C21 Market Pulse | March 2022 | New Zealand

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M a r c h

M A R K E T

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P U L S E

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

March 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.co.nz/disclaimer


Cover image: R ARCHITECTURE on Unsplash

C O N T E N T S M arch

C21 NEW ZEALAND NEWS

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QUARTERLY AWARDS New Manukau office stars in Century 21 awards

Real estate market holding up incredibly well Century 21 New Zealand, Tim Kearins

REFRESH YOUR LAUNDRY

PROPERTY MARKET UPDATE

04

5 ways to refresh your laundry without renovating Home Beautiful

Property prices remain firm as supply now outweighs demand REINZ CEO, Jen Baird

PROPERTY STATS

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06

February property stats better than expected

C21 MARKET PULSE

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C21 NEW ZEAL AND NEWS

REAL ESTATE MARKET HOLDING UP INCREDIBLY WELL

BY TIM KEARINS,

CENTURY 21 NEW ZEALAND

With summer drawn to a close, more and more vendors are coming to the party, keen to do a mutually satisfactory deal.

Interest rates remain relatively low

are still light on listings is limiting

and both buyers and sellers realise

choice but importantly helping to

this. Buyers are keen to act and lock

keep prices up.

in low, while vendors want to secure a sale while good rates and finance remain available.

With more ex-pats now coming back into the country without having to quarantine we have more

This follows industry observations

In fact, interest rates are still a

buyers not fewer. These are key

that a buyer standoff contributed to

lot lower than when they peaked

factors that those contemplating

the lowest number of New Zealand

in past decades. What’s more,

selling need to consider.

house sales for some time.

servicing a mortgage remains

Buyers have stood back, but now that we’re into autumn vendors

comparable, or even cheaper, than paying current record-high rents.

Despite weathering two years of closed borders, lockdowns, and ongoing restrictions, New Zealand’s

seem more prepared to negotiate a

Yes, the OCR is now at 1.00% which

residential property market has held

good outcome. They’re keen to sell

is the highest it has been for two

up incredibly well.

while sales prices remain strong

years. However, let’s not forget that

and before the onset of winter and

in April 2015 it was at 3.50% and in

obvious market uncertainty.

June 2008 it was at 8.25%.

While listings industry-wide were

Historically, six or seven percent

very low at the start of summer,

interest rates have been about the

they started lifting from January

average for Kiwi borrowers. So, the

which will see a lot of sales activity

latest rise in the OCR needs to be

move out to March and April.

put in perspective. We’re coming

Many houses are taking a little longer to sell, but increasingly vendors understand they don’t want to be the one with the faded

off a period of extraordinary low interest rates after the OCR didn’t move from 0.25% for most of 2020 and 2021.

‘for sale’ sign. That doesn’t do a

Century 21 agents have been

property any good, so many are

reporting more activity in February

working with the enquiries they’re

and March, with good properties

getting which is seeing some good

still in strong demand. The fact that

results achieved.

most districts, towns, and cities

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Tim Kearins – Century 21 New Zealand - (0274) 495-547 tim.kearins@century21.co.nz www.c21.co.nz


SUPERIOR RESULTS AND CUSTOMER SERVICE

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

PROPERTY PRICES REMAIN FIRM AS SUPPLY NOW OUTWEIGHS DEMAND

BY J E N B A I R D, REINZ CEO

February shows property prices continuing to climb but now at a more moderate pace. While sales activity is down, demand remains and stock on the market is up, 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

Christchurch City ($731,000),

new record median high for the

property across New Zealand

Selwyn District ($890,000),

third month running. Additionally,

increased 13.5% annually, from

Timaru District ($508,000), and

Kawerau District ($493,000),

$780,000 in February 2021 to

Waimakariri District ($757,000)

Rotorua District ($720,000),

reached record medians

Tauranga City ($1,100,000), and

$885,000 in February 2022. The median residential property price for New Zealand excluding Auckland increased 20.6% from $651,000 in February 2021 to $785,000 – a new record high. Auckland’s median residential property price increased 8.2% annually, from $1,100,000 in February last year to $1,190,000 – though down 0.8% on January. The annual percentage increase is the lowest that we have seen in the region since June 2020. In February, six regions achieved record medians, making this an above average February month, and there were 23 territorial authority (TA) median records. Regional records were achieved in: • Canterbury – increased 28.6% annually from $560,000 to $720,000. Additionally,

• Taranaki – increased 27.9%

Western Bay of Plenty District

annually from $520,000 to

($1,050,000) reached record

$665,000. Additionally, New

medians.

Plymouth District ($730,000)

The regions with the lowest annual

reached a record median

price growth were Marlborough

• Southland – increased 24.6% annually from $390,000 to $486,000. Additionally, all three TAs in the region reached record medians: Gore District ($435,000), Invercargill City ($484,500), and Southland District ($525,000) • Otago – increased 24.4% annually from $651,000 to $ $810,000. Additionally, Dunedin City ($685,000), Queenstown-Lakes district ($1,385,000), and Waitaki District ($505,000) reached record medians • Gisborne – increased 20.2% annually from $595,000 to $715,000 • Bay of Plenty – 13.2% annually from $848,250 to $960,000, a C21 MARKET PULSE

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and Auckland, at 6.5% and 8.2% respectively. Jen Baird, Chief Executive at REINZ, says: “Market sentiment has shifted over the past couple of months which is evident throughout our February data. While prices remain strong – increasing annually in all regions – the number of sales continue to trend downwards and an influx of stock across New Zealand is easing demand side pressure, which may in turn further ease price growth in the coming months. “In February, the median price increased 13.5% nationwide to $885,000. While down from the November 2021 peak ($925,000),


ANNUAL ME DIAN PRICE CHANGES $

$

Record Median Price

18.2%

8.2%

NORTHLAND

AUCKLAND

NATIONAL MEDIAN PRICE:

$

$885,000 13.5%

17.0%

BAY OF PLENTY

17.6%

20.2%

12.8%

18.7%

MANAWATU / WANGANUI

10.3%

21.1%

6.5%

TASMAN

WELLINGTON

MARLBOROUGH

28.6%

WEST COAST

$

$

HAWKE’S BAY

NELSON

17.3%

$

GISBORNE

TARANAKI

42

13.2%

WAIKATO

27.9%

MEDIAN DAYS TO SELL:

$

$

CANTERBURY

24.6%

24.4%

SOUTHLAND

OTAGO Source: REINZ Monthly Property Report 14 March 2022 .

following decreases in December

“While prices are holding despite

for market values and the most

and January, prices in February

the change in market dynamics,

effective approach to achieve the

saw a moderate positive change

there is now a fear of over paying

best outcomes,” Baird says.

of 0.6%, with six regions reaching

(FOOP) amongst buyers, some

record medians.

of whom will be under additional

“Canterbury continues to see healthy increase in its median price, reaching a record high in February. This continued growth is driven by districts such as Selwyn and Waimakariri, which have both reached record medians in eight of the past 12 months. Since its peak in November 2021, Auckland

pressure from legislative and fiscal changes impacting their ability to borrow. As a shift in sentiment sets in and buyers are less willing, or unable, to pay the prices we saw towards the end of 2021, pressure will come on vendors to adjust their expectations to meet the market.

has seen a significant drop in the

“For those selling, conversations

annual percentage increase at a

with their real estate professional

level not seen since LVRs started

will help provide a better

to effectively curtail rapid property

understanding of what is happening

price rises in late 2015.

in the market right now, get a feel

C21 MARKET PULSE

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Click here to read the full report


P R O P E R T Y STAT S

FEBRUARY PROPERTY STATS BETTER THAN EXPECTED “The real estate statistics for February are better than most would’ve expected. That can only help autumn, as will the easing of controversial lending rules which pulled the rug on so many buyers over summer,” says Tim Kearins, Owner of Century 21 New Zealand. His comments follow REINZ

conservative assessments on all

to a better start, with those vendors

releasing its Monthly Property

new borrowers, with new mortgages

keen to strike a deal now adjusting

Report for February – a month which

all but drying up for three months.

their sights somewhat,” he says.

saw median house prices across

Last week’s announcement that

New Zealand up 13.5 % compared to

the Government is making some

the same time last year. REINZ noted

significant tweaks to the CCCFA

that while property prices remain

gives the coming months a timely

firm, supply now outweighs demand.

boost,” says Mr Kearins.

At $885,000, the national median

Across New Zealand, the number

house price is up slightly on the

of residential property sales

previous month by 0.6%.

decreased 32.8% in February, from

The Century 21 boss says the summer was badly affected by the Credit Contract & Consumer Finance Act (CCCFA) coming into play on 1 December, leading

Mr Kearins says the resilience of New Zealand’s residential property market is quite remarkable when you consider a number of external factors negatively impacting

8,324 in February 2021 to 5,597. At the same time, the total number of properties available for sale nationally increased 47%, from 15,829 in February 2021 to 23,270.

consumers and their confidence. “Against the odds, February showed that overall property prices continued to climb albeit at a more moderate pace. Let’s not forget that despite plenty of doom and gloom, February saw six regions and 23 territorial authorities achieve record median

to biggest credit crunch since

“Summer was light on sales

prices. It is a much better end to

the Global Financial Crisis in the

industry-wide but with listings

summer than most had anticipated,”

late 2000s.

lifting, and now with improvements

says Tim Kearins.

“Summer started with the CCCFA changes taking effect. It required banks to conduct ultra-

to the lending rules, we’re seeing a lot of real estate activity move out to March and April. Autumn is off

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Q U A R T E R LY AWA R D S

NEW MANUKAU OFFICE STARS IN CENTURY 21 AWARDS Century 21 Dhatt & Co in Manukau has had some key wins in Century 21 New Zealand’s fourth quarter awards for 2021, despite only opening earlier that year.

“Local Realty only opened on

Aman Kaushal, Anjali Amarasinghe

Papakura’s Broadway in late 2019

and Gary Bal of Local Realty, while

and they’ve won a tonne of sales

the Gold award went to Team

awards since. Without doubt,

Chatty & Bani (Local Realty),

Century 21 is a growing powerhouse in South Auckland,” says Mr Kearins.

Silver awards went to Ian Pepper and Barbara Craig of C21 Rural &

What’s more, both Century 21 Local

Residential Real Estate in Huntly,

Realty and Century 21 Dhatt & Co

Alen Moshi of C21 The Moshi

featured in the Top 21 offices across

Group in Wellington Central,

C21 Australasia for the 4th quarter

Rebecca Fraser and Gadsby Group’s

– ranked an impressive sixth and

Eli Gadsby and Taye Russ (Gadsby

squarely focused on delivering top

eighth respectively.

Realty), Kanwar Dhillon (Local

quality service to South Auckland’s

Top Property Management

many diverse communities and

Office for the Quarter Over 250

fast-developing neighbourhoods,”

Managements was won by Century

says Tim Kearins, Owner of Century

21 Sunrise Realty in Meadowlands,

21 New Zealand.

and Property Manager of the

Awards for the South Auckland

Quarter went to Molly Mclean of

Bronze awards went to Warren

franchise on Lambie Drive included

Century 21 Premier in Turangi.

Rawiri-Walsh of C21 Platinum in

Rupinder Kaur winning Top Principal

Administration Team Member of

for the Quarter for both GCC (Gross

the Quarter went to Joyce Lam

Closed Commission) and Units

of Sunrise Realty. Nidhi Chadha

(the number of properties listed

of Century 21 Edwards Realty in

and sold). Ms Kaur also achieved

Botany received the Recognition

an elite Diamond sales award, while

Award Sales while Jerry Li, also of

Dhatt & Co’s Ambi Basati won Top

Edwards Realty, was Assistant of the

Salesperson for Units.

Quarter. The Quality Service Award

“Up and down the country,

Down the road, Century 21 Local

went to Eli Gadsby of Century 21

Century 21’s sales stars, property

Realty in Papakura had another

Gadsby Realty in Te Awamutu.

managers and support staff

great quarter, once again winning

Acknowledging sales success in

Top Office for the Quarter for both

the fourth quarter, other Diamond

GCC and Units. It was also awarded

awards went to Iresh Tennakoon and

Top Property Management Office

Param Randhawa (Local Realty).

“Our newest Auckland office is off to a great start! The energized and experienced team at Dhatt & Co is

Under 250 Managements, and Local Realty agent Param Randhawa won Top Salesperson GCC.

Platinum awards went to Ambi Basati (Dhatt & Co) and Ishan Sikka, C21 MARKET PULSE

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Realty), Patrick Barry (Premier, Turangi), Jean Johnson of C21 Jean Johnson Realty in Dargaville, and Winson He of C21 Queen Street Realty in Auckland Central.

Tuakau, Derryn Mayne of C21 Gold Real Estate in Manurewa, Paul Wheeler (Gadsby Realty), Fenny Ang (Edwards Realty), Andrew Pugh of C21 Premier in Palmerston North, and Katy Luo and Jeh Wasti (The Moshi Group).

achieved so much for clients in the fourth quarter despite a Covid-19 lockdown, a regional border, and ongoing restrictions. The Century 21 family is proven, match fit, and prepared for whatever 2022 throws at us,” says Tim Kearins.


REFRESH YOUR LAUNDRY

5 WAYS TO REFRESH YOUR LAUNDRY WITHOUT RENOVATING BY HOME BEAUTIFUL There's no reason why your laundry needs to be a lacklustre space that you dread spending time in. Even if you can't afford renovate your existing laundry room there are plenty of simple DIY updates you can try that will dramatically enhance its look, feel and functionality. From stylish storage solutions to

2. LICK OF PAINT

baskets are the answer. With so

a quick lick of paint, here are five

There is nothing a lick of paint

many different designs available,

updates that will make a huge

can't fix. Whether you refresh the

you're bound to find the ones you

difference to the way you feel

room with a bright white or make

need and elevate the style of your

about your laundry (the room and

a statement with a bold coloured

laundry while you're at it. Don't

the chore itself).

feature wall, your laundry will look

forget to add on a stylish laundry

so much better with a fresh coat

hamper, for good measure.

1. OPEN SHELVING Because who doesn't want

of paint.

5. ADD WARMTH WITH A RUG

extra storage in their laundry?!

3. INDOOR PLANTS

Laundries are typically separated

Open‑shelving is great for keeping

Indoor plants are a magical design

from your main living areas and are

all your laundry essentials at hand

tool. They are affordable, beautiful

more often than not have either a

and also provides a place to display

and will instantly freshen up any

tiled floor and/or walls. These too

décor items such as prints, pot

room you put them in. The amount

factors can make them feel cold

plants and other pretty things that

of natural light in your laundry will

and uninviting – contributing to

will inject personality into your

determine the best indoor plant

the unappealing idea of doing the

laundry. It's also worth considering

for you.

laundry. Laying a rug down in your

adding a hanging rail, which can sit neatly under your open shelves for those rainy days where drying your work shirt outside just isn't an option!

laundry will help to cosy up the

4. STYLISH STORAGE If you don't have a lot of storage space in your laundry or you like to have cleaning products and other gadgets within easy reach, storage C21 MARKET PULSE

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CENTURY 21

space and create a homely feel. A bright or patterned rug is an easy way to introduce colour.

Click here to read the full article


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