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P U L S E
F e b r u a r y
M A R K E T
C21
PUBLISHER Century 21 New Zealand Ltd
CONTRIBUTORS Tim Kearins Jen Baird Cameron Brewer
EDITORIAL ENQUIRIES Century 21 New Zealand +64 9414 6041
ADVERTISING ENQUIRIES Century 21 New Zealand +64 9414 6041
DISCLAIMER
WELCOME TO THE
February 2022 ISSUE OF
C21 MARKET PULSE
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
Cover image: Minh Pham on Unsplash
C O N T E N T S F e b ruary
C21 NEW ZEALAND NEWS
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NEW OFFICE Century 21 flag now flying in Northland
February sees real estate window of opportunity Century 21 New Zealand, Tim Kearins
TURANGI REAL ESTATE
PROPERTY MARKET UPDATE
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Century 21 – a force in the Turangi community
Sales activity down in January, price growth eases REINZ CEO, Jen Baird
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C21 NEW ZEAL AND NEWS
FEBRUARY SEES REAL ESTATE WINDOW OF OPPORTUNITY
BY TIM KEARINS,
CENTURY 21 NEW ZEALAND
February got off to a good start with real estate activity more noticeable and good properties still commanding great prices. In fact, both buyers and sellers are now seeing a real window of opportunity. I’m writing this ahead of the Reserve Bank announcing the next Official Cash Rate on 23 February, with the consensus being interest rates will continue to rise. Buyers and sellers are using this period well, with now arguably a good time to talk to a broker or bank about mortgage rates. Buyers who managed to get lending pre-approval before the Credit Contract & Consumer Finance Act (CCCFA) changes took effect on 1 December also remain in the market and motivated to secure a property this month. Many were highly anticipating the Real Estate Institute’s latest Monthly Property Report for January. December’s national median house price saw a 1.6% price decrease when compared to November.
The CCCFA has meant banks now
buyers a better chance to line
need to conduct ultra-conservative
up their finance and land their
assessments on all new borrowers.
dream home.
What’s more, Reserve Bank restrictions see many fewer first‑home buyers now allowed to borrow more than 80% of a property’s value.
Finally, we’ve just received word that two of our New Zealand offices have featured as Top 21 offices across C21 Australasia in the 4th quarter. Congratulations to
Such factors are adding some
Century 21 Local Realty in Papakura
downward pressure particularly in
(sixth) and Century 21 Dhatt & Co
the first-home market. However,
Manukau (eighth).
section sales are in high demand and most top end homes continue to achieve great results.
industry is generally down, strong buyer demand remains, with an overall shortage of listings nationwide. This in turn is constraining sales volumes. Century 21 salespeople report that most vendors taking the plunge this summer have been pleasantly surprised by the level of interest and the results achieved. Buyers realise now is good time to act with interest rates only set to rise and borrowing increasingly harder to achieve. A greater percentage of houses now for sale by negotiation is also giving
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our offices nationwide finished last year on a high. Here’s to 2022.
While auction activity for the
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Despite the many Covid challenges
CENTURY 21
Tim Kearins – Century 21 New Zealand - (0274) 495-547 tim.kearins@century21.co.nz www.c21.co.nz
SELLING
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P R O P E R T Y M A R K E T U P DAT E
SALES ACTIVITY DOWN IN JANUARY, PRICE GROWTH EASES
BY J E N B A I R D, REINZ CEO
While January figures usually reflect the holiday slow down, the data suggest compounding factors are influencing a decrease in sales activity and easing of price growth nationwide, 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. Across New Zealand, the number
impacting the number of active
Whanganui, and the lowest for
of residential property sales
buyers in the market.
Tasman since 2000.
Three regions bucked this trend and
In January, listings were down
saw an annual percentage increase
1.7% across Aotearoa, indicative of
in sales:
a slowdown in the number of sales.
decreased 28.6% in January 2022, from 5,135 in January 2021 to 3,665. While market activity is expected to reduce over the holiday period, when we look at the seasonally adjusted figures there is a 5.3% decrease from December to January. Allowing for the usual seasonal trends, this January is weaker than a typical first month of
• Wellington increased 9.0% annually from 290 to 316 • Marlborough increased 7.7% from 39 to 42 • Hawke’s Bay increased 2.5% annually from 121 to 124.
the year.
Auckland saw the number of
The sales count for New Zealand
properties sold decrease 32.2%
excluding Auckland, decreased 26.4% annually from 3,184 to 2,342. Excluding April 2020, which was heavily affected by
annually – from 1,951 in January 2021 to 1,323 in January 2022. The regions with the greatest annual percentage decrease in
the first COVID-19 Alert Level 4
sales volumes were:
lockdown, this was the lowest
• West Coast, which decreased
sales count for New Zealand and New Zealand excluding Auckland since January 2011. These figures are reflective of the usual slow down in activity over this period, perhaps magnified by more people focusing on the holidays following extended COVID-19 restrictions and headwinds such as LVRs, the CCCFA and interest rates
55.4% annually from 56 to 25 • Northland, which decreased 36.6% annually from 172 to 109 • Canterbury, which decreased 36.4% annually from 783 to 498. In terms of the January month,
The reduction in listings was driven by Auckland – for New Zealand excluding Auckland there was a 5.4% increase. Jen Baird, Chief Executive at REINZ, says: “In January, we expect to see activity in the residential property market slow and prices ease due to the summer holidays. The number of residential property sales decreased 28.6% in January 2022 compared to January 2021. When compared to December, the sales count was down 48.2%, which is to be expected as we move from December into January. However, in seasonally adjusted terms, this is still a 5.3% decrease, which shows that this January sales volumes are weaker than is usually expect
this is the lowest sales count since
for January.
records began in 1992 for Nelson,
“Most regions report the move to
Otago, Taranaki and Manawatu/ C21 MARKET PULSE
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the Red traffic light setting has
ANNUAL ME DIAN PRICE CHANGES $
$
Record Median Price
29.6%
20.6%
NORTHLAND
AUCKLAND
NATIONAL MEDIAN PRICE:
$
$880,000 20.5%
7.4%
BAY OF PLENTY
25.8%
30.0%
14.2%
13.4%
MANAWATU / WANGANUI
14.6%
23.6%
27.4%
TASMAN
WELLINGTON
MARLBOROUGH
28.1%
WEST COAST
$
$
HAWKE’S BAY
NELSON
32.7%
$
GISBORNE
TARANAKI
37
22.8%
WAIKATO
21.2%
MEDIAN DAYS TO SELL:
$
$
CANTERBURY
9.7%
13.1%
SOUTHLAND
OTAGO Source: REINZ Monthly Property Report 15 February 2022 .
had less of an impact on activity,
in a survey conducted at the end
term impact will be seen in the
and out of town enquiry has been
of January by economist Tony
numbers of buyers in the market in
restored. However, feedback from
Alexander in collaboration with
coming months.
agents across the country suggests
REINZ, which noted that the
a decrease in the number of first
predominant concern for buyers is
home buyers and investors in the
no longer availability of stock but
market, noting quieter auction
rather financing.
rooms and open homes.
sales volumes to increase as we head into February and March. However, this does depend on
“While hard evidence is lacking in
“Many point to access to
terms of the impact of the CCCFA,
finance, exacerbated by changes
data from Centrix, a New Zealand
introduced in December to the
credit reporting agency, found
Credit Contracts and Consumer
the percentage of home loan
Finance Act (CCCFA) – currently
applications that were approved
under review, as having a major
dropped from 39% in October to
impact. This is a sentiment echoed
30% after December. The longer-
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“Looking forward, we would expect
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reasonable levels of new listings.”
Click here to read the full report
NEW OFFICE
CENTURY 21 FLAG NOW FLYING IN NORTHLAND Century 21 is now in Northland thanks to a passionate Kaipara mother and daughter with over 50 years’ real estate experience between them. Century 21 Jean Johnson Realty
East Auckland. A few years later
We’re so energised and, in fact, are
has opened on 6 Poto Street in
she relocated to Northland - her
busy already,” she says.
Dargaville. The office will service
husband’s home province - for a
the wider Kaipara District including
lifestyle change but she stayed in
Maungaturoto in the south and
the real estate industry.
Opononi in north.
Jean’s daughter, Lee Cocurullo, has been working alongside her mother for 20 years, attaining
In fact, for the past 25 years she
various real estate qualifications
"We’re proud to be flying the
has been one of the top listing and
along the way. Lee’s now
Century 21 flag in Northland.
selling agents in the Kaipara area,
administration manager at Century
Our team is squarely focused on
winning many sales awards along
21 Jean Johnson Realty.
delivering exceptional personalised
the way. Jean says the secret to
service, backed by Century 21’s
her success has been delivering
superior brand, reputation and
seamless property transactions.
resources,” says franchise owner and principal Jean Johnson.
“Before joining real estate, I’d spent several years in large corporate organisations in Sydney and so I’m
“I’ve love real estate and have had
well used to putting good processes
a wonderful 32 years, but I’ve got
and systems in place. Managing
Jean knows the brand well. Back
so much more to do. The team is
this office means overseeing the
in 1990, she was Century 21’s first
excited to be opening this new
property management and storage
licenced salesperson in Howick,
Century 21 office in Dargaville.
unit portfolios as well as overall administration,” says Lee. Jean and Lee have both long been involved in many charitable organisations and considerable local fundraising work. Currently, Lee is a board member of Alzheimer’s Northland. “In the past I’ve proudly supported local schools, sports teams and various community facilities. I’ve enjoyed my involvement with different Kaipara
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fundraising initiatives and events,
conducted, boasting an unbeatable
status will continue to attract other
and that support will continue.
global reach.
high‑performing businesspeople
I just love this community,” says Jean.
“Being a Century 21 franchise means our salespeople and
and salespeople to consider franchise ownership.
As well as Jean and Lee, other
support staff have the best
The company is now on a
team members based in the new
training, systems, and technology.
recruitment drive with many other
Poto Street office are Catherine
Ultimately, that means maximum
opportunities to establish other
McColl (property management),
exposure for properties and the
successful Century 21 franchises
Shaffron Hurlock (reception), Val
best possible price for vendors,”
around the country.
Ridler (administration), and Amber
says Jean.
Johnson (media & social).
“Century 21 Jean Johnson Realty
“We’re excited to bring this
is a great addition to our brand
Jean and Lee say the Century
world‑class brand to Northland.
here in New Zealand. We warmly
21 brand was easily the best fit
At the same time, we’ve got our
welcome the team to the Century
for their vision and team, with
feet on the ground as a locally
21 family and wish them every
the company’s support for the
focused three-generation family
success. They will do really well,
new boutique family business
business. With my niece and
and I look forward to seeing what
outstanding from day one.
Jean’s granddaughter, Amber,
we can accomplish together,” says
also working with us real estate is
Mr Kearins.
Now in nearly 200 countries, Century 21 is globally recognised.
clearly in our genes,” says Lee.
World famous for its customer
Tim Kearins, Owner of Century
service, Century 21 leads the
21 New Zealand, says Century
charge with how real estate is
21’s superior service and global
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www.dargaville.century21.co.nz
T U R A N G I R E A L E STAT E
CENTURY 21 – A FORCE IN THE TURANGI COMMUNITY Turangi’s Century 21 Premier has been at the forefront of some significant property price growth in and around the southern end of Lake Taupo – Australasia’s largest freshwater lake. “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 our
former hydro-electricity town.
the 1960s and 1970s – are making
It boasts some attractive tree-lined
more than $500,000. These same
streets and cul-de-sacs, plenty of
houses were less than $200,000
community amenities, and is quiet
five years ago, with Ministry of
given it is well separated from SH1.
Works selling them off to the
Dubbed the ‘Trout Fishing Capital Of The World’, Turangi is known for
private sector in the early 1980s for about $30,000.
the nearby skiing, hiking, mountain
Owner of Century 21 New Zealand,
biking, whitewater rafting, and
Tim Kearins, says the key to Century
boating – helped by its proximity to
21 Premier’s ongoing success in
Lake Taupo, Mount Ruapehu, and of
Turangi has been the franchise’s
course the Tongariro River running
very strong connection with locals
right past. The Sky Waka gondola
and a proven commitment of giving
on the Whakapapa ski field is also
back to the community.
proving a visitor attraction.
Over the years, the Turangi team
work, keeping my tight team very
Like many other places, residential
has organised several annual charity
busy,” says Wai Johnson, franchise
listings in Turangi remain scarce –
evenings and Easter auctions.
owner of Century 21 Premier.
down 37.1% on 2019 levels - with
Fundraising proceeds have gone
buyer enquiry increasing daily.
to the Greenlea Rescue Helicopter,
She says with Taupo – 40 minutes up the road – getting more
“We’ve got miles more buyers than
expensive, many permanent
sellers. With demand and prices
residents and holidaymakers are
still incredibly strong, and interest
opting for Turangi instead.
rates still low, we’re encouraging
“Our locality is key, with ongoing Waikato Expressway improvements and Wellington’s Transmission Gully set to make the Central North Island even closer for many,” says Ms Johnson. What also appeals to many is the well-planned nature of the
St John Youth and the local Coastguard. The office has also sponsored Turangi’s Christmas In The Park.
Turangi home and bach owners to
For the Government’s nationwide
consider a no-obligation appraisal.
Covid-19 ‘Super Saturday’
They’ll probably be very surprised
vaccination day, Century 21 Premier
with what their property may now
played a starring role, supporting
be worth,” she says.
the local health centre’s event.
Many former ‘hydro houses’ – built
“The day drew a great response
for employees working on the
from the community. Everyone
Tongariro hydro-power scheme in
seemed to enjoy our sausage sizzle,
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free ice creams, and there were some very grateful Pressie card winners,” says Ms Johnson. “The Turangi office and agents have won many national and Australasian awards over the years. They continue to gain the confidence of local vendors to represent and market their properties, and they achieve great
prices have more than doubled
results,” says Mr Kearins.
and there are no new-builds on
A recent listing on their books was ‘Alpine Gateway’ – dubbed ‘one of the largest residential developments for the southern end of Lake Taupo’. Ms Johnson says the over 1.5-hectare site at 14-24 Turanga Place is a timely and much-needed ‘good to go’ project for the area. It was marketed by Century 21’s leading real estate agent for the southern lake area, Patrick Barry. She says the scale and opportunity of the project appealed to developers keen to supply affordable townhouses, where there’s significant demand and good margin to be made.
the market. This sizable piece of bare land with a resource consent in place for multiple townhouses is both unique and exciting for Turangi,” she says. “Getting this significant listing was an absolute credit to the local Century 21 team. As a development project, it’s a big opportunity that Turangi won’t see again for some time – if at all,” says Tim Kearins. Let’s not also forget, he says, the whole Turangi area is set for another big boost when international tourism returns. www.century21.co.nz/turangi Wai Johnson, Franchise owner,
“Turangi has effectively run out of
Century 21 Premier (Turangi)
freehold developable land. Section
– (07) 386-7796
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