O C T O B E R
M A R K E T
2 0 1 9
P U L S E
C21
PUBLISHER Century 21 New Zealand Ltd
CONTRIBUTORS Derryn Mayne Bindi Norwell Cameron Brewer Chelsea Tromans Julius Capilitan
EDITORIAL ENQUIRIES Century 21 New Zealand +64 9414 6041
ADVERTISING ENQUIRIES Century 21 New Zealand
WELCOME TO THE
OCTOBER 2019 ISSUE OF
C21 MARKET PULSE
+64 9414 6041
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
C21 NEW ZEALAND NEWS
02-03
2 0 1 9
FINANCE UPDATE
Summer boosted by many favourable conditions.
Reduced deposits for first home buyers.
CEO, Century 21 New Zealand, Derryn Mayne
General Manager, C21 Financial, Julius Capilitan
SPOTLIGHT ON: NORTH WAIKATO
04-05
PROPERTY MARKET UPDATE
North Waikato increasingly popular.
Real estate market springs into life in September.
Cameron Brewer
REINZ CEO, Bindi Norwell
FEATURED LISTING
06
Feature Property: 22 Lakeview Terrace, Huntly.
RENOVATIONS OF VALUE Stylish kitchen renovations that will add value to your home. Home Beautiful Magazine Editor, Chelsea Tromans
C21 MARKET PULSE
01
CENTURY 21
07
08-09
10-11
C21 NEW ZEAL AND NEWS
SUMMER BOOSTED BY MANY FAVOURABLE CONDITIONS
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 didn’t lower the Official Cash Rate last month, but let’s not forget it has already given the local real estate market a good shot in the arm.
record-low levels. This followed
I know I’ve said it before, but now
its move in early August when it
is a great time for first-home
surprisingly slashed the OCR by
buyers to do their sums and seek
50 basis points.
professional advice on what their
This summer we’ll see a lot of first-time buyers entering the market and existing homeowners deciding to borrow more to purchase their next home, possibly
rent payments are compared to the cost and commitments of servicing a mortgage. They may be surprised to find that the difference is minimal, and in some cases even less.
At the end of September, the
even their first investment property.
Reserve Bank announced it will
Many Kiwis were holding back, but
Having taken effect on 1 October,
maintain the Official Cash Rate
since last month’s big OCR cut
the Government-backed schemes
at 1.00% for the time-being, with
more will be taking the plunge this
for first-home buyers now have
interest rates expected to stay at
summer regardless.
lower deposit requirements
D E C E M B E R AV E R AG E P R O P E R T Y VA L U E S Source: QV Residential House Values (New Zealand) www.qv.co.nz/property-trends, CoreLogic.
$700,000 $600,000 $500,000 $400,000 2014
2015
C21 MARKET PULSE
2016
02
CENTURY 21
2017
2018
Pictured: Feature Property, see Page 6.
with the potential to purchase using
Century 21 is excited for the many
A further positive development
only a 5% deposit.
Kiwis keen to buy this summer.
is the arrival of Century 21 Local
What’s more, with fewer competing
Realty. The brand-new franchise
listings around, it also provides
is set to officially open its doors in
vendors with a great opportunity for
the coming weeks to service the
their properties to be noticed.
Auckland growth areas of Papakura
Add that to the record low interest rates and the wider eligibility as part of the housing reset announcement, I think first-home
Takanini, Karaka and Drury.
buyers could find that they can
Since Century 21 New Zealand
purchase earlier than they’d
got back in the driver’s seat,
In fact, even before its office has
possibly planned. This may see the
prospective franchise owners,
opened on Broadway in Papakura,
market go much better than some
salespeople and staff can see
Local Realty is doing considerable
had expected this summer.
greater autonomy in Century
business with Iresh Tennakoon
21’s direction and local decision-
(pictured) picking up a sales award
If you’re thinking of buying in the next year or two then you should talk to a
making, which they like. They’re also seeing our strong digital
mortgage broker now. Buyers need a plan, even if you know you’re not able to buy today, a mortgage broker can help you plan
“...now is a great time for first-home buyers to do their sums and seek professional advice on what their rent payments are compared to the cost and commitments of servicing a mortgage.”
where you need to be and how to get there. All the numbers point to Auckland having slowed, returning to more sustainable and realistic levels which will also influence the market. Many parts of New Zealand are still enjoying good growth.
for the last quarter – highlighting the strength and experience of the new Papakura sales team.
marketing presence and the company’s getting plenty of good PR. Adding to that was the recent appointment
of Denika Hair as Century 21 New Zealand’s Franchise Coordinator. Her appointment reinforces Century 21’s current momentum and our ongoing commitment to our franchise owners around New Zealand.
C21 MARKET PULSE
03
CENTURY 21
Pictured above: New office, Century 21 Local Realty’s Gary Bal and Iresh Tennakoon.
S P OT L I G H T O N : N O R T H WA I K ATO
North Waikato increasingly popular As REINZ has observed this year, there are plenty of people moving from the big cities and centres to Waikato for its employment opportunities, not to mention the lifestyle.
“Our whole team has contributed
whole area becoming increasingly
to the local Century 21 success,
popular,” says Derryn Mayne,
particularly Barbara who really is
Century 21 New Zealand owner.
With North Waikato’s real estate
Mr Pepper.
holding strong, Huntly featured
As well as positive teamwork, the
Hamilton is only about 30 minutes
Waikato real estate market is healthy.
down the road.
prominently in Century 21 New Zealand’s annual awards earlier this year.
the lynchpin in our office. We’re an effective and hard-working bunch, passionate about North Waikato real estate, property management, and serving the local community,” says
For Huntly, like many of New Zealand’s smaller towns that are in commuter proximity to much larger cities, the future only looks bright. As well as having Auckland just an hour or so up the motorway,
In fact, Waikato median house prices continue to enjoy good growth.
“Huntly is already benefitting from the ongoing multi-billion-dollar
Located on Huntly’s Main Street,
Good sales volumes have also been
Century 21 Rural & Residential Real
achieved, with the number of houses
Estate has taken out several top
sold in Waikato in July leaping into
office awards over the years, with
the top three, along with Auckland
local franchise owners Ian Pepper
and Canterbury, according to REINZ.
and Barbara Craig long recognised
“Century 21 Rural & Residential
train service that will travel right
is one of our strongest offices
through our town,” says Ms Craig.
for their success. What’s more, rising Huntly sales star,
nationwide, with Huntly enjoying
Pescha Eccles, is the current holder
ongoing success this year. There’s
of Century 21 New Zealand Rookie
also plenty to look forward to
of the Year. She continues to excel,
when you consider the underlying
putting successful agreements
strength of North Waikato’s real
together for residential and rural
estate market, large regional
properties alike.
projects coming on stream, and the
C21 MARKET PULSE
04
CENTURY 21
State Highway One motorway extensions, which effectively bring Waikato closer to Auckland. Also exciting is the recently confirmed Hamilton to Auckland passenger
Planned to open next year, a new section of the Waikato Expressway will divert considerable SH1 traffic away from the township. Traffic congestion within the Huntly community will be substantially reduced, which will be particularly
Huntly: Did you know... Huntly and its surrounding area are steeped in rich Maori history, with the region home to the Tainui iwi. What’s more, King Tuheitia’s official residence is just down the road at Turangawaewae. The Maori King’s family are well known in the Huntly area, thanks to the Kingitanga movement being established in Waikato in 1858, with seven hereditary monarchs since. Today Maoridom remains the cornerstone of North Waikato’s cultural identity, with many Marae throughout the area. In fact, Huntly was home to one the first bilingual schools in New Zealand when Rakaumanga Kura opened in 1984.
noticeable during the holidays when
create. Over the next decade, 1,100
“Let’s just say if anyone has rental
traffic through Huntly has often
new homes are also planned to be
property, we could sure rent it out
been at a standstill.
built there.
for a good return. In fact, rents in
“We’re really excited. We’re going
Sleepyhead’s owners have already
to get our town back. For too long
purchased 176-hectares of land,
we’ve been a thoroughfare for
adjoining the existing Ohinewai
people trekking back and forth
village, to be transformed into a
to Auckland. Now Huntly’s got a
mixed-use, fully master-planned
chance to become a real destination,
community of up to 3,000 residents.
exuding character and community,” says Mr Pepper.
The Waikato District Council is within its area which is largely
in 2020, giving commuters a much
north and west of Hamilton. The
more relaxing option. Two return
district’s growth is expected to swell
services will operate each weekday
from 73,600 people to possibly
at peak travel times, with one return
103,000 by 2045, while regional
service on Saturday. The route
unemployment remains lower than
will start at Frankton in Hamilton,
the national average.
onto Huntly and stopping finally at Papakura.
Hamilton in many cases. A few years back we could never have imagined just how popular little old Huntly would become, but we’ll take it with open arms! It’s an exciting time,” says Ms Craig.
tasked with managing growth
The train service is also due to start
stopping at The Base before going
Huntly appear to be higher than
Like to know more about Huntly real estate? Speak to our area specialists today:
Barbara Craig says real estate interest and activity in Huntly township itself has noticeably lifted
Then there’s the well-known Kiwi
in the last year or two. Currently
bed brand, Sleepyhead. Its owners
studying for her Property Manager’s
intend to create a manufacturing
Licence, Barbara says rentals in and
hub in Ohinewai, just north of
around Huntly are now scarce.
Huntly. But it’s not just the 1,500 new jobs the hub is expected to
C21 MARKET PULSE
05
CENTURY 21
CENTURY 21 Rural & Residential (Huntly) 110 Main Street, Huntly 07 828 8549 C21.co.nz/huntly
F E AT U R E D L I ST I N G
F E AT U R E P R O P E R T Y
2 2 L A K E V I E W T E R R A C E , H U N T LY
Enjoying lake views from the kitchen, living areas, and spa – this spacious home is set amongst picturesque surroundings and boasts welcoming interiors with excellent natural light. Perfect for buyers of all ages and stages, there are three upstairs double bedrooms connected by an internal staircase and lift to the downstairs where you will find another spacious bedroom with the potential to be a games room, perhaps even a home office. Two modern bathrooms, one with wheelchair-access and dual basins, The large wraparound deck is perfect for Summer, while the wood burner in the living room will keep you warm in the Winter. The “massive” stand-alone garage has a very high stud, insulated and lined. This could be converted into an additional dwelling if need be (subject to Council approval) plus an additional dedicated carport. Space under the deck acts as another shelter for vehicles, and there is tons of off-street parking. Impressive family home with loads of garaging and parking space, located in an excellent street, with lake views. Hard to find a property of this calibre with so much on offer.
CLICK HERE TO VIEW PROPERTY
For Sale – $699,000 Contact: Ian Pepper 022 1266 852, Barbara Craig 021 38 38 58 Licensed under the REAA 2008
C21 MARKET PULSE
06
CENTURY 21
F I N A N C E U P DAT E
REDUCED DEPOSITS FOR FIRST HOME BUYERS BY J U L I U S C A P I L I TA N , C21 FINANCIAL, NEW ZEALAND
You may have already heard that the New Zealand Government, in conjunction with Housing New Zealand Corporation, has just announced that extensive changes have been made to Welcome Home Loans.
a property at $450,000, the
• Applicant must not own any
minimum deposit you are required
to pay is just $22,500 – as opposed to the previous 10% deposit, or $45,000 in this instance.
Loans to First Home Loans. Under this new scheme, the minimum deposit requirement for a First Home Loan* has been reduced to just 5%. These loans will now be supported by Kāinga Ora – Homes and Communities, a newly established entity that replaces Housing New Zealand Corporation’s involvement.
its exposure to no more than 40% of units in any stratum
does not come easily. The stringent
in freehold complex. This to be
conditions to secure a 95% home
controlled at point of application.
loan can be very challenging, with
• Maximum value variations by
region as per the Housing
NZ guidelines;
• An individual income of less
than $85,000 or a combined
income of less than $130,000;
• Applicant must live in the home; • Minimum floor size of 50sqm
garage, external stairs and any
Financial is considering applications
common area);
• A 1% Kāinga Ora premium fee
applies. Additional fees and
charges may also apply;
C21 MARKET PULSE
by the opportunities to help New Zealanders into their first homes. As through which is why we are here to help you and we look forward to making the process as easy and stress-free as possible.
From October 1, Century 21
example, if you were to purchase
The C21 Financial team are excited
you can see there is a lot to navigate
Criteria such as:
(excluding balcony, carpark,
of the property purchase price. For
Housing New Zealand will limit
for a First Home Loan for up to 95%
of criteria to secure the loan. October 1, rename Welcome Home
• To mitigate concentration risk,
But this exciting new incentive
clients needing to meet a high level The changes, which will apply from
other property;
07
CENTURY 21
Please contact me to discuss this excellent opportunity further.
* First Home Loan lending and eligibility criteria along with Lending Standard Contract Terms apply.
J U L I U S C A P I L I TA N M: 027 2777 352 E: julius.capilitan@century21.co.nz
P R O P E R T Y M A R K E T U P DAT E
REAL ESTATE MARKET SPRINGS INTO LIFE IN SEPTEMBER
BY BINDI NORWELL, REINZ CEO
Median house prices across New Zealand increased by 6.6% in September to a record high of $597,000, up from $560,000 in September 2018. These results are in line with the REINZ House Price Index (HPI) which saw property values increase 3.6% annually, according to the latest data from the Real Estate Institute of New Zealand (REINZ). Median price increases for New
• Hawke’s Bay with a 13.4%
in four regions – Manawatu/
Zealand excluding Auckland
increase to $500,000 up from
Wanganui, Southland, Taranaki
increased by 6.8% to new record
$441,000 at the same time
and Hawke’s Bay. Additionally, the
high of $500,000, up from
last year.
Waikato saw a record equal median
$468,000 in September last year.
Additionally, a record equal median
Median house prices in Auckland
high was recorded in Waikato of
increased by 0.2% to $848,000 –
$550,000 up from $521,000 at the
up from $846,000 at the same
same time last year.
time last year. Record median prices were recorded in: • Manawatu/Wanganui with a
24.1% increase to $397,000 up
from $320,000 at the same time
last year
• Southland with a 22.1% increase
to $315,000 up from $258,000
at the same time last year
• Taranaki with a 15.9% increase to
$400,000 up from $345,000 at
the same time last year
Regions to experience a decrease in median price annually were: • West Coast: -7.5% to $185,000
down from $200,000
price achieved during September of $550,000 and New Zealand as a whole saw a record median price of $597,000. Overall, median prices rose in 13 out of 16 regions. “Median prices are lifting as a result of a number of influences such as the OCR drop back in August which is slowly injecting more confidence
• Northland: -5.5% to $477,000
into the market and the continued
lack of supply across many parts of
down from $505,000
• Nelson: -5.4% to $560,000
down from $592,000.
the country,” continues Norwell. “Auckland saw the first annual
Bindi Norwell, Chief Executive at REINZ says: “September was
increase in median prices for the region in 11 months. This rise
a strong month price wise, with
was the result of an uplift in the
record median prices recorded
percentage of properties sold
C21 MARKET PULSE
08
CENTURY 21
between the $750,000-$999,999
year (to 4,073 up from 3,993).
mark and the 6.3% rise in median
depending on where you look
(to 1,823 up from 1,715) the second
September,” she continues.
around the country,” continues
annual increase so far this year.
“Whilst the Auckland region saw an increase, it’s too early to call this a trend – especially as the median
Norwell.
“After a quiet few months over the
“The Auckland region had a strong
winter, the number of properties
September with a 6.3% increase
sold across the country increased
price has returned to around the
in the number of properties sold
by 3.3% in September, the highest
$850,000 mark where we’ve seen
when compared to the same time
number of properties we’ve seen
median prices sit for a few years
last year. Papakura District saw
sold for the month of September
now,” point out Norwell.
the largest uplift with 58.0% more
in 3 years. This suggests that we’re
ANNUAL ME DIAN PRICE CHANGES
-5.5%
0.2%
NORTHLAND
AUCKLAND
$
Record Median Price
$
-5.4%
5.6%
$
TARANAKI
$597,000
10.0% BAY OF PLENTY
12.1%
WAIKATO
15.9%
NATIONAL MEDIAN PRICE:
$
24.1%
MANAWATU / WANGANUI
-7.5%
10.3%
TASMAN
0.6% CANTERBURY
22.1%
19.6%
SOUTHLAND
OTAGO
The number of residential
starting to see the usual spring
properties sold across New Zealand
uplift and also that more confidence
in September increased by 3.3%
is starting to creep back into the
from the same time last year to
market,” says Norwell.
5,896 (up from 5,708), only the second annual increase in sales volumes we’ve seen this year and the highest number of properties we’ve seen sold for the month of September in 3 years.
“Looking around the country, the Bay of Plenty, Hawke’s Bay, Tasman, Canterbury, West Coast and Otago all saw the highest sales volumes for the month of September in three years. However,
For New Zealand excluding
on the flip side, Northland,
Auckland, the number of properties
Taranaki, Nelson and Southland
sold increased by 2.0% when
all had the lowest sales volumes
compared to the same time last
for the month of September in
C21 MARKET PULSE
WELLINGTON
MARLBOROUGH
WEST COAST
$
13.4%
6.3%
3.3%
MEDIAN DAYS TO SELL:
GISBORNE
HAWKE’S BAY
NELSON
6.6%
Source: REINZ Monthly Property Report 15 October 2019 .
results have been quite varied
increased by 6.3% year-on-year
see a median price increase during
35
of September in four years – so
properties sold in September
territorial authority in Auckland to
$
lowest sales volumes for the month
In Auckland, the number of
prices in Waitakere City – the only
$
five years and Gisborne had the
09
CENTURY 21
properties sold, followed by Franklin District (+18.8%), Rodney District (+16.0%), Manukau City (+15.1%) and Auckland City (+10.5%),” continues Norwell. In September the median number of days to sell a property nationally decreased by 1 day from 36 to 35 when compared to September last year. However, this was down 4 days on last month’s figure of 39 days.
R E N OVAT I O N S O F VA L U E
Stylish kitchen renovations that will add value to your home
BY CHELSEA TROMANS, EDITOR, HOME BEAUTIFUL MAGAZINE
A modern kitchen can breathe new life and personality into your home. But renovating one is no small task. Or a decision to take on lightly. When it comes to a kitchen renovation, you need to think long term. Not only do you want
buyers to maximise on your home’s potential value. “Over the years I have experienced situations where people buy the kitchen and the rest of the home comes with it!” says Charles Tarbey, Chairman of Century 21 Australasia. “This is the heart of a home and as such, the better the kitchen, the better the opportunity for a quick sale and a better price.”
a kitchen that won’t date, you also
What you need is a kitchen that
want to make sure it adds value to
impresses both functionally and
your home.
visually. Here are three things to
Even if you’re not planning on selling any time soon, when investing in a home renovation, you
add to the top of your kitchen renovation list for maximum return on your investment:
1. ADD AN ISLAND BENCH Mr Tarbey says the number one thing on buyers’ kitchen wish lists is ample bench space. An island is a great way to achieve extra bench and storage space, while also optimising your existing floor plan. Island benches also create additional seating. “A kitchen that allows a family the space to move around together, and is set up in such a way that a family can all casually eat in it at the same time will always be attractive,” says Charles. When choosing an island, look for a storage-savvy design that has an overhanging countertop for stools to slide underneath. Built-
should always consider your future
C21 MARKET PULSE
10
CENTURY 21
in powerpoints are a must. If you
with one’s personal touch is the ideal
always feels luxe. Charles notes
want to make a statement, an island
way a kitchen should be built,” he
that easy access to appliances are
bench in a contrasting colour to the
advises. It’s not just the buyers who
among the top things on buyers’
rest of your kitchen is eye-catching,
will appreciate it – a classic look
kitchen wish lists, and gas cooktops
without being polarising.
gives you more flexibility to update
continue to be a crowd favourite.
your styling regularly, and if you
Ideally, buy all your appliances from
decide to renovate in other areas of
the same brand – and even the
the house, it will be easier to match
same collection – for a cohesive
the look and feel. Using engineered
look. Built-in appliances that are slim
stone, marble and porcelain
and minimalist have universal appeal
benchtops is money well spent.
and room for a double fridge is a
2. UPGRADE YOUR COUNTERTOP A tired countertop can bring down the whole vibe of your kitchen quick
must in this day and age. If you don’t
smart. Because of its vast surface area, it’s hard not to notice when it’s looking worse for wear. While it may be tempting to look to what’s
3. SPLURGE ON HIGH-END APPLIANCES
trending, Charles recommends
Good appliances anchor a kitchen.
going for a timeless option.
Not to mention they enhance the
“Kitchens are personal! Making one
functionality – when you have
different from the norm will only
quality appliances, cooking in the
appeal to a few, but making one
kitchen is more enjoyable. Stainless
neutral that can be easily decorated
steel is the failsafe option that
have the budget to go high-end everywhere, make your cooktop the item you splurge on. It’s one of the most-used appliances in the kitchen and can make or break a good meal. Don’t forget the dishwasher. It can be a non-negotiable for some buyers.
ABOUT THE CONTRIBUTOR Home Beautiful magazine is chock-a-block with make-over ideas for indoors, outdoors, renovating, decorating plus food and entertaining, it’s a must-have mag and every home decorator’s best friend.
C21 MARKET PULSE
11
CENTURY 21
SPRING IS IN THE AIR If you have been thinking of selling your property this Spring, we would be delighted to be of assistance.
WHAT’S YOUR PROPERTY REALLY WORTH?
C21.co.nz
C21.co.nz/request-an-appraisal