O C T O B E R
M A R K E T
2 0 2 1
P U L S E
C21
PUBLISHER Century 21 New Zealand Ltd
CONTRIBUTORS Tim Kearins Cameron Brewer Jen Baird Home Beautiful
EDITORIAL ENQUIRIES Century 21 New Zealand +64 9414 6041
ADVERTISING ENQUIRIES Century 21 New Zealand +64 9414 6041
WELCOME TO THE
OCTOBER 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 O C T O B E R
C21 NEW ZEALAND NEWS
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WOMEN LEADERS
08
New interest deductibility rules will only hurt tenants.
Women leaders at the foredront of C21 New Zealand’s
Century 21 New Zealand, Tim Kearins
success. Cameron Brewer
PROPERTY MARKET UPDATE
04
SMALL KITCHEN TIPS
Lockdown curtails Auckland activity, the rest of
11 small kitchen design ideas and how to make them
New Zealand begins to see spring lift.
work for you.
CEO, REINZ, Jen Baird
Home Beautiful
C21 NEW ZEALAND NEWS
06
Te Awamutu franchise owners enjoy two stunning years. Century 21 New Zealand, Tim Kearins C21 MARKET PULSE
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CENTURY 21
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C21 NEW ZEAL AND NEWS
NEW INTEREST DEDUCTIBILITY RULES WILL ONLY HURT TENANTS The Government’s interest deductibility rules for landlords have improved slightly since they were first announced in March. Nonetheless, from tomorrow, they will put unwanted pressure on residential rents already at record high levels.
BY TIM KEARINS,
CENTURY 21 NEW ZEALAND
is rental housing really the place
tax department and experts,
they want to gather more revenue
the Government soldiered on
from?
regardless. Let’s not also forget
Also announced was an exemption for new purpose-built rentals with deductibility for up to 20 years. Cabinet is set to consider an even longer period for large build-to-
property sector’s prediction, but Inland Revenue’s – arguably the one organisation that’s got the most to
heels of the Residential Tenancies Amendment Act which was the biggest overhaul of our tenancy laws in 35 years
rent developments. However, for
Just when our property managers
most Kiwi landlords the new rules
are screaming out for more
are now in effect.
properties to rent given the huge
Landlords have been waiting for Rising rents are not just the
this move comes hard on the
clarity, so they now have that. However, this serves up extra costs just when the sector doesn’t need them. Inevitably, these costs will
demand, it becomes less attractive for ‘mum and dad’ investors to provide the stock. Many are instead heading to the share market or commercial property syndications.
get passed on to New Zealand’s 1.5
Credit to the Government for trying
million tenants. Unfortunately, it will
hard to encourage new builds to
don’t do it.
be a tenants’ tax.
fill the void. However, the rental
Recently, the Government
The Inland Revenue advised
gain! Its advice to Ministers earlier this month is as clear as daylight,
confirmed its proposal to limit the availability of deductions for interest expenses incurred by residential property investors from 1 October, phasing them out over four years. The Government’s forecasting an extra $1 billion revenue over the next four years as a result of these tax changes. Given the pandemic that will no doubt be well spent, but
key Ministers against denying or limit interest deductions. It said additional taxes on rental
availability gap will only widen in the short to medium term. That’s where the real pain will be for tenants.
housing are unlikely to be an
Recently, the Reserve Bank lifted
effective way of boosting overall
the Official Cash Rate by 25 basis-
housing affordability. The move,
points to 0.50% - the first OCR hike
they advised, would instead put
by the central bank in over seven
upward pressure on rents and may
years.
reduce the supply of new housing developments in the longer-term. Against the advice of their own
C21 MARKET PULSE
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CENTURY 21
Let’s not forget that interest rates are still incredibly low and will be for some time. For as long as
servicing a mortgage remains comparable, or even cheaper than paying rent, prospective buyers will not be put off. If it costs $650 a week to rent, but you can buy the same home at $600 a week, people will buy - if they can raise a deposit. New Zealanders have long understood that over time house prices always inflate and that’s much more rewarding than paying a landlord.
www.century21.co.nz Contact: Tim Kearins - Century 21 New Zealand - (0274) 495-547
C21 MARKET PULSE
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CENTURY 21
P R O P E R T Y M A R K E T U P DAT E
LOCKDOWN CURTAILS AUCKLAND ACTIVITY, THE REST OF NEW ZEALAND BEGINS TO SEE SPRING LIFT
BY J E N B A I R D, REINZ CEO
Median prices for residential property across New Zealand increased by 15.4% to $795,000 in September 2021 compared to $689,000 in September 2020, 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. Seven out of 16 regions reached
year-on-year median price growth.
new record median prices — the
Pockets of the Auckland region
most since April 2021. Nine regional
show month-on-month growth; the
records were reached in September
median house price in North Shore
2020, however, this month’s total
City was $1,330,000 in September
number of records remains above
2021 (up 2.7% on August 2021)
average for a September month.
and Papakura District reached
The median house price for New Zealand excluding Auckland increased by 23.1% from $585,000
$1,060,000 (up 13.4% on August 2021) — a record median price for the Papakura District.
in September 2020 to a new record
The seven regions that reached
of $720,000. This figure marks
record median prices in September
an increase of 2.9% from August
were:
2021 ($700,000) and indicates that confidence remains in the property market after the easing of COVID-19 Alert Level restrictions outside of Auckland. The median house price in Auckland increased 20.4% to $1,150,000 from $955,000 in September 2020. However, this figure was down 4.2% from its record $1,200,000 in August 2021. All Auckland districts show
• Bay of Plenty: increased 24.2% to $878,000, up from $707,000 in September 2020. Additionally, Tauranga City ($990,000) and Whakatane District ($695,000) reached record median highs. • Hawke’s Bay: increased 31.6% to $770,000, up from $585,000 in September 2020. Additionally, Central Hawke’s Bay District ($615,000) and Hastings District ($812,000) reached record median
C21 MARKET PULSE
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CENTURY 21
highs • Manawatu/ Wanganui: increased 35.4% to $626,000, up from $462,500 in September 2020 and has had a record price or equal in 11 of the past 12 months. Additionally, Manawatu District ($720,000) and Tararua District ($500,000) reached record median highs • Tasman: increased 27.4% to $860,000, up from $675,000 in September 2020 • Nelson: increased 24.5% to $802,000, up from $644,165 in September 2020 • Canterbury: increased 31.0% to $660,000, up from $504,000 in September 2020. Additionally, Christchurch City ($670,000), Hurunui District ($651,000), Selwyn District ($775,000), and Waimate District ($395,000) reached record median highs • Southland: increased 29.1% to
ANNUAL ME DIAN PRICE CHANGES
18.2%
20.4%
NORTHLAND
AUCKLAND
$
$
TARANAKI
$795,000
$
15.4%
24.5%
9.8%
WAIKATO
10.3%
NATIONAL MEDIAN PRICE:
GISBORNE
35.4%
31.6%
MANAWATU / WANGANUI
MEDIAN DAYS TO SELL:
37
10.0%
13.7%
27.4%
22.6%
TASMAN
WELLINGTON
MARLBOROUGH
31.0%
WEST COAST
$
$
HAWKE’S BAY
NELSON
$
$
BAY OF PLENTY
22.0%
Record Median Price
24.2%
$
CANTERBURY
29.1%
18.8%
SOUTHLAND
OTAGO Source: REINZ Monthly Property Report 14 October 2021 .
$437,580, up from $339,000 in
23.1% and an increase of 2.9%
saw year-on-year growth of 45.8%.
September 2020. Additionally,
on August 2021, suggesting that
Bay of Plenty
Invercargill City ($455,000)
as alert levels ease the market is
reached a record median high
beginning to see a lift,” Baird adds.
Jen Baird, Chief Executive at REINZ,
“Looking at Auckland in particular,
all saw particularly strong annual
says: “September was always going
while the median house price
growth increases,” Baird notes.
to be a month to watch as we assess
is down slightly on its August
the impact various COVID-19 Alert
record of $1,200,000, all districts
Levels have on the New Zealand
increased year-on-year with the
property market. What the data
Papakura District reaching a new
shows, is that confidence remains
median high. Auckland spent the
high, buyer demand is still strong,
first three weeks of September in
and outside of Auckland, buyers will
alert level 4 lockdown, which meant
be pleased to see more property
no real estate activity could take
coming to the market. Prices are
place. What we have seen in most
proving resilient, with some regions
other parts of the country is that
noting a decrease in the number
activity picks up as restrictions
of first home buyers, in part due to
ease, and we expect the same in
rising prices.
Auckland,” she continues.
“Median house prices across
“The REINZ House Price Index
price rises has slowed over recent
New Zealand increased by 15.4%
reached a new national high of
months,” Baird concludes.
to $795,000 in September
4,088, showing that the underlying
2021 compared to $689,000 in
value of property remains strong.
September 2020. However, this
Growth was distributed across
was down 6.5% on August 2021.
all regions, with 11 of the 12
New Zealand excluding Auckland
regions reaching a record level in
showed year-on-year growth of
September. Manawatu/ Wanganui
C21 MARKET PULSE
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(37.2%), Gisborne/ Hawke’s Bay (36.8%), and Wellington (34.9%)
“Various levels of lockdown across New Zealand have influenced activity in the real estate market this month lending to mixed results. We expect to see a rise in activity as restrictions ease further, especially in Auckland. Demand suppression measures introduced this year, recent moves by the Reserve Bank to increase the OCR, and COVID-19 restrictions to real estate activity are creating headwinds for house prices and we can see that the pace of
CENTURY 21
Click here to read the full report.
C21 NEW ZEAL AND NEWS
TE AWAMUTU FRANCHISE OWNERS ENJOY TWO STUNNING YEARS Rebecca Fraser and Paul Wheeler became the proud owners of Century 21 Gadsby Realty in Te Awamutu two years ago. At the time, they described buying the well-known local real estate franchise as a once in a lifetime opportunity. Their team has enjoyed significant success since. Their arrival coincided with the Alexandra Street office getting a well-received makeover thanks to Century 21’s new sleek global branding. The bright gold jackets were gone! “We passionately drive a real team approach when it comes to sales. We draw on each other’s
BY TIM KEARINS,
CENTURY 21 NEW ZEALAND
was ranked number one across
a registered legal executive
the country.
specialising in conveyancing
In April it was announced that Gadsby Realty won Top Office for the Quarter for both (Gross Closed
with law firms in Waikato. On top of that, Rebecca has three school-aged children.
Commission) and Units (the number
Born and bred in Te Awamutu, Paul
of properties listed and sold).
Wheeler was a full-time rugby
Rebecca Fraser and Eli Gadsby also
coach and community rugby
won gold sales awards, and Paul
co-ordinator for Te Awamutu and
Wheeler took away a silver award.
surrounding districts. Like Rebecca,
“Rebecca and Paul only bought Century 21 Gadsby Realty in
he is both principal and a licensed real estate salesperson.
mid-2019 and then had a
Rebecca has loved selling real
particularly strong 2020.
estate over the past two years – a
It’s a credit to them that they took
period that has seen Te Awamutu
out the top office spot for the
become even more popular for
first three months of 2021,” said a
home buyers, with house prices
spokesperson for Century 21 New
enjoying significant growth.
Zealand at the time.
“I really enjoy getting out and about,
The franchise’s former owner
the appraisal process, and meeting
and well-known local realtor,
new people. As a former legal
Chris Gadsby, has remained on
executive, I also actually enjoy the
as part of the team.
paperwork and drafting contracts,” she says.
individual strengths to create the
“Having Chris continue to play
best possible results, with vendors
a key role in the business has
When not selling, Rebecca
always put first. We are incredibly
been brilliant. His many years
manages the day-to-day running
proud of the team we inherited and
in the industry and relationship
of the business. She also oversees,
have built since,” says Rebecca.
building skills combined with my
and assists with, the property
management and conveyancing
management portfolio.
The past two years have seen Gadsby Realty winning several Century 21 awards, with their
experience has seen us go from strength to strength,” says Rebecca.
Home to about 12,000 people, Te Awamutu is a friendly bustling
success often making the
Previously, Rebecca was the
place. Known as the Rose Town of
local paper.
business manager for Learning
New Zealand, the district is home to
Matters Limited. She also has
some of the country’s best farmland
extensive legal experience as
with large dairy farms, cropping,
In fact, for the first quarter of this year, the Waikato franchise
C21 MARKET PULSE
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CENTURY 21
The team at Century 21 Gadsby Realty in Te Awamutu. From left to right: Gaile Para, Clifford Brown, Chris Gadsby, Dre Liebenberg, Ian Nicholas, Eli Gadsby, Julie Elliot, Rebecca Fraser, Taye Russ, Paul Wheeler, and Raewyn Brock.
and sheep and beef units. Te Awamutu’s popularity is helped by it being within 30 minutes of Hamilton, allowing for easy commuting to work and tertiary educations. The township is well
it takes to thrive in this exciting industry. Right now, we have numerous sales positions available across the Auckland and Wellington regions, as well as the Waikato,” says Tim Kearins.
serviced with a picture theatre,
To find out more about the benefits
restaurants, cafes, three large
of becoming a part of Century 21’s
supermarkets, and has its own
global network, visit:
racecourse.
www.c21.co.nz/joining-century-21
Owner of Century 21 New Zealand,
or contact Tim Kearins - Century 21
Tim Kearins says Te Awamutu is an
New Zealand - (0274) 495-547
important area for the company,
tim.kearins@century21.co.nz
with Century 21 a growing powerhouse in the Waikato. “We’ve got several franchises in the Waikato and all achieve excellent results for buyers and sellers alike. We see Century 21’s presence in the Waikato region continuing to grow, with plenty of room for new offices there,” says Tim. In fact, opportunities to set up Century 21 franchises are available in many parts of New Zealand. Century 21’s superior service and global status will continue to attract other high-performing businesspeople and salespeople to consider franchise ownership, he says. “As well as franchise opportunities for experienced agents, we are seeking keen salespeople with the drive and motivation to learn what
https://teawamutu.century21.co.nz/
Paul Wheeler and Rebecca Fraser – owners of Century 21 Gadsby Realty in Te Awamutu.
WOMEN LEADERS
WOMEN LEADERS AT THE FOREFRONT OF C21 NEW ZEALAND’S SUCCESS A key strength of Century 21 New Zealand is the significant role its many female franchise owners, salespeople, property and office managers play nationwide. One of the highest profile women for over a decade in the well-known rest estate company has been Derryn Mayne. The energetic and successful realtor has owned Century 21 Gold Real Estate in South Auckland for the past 13 years. In fact, she boldly opened the Manurewabased franchise during the Global Financial Crisis. “I started my business in 2008 which was a really difficult time in real estate. However, through a lot of hard work, we broke into the local market to be in a strong position to succeed when better times followed,” says Derryn. Since then, she has won numerous Australasian real estate awards and was inducted into Century 21’s prestigious ‘Hall of Fame’ in 2017. Two years later, Derryn bought a 25% stake of Century 21 New Zealand from Charles Tarbey, owner of Century 21 Australasia.
Down the road, the company’s
Previously Rebecca was the
newest franchise has opened in
Business Manager for Learning
central Manukau. Within six months,
Matters Limited. She also has
Century 21 Fairdeal Realty has
extensive legal experience as
grown its team to 16 busy people.
a registered legal executive
On South Auckland’s Lambie Drive, the female co-directors Rupinder
specialising in conveyancing with law firms in Waikato.
Kaur and Surbani Sandhu hit the
“We passionately drive a real
ground running. They say working
team approach when it comes to
under Century 21’s well recognised
sales. We draw on each other’s
global brand and unparalleled
individual strengths to create the
network has only boosted their local
best possible results, with vendors
success.
always put first. We are incredibly
“We had a vision of opening a boutique style office, instilling a
proud of the team we inherited and have built since,” she says.
new culture, and adopting a fresh
Gadsby Reality has also been busy
approach to real estate. Century
winning Century 21 awards, with
21’s stylish brand and its reputation
their success often making the local
for superior service fitted our
paper.
aspirations perfectly. What’s more, the technology available to the sales team is incredibly impressive,” says Rupinder.
the well-known Waikato franchise on Te Awamutu’s Alexandra Street was ranked as the top office across
Fairdeal Realty’s team is squarely focused on some of South Auckland’s key residential growth areas and the country’s fastest developing and changing neighbourhoods. And, yes, the sales team are already winning awards. In 2019, Rebecca Fraser became the proud new owner of Century 21 Gadsby Realty in Te Awamutu. Her team has enjoyed significant success since.
C21 MARKET PULSE
In fact, for the first quarter of 2021,
the country. On the sunny Kapiti Coast, Rebecca Houghton owns Century 21 A1 Realty based in Raumati South. Flying the flag in Christchurch, Ria Leung owns Century 21 Aurora Real Estate in Riccarton. In North Waikato, Barbara Craig owns Rural & Residential Real Estate on the main street of Huntly, while Esme Cole owns Century 21 Platinum Real Estate on George
08
CENTURY 21
Street in Tuakau.
have gone to the Greenlea Rescue
houses, while Vicki continually wins
Helicopter, St John Youth and the
Property Manager and Property
local Coastguard.
Management Office awards.
largest freshwater lake, is the
Owner of Century 21 Stevens Realty
Century 21’s rebranding a few
township of Turangi.
in Mangakino, Christine Stevens,
years ago was well-received
describes another former hydro-
internationally and New Zealand
electricity town as ‘paradise in the
was no exception. They say
middle of the North Island’.
dropping the world-famous yellow
Down the other end of Waikato, and at the southern end of Australasia’s
Wai Johnson owns Turangi’s Century 21 Premier with the franchise at the forefront of some huge price growth in the local
“Mangakino is only a 40-minute
housing market.
drive to either Taupo or Rotorua,
“Turangi real estate has seen an explosion over the past three or four years, with the 3,000-person town and surrounding area only getting more popular. Property management is also a big part of
and only 20 minutes to Tokoroa. and a half to either Hamilton or
long operated as a family business.
the ski fields. And it has great
What we continue to enjoy about
freshwater fishing, boating, hunting,
Century 21 is its family atmosphere
golfing, and cycle tracks,” she says.
nationally. The company now has
very busy,” says Wai.
discovered the quaint town, buying
residents and holidaymakers
up many of the affordable former
of franchise owners are committed
serene location is food for the soul
with ongoing Waikato Expressway
as they say,” says the local identity
improvements and Wellington’s
and Century 21 legend. Back to Auckland, and long-time Century 21 personalities Annette Edwards and daughter Vicki
Century 21 has a long and
Southgate are the female faces
successful history in Turangi, with
of Century 21 Edwards Realty in
a strong connect to the business
Botany.
community. Over the years, the Turangi team has organised several annual charity evenings and Easter auctions. Fundraising proceeds
support and empower,” says Vicki. Annette says the nationwide group
What’s more, our locality is key,
many,” says Wai.
with Century 21 always there to
cottages. “Working for yourself in such a
Central North Island even closer for
so many women in leadership roles,
Ministry of Works two-bedroom
are opting for Turangi instead.
Transmission Gully set to make the
women. “Obviously we’re a family and have
Christine says many Kiwis have
expensive, many permanent
look has particularly resonated with
What’s more it’s just over an hour
our work, keeping my tight team
“With Taupo getting more
jackets and adopting a sleek new
The East Auckland franchise owners have long been achieving great results for their clients. Over the years Annette has sold hundreds of
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CENTURY 21
to growing Century 21’s market share in New Zealand. She says with everyone so passionate about the brand, it’s easy to promote Century 21 franchise opportunities to others. To find out more about the benefits of becoming a part of Century 21’s global network, visit: www.c21.co.nz/joining-century-21 or Contact Tim Kearins - Century 21 New Zealand - (0274) 495-547 tim.kearins@century21.co.nz
SMALL KITCHEN TIPS
11 SMALL KITCHEN DESIGN IDEAS AND HOW TO MAKE THEM WORK FOR YOU Getting ther most out of the busiest room in the house is easier than you think.
BY HOME BEAUTIFUL
kitchens. Cabinets so stylish it's easy to forget they're designed for storage, appliances that disappear before your eyes, and touchable textures that make you think you're
Cooking and cleaning in a tiny room
in the living or dining room.
can sometimes feel like a exercise in
More and more, designers are giving
futility. But don't be disheartened–
us the ability to hide or camouflage
there are plenty of easy ways to
parts of the kitchen at our own
transform your small kitchen into a
choosing. There's a big push towards
stylish and efficient space. There
creating concealed work areas,
are particular kitchen designs
boasting sliding doors that close and
that work better for small spaces
hide the entire kitchen structure.
and many methods for making your small apartment kitchen feel enormous.
3. FREESTANDING MODULAR Flexibility in the kitchen once meant
5. ONE WALL One-wall designs are particularly popular in smaller apartments and homes. As the name suggests, all of the appliances and cabinetry run along one wall, giving the kitchen a greater sense of openness. However, careful planning is required to ensure that adequate room is available for food prep, as the sink, cooktop and refrigerator can take up most of the space. One solution is to use the dining table for extra workspace or include a wheeled butcher's block.
Here are some of the best small
a butcher's block on wheels. But
6. CUT CLUTTER
kitchen layouts and tips for
with renters on the rise and homes
designing your space effectively.
getting smaller, there's an increasing
Minimalism may be the word on
1. MINIMALIST When it comes to small kitchen ideas, keeping it simple is your best bet. Embracing minimalism in your kitchen design can help establish a feeling of order and create the
demand for modern, multifunctional, flexible kitchens. Opting for a custom creation will give you the ideal kitchen design for your small space.
colours, clean lines, similar textures
designed for compact cooking zones
and tones, and simple accessories.
on boats, so it's ideal for smaller homes. It's made up of two parallel countertops with a walkway in between.
in small kitchen design is concealed
C21 MARKET PULSE
to not only a stylish home but a sustainable one. Buying only what you need is the best way reduce and money.
4. GALLEY The galley kitchen was originally
One of the biggest emerging trends
behind living with less is the key
your footprint and save time, stress
illusion of space. Opt for light
2. CONCEALED
everyone's lips but the concept
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CENTURY 21
Cull unwanted items and from your draws, cupboards and pantry and make a rule that moving forward items only come in to your kitchen to replace something that breaks or runs out.
7. SAVVY STORAGE
9. A COHESIVE COLOUR PALETTE
Use your space wisely. Built in
Choosing all one colour to create
storage makes the best use of
the illusion of space doesn't have to
available space and wherever
mean white everything. Borrow from
possible, try to make spaces do more
surrounding spaces by continuing
than one job:
kitchen colours to finishes in
• Fix racks to the inside of cupboard doors to hold spice racks or pots lids • Fit shelves into corners and take them right up to the ceiling for seldom-used items • Use your island bench as a breakfast bar and store mugs or cutlery in draws beneath
8. UTILISE UTENSILS Make your kitchen stylish and functional by investing in cookware, utensils and appliances that are nice enough to leave on display. Mount knives together in a block or on a magnetic wall strip. Seek out a matching set of mixing bowls in commercial stainless steel
adjacent zones, extending them to create a combined footprint.
10. KEEP IT LIGHT Adding a skylight or window splashback can give your small kitchen a bright, airy feel and create the illusion of a larger space.
11. CREATIVE SHELVING Not everyone with a small kitchen is blessed with built in storage. If you fall in that camp, it's important to ensure you have ample and effective shelf space. Floating shelves make for a modern and minimalist storage idea, while utilising wall space with creative cabinetry can help.
or colourful ceramic that stack inside one another neatly and look attractive when stacked on open shelves. Take inspiration from
Click here to read the full article
professional food preparation space and have everything close at hand.
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CENTURY 21
selling?
Thinking of LET OUR FAMILY HELP YOUR FAMILY.
C21.co.nz