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P U L S E
N O V E M B E R
M A R K E T
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
NOVEMBER 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 N O V E M B E R
C21 NEW ZEALAND NEWS
02-03
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LOSS OF A LEGEND
Set for strong summer, but listings alarmingly light.
Big loss to the real estate industry.
CEO, Century 21 New Zealand, Derryn Mayne
Cameron Brewer
THE TIME IS NOW
04
PROPERTY MARKET UPDATE
First home buyers abuzz – LVRs would be a cruel blow.
Auckland median house price hits $1M mark.
Cameron Brewer
REINZ CEO, Bindi Norwell
CENTURY 21 CHAMPIONS
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Quarterly winners named by Century 21. Cameron Brewer
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CENTURY 21
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08-09
C21 NEW ZEAL AND NEWS
SET FOR STRONG SUMMER, BUT LISTINGS ALARMINGLY LIGHT
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
This coming summer is looking stronger than we thought possible just eight months ago, but the quantum of success relies on Kiwis being prepared to sell their properties, as listings remain at an absolute premium. REINZ has released its Monthly Property Report for October which shows median house prices across New Zealand up by 19.8%, compared to October 2019.
and faster sales. Mortgage rates
in sight as inventory levels have
keep hitting rock bottom and the
lifted by 3.2% since September.
economy is doing better than was earlier expected.
big difference for many vendors
However, 2021 is proving difficult to predict. When you
holiday scheme ending in March and possibly the return of LVRs also then, if I were contemplating
presentation.
"This summer will be a great time to market your house with limited competing listings, but very strong buyer demand resulting in more and faster sales."
selling, I’d be
around the country saw record
listing now – in a
median prices during October,
rising, hungry market.
including Auckland up by 16.3% in
Despite the number of sales
of $1 million.
are telling us they won’t go near properties without a price. They have a budget and are tired of going into multi-offer
blown out of the water. Not advertising an asking price
dramatically up and the ‘days to sell’ falling, REINZ has revealed the
This summer will be a great time
number of properties available for
to market your house with limited
sale nationally was down by -18.7%
competing listings, but very strong
in October compared to 12 months
buyer demand resulting in more
earlier. However, there is some relief
C21 MARKET PULSE
First-home buyers
situations and being
In total, 10 regions and 28 districts
12 months to new record high
currently selling property: Putting a price on it; and online
consider the likes of the mortgage
I believe two things are making a
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can of course benefit a vendor, but they also run the risk of putting off many potential buyers who think it’s just too hard or beyond them.
In the age of lockdowns, limited
The latest REINZ statistics reinforce
travel, and people buying sight
that this summer is an opportune
unseen, never before has a
time for vendors to sell, and invest
property’s online presentation been
in their sale, with professional
more important.
online presentations returning
Staging an empty house can
sellers huge dividends.
add tens of thousands of dollars,
Those Kiwis prepared to list
especially if buyers are making their
their property this summer, and
determinations via their computer.
make a really good job of it, won’t
Professional photography is also
regret their decision. Global
critical including the likes of virtual
uncertainty remains, but clearly
tours, video, and drone footage.
not for New Zealand’s real estate
3D floor plans also bring a
market this summer.
property to life.
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THE TIME IS NOW
FIRST HOME BUYERS ABUZZ – LVRS WOULD BE A CRUEL BLOW “Open homes are buzzing with first home buyers, which is great to see. However, if the Reserve Bank brings back LVRs, first home buyers could sadly be hit the hardest, particularly those whose parents can’t help with a deposit,” says Derryn Mayne, Owner of Century 21 New Zealand. Her comments follow the Reserve Bank warning it’s looking at the prospect of re-introducing loan-to-value ratio (LVR) limits on mortgage lending. “Not enabling as many first home buyers into the market would be such a cruel blow given record-low interest rates while rents remain high. The problem is not first home buyers as they’re struggling to snap up anything at the moment, yet they could soon be collateral damage,” says Ms Mayne. LVRs were introduced back in 2013 to cool the property market by slowing down liberal lending.
Then in April this year, the Reserve
occupiers, many had to stump up
Bank removed all LVR restrictions
with a six-figure sum before the
for 12 months. At the time Century
bank could even consider them.
21 celebrated the move, noting it
LVRs created two tiers of young
would enable more young Kiwis to
people – those whose families
buy their first homes with lower
could financially help them into a
deposits now required.
house and those who couldn’t. I’d
“It’s not as though first home buyers are getting easy money.
hate to see that again.” The head of Century 21 says fair
Not at all! Deposits
enough for the Reserve
still need to be
Bank to intervene if
paid, and banks
the retail banks
are looking closer than
"...this may well be the
ever when
best chance young Kiwis
assessing
were lending irresponsibly, but her company had
have to buy a house in
lenders’
not seen any
their lifetime."
ability to
evidence of that.
service loans.
“We often hear
First home
the ‘haves’ and
buyers then have
‘have nots’ will be
to compete with the
determined by those who
likes of hungry ex-pats and investors, and more often than not, they miss out on their dream property.
come out of this Covid economy with property. We as a country need to encourage young people into home ownership, rather than
The prospect of shutting many first
pulling up the ladder behind us.
home buyers out completely would
Afterall, this may well be the best
send a terrible signal,” she says.
chance young Kiwis have to buy
“When 20% deposits were required from most owner-
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a house in their lifetime,” says Derryn Mayne.
CENTURY 21 CHAMPIONS
QUARTERLY WINNERS NAMED BY CENTURY 21 Century 21 Queen Street Realty only opened a few months ago, yet the new franchise has scored three big victories in Century 21 New Zealand’s awards for the third quarter of 2020.
Alen Moshi also won a Diamond
(Century 21 Gadsby Realty,
Award for sales.
Te Awamutu).
Other Platinum recipients were
Property Management Office for
Christine Stevens (Century 21
the Quarter under 250 (the highest
Stevens Realty, Mangakino); and
number of new managements
Ivan Rakich (Century 21 Darrak
by an office with less than 250
Realty, Albany).
managements) was won by
Gold Awards went to Ian Pepper Queen Street sales star, Winson He, won Top Salesperson for the Quarter for both GCC (Gross Closed Commission) and Units (the number of properties listed and sold). Winson He also received a Platinum Award for sales “Our newest franchise in the heart of central Auckland is off to a flying start! Such early success reinforces the traction the reinvigorated Century 21 brand has been getting over the past year or so,” says Derryn Mayne, Owner of Century 21 New Zealand. Another starring central city franchise was Century 21 The Moshi Group in Wellington’s Courtenay Place. Principal Alen Moshi took out Top Principal for both GCC and Units, while the team won Top Office for both GCC and units.
(Century 21 Rural & Residential Real Estate, Huntly); Iresh Tennakoon (Century 21 Local Realty, Papakura); and Andrew Pugh (Century 21 Premier Palmerston North). Silver Awards went to Kevin Ratnayake and Gary Bal (Century 21 Local Realty, Albany); Tim Kearins (Century 21 Premier Palmerston North); Stephen Hudson (Century 21 Darrak Realty, Albany); Holly Dong (Century 21 Edwards Realty, Botany); and Barbara Craig (Century 21 Rural & Residential Real Estate, Huntly).
Dhillon (Century 21 Local Realty, Papakura); Alan Young (Century 21 Sunrise Realty, Somerville); Mark and Colleen Edwards (Century 21 Premier Palmerston North; and Eli Gadsby and Rebecca Fraser
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North. Property Management Office for the Quarter over 250 was again awarded to Century 21 Edwards Realty in Botany. Janine Hair (Century 21 Gold Real Estate, Manurewa) won Property Manager of the Quarter. Julie Verrall was Administration Team Member of the Quarter and Jerry Li was Personal Assistant of the Quarter - both from Century 21 Edwards Realty, Botany. Salesperson Anjali Amarasinghe (Century 21 Local Realty, Papakura) won the Quality Service Award, while fellow Papakura salesperson,
Bronze Awards went to Kanwar
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Century 21 Premier Palmerston
CENTURY 21
Kanwar Dhillon, received the Recognition Award. “The third quarter saw significant real estate activity from the Century 21 family in our smallest towns right through to our largest cities.” says Derryn Mayne.
LOSS OF A LEGEND
BIG LOSS TO THE REAL ESTATE INDUSTRY Long-time Auckland real estate identity, Ivan Rakich, of Century 21 Darrak Realty in Albany has died aged 69. “Century 21 was shocked and saddened to learn of Ivan’s passing. He has been a successful franchise owner, valued colleague, respected mentor, and popular agent to so many over the years. It’s a big loss to the real estate industry,” says Derryn Mayne, Owner of Century 21 New Zealand. Ms Mayne says Ivan Rakich was an enthusiast who exuded plenty of positive energy. He loved people
awards and supported community
in real estate on the North Shore
causes involving local rugby and
over recent decades.
primary schools.
“Ivan won a Century 21 Platinum
“It’s a very sad time for the Century
sales award for 2020’s third quarter,
21 family,” says Charles Tarbey,
which we only announced a couple
Owner of Century 21 Australasia.
of weeks before he died. While
"I was only recently speaking
earlier this year, Century 21
with Ivan and he was so excited
Darrak Realty was named one
about the prospects for 2021 and
of the Top 21 offices across
the years ahead. He was a great
Century 21 Australasia.
contributor to all who knew him and an outstanding practitioner who will be sadly missed,” says Mr Tarbey.
“Thanks to Ivan’s leadership and dedication, Century 21 Darrak Realty has been one of our best
Ivan Rakich was no newbie to real
performing franchises. Most
estate. He came to Century 21 with
importantly, he was a good
over 40 years’ experience in sales
friend to many. Our sincere
and marketing. He was instrumental
condolences go out to his beloved
in building some of the best teams
family,” says Ms Mayne.
and excelled in the real estate environment. In 2015 he launched Albany franchise, Century 21 Darrak Realty. Former local MP Hon Murray McCully cut the ribbon to officially open the office at 231 Dairy Flat Highway in the old Albany village. Mr Rakich started the franchise employing just one other real estate salesperson. Now Century 21 Darrak Realty boasts several agents and staff. The team has won numerous
Former Foreign Affairs Minister and MP for East Coast Bays, Hon Murray McCully, cuts the ribbon with the late Ivan Rakich at Century 21 Darrak Realty’s opening in Albany on 3 September 2015. C21 MARKET PULSE
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P R O P E R T Y M A R K E T U P DAT E
AUCKLAND MEDIAN HOUSE PRICE HITS $1M MARK IN OCTOBER
BY BINDI NORWELL, REINZ CEO
Median house prices across New Zealand increased by 19.8% from $605,000 in October 2019 to a new record median high of $725,000 in October 2020; and up from $689,000 in September this year (a 5.2% lift) according to the latest data from the Real Estate Institute of New Zealand, source of the most complete and accurate real estate data in New Zealand. Median house prices for New
– something no one anticipated
built at speed and at scale,”
Zealand excluding Auckland
or expected just six months after
says Norwell.
increased by 15.4% from $520,000
the entire country came out
in October last year to a new record
of lockdown.
median price of $600,000, and up
“In addition to Auckland, 9 other regions and 28 districts around the
“With Auckland City ($1,200,000),
country saw house prices reach new
Manukau City ($1,001,000 – a
record medians in October showing
new record) and North Shore City
how low interest and mortgage
Additionally, Auckland’s median
($1,150,000) all having median
rates, the diversion of spend on
house price increased by 16.3%
house prices in excess of $1 million
overseas travel to property, expats
from $860,000 at the same time
it’s not surprising that the Auckland
returning home, the removal of
last year to $1,000,000 a new
region hit the million-dollar mark.
LVRs and a fiercely competitive
from $585,000 in September this year (a 2.6% increase).
record high, and up from $955,000 in September this year (a 4.7% increase). In total 10 regions saw record median prices during October.
“While this is a significant milestone, it raises serious questions around future affordability for Auckland residents
market due to the lack of listings has been contributing to price rises over the past few months,” she continues.
wanting to get a foot on the
“While every region in the country
Bindi Norwell, Chief Executive at
property ladder. It also highlights
saw price rises, regions of particular
REINZ says: “October 2020 will go
just how important it is that
note included Manawatu/Wanganui
down in ‘housing history’ as being
legislation such as the RMA is re-
which had a record median price
the point in time when Auckland
addressed quickly by the current
of $470,000 and 5 districts with
region’s median house price hit the
government so it is fit for purpose
record medians; Waikato with a
milliondollar mark for the first time
to help support more houses being
record median price of $655,000
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and 4 districts with record medians
October sales count since October
“New Zealand’s housing market is
and Wellington with a record
2006 (14 years).
extremely buoyant at the moment,
median price of $785,000 and
with more than 8,800 properties
For New Zealand excluding
6 districts with record medians.
sold around the country – that’s
Auckland, the number of properties
Also, Rotorua District ($580,000),
more than 283 properties sold
sold increased by 14.2% when
Tauranga City ($810,000), Lower Hutt ($761,000) and South Taranaki ($345,034) have had record median prices for 3 months in a row now
every day in October. The last
compared to the same time last
time we saw sales volumes of this
year (from 4,982 to 5,690) – the
magnitude was back in May 2016
highest number of properties sold
when the market was very strong,
since March 2017 (43 months) and
and Christchurch City ($526,000)
and prices were rising across many
the highest October sales volumes
has had a record median for 2
parts of the country.
since October 2006 (14 years).
months in a row.
$
ANNUAL ME DIAN PRICE CHANGES $
$
16.3% AUCKLAND
$
Record Median Price
23.2%
NATIONAL MEDIAN PRICE:
10.5%
15.9%
$
25.6%
29
$
17.5%
10.3%
MANAWATU / WANGANUI
$ $
TASMAN
$
17.4%
$
SOUTHLAND
over the past few months, we wouldn’t be surprised if the Reserve Bank goes ahead with its proposal to reinstate LVRs before the 12-month period is up – particularly for
In Auckland, the number of properties sold in October increased by 50.9% year-on-year (from 2,081 to 3,140) – the highest since March 2015 (67 months) and the highest October sales volumes since October 2003 (17 years).
The number of residential
Only one region, Nelson, saw an
New Zealand increased by 25.0% from the same time last year (from 7,063 to 8,830) – the highest number of properties sold in 53 months (May 2016) and the highest
20.8% WELLINGTON
9.7% CANTERBURY
22.7% OTAGO
investors,” points out Norwell.
properties sold in October across
26.8%
HAWKE’S BAY
MARLBOROUGH
WEST COAST
“Given the price rises we’ve seen
34.1% GISBORNE
12.9%
MEDIAN DAYS TO SELL:
16.2%
BAY OF PLENTY
NELSON
19.8%
Source: REINZ Monthly Property Report 12 November 2020.
$
WAIKATO
TARANAKI
$725,000
16.5% NORTHLAND
annual decrease in sales volumes with the number of properties sold in October falling by just one
“Again, we’ve seen more than half (9 out of 16) of the regions across the country with annual sales volume increases in excess of 20% in October – this is just not what anyone expected to happen and shows just how much people’s concern around future price rises is adding to their determination to buy now before prices potentially rise even further,” continues Norwell.
property from 102 in October 2019 to 101 this October. Wellington’s sales volumes remained flat at 750.
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