M A R C H
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 Bindi Norwell
EDITORIAL ENQUIRIES Century 21 New Zealand +64 9414 6041
ADVERTISING ENQUIRIES Century 21 New Zealand +64 9414 6041
WELCOME TO THE
MARCH 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 M A R C H
C21 NEW ZEALAND NEWS
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ANNUAL AWARDS
Summer real estate hot but settings now
Century 21 announces its 2020 stars.
changing.
Cameron Brewer
06-07
CEO, Century 21 New Zealand, Derryn Mayne
PROPERTY MARKET UPDATE NEW OFFICE
03
Highest number of properties sold in a February
Century 21 opens new office in Manukau.
month in 14 years.
Cameron Brewer
REINZ CEO, Bindi Norwell
PRIVATE SALES
05
Cost of private sales now confirmed. Cameron Brewer
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08-09
C21 NEW ZEAL AND NEWS
SUMMER REAL ESTATE HOT BUT SETTINGS NOW CHANGING Real estate was on fire over summer. However, the sunny season ended with lockdowns for Auckland and LVRs kicking back.
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
and 30% for property investors. What’s more, later in March, the
during the lockdowns albeit just not as visible.
mortgage holiday scheme ends
There are still plenty of families
which will inevitably see a rise in
keen to move, empty nesters
exit and mortgagee sales.
downsizing, first-home buyers
The Auckland lockdowns and Level 2 for the rest of the country
securing record-low interest rates, and investors keen to seek better returns than what the
REINZ’s Monthly Property Report
will impact transaction numbers
for January showed the housing
somewhat, but those contemplating
market ‘busier and more buoyant’
selling their properties should not
While REINZ’s numbers show
than what would normally be
be put off.
an incredibly strong and active
expected at that time of year.
Buyer demand remains hot and with
bank can offer.
market across the country, that was January.
Median house prices across
Aucklanders forced to stay at home
New Zealand were up by 19.3%
for 10 days during February and
We’re now heading towards a
compared to January 2020, with
early March, real estate websites
different phase. This will include
Auckland up by 14.9% in 12 months.
were abuzz.
investors needing a 40% deposit
In total, four regions and saw record median prices during January and one saw a record equal.
With buyers busy scrolling through listings online, it’s a timely reminder that the quality of a vendor’s
Nationally, the median days to sell
online marketing strategy is more
a property, recorded at 35, was the
important than ever before.
lowest for a January month in 17 years, while sales volumes were the highest for a January month in five years.
The likes of virtual tours, floor plans, video and drone footage can only help when potential buyers are viewing remotely. What’s
Summer has been incredibly strong,
more, social media increases a
but some key factors are changing
property’s exposure, with imagery
which will have an impact. Loan-to-
easily shared.
value ratios (LVRs) were reinstated on 1 March, meaning a 20% deposit requirement for owner-occupiers
Thankfully, activity and interest remained high in Auckland
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from 1 May, and possibly the Government requiring them to hold their properties for longer than five years to avoid paying tax on capital gains. Without doubt, there’ll soon be fewer eligible buyers and possibly more stock for sale. All said and done - right now could prove the best time to sell.
MANUKAU NEW OFFICE
CENTURY 21 OPENS NEW OFFICE IN MANUKAU Century 21 Fairdeal Realty has opened at 28C Lambie Drive in central Manukau.
“When deciding on brands which
dedicated team. Having the office
best fit the culture we wanted to
located in the heart of Manukau’s
instil, Century 21 was absolutely
commercial area is ideal. We now
right for us. Century 21’s rebranding
look forward to growing our new
is extremely attractive, with the
business with people that have the
brand going from strength to
same passion for Manukau and real
Fairdeal Realty directors Rupinder
strength here in New Zealand.
estate as we do,” says Rupinder
Kaur and Surbani Sandhu say the
What’s more, the technology
Kaur.
new office and team are focused
available to the sales team is
on some of South Auckland’s
impressive,” says Surbani Sandhu.
key residential growth areas and fastest-developing neighbourhoods.
Derryn Mayne, Owner of Century 21 New Zealand, says the opening
The sales team also includes John
of Fairdeal Realty is another positive
Dorking, Chatty Verma, Kameron
development for the real estate
Rupinder Kaur brings experience
Jolliffe, Deeyana Amosa, Ajit
company - one which will be noted
having been involved in the
Saini, Charlie Laulu, and Tasreet
by competitor companies and the
property market for over a decade
Dhatt. Branch Manager and AML
public alike.
as an investor and developer. She
Compliance Officer is Louise
is focused on achieving clients’
Stowers.
trust and maximum value for their property.
“The Fairdeal team will do so well in this rapidly-changing part of
Rupinder Kaur says the Fairdeal
Auckland, with their arrival a great
Realty sales team consists of new
addition to our company. In fact,
Fellow director and salesperson,
and experienced salespeople, and
setting up shop in Lambie Drive,
Surbani Sandhu, has a post-
importantly all team members come
Manukau further strengthens
graduate degree in business
from the Manukau region.
Century 21 as a growing
management. She is delighted to be setting up a new office in Manukau, sporting Century 21’s world-famous branding which she describes as polished and fitting their business model perfectly. Both directors say Century 21 offers clients consistent service, creative content, and high-quality marketing – all important credentials for Fairdeal Realty.
“We are really excited with our new
powerhouse in the south,” she says.
venture and joining the Century
Ms Mayne says Century 21’s
21 family. We appreciate all the
superior service and global status
support Derryn Mayne and Century
will continue to attract other high-
21 New Zealand have given us to set
performing salespeople to consider
up this office in Manukau – an area
franchise ownership or establishing
we all love and know very well.
offices. Other opportunities to
“We strongly believe Manukau’s many diverse communities deserve top quality service from our
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set up Century 21 offices remain available in many parts of the country.
Visit: C21.co.nz
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P R I VAT E S A L E S
COST OF PRIVATE SALES NOW CONFIRMED “It will be tempting this summer for Kiwis to think than can easily sell their home themselves and save some money. In reality, it will put off many buyers, with vendors unlikely to get top dollar,” says Derryn Mayne, Owner of Century 21 New Zealand. Her comments follow REINZ analysis released this week which shows homeowners who use a real estate agent to sell their home can expect to get on average 15% more for the property than they would by selling it privately. “This is highest premium REINZ has seen in 18 years. That means an agent’s true value when it comes to a property sale process and outcome is the best it has been since 2002. That’s a very compelling proposition,” says Ms Mayne. REINZ’s research also shows a decrease in the percentage of people choosing to sell their property privately – down to 14% in 2020.
Some skills and advantages
use of drone and video footage,
dealing with an agent include
virtual tours, and 3D floor plans
legal protections for vendors,
are playing a key role in attracting
licensed agents having to adhere
buyers and achieving top dollar.”
to a professional code of conduct, bringing significant marketing expertise, honed negotiating skills, and a wide network of contacts.
Ms Mayne says in this Covid-19 world, and with property listings in New Zealand short and sales running hot, more buyers are
“Given that the majority who sell
making their determinations via
privately sell by negotiation, REINZ
their computer. She says this year
has observed the price difference
Century 21 has sold more homes
an agent can achieve could also
and holiday houses sight unseen.
reflect on the industry’s use of auctions as a marketing and sales technique. We also know that many buyers simply don’t like dealing with sellers directly. They’d rather liaise with a professional third party,” she says.
“Many Kiwis living overseas are buying sight unseen, so are people who even live here! They simply don’t want to miss out, so they are effectively buying off first impressions, with a condition to then have it physically inspected.
The Century 21 boss says another
That’s why a strong, professional
thing those contemplating listing
online and social media presence
their house themselves need to
is so critical in this market, and an
consider is that buyers know the
agent is much more likely to deliver
vendor won’t be paying commission
that,” she says.
and so often use that as a negotiating tool to reduce the price accordingly.
Derryn Mayne says real estate agents will naturally promote the advantages of their own service, but
“Often, DIY vendors overlook the
this latest REINZ analysis confirms
critical importance of property
in concrete that selling privately
presentation including decluttering
doesn’t necessarily save vendors’
a full house or staging an empty
money. Instead, on average, it
one. What’s more, professional
costs them.
photography and increasingly the
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A N N U A L AWA R D S
CENTURY 21 ANNOUNCES ITS 2020 STARS Century 21 New Zealand has named its real estate stars for 2020, following the company’s awards dinner in Auckland just before the latest lockdown. “It was great to celebrate success particularly after such a rocky year globally. In the end, 2020 turned out to be really strong for Century 21 despite the Covid-19 pandemic and subsequent economic uncertainty,” says Derryn Mayne, Owner of Century 21 New Zealand. Century 21 Local Realty in Papakura won Top Office for the Year for both GCC (Gross Closed Commission) and Units (the number of properties listed and sold), while Local Realty’s Kevin Ratnayake won Top Salesperson for the Year for GCC.
for both GCC and Units. He was
was won by Century 21 Platinum
also awarded the Grand Centurion
in Tuakau.
Producer and Diamond Master sales awards.
Edwards Realty in Botany Downs
Double Centurion Producers for
won Property Manager of the
2020 were Kevin Ratnayake, Gary
Year, and Edwards Realty was Top
Bal, and Iresh Tennakoon (Local
Property Management Office (over
Realty, Papakura). Centurion
250 managements). Top Property
Producers were Christine Stevens
Management Office (under 250
(Century 21 Stevens Realty,
managements) went to Century 21
Mangakino); Winson He (Century
Shane & Co in Papatoetoe.
21 Queen Street Realty, Auckland); Jeh Wasti (The Moshi Group, Wellington); and Ian Pepper (Century 21 Rural & Residential Real Estate, Huntly).
Nidhi Chadha of Edwards Realty in Botany Downs; Administration Team Member of the Year was
Wellington’s Jeh Wasti of The
Te Awamutu; and Personal Sales
Moshi Group received the Emerald
Assistant of the Year went to Emma
Master and Eli Gadsby of Century
Hey of Stevens Realty in Mangakino.
21 Gadsby Realty in Te Awamutu was named Ruby Master. Masters Entry recipients were Papakura’s Iresh Tennakoon, Kevin Ratnayake, and Gary Bal; Te Awamutu’s Rebecca Fraser; and Queen Street’s
Units went to Andrew Pugh of
Winson He.
Palmerston North.
The Recognition Award went to
Raewyn Brock of Gadsby Realty in
Top Salesperson for the Year for Century 21 Premier in
Vicki Southgate of Century 21
The Golden Gavel (number sold under the hammer) went to The
Papakura’s Local Realty was named
Moshi Group in Wellington; Rookie
a Centurion Office for 2020 as
of the Year was Kanwar Dhillon
was Century 21 The Moshi Group
of Local Realty in Papakura; and
in Central Wellington. Alen Moshi
Highest Business Growth (office)
took out Top Principal for the Year
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“Century 21 really pulled together in 2020 and our offices did all they could to support buyers and sellers during such challenging times, all while keeping everyone safe. “Not only were there restrictions, lockdowns, and a complete lack of listings, but we had a General Election! Nonetheless, Century 21 delivered some great results in 2020 across sales and property management. Here’s to 2021,” says Derryn Mayne.
P R O P E R T Y M A R K E T U P DAT E
HIGHEST NUMBER OF PROPERTIES SOLD IN A FEBRUARY MONTH IN 14 YEARS
BY BINDI NORWELL, REINZ CEO
The number of residential properties sold in February across New Zealand increased by 14.6% when compared to the same time last year (from 6,951 to 7,964) – the highest for the month of February in 14 years, 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. For New Zealand excluding
• Taranaki: +31.4% (from 153 to 201
Bindi Norwell, Chief Executive
Auckland, the number of properties
– 48 more houses) – the highest for
at REINZ says: “The unrelenting
sold increased by 6.1% when
the month of February in 4 years.
pace of property sales continued
compared to the same time last year (from 4,890 to 5,189).
• Northland: +22.5% (from 191 to 234 – 43 more houses) – the
In Auckland, the number of
highest for the month of February
properties sold in February
in 4 years.
increased by 34.6% year-on-year (from 2,061 to 2,775) – the highest for the month of February in 14 years.
decreases in sales volumes, those with the biggest decreases were: • Marlborough: -24.7% (from 89 to
annual increases in sales volumes.
67 – 22 fewer properties)
with the biggest increases were: • West Coast: +58.0% (from 50 to
• Hawke’s Bay: -22.3% (from 265 to 206 – 59 fewer properties) • Gisborne: -17.9% (from 78 to 64 –
79 – 29 more houses) – the highest
14 fewer properties)
it’s been since March 2004 (203
• Tasman: -17.9% (from 78 to 64 –
months) and the highest for the month of February ever.
08
same time last year; the highest number of properties sold for the
“It’s highly likely that some of this uplift can be attributed to both investors and owner-occupiers looking to purchase ahead of the LVR restrictions coming back into effect in March and the slight uplift in listings we’ve seen over the last couple of months,” she continues. “Interestingly, sales volumes in the West Coast were the highest we
14 fewer properties).
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sales volumes compared to the
month of February in 14 years.
Seven regions saw annual
In February, 9 out of 16 regions saw In addition to Auckland, regions
in February, with a 14.6% uplift on
have seen in nearly 17 years, with a 58.0% increase on the same time last year. Conversations with local
CENTURY 21
ANNUAL ME DIAN PRICE CHANGES $
Record Median Price
17.0%
NATIONAL MEDIAN PRICE:
$
$780,000 22.8%
24.3%
NORTHLAND
AUCKLAND
$
MEDIAN DAYS TO SELL:
$
30
26.2% 23.5%
BAY OF PLENTY
23.0%
32.2%
WAIKATO
$
TARANAKI
$
26.8%
27.0%
$
36.4%
MANAWATU / WANGANUI
HAWKE’S BAY
$
24.0%
12.8% 32.9%
$
GISBORNE
NELSON
$
$
15.9%
TASMAN
$ WELLINGTON
MARLBOROUGH
18.4%
WEST COAST
$
CANTERBURY
22.5%
19.1%
SOUTHLAND
OTAGO
Source: REINZ Monthly Property Report 11 March 2021 .
agents have highlighted that there
same time last year, with a 34.6%
to see sales volumes continue at
has been an uplift in enquiries
uplift in the number of residential
a solid pace over the next couple
across the region in part due to the
properties sold. This is remarkable
of months; but this will in part rely
affordability of the West Coast but
when you consider Auckland had
on a steady stream of new listings
also for lifestyle reasons and that
four days of Level 3 lockdown in
coming onto the market,” continues
expectations are the West Coast
February and shows how adaptable
Norwell.
is likely to remain busy for the
both agents and members of
next couple of months,” points out Norwell.
the public are at moving to technology solutions to buy and sell
“Again, the Auckland market has
houses when physical viewings are
seen one of the largest percentage
extremely limited.
increases in sales volumes across the country when compared to the
“Even with LVRs coming back into effect in March, we would expect
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