O C T O B E R
M A R K E T
2 0 1 8
P U L S E
C21
PUBLISHER Century 21 New Zealand Ltd
CONTRIBUTORS Ryan Mitchell Tim Neary Bindi Norwell Chris Gray
EDITORIAL ENQUIRIES Century 21 New Zealand +64 9414 6041
ADVERTISING ENQUIRIES Century 21 New Zealand +64 9414 6041
WELCOME TO THE
OCTOBER 2018 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 O C T O B E R
NZ MARKET UPDATE
02-03
2 0 1 8
BUYING OFF-MARKET
New Zealand sees Spring surge.
Buying an off-market property
Century 21 New Zealand National Manager,
Your Empire CEO, Chris Gray.
06-07
Ryan Mitchell
FRONT FACELIFT REBRAND REVOLUTION
04
Ways to improve the front of your home.
C21 rebrand an evolution, already paying off. Real Estate Business Journalist, Tim Neary
VOLUMES DOWN BUT PRICES UP
05
Low sales volumes a result of extremely low listings in July. REINZ CEO, Bindi Norwell
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N Z M A R K E T U P DAT E
NEW ZEALAND SEES SPRING SURGE B Y R YA N M I T C H E L L ,
N AT I O N A L M A N AG E R , C E N T U R Y 2 1 N E W Z E A L A N D
Despite some commentators’ best efforts, real estate in New Zealand remains relatively strong, particularly in the provinces. The Real Estate Institute of New
remain relatively stable this spring,
prices and interest rates staying
Zealand (REINZ) recently reported
with the median number of days to
low, buying and selling this spring is
that the median house price for
sell a property increasing by two
proving an attractive proposition.
Auckland saw its first year-on-year
days to 42 days.
increase in six months, achieving a 1.4% annual lift to $852,000.
He notes that the Reserve Bank’s
Listings however are experiencing
recent comments that the Official
somewhat of a spring surge this
Cash Rate is likely to remain
At the same time median house
year. Century 21 New Zealand
prices for the country increased
reports that at the end
overall by 3.6 per cent year-on-year
of September,
to $549,000.
the company’s
Above average temperatures for New Zealand in the final month of winter helped to positively impact the real estate industry, says REINZ. In fact median prices increased in 14 out of 16 regions across the country year-on-year, with only two regions experiencing a fall in price: Canterbury and Southland. While Auckland’s southern and western areas reported solid price increases, overall the region’s prices
new listings nationwide were up 88.5% compared to the end of September
low until at least 2020 gives people confidence that their mortgage commitments are
“The current price correction is a result of the low-interest-rate environment that the nation has...”
last year, and up
not going to dramatically change in the immediate future. The Reserve Bank has also reported that
2.1% compared to
figures now show
the end of August.
more first-home buyers are taking out mortgages
Ryan Mitchell, National Manager of Century 21 New
with less than a 20% deposit –
Zealand, says with settled house
helped by the Reserve Bank easing
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$
ANNUAL ME DIAN PRICE CHANGES $
=
0.0%
NORTHLAND
AUCKLAND
-2.8% $
$556,000
23.1%
$
$
$
18.9%
MANAWATU / WANGANUI
-4.1%
36
13.5%
8.6%
6.6%
MEDIAN DAYS TO SELL:
GISBORNE
HAWKE’S BAY
NELSON
5.9%
26.9%
WAIKATO
TARANAKI
NATIONAL MEDIAN PRICE:
0.5% BAY OF PLENTY
8.3%
Record Median Price
5.8%
TASMAN
WELLINGTON
MARLBOROUGH
3.2%
WEST COAST
CANTERBURY
13.9% Source: REINZ Monthly Property Report September/October 2018
12.2%
5.0%
SOUTHLAND
OTAGO
restrictions on highly-leveraged
response from the Reserve Bank
for anyone wanting to sell their
mortgages.
to reflect that is now well overdue.
property to get noticed before
Too many first-home buyers are
summer brings an avalanche of
missing out on attaining the Kiwi
competing listings. We’re saying to
dream when they shouldn’t have to
vendors, don’t wait till the New Year,
anymore.”
go now, as we’ve got the buyers -
The relatively new Labour-led Coalition Government is also actively work on addressing housing supply – a big issue for
many of which want to settle into
Auckland over the past decade. The
He also points to a Massey
Government’s KiwiBuild programme
University Residential Market
aimed at first-home buyers is out of
Report released in August showing
This year more notably than
the blocks with ballots announced
that rents have increased steadily
others many real estate companies
for several apartments in Auckland.
over the past five years across the
are running spring campaigns
What’s more lenders are showing a
board, with the average national
to try to entice people to list
willingness to back the scheme with
rent up by 25.5 percent over that
their homes. However, vendors
the likes of Kiwibank pitching loans
time.
wanting a successful outcome
to first-home buyers with less than a tenth down as a deposit.
“Recently the Government signaled changes affecting both tenants and
their new homes by Christmas.”
need to carefully assess an agent and agency’s ability to market a property and negotiate a great sale
However Mr Mitchell believes
landlords, but regardless rents are
more can be done. He and other
not dropping. In fact, some claim
industry leaders have called for
the proposed tenancy law changes
“That’s where Century 21 New
the Government and Reserve Bank
could only increase rents further.
Zealand has an advantage over
to review the ongoing need for tough loan-to value ratios (LVRs) and overall lessen the deposit requirements for first-home buyers. “The searing heat has been taken out of the New Zealand real estate market in a systematic yet sustainable way, so a policy
With both house prices and interest rates steady many are spying strong prospects for buyers, while at the same time spring has motivated new vendors into the market. “There are always more buyers than sellers out in the market in spring, providing a great opportunity
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price.
local competitors. Our salespeople are down to earth professionals looking to secure their clients the best results all year round, we find our clients return to us and refer to us which shows a lot in today’s marketplace,” says Ryan Mitchell.
REBRAND REVOLUTION
C21 REBRAND AN EVOLUTION, ALREADY PAYING OFF Century 21 recently repositioned its brand and launched one of its largest marketing campaigns in Australian history to promote itself. This investment is already benefitting its offices and helping to strengthen the network. Owner and chairman Charles Tarbey said that C21’s focus is on ensuring that its value offering to agents is as strong as it can be. “Our marketing clearly promotes and differentiates our
Mr Tarbey said that the logo was
“Century 21 was always focused
reflected on the iconic brand, but
around delivering positive and
also pointed to the future in a fresh
modern real estate experiences
way. He said that the new logo “pays
to consumers. This is the next
homage” to the iconic nature of the
evolution of that promise and we
Century 21 brand across the world.
couldn’t be more excited about the
“It was also pleasing to see that
care of itself if we do these, and other little things, right.” Mr Tarbey
future.”
the logo will be shortened to C21, as other businesses have had a great deal of success shortening their names and capitalising on how consumers describe their businesses,” Mr Tarbey said. The rebrand will also update Century 21 offices to have a modern upmarket feel in keeping with the brand’s offering to the market.
announcement was
chairman told REB.
growth will take
JOURNALIST AT R E A L E S TAT E B U S I N E S S
“When the rebranding
offices in the field,” the
“I believe that
B Y T I M N E A R Y,
delivered in front
“...the logo “pays homage” to the iconic nature of the Century 21 brand across the world.”
of over 2,400 Century 21 agents in Florida, our global CEO received a standing ovation from
said that the
the entire crowd.
new identity was a part of the brand’s evolution in the region. “The new brand is built around our
The passion and excitement in the room was palpable,” Mr Tarbey said.
new standard of defying mediocrity
Mr Tarbey said that this is an
and delivering extraordinary real
exciting time for the brand.
estate experiences to consumers.”
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The story Charles Tarbey: C21 rebrand an evolution, already paying off, first appeared on Real Estate Business (REB). Article Link: https://www.realestatebusiness.com.au/ better-business/17790-charles-tarbey-c21rebrand-an-evolution-already-paying-off
VOLUMES DOWN BUT PRICES UP
LOW SALES VOLUMES A RESULT OF EXTREMELY LOW LISTINGS IN JULY
BY BINDI NORWELL, REINZ CEO
The low number of new listings in July has meant that the number of houses sold in New Zealand during September decreased by -3.0% yearon-year. This was the lowest level number of properties sold since January this year, 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. The number of properties sold across the country fell from 5,674 in September 2017 to 5,506 in September this year – 168 fewer properties. This is the lowest for the month of September since September 2011. For New Zealand excluding Auckland, the number of properties sold decreased by -3.3% – 133 fewer properties when compared
In Auckland, the number of properties sold decreased by -2.1% or 35 fewer properties, from 1,651 in September 2017 to 1,616 in
Regions with the largest annual decrease in sales volumes were: •
September 2018. Bindi Norwell, Chief Executive at
lowest since January 2018
REINZ says: “Traditionally there is a lag of about 6 weeks between
Northland: -21.9% (from 215 to 168 – 47 fewer houses) – the
•
Gisborne: -21.7% (from 60 to
significant movements in listings
47 – 13 fewer houses) – the
and sales results. With July’s listings
lowest since January 2018
down by 5.4% year-on-year and an all-time low level of listings in
•
30 – 7 fewer houses) – the
seven regions, it’s little wonder that
lowest since December 2017.
September’s sales volumes were so low. There simply weren’t as many properties for sale resulting in a very quiet start to spring. “However, with August and September’s listing numbers up 0.1% and 11.7% respectively, it is expected that October and November’s sales volumes will be much stronger – particularly
There were also some regions with strong annual increase in sales volumes including: •
Across the country 12 out of 16 regions saw a fall in volumes with 6 of those regions experiencing double-digit decreases.
to September 2017 (from 4,023 to 3,890).
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Marlborough: +31.5% (from 54 to 71 – an additional 17 houses)
•
Southland: +22.3% (from 139 to 170 – an additional 31 houses)
as people want to sell ahead of Christmas,” continues Norwell.
West Coast: -18.9% (from 37 to
•
Waikato: +9.1% (from 582 to 635 – an additional 53 houses).
BUYING OFF-MARKET
BUYING AN OFF-MARKET PROPERTY B Y C H R I S G R A Y, C E O, YO U R E M P I R E
Off-market sales can be a great way to build an investment portfolio or streamline a selling process, but there are some risks involved.
the stress and inconvenience
secure an off-market property. In a
associated with a traditional
booming market in a prime area, 95
property sale. You might have
per cent of real estate agents will
purchased a property for
push to take a property to auction.
$250,000, but now it’s worth
Even now with the market falling
$1,000,000. In most cases, an
and properties not selling as quickly
agent will push for an auction,
as they used to, it can still be
especially in a booming market. An
challenging to secure a silent sale.
If a property is sold without being
auction could get you $1,100,000,
Real estate agents in a slow market
listed or advertised on any of
but it could also get you $900,000.
have fewer listings, and when they
the major real estate portals, it is
However, if you choose to sell the
manage to acquire new business,
typically considered an off-market
property silently, you might secure
they often work the listings harder,
sale. There are two primary types
a guaranteed $1,000,000 but
meaning they take it to auction and
of these transactions; a pre-market
without all the hassle involved in
tell the world about it in the hope of
opportunity and a ‘true’ off-market
the selling and auction processes.
getting other listings from buyers
opportunity. In a pre-market
It’s similar to trading in your car
that are also sellers. It’s vital to keep
situation, an agent will connect
rather than selling privately; many
your head, be patient, and be sure
with interested parties in the hope
people would rather take the cash.
to triple-check yourself at every
of receiving an offer before the property is promoted publicly or taken to auction. In a true offmarket opportunity, the property in question is sold without any immediate plans to be placed on the market. For vendors, one of the main benefits of a silent sale is eluding
If you’re thinking about purchasing property off-market, be sure to
milestone to ensure you’re not short-changing yourself.
do your research, especially if
While off-market sales afford
you plan to handle the process
several advantages, they also
yourself. There are many pitfalls for
present some additional risk. As
those who rush or those who bring
a buyer, be wary that not all off-
emotion into the sale.
market properties are a good deal
Depending on market conditions, it can be relatively difficult to
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and they are not always great properties. In some situations,
vendors will have unrealistic
well-connected with real estate
expectations. In this case, it’s
agents. Further, a real estate agent
essential you exercise due diligence
is far more likely to close a deal
and make sure you’re not paying
with a buyer’s agent over someone
too much and ensure the property
new, as they know from previous
really does tick all the boxes.
transactions that the process will
It’s also important to be aware of buyer’s agents’ services if you are time-poor, or if you would like
likely be smoother and quicker than if they were selling to a potential tyre kicker.
professional assistance to build
Provided you do your research and
your investment portfolio. A buyer’s
remain patient, in conjunction with
agent specialises in scoping out,
utilising a reputable buyer’s agent
evaluating and then purchasing
(should you choose this path),
Chris Gray is CEO of Your Empire, a buyer’s
properties on behalf of their client,
purchasing property off-market
agency which builds property portfolios for
a buyer or investor. There are many
can be a cost-effective way to build
advantages to using a buyer’s agent,
an investment portfolio, especially
the foremost being their industry
during market uncertainty.
and investment knowledge. A
Alternatively, a silent sale for
renovating on others’ behalf, providing a
buyer’s agent is a market expert and
vendors can streamline the selling
unique insight into market conditions and
a skilled negotiator; they make their
process and speed up a sale.
living buying competitively priced
ABOUT THE CONTRIBUTOR
time-poor people – searching, negotiating, renovating and managing property on their behalf. Chris’s team buys 1-2 properties a week and often spends $5m+ a year
buyer and seller sentiment. Chris hosts “Your Property Empire’ each Friday on Sky News Business channel, where he
real estate and often specialise in
interviews various heads of property research
off-market sales.
companies and major industry figures. Chris is a qualified accountant, buyer’s agent and
A buyer’s agent can also give you
mortgage broker. For more information visit
access to off-market properties
www.yourempire.com.au,
that you wouldn’t find on your own,
www.chrisgray.com.au and follow Chris on Twitter: @ChrisGrayEmpire.
as buyer’s agents are generally
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FRONT FACELIFT
WAYS TO IMPROVE THE FRONT OF YOUR HOME ‘First impressions count’ may be among the most used clichés in the English language, but that’s because it’s undeniably true. When it comes to your home, the first impression serves as a benchmark for the rest of the house, especially for those who haven’t been inside. Fortunately, there are various simple tricks to help give your front yard a facelift.
CLEAN UP Many properties can fall victim to bad first impressions if the front yard is untidy or overgrown. Simply trimming overgrown trees, weeding the garden, cleaning up any toys and replacing any broken pavers and steps can be a great way to boost street appeal and create a safe front entrance to your home.
ADD FURNITURE Buying furniture for the front of
Here are three changes you can
your house can add character and
make to the front of your home to
create a relaxing space to farewell
improve street appeal:
visitors or enjoy your morning coffee. Deciphering which furniture
FRESH PAINT Giving the front of your property or elements of your front yard a fresh coat of paint can completely revamp the perception of your home. Renovators looking for the
best suits your home often depends on the style of your property and your taste. A small outdoor table and chairs set or an outdoor bench with contemporary throw cushions are typically good options for personalising a front porch.
most striking results often paint their front door, front fence, eaves and beams, and outdoor furniture if they have it.
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RELENTLESS MOVES
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