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M A R K E T
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C21
PUBLISHER Century 21 New Zealand Ltd
CONTRIBUTORS Tim Kearins Jen Baird Cameron Brewer Home Beautiful
EDITORIAL ENQUIRIES Century 21 New Zealand +64 9414 6041
ADVERTISING ENQUIRIES Century 21 New Zealand +64 9414 6041
WELCOME TO THE
April 2022
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.co.nz/disclaimer
Cover image: Don Kaveen on Unsplash
C O N T E N T S A pril
C21 NEW ZEALAND NEWS
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INTERIOR TRENDS
Property prices still up on a year – for now
Channel Autumn/winter with these cosy
Century 21 New Zealand, Tim Kearins
interior trends
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Home Beautiful
PROPERTY MARKET UPDATE
04 FIRST HOME BUYERS
Market consolidates at new pace, supply continues
Renters should see a mortgage broker, not give up!
to grow and demand ease REINZ CEO, Jen Baird
FRANCHISE OPPORTUNITIES
06
Going global increasingly attractive to Kiwi realtors
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C21 NEW ZEAL AND NEWS
PROPERTY PRICES STILL UP ON A YEAR – FOR NOW BY TIM KEARINS,
CENTURY 21 NEW ZEALAND
The latest real estate statistics show that, overall, house prices remain up on the same time last year, but things are slowing.
Finance Act (CCCFA). It required
Listings are up, and sales are down
banks and brokers to conduct
which means advertised properties
ultra‑conservative assessments on
are sitting around for a bit longer.
all new borrowers, with the number
We are now seeing, however,
new mortgages falling through
vendors getting more realistic with
the floor.
both parties increasingly arriving at a satisfactory place.
REINZ has released its Monthly
Earlier this month, the Ministry
Property Report for March –
of Business Innovation and
The Reserve Bank’s latest increase
a month which saw median house
Employment (MBIE) released the
to the Official Cash Rate (OCR) by
prices across New Zealand up 7.9%
draft proposed changes to the
50 basis points to 1.50% – marking
compared to the same time last
CCCFA, with public consultation
the fourth consecutive OCR hike
year. REINZ noted that ‘while we
closing on 20 April. The final
since October last year and biggest
continue to see prices increase
changes are then set to be enacted
jump in over 20 years – also needs
annually – in all but one region –
in June.
to be put into context.
the rate of growth is slowing.’
People still want to buy houses.
Interest rates remain a lot lower
At $890,000, the national median
These softer March numbers,
than they have been in the past,
house price is up from $825,000 in
however, reflect the fact that
while servicing a mortgage remains
March 2021, and up from $885,000,
borrowers have been hit with
comparable, if not cheaper, for
the median in February this year.
the biggest credit crunch since
many paying sky-high rents.
Let’s not forget we’ve come off the back of a crazy couple of years. House prices soared to unsustainable levels and money was cheap. What we are now seeing
the Global Financial Crisis. Some significant tweaks to the CCCFA this winter will hopefully enable more Kiwis to realise their homeownership dreams.
is some of those unrealistic gains
Across New Zealand, the number
being clawed back. At the same time,
of residential property sales
good properties in strong demand
decreased 33.5% from 10,151 in
continue to make great money.
March 2021 to 6,752. At the same
New Zealand’s real estate market was badly affected over summer by the Credit Contract & Consumer
time, the total number of properties available for sale nationally increased 32.0% from 19,437 in March 2021 to 25,659. C21 MARKET PULSE
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It’s not a buyers’ market yet, but for those who can secure lending there are some great opportunities out there this autumn. Tim Kearins – Century 21 New Zealand – (0274) 495-547 tim.kearins@century21.co.nz www.c21.co.nz
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We are committed to achieving you a remarkable result whilst delivering the best customer service. Contact your local C21 Agent today for your no obligation FREE property appraisal.
Visit: C21.co.nz/sell
P R O P E R T Y M A R K E T U P DAT E
MARKET CONSOLIDATES AT NEW PACE, SUPPLY CONTINUES TO GROW AND DEMAND EASE
BY J E N B A I R D, REINZ CEO
March solidifies the changes in the market seen over the past months as pressure on property prices eases, inventory levels increase, demand softens and sales activity decelerates, according to the latest data and insights from the Real Estate Institute of New Zealand (REINZ), home of the most complete, accurate and up-to-date real estate data in New Zealand. Median prices for residential
prices can be found in the regional
consecutive decrease in the
property across New Zealand
commentaries below.
percentage of annual growth, down
increased 7.9% annually, from $825,000 in March 2021 to $890,000 in March 2022. Moving from February to March 2022, the median property price increased a marginal 0.6%. However, the seasonally adjusted figure shows a decrease of 4.8% indicating a weaker price increase than expected moving from February into March. The median residential property price for New Zealand excluding Auckland increased 14.1% annually from $679,000 in March 2021 to
Marlborough is the first region to see negative annual movement in median price since May 2020. The
from a 37.3% annual increase in September 2021 to a 7.6% annual increase this month.
region saw a 0.6% annual decrease
Jen Baird, Chief Executive at REINZ,
from $664,000 to $660,000 in
says: “Over the past three months,
March 2022.
we have seen a shift and the market
With the exception of Marlborough, all regions saw annual median price growth. However, the margin of increase is decreasing as prices ease. Auckland and Wellington had the lowest percentage change, with the median residential property price up 6.7% annually in both.
is now settling into this phase of the cycle. The last two years have benefited from an exceptional COVID-19 boost. Following this period of significant activity and growth, prices are easing and the market is returning to a more settled pace.
The median price in Auckland was
“While we continue to see prices
up from $1,125,000 in March last
increase annually —in all but one
In March, while there were no new
year to $1,200,000, and Wellington
region – the rate of growth is
regions with record median prices,
rose from $880,000 to $939,300
slowing, sales activity is down and
Gisborne had an equal high to
in March 2022. This is the fourth
the median days to sell is up. We’re
February 2022 with a median price
month Auckland has seen a drop in
seeing the market moderate as
of $715,000 – up 10.9% on March
the rate of increase, and the third
people settle into this phase of the
2022. Fifteen territorial authority
such drop for Wellington.
property cycle.
Manawatu/Whanganui saw the
“The impact of tighter lending
annual rate of increase contract
criteria, LVRs, and increasing
again in March. This is the sixth
interest rates coupled with inflation,
$775,000 in March 2022.
(TA) achieved median records. More information on activity by region and TA record median
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ANNUAL ME DIAN PRICE CHANGES $
Record Median Price
15.5%
6.7%
NORTHLAND
AUCKLAND
NATIONAL MEDIAN PRICE:
$890,000
BAY OF PLENTY
16.1%
7.9%
17.3%
7.6%
9.9%
MANAWATU / WANGANUI
HAWKE’S BAY
6.7%
NELSON
8.6% 15.0%
$
GISBORNE
TARANAKI
36
10.9%
WAIKATO
26.2%
MEDIAN DAYS TO SELL:
12.6%
-0.6%
TASMAN
WELLINGTON
MARLBOROUGH
21.9%
WEST COAST
CANTERBURY
7.3%
10.2%
SOUTHLAND
OTAGO Source: REINZ Monthly Property Report 14 April 2022 .
continue to reduce the pool of
those regions. Last month, we saw
be the general experience at this
buyers who are willing and able to
strong prices in Otago, Southland
stage of the property market cycle
pay market prices. The increase in
and Canterbury, in March these
where the market power is leaning
interest rates over the past months
regions are down – a reflection
towards buyers,” observes Baird.
presents one of the greatest
of what is happening across
impacts to the market. Yesterday
the country.
the Reserve Bank increased the official cash rate by 50 basis points – to 1.5%. The double rate hike will do little to alleviate concerns and rather see the market slow further as buyers reassess their ability to meet higher mortgage repayments should the dial be turned up further, tempering their spending.
“House prices tend to be more sticky when decreasing than increasing, which is what we are seeing now. While market sentiment has quickly shifted, vendors are slower to adjust their price expectations. As demand drops, vendors tend to choose to wait longer to sell their property
“As the market shifts to a new
rather than sell below those
pattern, we note volatility across
expectations. Those who must
regions. The data shows variation
sell often have to drop their price
across regions and TAs within
to meet demand. That tends to
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Click here to read the full report
FRANCHISE OPPORTUNITIES
GOING GLOBAL INCREASINGLY ATTRACTIVE TO KIWI REALTORS With expats returning and borders re-opening, owning a real estate business that’s part of a global network is increasingly appealing and important,” says Tim Kearins, Owner of Century 21 New Zealand.
a family and our clients appreciate
seeking proven real estate business
that,” he says.
owners and high-performing
Despite the Government’s 2018 foreign ownership ban, there
salespeople keen to take their careers to the next level,” he says.
remain plenty of opportunities for
The Century 21 leader says
non-resident overseas buyers to
the company’s newest office in
purchase the likes of off-the-plan
Northland’s Dargaville has enjoyed
apartments in large developments.
a great start, with opportunities for
Many foreign investors, he says,
other operators to either establish
view New Zealand as a safe bet
a start-up office or rebrand their
post-pandemic.
existing real estate agency.
business, having an office anywhere
“Let’s not forget that New Zealand is
Further, the support and offering from
in New Zealand that showcases
now globally recognised for its good
Century 21 Financial strengthens the
service excellence and international
management of COVID and likewise
company’s proposition in the New
reach is a compelling proposition,”
our real estate market is seen as a
Zealand real estate marketplace.
he says.
safe haven for investors.
Managing Director Julius Capilitan
Mr Kearins says there’s significant
“Since COVID, we’ve seen
potential to open more franchised
increasing searches of our local
offices throughout the country
listings via Century 21’s global
and that’s the aim. Century 21 is
website which can be translated into
“Century 21’s global reach also
the largest real estate company
19 different languages,” says Mr
means we have access to the
in Asia-Pacific, a hugely
Kearins.
latest learnings, technology, and
“With the world reopening for
recognisable brand, with the most technology‑savvy agents, and best training and systems to deliver for clients.
can deliver competitive rates and
Another attraction to Century 21 franchise ownership is the fact there remain many untapped locations. The company is now on a recruitment
greater borrowing flexibility than traditional banks.
real estate developments. That’s great for new franchise owners and agents, but even better for our property buyers and sellers,” says Tim Kearins.
“All our offices exude unbeatable
drive, promoting opportunities in
service and success when it comes
Hamilton, Tauranga, and the North
To find out more about the benefits
to real estate sales and property
Shore of Auckland.
of becoming a part of Century 21’s
management. Only recently, two of our South Auckland offices made it onto the list of Top 21 offices across Century 21 Australasia. We work like
“There are some great opportunities out there. With the red-hot heat coming off the market, now is the time to set up shop. We’re actively C21 MARKET PULSE
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global network, visit www.c21.co.nz/ joining-century-21 or contact tim. kearins@century21.co.nz
INTERIOR TRENDS
CHANNEL AUTUMN/ WINTER WITH THESE COSY INTERIOR TRENDS Breathe new life into your interiors this season with as little effort and as much impact as possible.
BY HOME BEAUTIFUL
and prepare your abode for the
"This year I think we will see lots of
cooler months."
pattern in autumn decoration trends,
Justine shares the autumn/winter decor and design trends for 2022 and how to embrace them in your own
The month of April traditionally marks the celebration of Easter and the end of daylight savings in New Zealand but most notably, it signals a change of seasons. The long days of summer are sadly no more, the weather becomes cooler and suddenly, there's a crisp chill in the morning air that tells us winter
home to create a chic and cosy haven.
as many embrace the cottage core aesthetic," Justine says. But it's not just the classics that are experiencing a renaissance. According to Justine,
Autumn is all about embracing earthy
we can expect to see a lot more
and warm tones and this year we're seeing a resurgence in these tones in our abodes. Think hues of mustard, brown and deep greens. "You can introduce colour through a variety of ways, such as artwork, accessories,
While this shift in seasons often
is to not overdo it, rather work in small
own sartorial style, it's not just our
will be back with force, especially
COMFORTING COLOURS
is right around the corner.
tends to prompt an update of our
classics such as tweed and tartan
florals, and soft furnishings, the trick accent," says Justine.
floral prints adorning our interiors this season, "but unlike spring and summer they will be more moody, muted colourways, in dark emeralds, navy tones, and warm rust tones," she says.
BRING THE OUTSIDE IN "Autumn is about feeling cosy and being prepared, so why not have
wardrobes that need adjusting come
EMBRACE TEXTURE
your interiors overflowing with fresh
the cooler months. As we prepare to
"Autumn styling is all about layers,
produce displayed in pretty ways,
close our doors and ready ourselves
think heavy coverlets and blankets
for a season full of home cooked
on your bed, snuggly throws on your
meals and hot chocolates, it's time
sofa, lots of plush cushions and warm
to turn our attention to our interiors.
rugs underfoot," Justine explains.
"Autumn is a time of year where
"You can layer many textures
there is the perfect mix of warm sun and cool breezes, coupled with the beautiful colours of the turning landscape," says Vault Interiors Director and Principal Stylist Justine Wilson. "When it comes to interiors, autumn is the perfect time to embrace this transitional feeling – and use it as a time to reset, refresh,
together also, think of materials such as velvet, wool, cashmere and flannel and thick natural linens. By including these materials, you will create an
think pears in a bowl, jars of nuts and herb cuttings displayed on your counters," Justine says. "You can also bring the outside in with beautiful vases of greenery, the last bright blooms of the summer season, and pretty branches displayed simply in urns or vessels. As the light fades, having pretty
inviting and cosy feel in your space."
muted lighting can really help
PATTERN APLENTY
and floor lamps and candles to
We're just going to come right out
create a cosy scene."
and say it: pattern is officially back. C21 MARKET PULSE
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create an atmosphere, so use table
Click here to read the full article
FIRST HOME BUYERS Julius Capilitan is the Managing
RENTERS SHOULD SEE A MORTGAGE BROKER, NOT GIVE UP!
Director of Century 21 Financial NZ.
“For many Kiwis soaring rents are having a bigger impact than predictable rising interest rates. In fact, plenty of first-home buyers are discovering that servicing a mortgage can still cost less than paying their landlord rent,” says Tim Kearins, Owner of Century 21 New Zealand. The Century 21 boss says rents
He says mortgage brokers like
“Brokers and non-bank lenders
have kicked off the year at an
Julius Capilitan of Century 21
are busier than ever, helping
all-time high, with strong demand
Financial do all the running around,
many disheartened young Kiwis to
continuing to hold costs up.
delivering competitive rates and
successfully secure a mortgage.
greater borrowing flexibility than
It’s an avenue many overlook but
traditional banks.
it’s well worth exploring given
Trade Me’s just-released Rental Price Index for February shows the
how tough new lending remains,”
national median rent experiencing
Since November last year, no more
its largest annual increase in seven
than 10% of a bank’s total new
months, up 8.5% reaching a record-
lending for owner-occupiers can be
The Reserve Bank’s next Official
breaking $575 per week.
high Loan-to-Value Ratio (LVR) loans
Cash Rate announcement is on
– defined as loans that are more than
13 April, which could mark the
80% of the property’s value. This
fourth consecutive OCR hike since
means at least 90% of borrowers
October last year.
“Sadly, many young people have stopped going onto the mortgage calculators and put their homeownership dreams on
need a 20% deposit or more.
Mr Kearins says.
He says renters shouldn’t be put
hold. However, for those who can
Mr Capilitan says having a 20%
off by banks or pending interest
stump up a deposit and prove their
deposit significantly helps people’s
rate rises. Historically, six or seven
ability to service a mortgage, the
ability to borrow.
percent rates have been about
affordability of borrowing may surprise them. To make it happen, they should also consider getting in a flatmate or boarder,” he says.
“The LVR tightening has been tough on first-home buyers. There are still loans being offered with a 5%
the average for Kiwi borrowers, and New Zealand is still some way off those.
deposit, but the success rate is very
“Despite some headlines, we
Mr Kearins says despite the
low as you need a massive amount
haven’t hit a buyers’ market yet.
Government recently tweaking
of discretionary income to prove
Rather, it’s a balance market with
the Credit Contract & Consumer
serviceability,” says Julius Capilitan.
many properties still commanding
Finance Act (CCCFA) after a serious credit crunch over summer, big retail banks continue to conduct ultra-conservative assessments on all new borrowers. However, prospective property buyers have other options.
On a recruitment drive for more Century 21 franchise owners nationwide, Mr Kearins says the support and offering from Century 21 Financial increasingly strengthens his company’s proposition in the local real estate marketplace. C21 MARKET PULSE
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and achieving premium prices. Nonetheless, this autumn we’re seeing more listings and more opportunities for buyers,” says Tim Kearins. www.century21financial.co.nz