S U M M E R
M A R K E T
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P U L S E
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
SUMMER 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 S U M M E R
C21 NEW ZEALAND NEWS
02-03
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FRONT FACELIFT
Waikato - a key place of interest for Aucklanders.
Ways to improve the front of your home.
CEO, Century 21 New Zealand, Derryn Mayne
Cameron Brewer
THE RIGHT CONDITIONS
04
PROPERTY MARKET UPDATE
Fewer first home buyers may help avoid
REINZ November data shows highest number of
higher depsosits.
properties sild in NZ in 13 years.
Cameron Brewer
REINZ CEO, Bindi Norwell
HOME START NEEDS REVISION
05
Updating Home Start grant must be Government priority Cameron Brewer C21 MARKET PULSE
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CENTURY 21
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08-09
C21 NEW ZEAL AND NEWS
WAIKATO - A KEY PLACE OF INTEREST FOR AUCKLANDERS
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
Despite Waikato now New Zealand’s fifth most expensive region, it’s increasingly popular, particularly for Auckland families.
now at $1 million, Waikato remains
bypasses, are effectively bringing
comparatively affordable with
Waikato closer to Auckland. The
lifestyle and space in abundance.
Hamilton to Auckland passenger
Waikato is giving many Auckland families the opportunity to free up some capital, or reduce
Our offices in Waikato are seeing a lot of Aucklanders moving down. After the experience of lockdowns, many people realise they can work remotely and effectively from home, with more employers willing to enable it. In recent REINZ figures, the Waikato region saw another record median house price at $655,000 in October, up 15.9% from the same time last year. Sales volumes increased 30.4% year-on-year with 961 properties sold – the highest number of sales in over four years, and the highest for an October month since 2003. The summer numbers for Waikato could even be stronger. Regardless, with Auckland’s median house price
in striking distance to the super city for weekly meetings. As well as plenty of
commuters with another option. Century 21’s offices in Huntly,
their mortgage, while still being
train service will also soon provide
Tuakau and Te Awamutu
"Waikato is giving many Auckland families the opportunity to free up some capital, or reduce their mortgage, while still being in striking distance to the super city..."
good schools
see a bright future with the real estate company successfully working in and around Te Kauwhata too – an area which is proving increasingly popular for commuters.
in Waikato, many are seeking an easier
Like many of New Zealand’s
lifestyle. Let’s not also forget
smaller towns that are in commuter
that in this Covid-19 world some
proximity to much larger cities,
people, particularly those over 70,
the likes of Huntly and Te Awamutu
are now also wanting a bit more
are now seeing people moving
human space.
out from Hamilton as well as down
The real estate boss says ongoing
from Auckland.
multi-billion-dollar State Highway
Rebecca Fraser and Paul Wheeler
One motorway extensions, and
took over the ownership of
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Century 21 in Te Awamutu earlier
The Waikato District Council is
last year. They’ve been going
tasked with managing growth within
absolutely gangbusters ever since,
its area which is largely north and
achieving great prices and often
west of Hamilton. The district’s
featuring in Century 21’s national
growth is expected to swell from
sales awards.
73,600 people to possibly 103,000
With Taupo also getting pricey,
by 2045.
Century 21 offices in Mangakino
Hamilton property was undervalued
and Turangi are fielding more
up until about five years ago, then it
‘outside’ enquiries with homes and
started climbing and hasn’t stopped.
baches now in hot demand. Turangi,
That has had a flow-on effect to
in particular, has experienced huge
neighbouring towns and lifestyle
price growth this year, despite no
blocks as demand grows.
international tourism.
While Waikato is by no means
Huntly, with considerable SH1
cheap anymore, the region
traffic now diverted away from
continues to offer many Auckland
the township, is seeing plenty of
families and retirees the chance
action and opportunities too. One
to get ahead and enjoy a great
gamechanger being Sleepyhead’s
lifestyle. With Auckland’s median
ownership of 176-hectares
price hitting seven figures, the
of land, adjoining the nearby
many Kiwis actively eying up the
existing Ohinewai village. The site
regions will only continue.
is proposed to be transformed into a mixed-use, fully masterplanned community of up to 3,000
Have a great Christmas and here’s to 2021!
residents, creating considerable jobs and growth for North Waikato.
C21 MARKET PULSE
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THE RIGHT CONDITIONS
FEWER FIRST HOME BUYERS MAY HELP AVOID HIGHER DEPOSITS “Incredibly, nearly nine out of 10 real estate agents see prices as rising in their area. No one would’ve predicted that just eight months ago,” says Derryn Mayne, Owner of Century 21 New Zealand.
The Century 21 leader says two
At the same time, the net
indicators in this latest survey
proportion of agents saying that
reinforce key market influences
they are seeing more first-home
are strong: Buyer FOMO (fear of
buyers in the market is at 50% -
missing out) remains at very high
also still strong but down from a
levels across all regions with a net
net 64% in November and the
88% of agents reporting it; and only
lowest since May.
12% of agents report that buyers now have employment concerns down from 48% in June.
Ms Mayne hopes this timely reported cooling will help save first-home buyers from blanket
“With buyers feeling more
higher deposit requirements
“At the same time, with activity
comfortable about their future
being imposed from March next
from first-home buyers slightly
and highly motivated to buy for
year. Tougher LVR restrictions by
cooling, here’s hoping the
fear of missing out on a
Reserve’s Bank plan to
property, it’s safe
reinstate loan-tovalue ratio (LVR) restrictions from 1 March can be avoided, with submissions on the Reserve Bank’s proposal now open until 22 January.”
to conclude that vendors can
"The market remains
expect strong
strong yet we're seeing
interest in their
some slight cooling in
properties
activity exactly where it
this summer,”
needed to come from."
Ms Mayne’s comments follow REINZ today releasing December’s REINZ &
says Ms Mayne. The December
survey also shows that a net 45% of agents have
Tony Alexander Real Estate Survey.
reported that they are seeing more
Agents report slight decreases in
investors in the market – still strong
attendance at auctions and open
but down from a net 59% in the
homes, and the presence of first-
November survey.
home buyers and investors.
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the Reserve Bank, she believes, would unfairly kill off the Kiwi home-ownership dream for many young people. “The market remains strong, yet we’re seeing some slight cooling in activity exactly where it needed to come from. That’s partly a reflection that perhaps first-home buyers are tiring of this market, while retail banks are already self-policing their higher risk lending. “Regardless, hopefully the Reserve Bank is pleased with such cooling, and won’t have to introduce punitive lending restrictions next year,” says Derryn Mayne.
HOME START NEEDS REVISION
UPDATING HOME START GRANT MUST BE GOVERNMENT PRIORITY Century 21 New Zealand is joining the Real Estate Institute of New Zealand (REINZ) and others calling for the Government to review the Home Start grant thresholds.
lifted, and the grant itself lifted
up by 16.3% in 12 months to new
beyond $5,000 per person. All
record high of $1 million.
the numbers in and around Home Start need to be revised urgently, particularly as the market is set to only increase over the coming months. As it stands, every day, fewer and fewer properties and first-home buyers qualify, killing
“It’s great Prime Minister Jacinda Ardern has confirmed the
the Kiwi homeownership dream for many,” says Ms Mayne.
Government is looking at ways to
REINZ has revealed only one third
help first-home buyers get into
of New Zealand properties are
the property market. Updating the
now below the price cap threshold,
Home Start grant and making it fit
that’s down from 40% in June. In
for purpose ahead of real estate’s
Auckland, only 12% of properties are
summer season must now be a
now below the threshold.
priority for the new cabinet,” says Derryn Mayne, Owner of Century 21 New Zealand.
“In Auckland, given the median house price is now $1 million, it’s increasingly impossible for firsthome buyers to find an existing
qualifying first-home buyers under
home for less than $600,000. In
certain income caps to receive a
fact, you’d really struggle to even
grant to purchase property under
buy a two-bedroom grannie flat ‘do
set regional house price caps. For
up’ in Manurewa for that!”
existing property for $600,000 or less, or $650,000 for new builds. For the rest of the country, apart from Queenstown, it’s less.
for October showed median house prices across New Zealand were up by 19.8%, compared to October 2019. In total, 10 regions around the
“As well as lifting the price caps, I’d
country saw record median prices
like to see the income thresholds
during October, including Auckland
05
best chance young Kiwis have to buy a house and afford a mortgage. Let’s not pull up the ladder behind us. Rather, let’s get us many young people onto the housing ladder as possible.” The Century 21 boss says those who come out of the global Covid-19 crisis with property will have a huge advantage going forward, and that has to be a big incentive for the Government to act
“The Prime Minister has made clear that she doesn’t want to see a country where only those whose parents can help will get into the housing market. The real estate industry wholeheartedly agrees. “The housing market is moving at
REINZ’s Monthly Property Report
C21 MARKET PULSE
been cheaper, this could be the
sooner rather than later.
The subsidy scheme enables
example, Aucklanders must buy an
“Given interest rates have never
CENTURY 21
speed. Rather than leaving firsthome buyers behind, New Zealand now needs to encourage and enable as many as we’re able. Let’s ensure homeownership makes a positive difference to many more lives,” says Derryn Mayne.
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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REQUEST YOUR
FREE PROPERTY APPRAISAL
CENTURY 21 agents have made it easy for you to find out the current value of your property. Simply visit C21.co.nz/sell to book your obligation-free property market appraisal.
C21.co.nz/sell
P R O P E R T Y M A R K E T U P DAT E
REINZ NOVEMBER DATA SHOWS HIGHEST NUMBER OF PROPERTIES SOLD IN 3 YEARS
BY BINDI NORWELL, REINZ CEO
The number of residential properties sold in November across New Zealand increased by 29.6% from the same time last year (from 7,627 to 9,885) – the highest number of properties sold in 164 months (March 2007) and the highest November sales count since November 2006 (14years), according to the latest data from the Real Estate Institute of New Zealand. For New Zealand excluding
75 – 32 more houses) – the
• Marlborough: -5.3% (from 95 to
Auckland, the number of
highest since March 2004
90 – 5 fewer houses) – the
lowest for the month of
November in 3 years
properties sold increased by 18.3% when compared to the same time last year (from 5,205 to 6,157) – the highest number of properties sold since March 2016 (56 months)
• Northland: +36.1% (from 219
to 298 – 79 more houses) – the
highest since June 2016
• Canterbury: +31.7% (from 1,012
to 1,333 – 321 more houses) –
volumes since November 2006
the highest since March 2007
(14 years).
• Bay of Plenty: +29.5% (from 498
In Auckland, the number of
to 645 – 147 more houses) – the
properties sold in November
highest since May 2016
increased by 53.9% year-on-year
• Nelson: +25.8% (from 93 to 117 –
and the highest November sales
(from 2,422 to 3,728) – the highest since March 2007 (164 months) and the highest November sales volume since records began. In addition to Auckland, regions with the largest increase in annual sales volumes during November were: • West Coast: +74.4% (from 43 to
24 more houses) – the highest
for the month of November in
18 years
• Waikato: +21.9% (from 828 to
1,009 – 181 more houses) – the
highest since September 2015.
• Regions with annual decreases in sales volumes were:
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• Gisborne: -4.3% (from 70 to 67 –
3 fewer houses) – the lowest for
the month of November in
3 years
• Hawke’s Bay: -1.8% (from 275 to
270 – 5 fewer houses) – the
lowest for the month of
November in 3 years.
Bindi Norwell, Chief Executive at REINZ says: “November was an incredible month in terms of the number of properties sold, with just shy of 10,000 properties sold over 30 days (9,885). The last time we saw a similar level of sales volumes was back in March 2007 – 164 months ago – before the national recession and Global Financial
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Crisis started impacting New
these high sales volumes can be
Zealand’s property market.
sustained for,” says Norwell.
“November saw more than half
Median house prices across New
the country with record median
(10 out of 16) of the regions across
Zealand increased by 18.5% from
prices - 4 of them in Waikato, 4
the country with double-digit
$632,000 in November 2019
in Wellington and 3 in Auckland,
percentage increases in annual
to a new record median high of
Manawatu-Wanganui, Hawke’s Bay
sales volumes showing how buoyant
$749,000 in November 2020; and
and Taranaki. This is the highest
the market is. Part of this is likely
up from $725,000 in October this
number of records we’ve seen at a
to be attributed to people wanting
year – a $24,000 increase.
District level since February 1992 –
to purchase property ahead of Christmas, partly due to the Reserve Bank announcing in early November that it would undertake a
“We also saw 30 Districts around
just one month after REINZ started
“November saw the new national
collecting monthly data from across
median house price nearly hit the
the country,” she continues.
three-quarter of a million mark at
ANNUAL ME DIAN PRICE CHANGES $
(a 2.5% increase).
$
16.6%
16.4%
NORTHLAND
AUCKLAND
$
Record Median Price
$
$
TARANAKI
$
$749,000
13.2%
36.2% GISBORNE
25.8%
21.9%
MANAWATU / WANGANUI
9.8%
$
NELSON
18.5%
$
MEDIAN DAYS TO SELL:
17.2%
29
$
28.0% TASMAN
Source: REINZ Monthly Property Report 11 December 2020.
$
23.6%
re introduce LVRs earlier than planned, but also due to this underlying fear that prices might increase even further in the coming months,” continues Norwell.
16.2%
$749,000 and 11 regions around
Additionally, Auckland’s median
the country hit new record median
house price increased by 16.4%
highs, showing just how confident
from $885,000 at the same time
the market is at the moment.
last year to $1,030,000 a new
The last time we saw these sorts
record high, and up $30,000 from
of records was back in October
$1,000,000 in October this year (a
2003 when the market was seeing
3.0% increase).
significant increases in house
Auckland sales volumes have been
prices,” says Norwell
to the same time last year, and with a 45.8% increase in new listings in November, there are few signs of the usual Christmas slow down. It will be interesting to see how long
13.1%
OTAGO
“For three months in a row now, up more than 50% when compared
14.5% WELLINGTON
CANTERBURY
SOUTHLAND
consultation in December to
19.4%
HAWKE’S BAY
MARLBOROUGH
WEST COAST
$
18.4%
BAY OF PLENTY
WAIKATO
21.7%
NATIONAL MEDIAN PRICE:
$
Median house prices for New Zealand excluding Auckland increased by 15.0% from $535,000 in November last year to a new record median price of $615,100, and up from $600,001 in October
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