE PRICE INCREASE LARGEST IN 53 MONTHS
BY BINDI NORWELL, REINZ CEO
Median house prices across New Zealand increased by 14.3% in February to a new record median price of $640,000, up from $560,000 in February 2019. This was the largest percentage increase in 53 months according to the latest data from the Real Estate Institute of New Zealand (REINZ). • Wellington with a 10.8% increase
Median house prices for New
experience annual median price
Zealand excluding Auckland
increases, showing a continuation
to $716,000 up from $646,000 at
increased by 11.8% to a new record
of the price growth we started to
the same time last year
median of $550,000, up from
see just before Christmas. With
$492,000 in February last year.
strong demand across the country
In Auckland, median house prices increased by 4.3% to $888,000 – up from $851,000 at the same time last year – the highest price in 35 months. Bindi Norwell, Chief Executive at REINZ says: “February was a
it’s highly likely we’ll see these price rises continue in March unless the economy takes a sudden hit from COVID-19,” she continues. Record median prices were recorded in: • Northland wwith an 11.9% increase
very buoyant month from a price
to $560,000 up from $500,500
perspective with median price rises
at the same time last year
the largest the country has seen in 53 months and record median prices for New Zealand, New Zealand excluding Auckland and 7 regions around the country. “For two months in a row now we’ve seen every region in the country
• Gisborne with a 15.4% increase to $450,000 up from $390,000 at the same time last year
• Tasman with a 13.7% increase to $665,000 up from $585,000 at the same time last year • M arlborough with a 21.2% increase to $531,250 up from $438,500 at the same time last year • C anterbury with a 4.2% increase to $474,000 up from $455,000 at the same time last year. “We will obviously be keeping a close eye on any impacts on the housing market as a result of COVID-19 and it will be interesting
• M anawatu/Wannganui with a
to see what decision the Reserve
22.8% increase to $425,000 up
Bank makes on 25 March in terms of
from $346,000 at the same time
the OCR,” continues Norwell.
last year
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“With a record median price of
in February across New Zealand
number of years. However, overall,
$716,000 the Wellington region
increased by 9.2% from the same
the number of sales was up a solid
broke through the $700,000 mark
time last year (from 6,132 to 6,694)
9.2% annually. “With new listings
for the first time in February. This
making it the highest number of
still remaining critically low it’s not
was partly a result of record median
properties sold in the month of
surprising that we’ve seen such a
prices seen in Lower Hutt City
February in 4 years.
mixed result across the country in
($660,000), Carterton District
of properties sold. This is only the
Auckland, the number of properties
($500,000) and Upper Hutt City
second time since records began
sold decreased by a marginal -0.3%
($643,000), but also a result
that we’ve seen fewer than 11,000
when compared to the same time
of demand for good properties outstripping supply,” she continues. “Looking at the Auckland market,
February in terms of the number
For New Zealand excluding
($550,000), Masterton District
new listings come to the market
last year (from 4,742 to 4,726) – 16
during February when some years
fewer properties.
have seen as many as 18,000 new
the region overall had the highest
$
ANNUAL ME DIAN PRICE CHANGES $
4.3% AUCKLAND
2.1%
35
$
21.1%
22.8%
9.2%
MANAWATU / WANGANUI
$ $
13.7% TASMAN
21.2%
HAWKE’S BAY
10.8% WELLINGTON
MARLBOROUGH
$
WEST COAST
4.2% CANTERBURY
12.3% Source: REINZ Monthly Property Report 12 March 2020.
15.4% GISBORNE
NELSON
14.3%
MEDIAN DAYS TO SELL:
$
TARANAKI
$640,000
$
WAIKATO
8.4%
NATIONAL MEDIAN PRICE:
14.1% BAY OF PLENTY
10.0%
Record Median Price
$
11.9% NORTHLAND
19.9%
SOUTHLAND
OTAGO
median price in 35 months at
In Auckland, the number of
listings come to the market at this
$888,000 and North Shore City
properties sold in February
time of the year, outlining just how
saw a record median price of
increased by 41.6% year-on-year
low listings are,” says Norwell.
$1,155,000. Waitakere City had
(from 1,390 to 1,968) – the highest
a record equal median price of
number of residential properties
$830,000 – the exact same
sold in the month of February in
price as last month reflecting
5 years.
that combination of an uplift in confidence and low interest rates,” continues Norwell.Porirua and Upper Hutt Cities,” continues Norwell. The number of properties sold
“February saw mixed results across the country in terms of sales volumes, with some regions seeing their busiest February in a number of years and some seeing their quietest February in a
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Click here to read the full report
AS SEEN IN THE FEBRUARY EDITION OF
PROPERT Y
ON THE MARKET
HOW IMPORTANT IS MARKETING YOUR PROPERT Y FOR SALE AND IS IT REALLY WORTH THE INVESTMENT? IN ASSOCIATION WITH
S
elling your home may well be one of the largest transactions you will ever make, and naturally, you want to achieve the highest return possible. While some vendors may initially shy away from the expense involved in marketing their property for sale, the benefits of investing in a strong strategy can be huge. A favourable financial outcome is one reason a marketing plan makes good business sense. The other is a quick, efficient sale. The more exposure your property receives, the more
FOR HELP WITH BUYING AND SELLING PROPERTY VISIT C21.co.nz
A DV E RT I S E M E N T A DV E RT I S E M E N T
interest it will generate, which will increase competition and turn that ‘for sale’ sign into ‘sold’. The best place GET VISUAL to start is by seeking out an agent who not only has a We’re not suggesting that manifestation is the answer strong database, but also maintains a line of contact with to all your property aspirations, but visualisation is a clients. They will know who your potential buyers are and savvy Envision yourand perfect hometoinmatch all will starting leveragepoint. their relationships expertise itsappropriate glory – the buyers size, the the suburb… Keep it semito style, your home. An experienced agent realistic (shelve your Tuscan villa pipedreams for now), will also know how and when to ramp up momentum, but still isthink freely. will helpsale. tap into yourTarbey, desires which critical to aThis successful Charles and get you of thinking about how youadvises want tothat live.“Even Sure,if Chairman Century 21 Australia, ocean views may fall outside your budget, but perhaps there is substantial interest in a property within the first you’d instead for easy of access to a beach or bay.should weeksettle or two, the intensity a marketing campaign Scrawl all yourEssentially, ideas to refer backcampaigning to later. your not bedown reduced.” you are home, so keep interest in your property alive right through to the sale. ADD THE NICE-TO-HAVES Below your must-haves, start noting down the features A MULTI-MEDIA APPROACH you deem appealing, but not essential. A walk-in The ‘for sale’ sign perched outside your property is the wardrobe? You wouldn’t turn it down, but it’s not make first step to generating interest, especially among those who are looking specifically in your area. When it comes to building a marketing strategy with your agent, using a combination of both traditional and digital tools will GO BACK TO BASICS ensure your property is centre-stage where buyers are looking. Of course, the more intricate the marketing Important considerations are the minimum number of bedrooms, number of bathrooms and their minimum size.
strategy, the more expensive it will become. Ultimately, comesItdown wantInterior to pushfeatures for a oritbreak. mighttobehow the strongly same foryou a pool. sale. As Mr Tarbey says: “Most sellers will want to avoid could also fall into this category – think hardwood flooring paying to advertiseastheir however, the most and stonea lot countertops, wellhome, as central air conditioning advertising that one extra buyer orexpensive a fireplace. Check incan withgenerate your above-mentioned needed to create serious competition.” visualisation notes as you go, picking out the elements that are enticing, but also attainable.
YOUR MARKETING CONSULT THE EXPERTS TOOLBOX Finally, round out your list with a little expert intel. The agents at real estate organisation Century 21 will share It paysitems to have photos taken by onto a professional some “value” to consider tacking your list. photographer who will showcase your property As the name suggests, these are features that will addin bestproperty light andover fromtime. its best angles. in a value the to your Think a greatInvest bathroom, quality floorplanortoclose accompany photos. dual-pane windows, proximityyour to top schools. While these items shouldn’t take over your wants and Digital platforms are generally the first port of wishes, they’re nevertheless worth keeping in mind as you call for buyers and can reach thousands of navigate the inspection circuit (now armed with a handy people instantaneously. priority list, so you never swerve off course again!) A combination of both traditional and digital tools will ensure your property pops up wherever buyers are looking.
Other must-haves might include a garden or deck, off-street parking or an internal laundry. Location may be paramount – perhaps you want to be within walking distance of your children’s school – or maybe you have your heart set on a certain cluster of suburbs. Also consider liveability: is renovating an option, or are you keen to find a home and move straight in?
FOR HELP WITH BUYING AND SELLING PROPERTY FOR HELP WITH BUYING AND SELLING PROPERTY VISIT C21.com.au VISIT C21.com.au
Print advertising, particularly local papers are a great way to reach people looking in your area. Consider virtual tours or drone footage.