M A Y
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
MAY 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 Y
C21 NEW ZEALAND NEWS
02-03
2 0 2 0
SET THE STAGE
LVRs gone, how about softening the foreign ban?
Six easy tips for staging your own home.
CEO, Century 21 New Zealand, Derryn Mayne
Century 21 New Zealand
RECOGNISING RESULTS
04
PROPERTY MARKET UPDATE
Century 21 award winners named.
Level 4 lockdown impacts home sales volumes,
Cameron Brewer
but prices hold. REINZ CEO, Bindi Norwell
COVID-19 UPDATE
05
Alert Level 2 couldn’t come soon enough. Cameron Brewer
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CENTURY 21
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C21 NEW ZEAL AND NEWS
LVRs GONE, HOW ABOUT SOFTENING THE FOREIGN BAN?
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
The Reserve Bank’s decision to remove its mortgage loan-to-value ratio (LVR) restrictions, for at least a year, will mean more young Kiwis can buy their first homes sooner. The days of banks requiring a 20% deposit from most owner-occupiers are over. In Auckland, the LVR restrictions for the past seven years have meant most people needed to save a six-figure sum before the bank could even consider lending them money. Scrapping the LVRs is well overdue. Deposits will still be required by banks and their assessment of people’s ability to service the debt will remain tough, but at least banks will have greater flexibility to assess mortgage applications case by case. While it remains a mixed bag of market predictions and economic forecasts, I believe in the end the
pandemic could boost the overall
‘where is a safe place for me to live
appeal of New Zealand property.
and invest my life savings?’
With that in mind, the Government needs to consider softening its foreign buyer ban - even
to crystal ball gaze but given the likes of share market volatility and painfully low term deposit
off the back of this. At the same time, our offices are getting
temporarily. I’m reluctant
Many Kiwi ex-pats will also return
plenty of enquiries from
"...our offices are getting plenty of enquiries from overseas investors keen to buy into new-build residential developments, which will only add to already strong domestic housing demand."
rates, residential
overseas investors keen to buy into new-build residential developments, which will only add to already strong domestic housing demand. Whether or not the
Government should
property is increasingly viewed as a safe haven, as is New Zealand.
soften its foreign buyer ban, should now be on the table. The 2018 move, which stopped almost
New Zealand’s getting headlines
all non-residents from buying
all over the world for its overall
existing homes, saw the number
handling of Covid-19. Many living
of residential properties sold to
in the likes of the United Kingdom,
overseas buyers’ plummet in places
United States, and some European
like Queenstown which now face a
countries must be wondering
post-pandemic economic crisis.
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The Government has given an
When the Overseas Investment
For those selling and looking to buy
assurance that no stone will be
Amendment Bill came into force
again, it’s important to remember
left unturned in its determination
on 22 October 2018 its impact
you’ll be doing so in the same
to mitigate Covid-19’s economic
was swift and significant. Sales to
market, so it won’t make much
fall-out. As part of that, they
overseas buyers dropped by 81% in
long-term difference. For first-
should revisit their policy to ban
the following quarter compared to
home buyers, waiting could prove a
foreign buyers. Opening up New
the same time a year earlier. Any
gamble because house prices might
Zealand real estate a little more,
policy reversal would equally have a
rebound sooner than expected. At
even temporarily, would definitely
quick and demonstrable impact.
the same time, surveys show most
provide a boost to the housing market and country.
In the meantime, confusion reigns as to where the real estate market
property investors remain keen to stick to their plans.
With recent statistics showing
is heading with high profile New
In breaking news, two Century 21
foreign owners selling up in New
Zealanders, industry commentators,
franchises in New Zealand were
Zealand, maybe we could allow
and economists all weighing in
named in the Top 21 offices across
those who already own property
with opinions which are often
Century 21 Australasia for the first
here to buy again. That would help
contradictory.
quarter of 2020. Congratulations to
with real estate transactions without lifting the proportion of foreign ownership. It would allow overseas property investors to sell part of their portfolio and reinvest in other aspects of the sector or in other parts of the country. Another idea is to just lift the foreign buyer ban in certain areas, such as Queenstown.
We have some saying it’s going to fall by double digits, while others are saying it should hold up relatively well given recordlow interest rates and a continual housing shortage. All while buyers and vendors are wondering whether to act now or wait.
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Local Realty in Papakura and Darrak Realty in Albany for taking out the 6th and 20th spots respectively.
RECOGNISING RESULTS
CENTURY 21 AWARD WINNERS NAMED
Century 21 New Zealand has announced its real estate winners for the first quarter of 2020, which saw one of its newest offices taking a starring role.
“Century 21 Local Realty in Papakura had a great start to 2020 after franchise owners Gary Bal
Also featuring prominently in
Realty in Unsworth Heights, while
Century 21’s first quarter awards
Sunrise Realty in Meadowlands won
was The Moshi Group Real Estate
Property Management Office for
Team in Wellington Central. Alen
the Quarter over 250.
Moshi took out Top Principal for the Quarter for both GCC and Units, and a Platinum sales award.
Member of the Quarter went to Raewyn Brock of Gadsby Realty
Realty, Albany); and Mark Lee
in Te Awamutu. Robyn McGuire
(Edwards Realty, Botany Downs).
of Rural & Residential Real Estate
their doors late last year. Their
Tim Kearins (Premier,
team exudes incredible energy
Palmerston North).
active with their buyer and seller relationships and their digital marketing,” says Derryn Mayne, Owner of Century 21 New Zealand. Papakura’s Local Realty won Top Office for the Quarter for both (Gross Closed Commission) and Units (the number of properties listed and sold). While Local Realty
Award, while Administration Team
Rakich and Keith McNair (Darrak
The Silver award recipient was
lockdown, they’ve remained very
in Manurewa won a Quality Service
Bronze sales awards went to Ivan
and Iresh Tennakoon only opened
and professionalism. Despite the
Ray Crombach of Gold Real Estate
Assistant of the Quarter. “Our Century 21 franchises
Gold awards went to Ian Pepper (Rural & Residential Real Estate, Huntly); Gary Matthews (Gold Real Estate, Manurewa); Barney Cornaga (Darrak Realty, Albany); and Christine Stevens (Stevens Realty, Mangakino).
throughout New Zealand are well placed to weather the inevitable headwinds, helped by many of our offices having very strong property management portfolios. We went into lockdown with all the real estate fundamentals looking up and housing stock in clear demand.
Property Manager of the Quarter was won by Vicki Southgate of Edwards Realty in Botany Downs.
salesperson Kevin Ratnayake won
Property Management Office for
Top Salesperson for the Quarter
the Quarter under 250 (the highest
for both GCC and Units. He was a
number of new managements
Platinum sales award recipient, as
by an office with less than 250
were Gary Bal and Iresh Tennakoon.
managements) went again to Collett
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in Huntly won Personal/Sales
04
CENTURY 21
The industry will rise again,” says Derryn Mayne. She says Century 21 offices have been busy since restrictions started lifting, with two new franchises now open in the South Island and South Auckland’s Papatoetoe.
C OV I D - 1 9 U P DAT E
ALERT LEVEL 2 COULDN’T COME SOON ENOUGH Century 21 has your health and safety, as well as that of our people, as our top priority.
Private viewings were initially a key
auctions, open homes, and rental
sticking point under Level 3, but the
viewings are back on - for less than
issue was quickly resolved thanks to
100 people.
the likes of the Real Estate Institute (REINZ) working closely with the Government.
“We’re anticipating plenty of activity in the coming weeks, with Kiwis keen to make decisions. Regardless of all the disruption, many families still want a bigger home, empty nesters still want to downsize, and first-home buyers still want to make the most of record-low interest
She says with lower deposits now required, the first-home market will benefit thanks to the Reserve Bank’s
Ms Mayne says despite real estate
decision last month to temporarily
transactions largely in hibernation
scrap its LVR restrictions. The
for over a month, Century 21 has
move will also bring more property
seen plenty of activity and has
investors into play.
used the time to lift its brand exposure through digital marketing and public relations.
What’s more, serious buyers didn’t disappear during lockdown. They just got onto their computers rather
rates,” says Derryn Mayne, Owner of
During the Level 4 lockdown,
than into their cars. In fact, Kiwis
Century 21 New Zealand.
Century 21 salespeople were busy
have been looking at property
doing the likes of virtual appraisals.
online in droves, with popular real
Under Level 3 they pushed
estate websites reporting more
play on listings, brought in the
traffic and longer average user
photographers, and organise
times over the past couple of
private viewings.
months.
Now under Level 2, real estate
“We are chomping at the bit,
offices have re-opened and all
but we’re also conscious it’s not
the usual real estate activity has
completely business as usual. With
resumed, with protocols in place.
clear guidelines in place for real
All activity needs to adhere to a
estate to operate safely under Level
minimum of one metre physical
2, we’re working harder than ever
distancing, hygiene etiquette must
for buyers and sellers alike,” says
be adhered, and records must
Derryn Mayne.
Her comments come as New Zealand now sits at Alert Level 2 after several weeks in the much more restrictive Levels 3 and 4. Level 4, which took out the end of March and almost all of April, represented almost total lockdown with real estate agents limited to the likes of phone calls and zoom meetings. Level 3, in late April and the first half of May, enabled private viewings of homes for sale and rental properties under strict conditions.
ensure that contact tracing of all clients can take place. The likes of
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SET THE STAGE
SIX EASY TIPS FOR STAGING YOUR OWN HOME There's no question that staging your dĂŠcor is advantageous when you're trying to sell your home. The strategic editing and placement of your furnishings
3.
away from walls (a technique known
DEEP CLEAN
as "floating") to create groupings
Everything must be groomed,
that are tied together visually with
sparkling and odour-free inside and
area rugs.
out. That includes making sure all your windows are clean inside and out as this will allow all your hard work to sparkle brighter than ever!
friendliness and cheer by
boosting its appeal. Fortunately,
selectively adding new flowers,
conducting your own staging need
potted plants, attractive seating
not be complex by following a few
and welcome mats outside,
easy guidelines:
perhaps fresh flowers and bowls of fruit inside.
PRIORITISE BY ROOM 6.
You'll get the most visual impact by staging your living room, master
OPTIMISE LIGHT
Add brighter light bulbs, pull back
bedrooms, kitchen and extra
or remove curtains, clean windows
bedroom(s), in that order.
2.
ACCESSORISE INSIDE AND OUT
Create an atmosphere of airiness,
can be enormously important to
1.
5.
and clean (or perhaps update) light fixtures to add to the overall
DE-CLUTTER
Cleaning will be easier after you pack away at least 90 percent of your own dĂŠcor and personal
impression of positivity.
4.
DIVIDE AND CONQUER
artifacts. Your goal is to create a
Plan to remove about half your
minimally decorated space buyers
furniture to give the impression
can imagine moving in to.
of optimal space. If it's all unpresentable, use stylish rental pieces or fake "pop-up furniture" for showings. Tip: Wherever possible, move display furniture
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WITH OFFICES THROUGHOUT NEW ZEALAND, THE ADVICE YOU NEED AND THE S E R V I C E Y O U WA N T ARE JUST AROUND THE CORNER. Selling a property is more than just a transaction. CENTURY 21 has the right tools, experience and support to help you achieve the best possible result. With CENTURY 21 offices throughout New Zealand, the advice you need and the service you want are just around the corner.
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C21.co.nz
P R O P E R T Y M A R K E T U P DAT E
LEVEL 4 LOCKDOWN IMPACTS HOME SALES VOLUMES, BUT PRICES HOLD
BY BINDI NORWELL, REINZ CEO
The number of properties sold in April across New Zealand decreased by -78.5% from the same ntime last year – from 6,082 to 1,305 – as the level 4 lockdown made it very difficult for property sales to occur, according to the latest data from the Real Estate Institute of New Zealand (REINZ). For New Zealand excluding
given that for the first 27 days of
Auckland, the number of properties
the month the entire country was in
sold decreased by -82.4% when
complete lockdown and sales could
compared to the same time last
only take place via contactless
year (from 4,357 to 767).
methods such as online/phone
In Auckland, the number of properties sold in April decreased
auctions or using digital technology such as FlexiSign.
by -68.8% year-on-year (from
“Of the 1,305 properties sold across
1,725 to 538).
New Zealand, about half were sold
Unsurprisingly, there were no regions with increases in sales volumes during April. However, the West Coast was the only region not to experience a record low during April. Bindi Norwell, Chief Executive at REINZ says: “The number of properties sold across the country decreased by 78.5% when compared to the same time last year which is not entirely surprising
in the first 10 days of lockdown (656 properties), followed by just 272 between 11-20 April which included Easter, and then an uplift in the last 10 days of the month with 377 properties sold,” says Norwell. “What did surprise us, was that April was not the lowest monthly sales count on record for the West Coast. There were a few months in the 1990s where the region had less than the 9 sales experienced in
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April,” points out Norwell. “The Auckland region appeared to be the least impacted by COVID-19 when it came to sales volumes, with a 68.8% drop in the number of properties sold. Most of the sales occurred in Auckland City (172,) followed by North Shore City (102) and Manukau City (92). On the flipside, Southland was the most impacted with a 92.1% annual fall,” she continues. “Key to moving forward and helping the market to recover will be the number of new listings coming onto the market during May and consumer confidence levels – particularly in relation to ongoing employment and people’s ability to access finance. Lastly, we’ll be
looking at metrics such as the sales
increased by 6.6% to a median price
“Median prices during April were
price to CV ratio, percentage of
of $520,000, up from $488,000 in
less volatile than we anticipated,
auctions and median number of
April last year.
especially with such a significant
days to sell. “Talking to our members around
increased by 9.2% to $925,000 up
the country, there are good levels
from $847,000 at the same time
of activity starting to occur with
last year – the second highest
both first time buyers and investors
price on record.
active in the market which is a positive sign. We expect this to pick up as we move into Level 2,” she
$680,000. Additionally, all bar 3 regions (Waikato, Taranaki and
“We were surprised to see three
Canterbury) saw annual uplifts in
regions with record median prices
ANNUAL ME DIAN PRICE CHANGES
median house prices,” says Norwell. “It looks as if the continued listings shortage has helped prices hold
4.6%
9.2%
NORTHLAND
AUCKLAND
GISBORNE
$680,000
22.8%
$
14.3%
TARANAKI
$
11.7%
WAIKATO
0.0%
NATIONAL MEDIAN PRICE:
6.7% BAY OF PLENTY
-3.6%
Record Median Price
MANAWATU / WANGANUI
$
NELSON
17.2%
10.2%
MEDIAN DAYS TO SELL:
7.5%
34
7.6%
TASMAN
CANTERBURY
-12.1%
SOUTHLAND
been negotiated during March, so it’s likely to be another month or so until we really see the full impact of the lockdown,” warns Norwell. Despite the decrease in sales volumes, median house prices across New Zealand increased by 17.2% in April to a new record high of $680,000, up from $580,000 in
18.3% WELLINGTON
3.3%
WEST COAST
many of the sales in April will have
39.4% HAWKE’S BAY
MARLBOROUGH
6.8%
April 2019.
year to a record median high of
detail of these regions, it’s more to
get a few more months’ data, as
Source: REINZ Monthly Property Report 15 May 2020.
17.2% uplift on the same time last
and Nelson), but looking into the
over being too optimistic until we
$
prices for the country showing a
in April (Hawke’s Bay, Wellington
continues “However, we caution
$
drop in sales volumes, with median
In Auckland, median house prices
OTAGO
do with uplifts in the upper sales
during April, however, as many
price brackets than an uplift in the
of these sales will have been
underlying value in these regions.
negotiated during March when
However, time will tell what the true
confidence levels were higher than
impact has been,” she points out.
they are now, it’s important to take this into consideration when looking
“Looking at the Auckland market, the region recorded its
at the figures,” continues Norwell.
second highest median price on record. This was the result of a 9-percentage point increase in $1 million plus sales and record median prices in Papakura District
Median house prices for New
($735,000) and Waitakere District
Zealand excluding Auckland
($875,000),” continues Norwell.
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