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P U L S E
S E P T 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
SEPTEMBER 2019 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 S E P T E M B E R
C21 NEW ZEALAND NEWS
02-03
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PROPERTY MARKET UPDATE
Interest rate cuts call for family collaboration.
Low number of new listings impacts sales
CEO, Century 21 New Zealand, Derryn Mayne
volumes in August.
08-09
REINZ CEO, Bindi Norwell
SPOTLIGHT ON: MANAWATU
04-05 FRONT FACELIFT
The Mighty Manawatu continues to outperform.
Ways to improve the front of your home.
Cameron Brewer
IDEAS TAKE FLIGHT
06-07
Vendor shouts Singaporean trip for buyer’s inspiration. Cameron Brewer
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C21 NEW ZEAL AND NEWS
INTEREST RATE CUTS CALL FOR FAMILY COLLABORATION
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
With a record low Official Cash Rate delivering both low mortgage rates and low bank deposits rates, it’s the perfect time for young renters to talk to their parents about buying a property together.
couples applying. The price cap
Yes, more first-home buyers
in Auckland is $650,000, which is
will get Government assistance
pretty tough.
from October, but private family
Another new rule that sees family and friends able to pool their respective $10,000 First Home Grant and KiwiSaver to buy their first home won’t actually enable many parents to
Century 21 salespeople nationwide
assistance
are now seeing more and more
for their
New Zealand families collaborating
kids.
to secure a property. While this
That’s
month’s housing reset by the
largely
Government’s will help more first-
because
home buyers, many families will still
eligibility
not be eligible for any assistance.
dictates
I’m pleased the Governmentbacked schemes for first-home buyers will soon have lower deposit requirements.
that all applicants can not
to getting a lot of Kiwis into first homes. Families are starting to realise that the parents are
“...more first-home buyers will get Government assistance from October, but private family collaboration outside of these public schemes will remain key to getting a lot of Kiwis into first homes.”
currently own a
getting nominal returns for their bank savings, while their adult children are paying recordhigh rents to their landlords. In many cases
property and have
However, many Kiwis will still not
to commit to living in the
qualify because of the income
new property for at least
requirements, as well as the price
six months.
now, tenants are paying more in rent than they would be in mortgage repayments. However, with living costs high,
caps in place for all singles and
C21 MARKET PULSE
public schemes will remain key
no one is winning when
trigger greater Government
collaboration outside of these
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CENTURY 21
many simply struggle to come up
Alternatively, the parents might
With experts anticipating interest
with the required deposit. Now is
own a percentage of the property
rates to fall further, while rents
the time to have a talk to Mum
with their children buying them out
in many areas will continue to
and Dad because there are some
when they go to sell their first or
increase, buying a house will only
serious win-wins to be had in
second home. Either way residential
become more attractive.
this environment.
property in New Zealand has always
The parents’ investment will ensure long term capital gain, while their
proven to be a solid medium to long term investment.
Families should get together with a mortgage broker because many will be pleasantly surprised. Let’s
children will be able to get onto the
Based on Kiwibank’s 3.55% one-
just say Century 21 Home Loans
housing ladder at the time when
year home loan rate, buying a
has been getting a lot of calls over
house prices have steadied and
house at the national median price
the past few weeks, with multi-
interest rates are the lowest in
of $575,000, after paying a 20%
generational meetings becoming
over 50 years.
deposit, would cost in interest
more of the norm.
The parents might stump up the deposit and have their kids paying them back with interest.
repayments about the same as paying the national median rent of $500 a week.
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S P O T L I G H T O N : M A N AWAT U
The Mighty Manawatu continues to outperform Their rugby team may not have nabbed the Ranfurly Shield off Otago last month, but the Mighty Manawatu has had another strong year with real estate.
Like to know more about Palmerston North real estate? Speak to our area specialist today:
TIM KEARINS CENTURY 21 Premier (Palmerston North) (027) 449 5547
|
C21.co.nz/palmerstonnorth
When the Real Estate Institute of New Zealand recently reported that median house prices were flat in Auckland while the whole country saw annual growth of 4.5%, the biggest exception was the Manawatu/Wanganui region in the lower North Island. According to REINZ figures, the region experienced a 25.4% lift in median house prices in the 12 months to the end of July.
are they busy selling residential
The long-time local real estate boss
homes, they market lifestyle blocks
says key to Palmerston North still
and farms as well as specialise in
being deemed relatively affordable
property management.
is the fact that local incomes
What’s more, successful sales for
remain healthy.
the team are now stretching out as
“Palmerston North provides a lot of
far as Whanganui, Marton, Foxton,
employment opportunities. We’re a
as well as nearby Fielding.
leading education provider, and of
“Our close-knit team brings a wealth of experience and it’s our way of dealing with clients that brings people back to Century 21. We
course we’re surrounded by a strong rural hinterland. Manawatu’s has always had economic strength and that remains to this very day.”
know the marketplace, the buyers,
Tim Kearins says Manawatu’s
sellers, and the neighbourhoods.
number one draw for most people is
At the same the ‘capital’ of
Importantly we put our clients in
the lifestyle on offer.
Manawatu, Palmerston North,
control of their sale or purchase and
continues to outshine most other
help them get the best result.”
metropolitan and provincial centres. The latest OneRoof Property Report, published on 2 September, showed a 13.7% rise in median value over the past 12 months for Palmerston North – now sitting at $415,000. But Manawatu’s rise has not just been observed by Kiwis. Earlier this year, Palmerston North was identified as the best place in New Zealand to buy a property, according to the annual Demographia survey.
is still easy to get around and has a
Derryn Mayne, says Palmerston
great sense of community. What’s
North is one of Century 21’s best
more we’re only a couple of hours
performing offices.
away from the country’s capital
“Tim and his team are the ultimate professionals. They have always got prices. While Manawatu real estate has seen some impressive growth in recent years, the province continues to deliver enormous value for money. It’s currently a great place
affordability calculated it would
offers a wonderful life for families,”
take just half the number of years
says Ms Mayne.
median income than it would for Aucklanders to buy in Auckland.
She says Century 21 has invested extensively in database and webbased technology. In fact, all Century 21 offices have access to
Century 21 Premier (Palmerston
the most up-to-date technology,
North) owner, Tim Kearins, said at
management, support, sales and
the time: “Palmerston North has had
marketing systems available in the
some solid growth in house prices
industry globally today.
over recent years. However, the good news is we’re still miles more affordable than the likes of Auckland and Tauranga.”
city and have good proximity to both coasts.”
plenty of properties listed at great
for both buyers and sellers alike, and
Palmerston North earning the local
big city conveniences, but the place
Century 21 New Zealand owner,
The international study on housing
to buy a median-priced house in
“People love that we’ve got all the
“The adage that you have market strength in being small and agile in this digital age is true. Yet we also have the support of the largest real
A well-established local brand and
estate network in the Asia-Pacific
business, the award-winning team
region with over 3,000 offices. It’s a
at Century 21 Premier service the
win-win for our clients,” says Tim.
entire Manawatu province. Not only
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Palmerston North:
Did you know... Palmerston North is New Zealand’s seventh-largest city and eighth largest urban area. It has an urban population of 86,600 (June 2018) Palmerston North is home to Linton Military Camp, Massey University (since 1927), and the New Zealand Rugby Museum. Maori called it Te Papa-i-Oea, believed to mean ‘How beautiful it is’. British settlers named it after Viscount Palmerston, a former British Prime Minister. The suffix ‘North’ was added in 1871 to distinguish it from the settlement of Palmerston in South Otago.
IDEAS TAKE FLIGHT
VENDOR SHOUTS SINGAPOREAN TRIP FOR BUYER’S INSPIRATION
Instead of forcing her own redecoration tastes onto the next owner, a North Shore vendor is selling her property as is but sending the successful purchaser to Singapore to be inspired. “The vendor didn’t want to make changes the new buyer didn’t like. Instead, she’s sending them off to Singapore - the City of the Future to gather the latest ideas and bring them back home,” says Liam Collett - owner of Century 21 Collett Realty who’s marketing the property with colleague Donna a’Beckett. The five-bedroom, three-bathroom home at 2/49 College Road in Northcote has a CV of $1,280,000 but an asking price is $975,000, reflecting a registered valuation.
The deal also includes the exterior
of gifting a trip for others to
of the house being repainted before
experience a country she adores,
settlement – which is part of
while gathering forward-thinking
the property’s seven-year
ideas to improve the property.
maintenance plan.
“When the vendor brought her first
“The house has been rented for over five years, so it
go on holiday, let alone
does need a bit of TLC. However, the property has some excellent features and is well located. What’s more the vendor is motivated to
fly first-class. She
“...it will literally be a first-class experience from beginning to end for the purchaser. It will probably cost the vendor over $20,000 in total, but she’s just thrilled to do it.”
sell, so someone away with a lot – all for less than $1 million on Auckland’s
two first-class return airfares to
Mr Collett says the vendor lives
back’ to the successful buyer for getting their foot onto the housing ladder.” He says it will literally
beginning to end for the purchaser. It will probably cost the vendor over $20,000 in total, but
by the motto that ‘life is all about experiences’. She loves the idea
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‘pat on the
experience from
North Shore.”
spend on anything during the trip.
sees this is a
be a first-class
is going to come
Included in the sale price are Singapore and $5,000 cash to
property she could never afford to
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she’s just thrilled to do it. Another bonus, he says, is the property’s excellent rental return.
It is currently rented in a flatmate
marketing. Recently Mr Collett and
“Liam and Donna are brilliant
situation with the ability to return
Ms a’Beckett sold a property that
ambassadors for Century 21’s
over $1,300 a week, and the current
came with the vendor’s McLaren
reinvigorated brand. Century 21
flatmates are happy to stay on.
sportscar.
is all about innovation and going
“Ideally, it would be amazing if
What’s more, both currently have
a first-home buyer bought the
a Waitoki lifestyle property listed
property, but we understand
which comes with a brand-new
that won’t be possible for many.
Maserati of the buyer’s choice worth
However, its rental potential could
up to $250,000.
help leverage extra funds to assist the new owner’s mortgage payments,” he says.
that extra mile. Century 21 delivers unbeatable marketing, world-class service, and professional advice each and every time,” says Ms Mayne.
Century 21 New Zealand owner, Derryn Mayne, says Liam Collett and Donna a’Beckett have a great
Collett Realty is not new to thinking
and growing reputation with sellers
outside the square when it comes to
and buyers alike.
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CLICK HERE TO VIEW PROPERTY
P R O P E R T Y M A R K E T U P DAT E
LOW NUMBER OF NEW LISTINGS IMPACTS SALES VOLUMES IN AUGUST
BY BINDI NORWELL, REINZ CEO
The number of residential properties sold across New Zealand in August decreased by -6.1% from the same time last year to 5,959 (down from 6,346), the lowest level of sales for 7 months, 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. For New Zealand excluding
Regions with the greatest increase
strength of July’s figures, however,
Auckland, the number of properties
in annual sales volumes during
an extremely wet August across
sold decreased by -6.9% when
August were:
most parts of the country and
compared to the same time last year (to 4,198 down from 4,509).
• Tasman: +12.3% (from 57 to 64
– 7 more houses) – the highest
In Auckland, the number of
for the month of August in
properties sold in August decreased
3 years
by -4.1% year-on-year (to 1,761 down from 1,837) the lowest in 4 months. Regions with the greatest decrease in annual sales volumes during August were: • Southland: -33.2% (from 187 to
125 – 62 fewer houses)
• Bay of Plenty: +7.7% (from 441
to 475 – 34 more houses) – the
highest for the month of August
in 3 years
• Nelson: +2.9% (from 68 to 70 – 2
more houses) – the highest for
the month of August in 3 years.
Bindi Norwell, Chief Executive at
• Hawke’s Bay: -18.4% (from 223 to
REINZ says: “Despite a good uplift
182 – 41 fewer houses) – the
in sales during July, August saw
lowest number of sales in
sales volumes fall by -6.1% from the
19 months
same time last year – the lowest
• Taranaki: -16.6% (from 187 to 156
– 31 fewer houses).
level of sales for 7 months. This was a bit of a surprise given the
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the past three months having the lowest number of new listings of any consecutive three months since records began in 2007 look to have been contributing factors. “Additionally, we’ve had 3,624 fewer new listings than at the same time last year. With limited choice in many parts of the country in terms of new listings, we’re hearing from a number of agents that people are waiting to purchase before they put their own property on the market, which is slowing the whole market down. Hopefully as confidence starts to improve over the coming months, we’ll start to see this flow through to new listings which leads to more choice for buyers,” continues Norwell.
“Sales volumes for the Auckland
down from $850,000 at the same
(down -3.1% from its peak),
region fell by -4.1% when compared
time last year.
Manawatu/Wanganui (down -0.3%
to August 2018, but breaking this down showed volumes actually only fell in Auckland City (-14.0%), North Shore City (-13.0%) and Manukau
from its peak), and Canterbury
The REINZ House Price Index for
(down -0.6% from its peak). These
New Zealand, which measures the
record levels show the strength of
changing value of property in the
the properties in the market.
market, increased 2.9% year-on-
City (-5.4%). Whereas they
year to 2,797 – a new record high.
increased by 43.0% in Papakura
In August, the REINZ HPI saw 11 out of 12 regions experience an
The HPI for New Zealand excluding
District, 16.2% in Franklin District,
annual increase in their index level,
Auckland increased 6.8% from
13.8% in Rodney District and 0.4%
Auckland was the only region to
August 2018 to 2,779 another new
in Waitakere City showing how
experience a decrease.
record high. The Auckland HPI
mixed the Auckland region is,” continues Norwell.
decreased -1.5% year-on-year to
“Looking at the Auckland region,
2,819, however it was up 1.0% on
prices fell overall by -3.5% which $
ANNUAL ME DIAN PRICE CHANGES $
-3.5% AUCKLAND
$
TARANAKI
$580,000
11.6%
25.4%
WAIKATO
15.0%
NATIONAL MEDIAN PRICE:
7.0% BAY OF PLENTY
2.5%
Record Median Price
$
25.6%
MANAWATU / WANGANUI
=
MEDIAN DAYS TO SELL:
-6.1%
Source: REINZ Monthly Property Report 13 September 2019 .
12.4% 7.9%
0.0%
-1.1%
TASMAN
WELLINGTON
MARLBOROUGH
3.3%
WEST COAST
$
GISBORNE
HAWKE’S BAY
NELSON
5.5%
39
10.8% NORTHLAND
CANTERBURY
29.2%
13.7%
SOUTHLAND
OTAGO
Median house prices across New
July 2018 - the second consecutive
can partly be attributed to a fall in
Zealand increased by 5.5% in
monthly increase and the highest
the number of million-dollar plus
August to $580,000, up from
HPI result for 5 months.
properties (from 34.8% to 31.7%).
$550,000 in August 2018. These results are in line with the REINZ House Price Index (HPI) which saw property values increase 2.9% annually.
In August, Southland had the highest annual growth rate with a 15.2% increase to 3,066, a new record high. In second place was Manawatu/Wanganui with an
Median price increases for New
annual growth of 13.6% and in third
Zealand excluding Auckland were
place was Gisborne/Hawke’s Bay
even stronger, increasing by 9.5%
with a 13.2% annual increase to a
to new record high of $498,000, up
new record high of 2,882.
from $455,000 in August last year.
In August, 9 out of 12 regions
Median house prices in Auckland
reached record high HPI levels. The
fell by -3.5% to $820,000 –
only exceptions were Auckland
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Breaking the region down, median prices fell by -10.5% year-on-year in Manukau City to $770,000 the lowest price for the area for 19 months. However, on the flip side, prices on the North Shore increased on an annual basis by 8.6% to $999,000 the highest price in 5 months,” continues Norwell.
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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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?
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