M A Y
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 Wendy Alexander
EDITORIAL ENQUIRIES Century 21 New Zealand +64 9414 6041
ADVERTISING ENQUIRIES Century 21 New Zealand +64 9414 6041
WELCOME TO THE
MAY 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 Y
C21 NEW ZEALAND NEWS
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PROPERTY MARKET UPDATE
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First-home buyers should be a key Government
REINZ data shows highest number of properties sold in
focus.
an April month in 5 years.
Owner, Century 21 New Zealand, Derryn Mayne
Acting CEO, REINZ, Wendy Alexander
LOW RATES FOR LONGER
05
DEPOSITS LIFTING Investors taking a deap breath but properties
Low rates for longer creates a once in a lifetime opportunity.
remain a safe bet.
Cameron Brewer
Cameron Brewer
QUARTERLY AWARD WINNERS
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Te Awamutu wins top office in C21 quarterly awards. Cameron Brewer
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C21 NEW ZEAL AND NEWS
FIRST HOME BUYERS SHOULD BE A KEY GOVERNMENT FOCUS The Finance Minister has been largely silent on what the Government will further do to help firsthome buyers into the property market.
B Y D E R R Y N M AY N E ,
OWNER, CENTURY 21 NEW ZEALAND
more towards first-home buyers’,
Recently, Realestate.co.nz
but almost every Kiwi would agree
confirming their popular property
that has yet to be achieved.
website is expecting even more
I acknowledge the Government recently lifted the price caps on eligible properties and the income thresholds of first-home buyers
search traffic this year – a significant finding given 2020 was the website’s busiest year since 2016.
applying for HomeStart Grants and
Demand remains strong, but
First Home Loans. However, at best
nationwide real estate agencies of
it has turned out to be tinkering with
every colour just don’t have the
on 20 May. That’s if his Pre-Budget
little positive impact so far.
stock to match that demand. In fact,
speech to the Wellington Chamber
Try buying an existing house in
of Commerce earlier this month is
Auckland for $625,000 or a new
anything to go by.
build in Auckland for less than
There the Finance Minister talked
$700,000. In fact, since the higher
In fact, at the writing of this, Grant Robertson is actively lowering expectations ahead of Budget 2021
up the Government’s housing package in March but alluded to no further housing announcements in the forthcoming Budget. Instead, he said ‘turning around a housing crisis, decades in the making, will take time’. I’ve been hopeful that first-home buyers feature strongly in the Budget with measures that actually get them into the property market. Afterall, the Finance Minister has long promised to ‘tilt the balance
price caps took effect on 1 April, we’ve in turn seen developers
according to Realestate.co.nz the number of houses on the market nationwide in April was down nearly 20% on the same time last year. That’s a significant shortfall of listings.
bumping up their townhouse and
Prospective sellers who own
apartment prices to just below
properties outside the reach of
the new maximum caps. That’s a
most first-home buyers should
terrible public policy outcome and
list sooner rather than later if they
only puts more debt on first-home
want to achieve maximum interest
buyers.
and price. Policies are now taking
While property prices might be flattening out in some quarters,
hold which are seeing less investors competing for property.
demand certainly isn’t with first-
The Government has got
home buyers still forced to go
particularly tougher on property
beyond the pale to secure a
investors, which is already seeing
property.
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fewer enter the market and more exiting. From 1 May, the Reserve Bank also introduced a 40% deposit requirement for investors which is slowing down the likes of ‘mums and dads’ looking at purchasing a second home to rent out. While the Government is achieving some sustainable cooling in parts of the property market, it remains miles off being tilted in favour of first-home buyers. First-home buyers are not expecting a free lunch, but they will be anticipating some workable policies and plans that ensure a leg up on the property ladder. Enabling more young Kiwis into property ownership would be one of the greatest things this Government could deliver for the future and security of New Zealanders. With Budget 2021, we’ve all been waiting with bated breath.
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FIND OUT THE NEW VALUE OF YOUR PROPERTY The property market has seen a significant change in recent months and you may be surprised by the current value of your property. For over 50 years Century 21 has been helping sellers achieve their outstanding results. We would be delighted to provide you with an obligation-free market appraisal. Request your free market appraisal today.
Visit: C21.co.nz/sell
CELEBRATING 50 YEARS
L OW R AT E S F O R L O N G E R
LOW RATES FOR LONGER CREATES ONCE IN A LIFETIME OPPORTUNITY The Reserve Bank’s confirmation today that it’s holding the Official Cash Rate at 0.25% is great news for household borrowers with plenty of avenues to secure a mortgage still in existence, says a leading financier. “While the OCR is expected to remain low for some time, the talk now is when will interest rates go up, not if. This is reinforced by some banks currently pushing very
of mainstream banks making
who can stump up with say half of
impossibly high hurdles to secure
the money or more. As long as the
a mortgage, the entry for many
rent services the mortgage, then
borrowers remains achievable,
the financial assessment can be
particularly as people head to more
less, there’s often no barrier on age,
flexible non-bank lenders, he says.
and the commercial interest rate
“Often first-home buyers get rejected by the big banks because
can be low – when dealing with the likes of retirees,” he says.
they don’t quite meet the servicing
Likewise, he says, high-income
requirements, or they might not
loans can still be easily achieved as
have a 20% deposit. However, there
can construction loans when clients
remains plenty of can-do lenders
can leverage development projects
who are prepared to back good
against freehold land and other
people, do the running around, and
assets.
secure an even lower interest rate,” says the Century 21 financier.
Century 21 Financial works with the big retail banks, smaller banks,
sharp rates on four and five-year
He says with everything getting
credit unions, and non-bank
terms such as 2.89% and 2.99%
harder when it comes to higher
lenders. It offers a full range of
which are increasingly tempting for
deposit requirements, tougher
financial and mortgage broking
homeowners,” says Julius Capilitan,
scrutiny on the self-employed,
services, with Century 21 real estate
Managing Director of Century 21
capital gains on investment
offices nationwide also referring
Financial New Zealand.
properties, it’s easy for borrowers
clients for financial advice and
to become despondent. However,
lending.
“Don’t let commentators tell you interest rates are low but it’s impossible for many to borrow. Not true. Banks are set to really start jostling for market share, both in the
there remains plenty of money to lend and while interest rates remain so low, Kiwis should act on this once in a lifetime opportunity.
“Century 21 Financial certainly strengthens our company’s proposition in real estate. Julius and his team are working closely with
commercial and residential sectors.
Julius Capilitan says with an array
our franchises, delivering on the
What’s more, banks are making a
of disincentives now at play for
property ownership dream for many
big shift to accommodate first-
residential property investors and
Kiwis,” says Derryn Mayne, Owner
home buyers. Hence, we are seeing
landlords, many ‘mum and dad’
of Century 21 New Zealand.
more incentives such as higher
investors are actively considering
cash-back amounts being offered,”
commercial property.
he says.
“We’re seeing asset-rich loans
While stories have been aplenty
achieved with ease. That is someone
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www.century21financial.co.nz Photo: Julius Capilitan – Managing Director - Century 21 Financial NZ (027) 2777-352
Q U A R T E R LY AWA R D W I N N E R S
TE AWAMUTU WINS TOP OFFICE IN C21 QUARTERLY AWARDS Century 21 New Zealand has announced its 2021 first quarter winners, which saw Century 21 Gadsby Realty in Te Awamutu ranked as the top office across the country as well as winning some leading sales awards. Century 21 New Zealand has
won Gold sales awards, and Paul
Bronze awards went to Patrick Barry
Wheeler took away a Silver award.
(Century 21 Premier, Turangi);
Down the road, Christine Stevens of Century 21 Stevens Realty in Mangakino was Top Principal for the Quarter for both GCC and Units. At the same time, Central Auckland’s Winson He of Century 21 Queen
Ria Leung (Century 21 Aurora Real Estate, Riccarton); Kanwar Dhillon (Local Realty, Papakura); Ian Nicholas (Gadsby Realty, Te Awamutu); and Barbara Craig (Rural & Residential Real Estate, Huntly),
Street Realty won Top Salesperson
Property Management Office for
for the Quarter for both GCC and
the Quarter over 250 (the highest
Units. Ms Stevens and Mr He also
number of new managements
won Platinum sales awards.
by an office with more than 250
announced its 2021 first quarter
Other Platinum awards went to Iresh
winners, which saw Century 21
Tennakoon (Century 21 Local Realty,
Gadsby Realty in Te Awamutu
Papakura); Tasreet Dhatt (Century
ranked as the top office across the
21 Fairdeal Realty, Manukau); and
country as well as winning some
Rod Hull (Century 21 Platinum,
leading sales awards.
Tuakau).
“Rebecca Fraser and Paul Wheeler
Gold awards went to Gary Bal
only bought Century 21 Gadsby
and Aman Kaushal (Local Realty,
Realty on Te Awamutu’s Alexandra
Papakura); Fenny Ang (Century
Street in 2019 and then had a
21 Edwards Realty, Botany); Paul
particularly strong 2020. It’s great
Whiteford (Century 21 Gold Real
the well-known Waikato franchise
Estate, Manurewa); Team Chatty
has now taken out the top office
& Bani (Fairdeal Realty, Manukau);
spot for the first three months of
and Ian Pepper (Century 21 Rural &
2021,” says Derryn Mayne, Owner of
Residential Real Estate, Huntly).
Century 21 New Zealand.
Silver awards were won by Deeyana
Gadsby Realty won Top Office for
Amosa (Fairdeal Realty, Manukau);
the Quarter for both (Gross Closed
Derryn Mayne (Gold Real Estate,
Commission) and Units (the number
Manurewa); and Alen Moshi
of properties listed and sold).
(Century 21 The Moshi Group,
Rebecca Fraser and Eli Gadsby also
Wellington Central).
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managements) was awarded to Century 21 Sunrise Realty in Meadowlands, Auckland. Property Management Office for the Quarter under 250 went to Century 21 Premier, Palmerston North, with Emma Bourke of Premier in Palmerston North winning Property Manager of the Quarter. Ajit Saini of Fairdeal Realty in Manukau received the Quality Service Award, and the Recognition Award went to Mark Lee of Edwards Realty in Botany. Administration Team Member of the Quarter went to Derrek Chan of Local Realty in Papakura, and Personal/Sales Assistant of the Quarter was awarded to Robyn McGuire of Rural & Residential Real Estate in Huntly.
Photo: Franchise owners Paul Wheeler & Rebecca Fraser in Te Awamutu.
“The first quarter saw two Covid-19 lockdowns in Auckland, tougher deposit requirements taking effect, and a number of measures introduced by the Government targeting investment properties. Nonetheless our franchises up and down the country had a strong start to 2021. It was great to see our newest office, Fairdeal Realty on Manukau’s Lambie Drive, also Photo: Gadsby Realty team members at the Annual awards in Aukland, Feb 2021
starring in the awards,” says Derryn Mayne.
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P R O P E R T Y M A R K E T U P DAT E
HEINZ DATA SHOWS HIGHEST NUMBER OF PROPERTIES SOLD IN AN APRIL MONTH IN 5 YEARS
BY W E N DY A L E X A N D E R , REINZ ACTING CEO
The number of residential properties sold in April across New Zealand was the highest number of properties sold in an April month for 5 years with 7,218 properties sold, 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
with April 2020 due to the Alert
Median prices for residential
Auckland, it was the busiest April in
Level 4 lockdown and the fact that
property across New Zealand
3 years with 4,627 properties sold.
only 1,389 properties sold in April
increased by 19.1% from $680,000
last year.
in April 2020 to $810,000 in April
Auckland saw the busiest April month in 5 years with 2,591
“While the national picture
properties sold.
represents the busiest April in 5
Other stand out regions included the West Coast 46 properties sold – the strongest sales volumes for an April month in 15 years, Canterbury with 1,076 properties sold - the busiest April month in 14 years and Waikato with 700 properties sold the busiest April month in 5 years. Excluding April 2020, Otago had the lowest April sales volumes since April 2008, Gisborne had the quietest April month in 7 years and Manawatu/Wanganui had the quietest April in 6 years. Wendy Alexander, Acting Chief Executive at REINZ says: “Sales volume comparisons on a raw data perspective are unable to be made
years, the reality is that we’ve seen the number of sales decrease when compared to March. While
2021, albeit down from last month’s record. Additionally, 9 out of 16 regions reached record median prices and so did 21 districts – well down on 32 districts last month.
in part this is what we expect to
Median house prices for New
happen when moving from March
Zealand excluding Auckland
to April, there is definitely a wait
increased by 33.5% from $517,000
and see approach from a number of
in April last year to $690,000, a
investors and also some first time
new record high for New Zealand
buyers,” continues Alexander.
excluding Auckland.
“Some of these falls in sales
Auckland’s median house price
volumes are likely to be early signs
increased by 21.6% from $925,000
of the LVRs slowing the market,
in April 2020 to $1,125,000 in April
some will be attributed to the
2021 – a new record for Auckland.
changes announced on 23 March
Additionally, Manukau City reached
and some are likely to be the fact
a new record median high of
that we have the lowest level
$1,070,000 and Franklin District
of inventory for an April month
reached a new record median price
since records began,” continues
of $838,000.
Alexander.
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ANNUAL ME DIAN PRICE CHANGES $
$
48.9%
21.6%
NORTHLAND
AUCKLAND
Record Median Price
$
$
NATIONAL MEDIAN PRICE:
$
TARANAKI
19.1%
$
15.1%
BAY OF PLENTY
37.7%
72.5%
WAIKATO
42.1%
$810,000
27.0%
GISBORNE
46.8%
17.6%
MANAWATU / WANGANUI
29
19.2% $ WELLINGTON
16.9% 27.9%
$
HAWKE’S BAY
NELSON
MEDIAN DAYS TO SELL:
$
46.1%
TASMAN
MARLBOROUGH
22.0%
WEST COAST
CANTERBURY
30.9%
58.8%
SOUTHLAND
$
OTAGO Source: REINZ Monthly Property Report 13 May 2021 .
In addition to Auckland, 8 other
median price in a row. Additionally,
Wendy Alexander, Acting Chief
regions reached record median
Manawatu District ($623,250) and
Executive at REINZ says:
prices. They were:
and Rangitikei District ($451,250)
• Waikato: with a 37.7% increase
reached record median highs
“As we predicted last month, the ongoing lack of supply continues
from $530,000 in April 2020
• Taranaki: with a 42.1% increase
to put upwards pressure on house
to $730,000 in April 2021.
from $380,000 in April 2020
prices. However, we have seen
Additionally, Hauraki District
to $540,000 in April 2021.
some regions start to show signs of
($610,000), Taupo District
Additionally, New Plymouth
prices easing and the rate of growth
($700,000), Thames Coromandel
District saw a new record median
slowing down a little which will be
District ($950,000) and Waipa
of $620,000 – the sixth record
welcome news to those looking
District ($860,000) all reached
median price in a row
to get on the property market.
record median highs
• Nelson: with a 15.1% increase
• Gisborne: with a 72.5% increase
from $645,500 in April 2020 to
from $400,000 in April 2020 to
$743,000 in April 2021
$690,000 in April 2021
• Marlborough: with a 46.1%
• Hawke’s Bay: with a 17.6%
increase from $460,000 in April
increase from $655,000 in April
2020 to $672,000 in April 2021
2020 to $770,500 in April 2021. Additionally, Napier City reached a new record high of $810,000
• Otago: with a 58.8% increase from $447,000 in April 2020 to $710,000 in April 2021.
• Manawatu/Wanganui: with a
Additionally, Dunedin City
46.8% increase from $395,000
($621,120) and Queenstown-Lakes
in April 2020 to $580,000 in
District ($1,200,000) both reached
April 2021 – the tenth record
a record median high.
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Additionally, it might be the first signs that the re-introduction of the LVRs is starting to have the desired effect.” continues Alexander
Click here to read the full article
DEPOSITS LIFTING
INVESTORS TAKING A DEEP BREATH, BUT PROPERTIES REMAIN A SAFE BET “We’ll definitely see fewer ‘mum and dad’ landlords enter the market with minimum deposits lifting to 40% for investors on the 1st May. It’s a shame because many of them make great landlords who build strong relationships with their tenants,” says Derryn Mayne, Owner of Century 21 New Zealand. Like others, the real estate boss
effect in February, is also having
deposit rate sitting at barely one
says residential investors are
an impact on investor decision-
percent, when you minus tax and
taking a deep breath following
making.
factor in inflation, there’s no income
the Government’s March housing announcements. Interest tax deductibility was wiped for investors and the bright-line test was extended to 10 years - taxing capital gains.
“Not only is it harder to get into residential investment
or gain there. Residential property, however, will always provide both.
property, but there are many new
“With the autumn market seeing
challenges for existing landlords.
some reticence creeping in, for
Subsequently, we’re seeing small
those Kiwis still willing and able
and large landlords exiting out of
to get into investment property,
Tony Alexander’s Mortgage
residential property. They’re opting
they might be surprised at the
Advisers Survey for April reported
instead to invest in the likes of
opportunities now out there. Let’s
more brokers ‘are seeing less
the sharemarket, managed funds,
not also forget that demand by
business come through the door
commercial property, or even
tenants remains high and rents
from first-home buyers’. At the
syndications promising a
are still very strong,” says Derryn
same time, the survey revealed less
reasonable yield on commercial
Mayne.
investors are seeking mortgage
buildings,” she says.
advice, concluding that policy changes aimed at dampening investor demand for existing properties were having the desired result.
Despite government and Reserve Bank measures to cool off investors, the Century 21 leader says residential property remains a safe bet for those who factor in that one
Ms Mayne says many of Century
day the record-low interest rates
21’s franchises nationwide,
will inevitably rise.
which oversee large property management portfolios, are reporting the Residential Tenancies Amendment Act 2020, which took
“If you put money in the bank these days, you’re sadly going backwards. With the best 12-month term
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