M A R K E T
O C T O B E R
P U L S E
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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
OCTOBER 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 O C T O B E R
C21 NEW ZEALAND NEWS
02-03
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PROPERTY MARKET UPDATE
06-07
More listings needed to avoid buyers exiting market.
Highest number of properties sold in New Zealand
CEO, Century 21 New Zealand, Derryn Mayne
for 42 months. REINZ CEO, Bindi Norwell
PROPERTY PREDICTIONS
04 FLOOD OF INTEREST
Despite recession house prices will rise, not fall. Cameron Brewer
Turangi ‘hydro houses’ experience huge price lift. Cameron Brewer
LIFESTYLE LIVING
05
Lifestyle property on 25 acres for less than a city villa. Cameron Brewer
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C21 NEW ZEAL AND NEWS
MORE LISTINGS NEEDED TO AVOID BUYERS EXITING MARKET
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
Six months ago, when New Zealand was in the depths of Level 4 lockdown, who would’ve predicted so much positive real estate activity leading into summer. What’s more, with the general election and formation of the next government soon behind us, confidence in decision-making will only be boosted.
strong auction and open home
be one of the strongest for real
attendances, despite property
estate in recent years, but it’s
listings still in short supply. In fact,
increasingly dependent on enough
concerns about insufficient listings
properties being put on the market.
remains the highest concern from buyers – well up since June.
enough stock, regardless if they’re real estate agents or potential buyers. We haven’t seen such a uniformed, nationwide shortage of listings for a very long time. In fact, if listings don’t lift soon it could
young people will give up trying to buy a house
Century 21’s Turangi office has just sold an exMinistry of Works ‘hydro house’ for over 137% more than what the
No one can get their hands on
The worry is that the likes of
vendor paid
"...the coming summer could be one of the strongest for real estate in recent years, but it's increasingly dependent on enough properties being put on the market."
because they’re sick of missing out, being priced out, or both. That would be a terrible outcome when interest rates are at record low levels, with economists
for it three years
predicting they’ll fall
earlier. It jumped
further. Success has to
from $139,000 in 2017 to $330,000 in 2020. We have
surely be when everyone gets
dozens of stories like this across the
a fair go!
country simply because there are
While agents are reporting rising
hamper the sector’s overall success.
so few houses for sale.
REINZ has released October’s
This latest survey headlining the
missing out) which is only helping
continuation of a ‘very active
to drive up prices, the point must
market’, the coming summer could
be nearing where many buyers will
REINZ & Tony Alexander Real Estate Survey. Agents report
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cases of buyer FOMO (fear of
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effectively be forced to stay paying
vendors need to consider that
Here’s hoping more properties will
high rents, hoping to wait the
almost all New Zealand agents
continue to come to market. That
market out.
are now reporting seeing price
would help us deliver potentially the
rises, and so those homeowners
strongest summer we’ve seen for a
who take decisive action won’t be
while, and one where both buyers
disappointed.
and sellers are happy.
The survey notes that New Zealand’s residential real estate sector continues to out-perform the overall economy, especially against
The good news for buyers from
expectations six months ago.
October’s REINZ & Tony Alexander
For the sake of the market’s ongoing sustainability, and to ensure new buyers can get in, we need those contemplating selling to actually list their properties. Potential
Real Estate Survey is that compared to the previous month, nearly twice as many agents say they’re receiving more requests to appraise the potential sale value of properties.
Lifestyle property on 25 acres for less than a city villa – see page 5.
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PROPERTY PREDICTIONS
DESPITE RECESSION HOUSE PRICES WILL RISE, NOT FALL The head of Century 21 New Zealand is joining a growing number of economists, property experts and commentators saying Treasury got it wrong in its forecast on house prices in the Pre-election Economic and Fiscal Update (PREFU) even with the country now in recession.
followed by an 8% lift in 2021. According to recent REINZ statistics, annual nationwide median house prices are up 16.4%. In Auckland they’re up 16.0% on the same time last year, with our largest city also up 3.5% on the previous month.
miles off with their dire winter and spring real estate predictions, and they’re set to get this coming summer wrong as well,” says
“There are simply more factors in real estate’s favour, than are against. Unemployment is set to be less than initially forecast, interest rates are expected to stay at record removal of LVRs makes it easier for people to get into the housing market, demand remains strong while supply is short, and rents are holding up,” she says. Ms Mayne says with banks offering
New Zealand.
very low returns on term deposits,
cost of a home will fall 5% by June next year, before rebounding as economic confidence recovers and immigration picks up. However, major bank Westpac is among those that have reforecast house prices. It now predicts a 6.3% increase in house prices this year,
will see New Zealand become a starker country of ‘haves’ and ‘have nots’. Getting into the property market sooner rather than later, and making the most of the very low borrowing costs, is one of the ensure they’re participants in New Zealand’s economic recovery, not bystanders,” she says. The Century 21 leader says with the median weekly rent in the Auckland region steady on $560, borrowing say $600,000 would prove cheaper to service for many renters, with increasing numbers waking up to that opportunity. However, she notes borrowers’ ability to service
Derryn Mayne, Owner of Century 21
Treasury now predicts the average
economic fall-out from Covid-19
best things young Kiwis can do to
low levels if not going lower, the “Back in March, the experts were
“There’s a lot of talk that the
the real estate market is again seeing the ‘mum and dad’ property investors who can spy solid rental returns and know residential property is always a safe bet for capital gain in the medium to long term. Returning expats and Kiwis living overseas are now also actively investing in New Zealand property.
such debt will be closely scrutinised by banks. “With LVRs gone, meaning the end of 20% deposits, young Kiwis in secure employment are doing their sums. If they can cobble together a more achievable deposit, many can see their mortgage repayments would be less than their rental commitments, plus they’re helping to secure their futures,” says Derryn Mayne.
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LIFESTYLE LIVING
LIFESTYLE PROPERTY ON 25 ACRES FOR LESS THAN A CITY VILLA A gorgeous 25-acre lifestyle property is for sale in Pukekohe East, near Bombay Hill, with a pricetag less than the average Ponsonby villa. Marketed by Century 21 Platinum (Tuakau) Real Estate, 79 Beaver Road sits just outside the Auckland regional boundary at the tip of North Waikato. Priced at $2,495,000 plus GST, it’s described as a ‘must see’ property for the discerning equestrian buyer. The property has its own 60 x 30m professionally constructed equestrian arena, along with 24 paddocks in the well fenced and well ‘roaded’ farm. A spacious and
wanting a quieter life but with ready
franchise on Tuakau’s mainstreet,
access to any action. It is situated
George Street, with fellow principal
less than three kilometres from SH1
Rod Hull.
motorway and is 10km away from the wonderful Tuakau Pony Club.
“Beaver Road and the surrounding area retain this wonderful rural
“The property has been farmed to
character, yet it’s in commuting
the highest standard of fertiliser
distance to Australasia’s fastest
and weed control over the past
growing city. Opportunities are on
four years, with water reticulation
the up with the likes of nearby
supplied from a deep well bore. The
Drury and Pokeno alive with
large lock-up implementation shed
growth and development. Popular
includes a shearing facility, ample
Pukekohe is just down the road,
space for vehicles and tractors, and
and Port Waikato’s great surf
adjacent are stockyards and loading
beaches aren’t far away either,”
facilities,” he says.
says Courtney Howells.
Mr Howells says where else can
“79 Beaver Road offers a quality
you get all this plus instant quiet
Pukekohe lifestyle and is the
and tranquillity on approximately
complete package. It’s a truly
10 hectares so close to Auckland at
fabulous property with all the space
such good value for money.
and facilities. It’s just waiting for the next family to move in and make it
appealing four-bedroom home is
“When you approach up the drive
situated on an elevated site with
you feel like it’s a little piece of
mature gardens in an idyllic setting.
Cornwall Park. It’s so relaxing and
Owner of Century 21 New Zealand,
Alongside the 220-sqm home is a
absolutely gorgeous with spring fed
Derryn Mayne, says the team at
large double garage.
frog and lily ponds, native birds in
Century 21 Platinum is well known
the surrounding trees, and lambs
and respected for its strong local
in the paddocks,” says Esme Cole,
knowledge, experience in real estate
Principal at Century 21 Platinum
sales and property management, as
(Tuakau) Real Estate.
well as its very close connect to the
Listing agent Courtney Howells of Century 21 Platinum says the property has all the facilities needed for any horse family, parttime farmer, or the semi-retired
Esme Cole owns the Century 21
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their own,” he says.
local community.
P R O P E R T Y M A R K E T U P DAT E
HIGHEST NUMBER OF PROPERTIES SOLD IN NZ FOR 42 MONTHS
BY BINDI NORWELL, REINZ CEO
The number of residential properties sold in September across New Zealand increased by 37.1% from the same time last year (from 6,112 to 8,377) – the highest number of properties sold in a month in New Zealand for 42 months (March 2017) and the highest number of properties sold in a September month for 14 years, according to the latest data from REINZ. For New Zealand excluding
• West Coast: +57.9% (from 38 to
• Marlborough: +36.5% (from 63
Auckland, the number of properties
60 – 22 more houses) – the
to 86 – 23 more houses) – the
sold increased by 29.9% when
highest sales volumes for the
highest for a September month
compared to the same time last
region since May 2018
in 14 years
year (from 4,245 to 5,516) – also the highest for the month of September in 14 years. In Auckland, the number of properties sold in September increased by 53.2% year-on-year (from 1,867 to 2,861) – the highest in 52 months and the highest annual increase in sales volumes in 11 years. In addition to Auckland, regions with the largest increase in annual sales volumes during September were: • Nelson: +66.2% (from 65 to 108
– 43 more houses) – the highest
for the month of September
in 17 years
• Tasman: +42.5% (from 73 to 104
• Bay of Plenty: +31.2% (from 442
– 31 more houses) – the highest
to 580 – 138 more houses) –
for a September month since
the highest sales volumes for the
records began
region in 42 months.
• Canterbury: +39.0% (from 844
No regions saw an annual decrease
to 1,173 – 329 more houses) –
in sales volumes; however,
the highest sales volumes for
Gisborne’s sales volumes remained
the region in 54 months
the same as September last year with 39 properties sold during the
(March 2016) • Waikato: +37.8 (from 658 to 907
month, and this was up by 1 sale from August.
– 249 more houses) – the
highest sales volumes for the
Bindi Norwell, Chief Executive at
region in 52 months
REINZ says: “Normally one month
• Manawatu/Wanganui: +37.3%
(from 322 to 442 – 120 more
houses) – the highest for a
September month in 14 years
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out from an election, people start to take a wait and see approach, and sales volumes begin easing off. However, 2020 appears to continue in its trend of being an anomaly,
with the number of properties sold
the future, then this explains why
Additionally, Auckland’s median
the highest in 42 months, since
people are going to such lengths
house price increased by 12.6%
March 2017, when the country was
to secure a property now,” points
from $848,000 at the same time
last experiencing such growth.
out Norwell.
last year to $955,000 a new record
“Highlighting just how much
“At this point in time there are no
sales volumes around the country
signs on the horizon pointing to
continue to defy expectations, 13
a change in the next few months,
“Prices across the country have
regions had annual sales volumes
so it will be interesting to see if
seen some significant increases,
increases in excess of 20% and 10
things slow down in October as
with once again every region in New
regions had increases in excess
the election actually happens or
Zealand seeing an annual uplift in
of 30% - the highest number of
whether sales volumes just continue
median house prices. More than half
regions with this level of sales
rising,” she continues.
of the regions saw record median
volume increase since April 2015,”
prices in September, as did 19 territorial authorities; and only two
Zealand increased by 14.7% from
ANNUAL ME DIAN PRICE CHANGES Record Median Price
$
12.6% $
$
21.3% 15.0%
$
14.4%
$
$
16.6%
17.0%
MANAWATU / WANGANUI
$
7.1%
MEDIAN DAYS TO SELL:
35.1%
32
45.8% GISBORNE
NELSON
14.7%
17.8%
BAY OF PLENTY
WAIKATO
TARANAKI
$685,000
16.1% NORTHLAND
AUCKLAND
NATIONAL MEDIAN PRICE:
14.2%
TASMAN
HAWKE’S BAY
13.1% WELLINGTON
MARLBOROUGH
$
WEST COAST
7.1% Source: REINZ Monthly Property Report 13 October 2020.
August this year (a 0.6% increase).
Median house prices across New
continues Norwell.
$
high, and up from $949,500 in
$
SOUTHLAND
11.1% CANTERBURY
20.7% OTAGO
“Much of this activity is being
$596,956 in September 2019 to
regions didn’t see double-digit
driven by the extremely low rates
a new record high of $685,000
increases showing just how strong
at which people can borrow money,
in September 2020, and up from
the market is at the moment,”
which is at its lowest levels since
$675,000 in August this year
says Norwell.
records began, consumers having
(a 1.5% lift).
additional ‘cash’ available due to a lack of international travel and some uplift from returning ex-pats. When you then add in high levels of confidence in the housing market, the removal of the LVRs back in March and people’s fear that prices are just going to keep increasing in
Median house prices for New Zealand excluding Auckland increased by 17.0% from $500,000 in September last year to a new record median price of $585,000, and up from $570,000 in August this year (a 0.7% increase).
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Click here to read the entire report
FLOOD OF INTEREST
TURANGI ‘HYDRO HOUSES’ EXPERIENCE HUGE PRICE LIFT One former ‘hydro house’ in Turangi has sold for $330,000 – a price increase of over 137% since it was last sold for $139,000 in early 2017, with local real estate agents crying out for more listings given unrelenting demand for houses.
Within one week of the home going
make the Central North Island even
on the market, four offers were
closer to Auckland and Wellington.
presented to the Auckland-based vendors who were blown away by the instant interest and the offers given they’d asked for ‘enquiries over $290,000’. Mr Barry says the healthy sale price represents the significant lift Turangi real estate has had over the past three or four years, with the 3,000-person town, and surrounding area, only getting
The four-bedroom home is typical
more popular. Dubbed the ‘Trout Fishing Capital
working on the Tongariro hydro-
Of The World’, Turangi is known for
power scheme in the 1960s and
the nearby skiing, hiking, mountain
1970s. Arguably, adding to its
biking, whitewater rafting, and
charm is the fact that the 85m2
boating – helped by its proximity to
home on a 741m2 corner site has
Lake Taupo, Mount Ruapehu, and of
changed little.
course the famous Tongariro River
of Works in the early 1980s for just over $30,000, only two
running right past. The Sky Waka gondola up Whakapapa is also a welcomed visitor attraction.
families have owned it. Both have
Local Century 21 franchise owner,
enjoyed it as a bach and have kept it
Wai Johnson, says as Taupo has got
pretty much the same. It’s great
more expensive, many permanent
a young couple has now secured
residents and holidaymakers
it as a home after missing out on
are opting for Turangi instead.
a lot of other places in Turangi
What’s more, its locality is key,
recently,” says Patrick Barry, a local
with ongoing Waikato Expressway
Century 21 agent who listed
improvements and Transmission
and sold the property.
Gully under construction set to
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to many is the well-planned nature of the former hydro-electricity town. It has some attractive treelined curving streets and culde-sacs, plenty of community amenities, and is quiet given it is well separated from SH1. “Turangi’s popularity is on the rise. In fact, over winter we were
of those built for employees
“Since it was sold by the Ministry
Ms Johnson says what also appeals
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throwing in New Zealand travel vouchers, encouraging homeowners to sell given all the buyers on our books. First home-buyers are keen to make the most of record-low interest rates, while increasing rents in Turangi are attracting property investors who want a higher return than what the bank can offer them,” she says. Century 21 has a long and successful history in Turangi and oversees a large property management portfolio. In recent years, the office and agents have won many national and Australasian awards, and it was Century 21 New Zealand in early 2017 that made the nationwide headline: ‘Turangi - the town to watch!’.
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