2 0 1 8
P U L S E
D E C E M B E R
M A R K E T
C21
PUBLISHER Century 21 New Zealand Ltd
CONTRIBUTORS Ryan Mitchell Vanessa Taylor Chris Gray
EDITORIAL ENQUIRIES Century 21 New Zealand +64 9414 6041
ADVERTISING ENQUIRIES Century 21 New Zealand +64 9414 6041
WELCOME TO THE
DECEMBER 2018 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 D E C E M B E R
NZ MARKET UPDATE
02-03
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C21 LEADS THE WAY
Buyers and sellers doing thier homework.
3 ways Century 21 gives its agents
Century 21 New Zealand National Manager,
competitive advantage.
08
Ryan Mitchell
TRAVEL 09 PROPERTY REPORT
04-05
Hamilton Island, the beautiful island escape.
Kiwi’s passion for property continues to
INTERIOR DECORATING
soar in November. Realestate.co.nz Head of Marketing, Vanessa Taylor
INVESTMENT PROPERTY UPDATE
Home styling tips for beginners.
06-07
Is now a good time to renovate? Your Empire CEO, Chris Gray
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N Z M A R K E T U P DAT E
BUYERS AND SELLERS DOING THEIR HOMEWORK B Y R YA N M I T C H E L L ,
N AT I O N A L M A N AG E R , C E N T U R Y 2 1 N E W Z E A L A N D
While 2018 saw the New Zealand real estate industry experience a decrease in sales volumes overall, the national median value of properties has remained stable. National Manager of Century 21
region’s fringe– like Wellsford in
people according to Statistics New
New Zealand Ryan Mitchell says
the north, Kumeu in the north-west,
Zealand’s June 2018 estimate,
there’s plenty to be optimistic about
and Pukekohe in the south - have
which is 33.3 percent of New
going into 2019 with every office
enjoyed significant growth.
Zealand’s population. That’s up
looking forward to the year ahead and now showcasing Century 21’s new international branding to boot.
Auckland has seen the number of
about 500,000 in just 20 years!
investors purchasing properties
Known as “the City of Sails”,
fall while the number of first-home
Auckland has some feel good
“Some Kiwis seem to be on the
buyers securing mortgages has
factors on the horizon. Millions of
sidelines waiting for a signal to act.
risen helped by plateauing prices,
dollars are now being pumped into
However, I would argue now is the
lending rules softening, and record
the city’s waterfront infrastructure
time to act. Prices are holding up
low interest rates – under four
ahead of it hosting the 36th
pretty well for vendors. While for
percent in some cases.
America’s Cup with Emirates
the likes of first-home buyers there are more opportunities out there.”
Ryan points out that Auckland has one thing no other city in New
Team New Zealand defending the title in 2021. Later that same year Auckland will host politicians and
Ryan says it’s clearer than ever
Zealand can take for granted and
that New Zealand is far from being
that is unrelenting population
one real estate market. Going into
growth. Regardless of any current
2019 there remains significant
real estate trends in Auckland,
“Century 21 New Zealand has great
differences between each of the
it’s long-term future is secure as
representation across our largest
regions and cities.
Australasia’s fastest growing city.
city, with some of our highest
Auckland hasn’t moved much in
The Auckland metropolitan area
the past year although parts of the
has a population of 1,628,900
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leaders from across Asia-Pacific for the APEC Leaders’ Week.
performing offices in the south, north and east of Auckland
continuing to deliver for their
set to be stronger than many
As well as more buyers now taking
clients. Real estate agencies are
commentators were predicting
their time to do their homework,
rife and competition is fierce
during winter,” he says.
vendors are increasingly assessing
in Auckland but to their credit our offices have each secured themselves as market leaders in their respective communities.”
In December chairman and owner of Century 21 Australasia, Charles Tarbey, visited New Zealand and like the National Manager,
Ryan says another consistent
is enthusiastic about
top performer in the company is
the opportunities
Century 21 First Choice Realty
Century
based right in the centre of the
21’s new
capital city, Wellington. While
international
Auckland and Christchurch have
branding
been relatively flat, overall property
and market
values in Wellington surged by
positioning
7.4 percent to $740,000 in the
bring.
12 months to November 2018, according to a OneRoof Property Report.
Meeting with
negotiate, and sell. “That’s where Century 21 New Zealand has an advantage over local competitors. Our
“Without doubt 2019 will be an exciting year for Century 21 New Zealand with a lot more great stuff set to unfold”
business owners and salespeople know what methods work for each individual property and in today’s market there isn’t a one method fits all. Tailoring to suit a
New Zealand
vendor’s needs and wants
franchisees Charles
but also the market is of high
Century 21 also continues to have
stressed that with much
a strong presence in the Waikato,
of the country returning to more
Central North Island, Manawatu
realistic and sustainable prices
and the Kapiti Coast. These areas
many Kiwi real estate agents
have enjoyed a great few years with
are having to change their
2019’s statistics also predicted to
sales strategy.
be strong.
an agent’s ability to market,
priority to all our team. The fact that the public is also noticing our new branding is a timely bonus,” he says. Delighted with Century 21’s profile
Gone are the days of an agent
this summer, Ryan says feedback from New Zealand’s offices and
New Zealand consumer confidence
listing a property on the internet,
has seemed to have bounced
standing back at the open home,
back, with the latest outlook at
and waiting for it to sell within a
its strongest level in six months
few days. In today’s environment
according to the ANZ Roy Morgan
agents need to get out and build
Consumer Confidence Index at the
and maintain strong working
“Without doubt 2019 will be an
end of 2018.
relationships with both buyers and
exciting year for Century 21 New
sellers. The skill of negotiating a fair
Zealand with a lot more great stuff
sale price both parties are happy
set to unfold.”
“As I’ve said before, this summer probably won’t be a recordbreaking one, but it’s definitely
with is also key.
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salespeople on the company’s fresh look and proposition confirms the change has been very positive on their side of the Tasman as well.
PROPERTY REPORT
KIWI’S PASSION FOR PROPERTY CONTINUES TO SOAR IN NOVEMBER Kiwi’s passion for property continues to soar. November marks the first full month of new legislation restricting foreign ownership, and Central Otago-Lakes loses its crown on asking prices to the Auckland region.
B Y VA N E S S A TAY L O R , HEAD OF MARKETING R E A L E S TAT E . C O. N Z
“sensitive”. In general, it means
Investment Amendment Bill, either
that existing homes can only be
directly or indirectly. The region’s
bought by New Zealanders and
average asking price in November
residence-class visa holders who
fell to $857,011, representing an
have spent the majority of their
18.9% fall compared to the previous
time in New Zealand. Australian
month. New listings fell by 4.6%
and Singaporean citizens are also
in November (247 listings). This
eligible. Users of the site who
is compared to 236 new property
resided from within New Zealand
listings in October, which were at
accounted for 65.2% of traffic
the much higher average asking
during November. In terms of
price of $1,057,019. “It was back
international visitors, Australian
in August this year that Central
Real-time statistics from realestate.
browsers were the second largest
OtagoLakes took the crown off
co.nz show New Zealander’s
group to search on realestate.co.nz
Auckland as the region with the
passion for property continues to
(18.6%), followed by the US (9.6%).
most expensive average asking
soar, with 1,157,371 unique browsers
There is no evidence to suggest
price. “It could be that in the run
active on the site during November.
that interest has dropped or lifted
up to the new legislation there was
“This is the highest level of visits
specifically as a result of the Bill
an influx of top end properties that
to the site since March 2017,” says
coming into effect. “While Australia
owners were eager to get across
realestate.co.nz spokesperson
and the US account for 28.2% of
the sold line. Or they were testing
Vanessa Taylor. Two recent external
all unique browsers to our site,
the market and would have been
property milestones did not appear
there’s a relatively small number of
open to a sale at the right price.
to drive “more than usual” traffic
international visitors from all other
“Now that the foreign ownership
to realestate.co.nz, she says. “In
countries (less than 7.0%) making
window has largely been closed,
the two days following last week’s
up the balance,” says Vanessa.
they may well have sold the property or taken it off the market
Reserve Bank announcement, which gives the banks more flexibility around loan-to-value ratios (LVRs), traffic remained consistent with the rest of the month.” The second milestone was the Overseas Investment Amendment Bill, which came into effect on 22 October, classifying residential land as
CENTRAL OTAGO-LAKES DISTRICT LOSES TOP ASKING PRICE POSITION TO AUCKLAND REGION The Central Otago-Lakes District may well be the first region to feel the impact of the Overseas
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either to retain, or to consider other options in the future,” says Vanessa. “Time will tell what it means for the Central Otago-Lakes District.” In the meantime, the Auckland region average asking price remains under the one million dollar mark, standing at $949,345 in November,
which is 1.6% lower compared to
“While the Auckland region
Auckland region fell in November
the previous month. “The Auckland
registered a 17.2% drop in new
by 1.6% to $949,345 compared to
average asking price has sat around
listings in November compared to
the prior month. The Wellington
the $950,000 mark all year and it’s
November 2017, the boost of new
and Canterbury regions were a
positive to see the region remaining
listings in October has resulted in
mirror image, with Wellington’s
so stable,” she says. Nationally, the
a positive net effect when the two
average asking price rising 1.1% (to
average asking price in November
months are considered collectively.”
$640,634) while the Canterbury
stood at $653,575, which is a
The total number of homes on the
region fell by 1.1% (to $492,897).
3.3% decrease on the previous
market in Auckland in November
The Waikato region, which
month. “While there has been
is up 5.0% compared to November
registered a record asking price
some regional variances this year,
2017, representing 10,431 homes
in October ($584,755), remained
nationally we have seen a relatively
to choose from. “Overall, when we
static in November, registering less
stable asking price environment,
look at the two months together, the
than a one per cent fall in asking
with average asking prices sitting
net outcome is that there is more
price (down 0.9%) to an average
around the $650,000 mark during
choice for property seekers,” says
asking price of $579,482.
2018.”
Vanessa.
SPRING THE NEW SUMMER FOR AUCKLAND REGION “Following a massive lift in new listings in October (20.1% increase compared to October 2017), it’s no
ALL TIME ASKING PRICE HIGHS IN BAY OF PLENTY, NELSON & BAYS AND SOUTHLAND. MAIN REGIONS RELATIVELY STATIC.
ASKING PRICE CORRECTIONS IN HAWKE’S BAY, MARLBOROUGH AND MANAWATU/WANGANUIN REGIONS Three of the four regions which
surprise that the Auckland region
While the main regions remained
registered all-time asking price
dominated property search terms
relatively static on average asking
highs in October (Hawke’s Bay,
on the site in November,” says
prices, three regional areas reached
Marlborough and Manawatu/
Vanessa. “We had a really good
all-time asking price highs. The
Wanganui) came back to earth
start to spring and Aucklanders
Southland region led with a 6.9%
with asking price decreases in
were making the most of it by
increase in the average asking price
November. “The Hawke’s Bay and
putting their properties online early
compared to the prior month, to
Marlborough regions are known for
to maximise selling opportunities
$321,216. This was followed by the
their lifestyle benefits, particularly
before the festive season.”
Bay of Plenty (up 6.6% to $680,754)
in summer and all three regions
“Effectively the Auckland region
and Nelson & Bays (up 1.5% to
are coastal, but perhaps they
was a month ahead of the traditional
$651,686).
went out early with an optimistic
start to the summer market and as a consequence this meant we saw fewer new listings in November.
Looking at the four main regions, property asking prices in the
view in September,” says Vanessa Taylor. The November average asking price in the Hawke’s Bay region fell 7.0% compared to the previous month to $507,085. In the Marlborough region, average asking prices fell 3.6% to $507,783 and the Manawatu/ Wanganui region fell 3.0% to $365,318 compared to October.
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I N V E ST ME N T P R O P E R T Y U P DAT E
IS NOW A GOOD TIME RENOVATE? B Y C H R I S G R A Y, C E O, YO U R E M P I R E
With so many people struggling to get preapproved to buy a bigger home or to buy more investment properties, could now be the time to undertake some renovations instead? APRA and the Banking Royal Commission have made it harder for nearly all of us to borrow money but they haven’t made it impossible. Banks do get you to jump through
property’s capital growth
prices rise and fall as demographics
considerably – even in a flat
change. Converting a 3 bedroom
market – and can reduce future
house into a 2 bedroom house so
maintenance or repairs down the
you can get your dream walk in
track.
wardrobe may suit you, but may not
Most people’s experience of renovating is that it either takes them twice the amount of time they originally estimated or it costs twice as much as they initially calculated. And for some, it’s twice the time and twice the budget. Here are my five top tips for profitable renovations:
money as they have shareholders to keep happy. Whilst you may not be able to raise enough funds to upgrade your home or buy another investment, you still might be able to raise enough funds to renovate your current properties. Renovating can improve your
2. Renovate to your tenant’s needs not yours. If you’ve got an investment property, you might not be the same demographic as the tenants that are likely to rent it, so it’s important to bring in a property
more hurdles, but they are open for business and do still want to lend
make a lot of financial sense.
manager to get their advice as 1. Renovate for a future sale. Whilst everyone has individual tastes, it’s important for the future re-sale of your property that it appeals to the audience. Speak to your trusted real estate agent to find out who is the likely buyer for your property and what they may look for in a home or investment. This can often change over time as
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to what works and what doesn’t. Dimmer switches, overhead fans and air conditioning can seem like a great idea, but if they are the things that are likely to constantly break down and are non-essential, they are probably better left out of your renovation. Go for what’s practical, hard wearing and colour schemes that work for the majority.
3. The little changes can make the
find great experts is through
likely to live in for a long time.
biggest differences.
recommendations. Consult with
However, it’s always worth taking
In many cases, you don’t
family, friends, buyer’s agents and
an unemotional snapshot at the
real estate agents for advice. We
same time.
necessarily have to undertake a large-scale renovation to lift a property’s value. Sometimes, small alterations including new light fittings, landscaping, blinds
charge a fee for our service, but often we’ll save many times that in better-planned renovations and on time and on budget guarantees.
or curtains, door handles and a fresh coat of paint can make a big difference to a property’s overall appearance. Carpets and walls are the majority of a property’s surface and very easy to upgrade.
ABOUT THE CONTRIBUTOR 5. Double-check your plans with an independent valuer.
Chris Gray is CEO of Your Empire, a buyer’s agency which builds property portfolios for
If you ask ten people for an opinion, you’ll usually get ten different views on what’s right. I often ensure that I never under or over capitalize
time-poor people – searching, negotiating, renovating and managing property on their behalf. Chris’s team buys 1-2 properties a week and often spends $5m+ a year renovating on others’ behalf, providing a
4. Hire a professional.
by getting an independent valuer to
unique insight into market conditions and
For large-scale renovations and
double-check my numbers. They
buyer and seller sentiment. Chris hosts
projects, don’t skimp on expert help. Paying for the best builders, project managers and tradespeople can often ensure that the work is
can tell you what your property is worth now, what it’s likely to be
various heads of property research companies and major industry figures. Chris
can make sure the renovations cost
is a qualified accountant, buyer’s agent and
you less than the difference.
standard and is council-approved,
Renovating isn’t always about the
time. One of the best places to
News Business channel, where he interviews
worth post renovation and then you
completed to the best possible which will help you come sale
“Your Property Empire’ each Friday on Sky
money, especially if you’re looking at improving the home that you’re
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mortgage broker. For more information visit www.yourempire.com.au www.chrisgray.com.au and follow Chris on Twitter: @ChrisGrayEmpire.
C 21 L E A D S T H E WAY
3 WAYS CENTURY 21 GIVES ITS AGENTS COMPETITIVE ADVANTAGE Cooling conditions in some of the traditional Australian key markets and with ever-increasing levels of rivalry mean that it is more important now than ever for agents to have competitive advantage. Century 21 chairman and owner Charles Tarbey unpacks three key initiatives the network provides to get its agents ahead.
industry dynamics.
3. Business support
He said that this allows for early
But Mr Tarbey was also quick to
identification of both growth and problem areas in the business.
just talk and attractive branding.
“Our focus is on ensuring that our
“We have a world-class, real-
value offering to agents is as strong
specifically for our agents and
2. Saturation marketing
with a global website that promotes
offices,” the chairman said, “along
“Our marketing clearly promotes and differentiates our offices in the field. I believe that growth will take care of itself if we do these, and other little things, right.”
Mr Tarbey said. “So our offices were well placed to benefit
aggressive digital marketing, clever use of video and ongoing investment into SEO.
well supported from a technology standpoint.”
launched marketing
“Century 21 has
technology,”
properties in several languages,
“We believe the C21 network is
points to C21’s recently
1. Tech investment
heavily into
time CRM that was developed
as it can be.”
To this end, Mr Tarbey
always invested
point out that more is required than
campaign, saying
“We believe the C21 network is well supported from a technology standpoint.”
off the sweeping technological changes and changing consumer habits that have affected the industry over the last decade.” Mr Tarbey said that it was important to keep abreast of changes and
that the initiative was already yielding results. “We recently launched one of our largest marketing campaigns in
Australian history in order to promote the repositioning of our brand. This investment is already benefitting our offices and helping to strengthen the network.”
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The story 3 ways Century 21 gives its agents competitive advantage appeared on Real Estate Business (REB).
Article Link: https://www.realestatebusiness.com.au/ better-business/17759-3-ways-century-21gives-its-agents-competitive-advantage
T R AV E L
HAMILTON ISLAND, THE BEAUTIFUL ISLAND ESCAPE
Take a tour around stunning Hamilton Island and experience the lifestyle on offer.
their discretion. Refuelling stations
homes encompass the marina on the
situated in each accommodation hub
Island’s west coast.
ensure no guests end up stranded on their journeys.
For added convenience, guests have access to a medical centre, post office, general stores, bottle
In the heart of the Great Barrier
shops and several boutiques and
Reef, and part of the Whitsunday
gift stores. Island visitors are also
archipelago, Hamilton Island is a
spoilt for choice when it comes to
world-class holiday destination.
dining and drinking, with options
Featuring various luxury resorts,
ranging from renowned fine dining
mesmerising views and an
restaurants and bars to relaxed cafes
abundance of friendly wildlife, it is
and family-friendly takeaway.
the epitome of island escapes.
Even though Hamilton Island
With its proximity to the Great
is prized for its luxurious
Barrier Reef and the Whitsundays,
accommodation and serene
Hamilton Island is renowned as the
atmosphere, there are also a variety
perfect base for exploring one of
of activities available for adventure
the natural wonders of the world.
enthusiasts. Local tour guides offer
The headland, located just off the
a range of offshore exhibitions, such
coast of Conway National Park in
as swimming tours of the Great
North-East Queensland, Australia, is
Barrier Reef, Whitsunday island
a paragon of convenience. Equipped with a private commercial airport and state of the art marina, getting
Hamilton Island boasts a variety of beautiful accommodation options
there has never been easier.
with stunning views and unparalleled
Famous for its relaxed transportation
Island’s northern tip, is exclusively
network, Hamilton Island provides guests holding a valid drivers license with the opportunity to rent a golf-buggy for the duration of their stay. Guests can use the buggies to free-roam the roads of the island at
tranquillity. Qualia, located on the for adults. The family-friendly Beach Club, Reef View Hotel and Palm Bungalows can be found on the main beach on the Island’s east side, while the Yacht Club Villas and holiday
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excursions and scenic flights. On the mainland, guests seeking an adrenaline rush can hire watersport equipment, ride quad bikes, race go-karts and more. Alternatively, the Island’s incredible 18-hole golf course and indulgent day spa are perfect for those looking to unwind.
I N T E R I O R D E C O R AT I N G
HOME STYLING TIPS FOR BEGINNERS It can be hard to know how to style a room, especially if you have no experience or if your existing furniture does not suit your new house. But this should not discourage you from enjoying your home dĂŠcor journey.
interior design. Adding layers and elements of the same colour can be a powerful way to tie a room together. Specialists typically do this in the form of throw rugs, pillows and wall items.
Using items that complement each other within a room tends to create flow and balance, which are
up your room and ease the rest of
Stylish rooms often have a
likely to be the biggest item in your
centrepiece. It could be a view, a
lounge room.
artwork to name a few. The first
SYNERGY
first is usually the best way to size
room, for example, your lounge is
create amazing living spaces.
your home:
room, starting with the biggest item
item is generally the theme of the
IMPACT
king-sized bed, a fireplace or an
that could have a positive impact on
When deciding on the layout of a
your design process. The biggest
Many strategies exist to help you
Here are four interior decorating tips
BIGGEST FIRST
item to catch your eye as you enter the room is typically the centrepiece, but this does not limit you to one striking design asset per room. Finding the right balance between your focal point and accompanying elements is often the best way to create impact in a room.
fundamental attributes of stylish
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C CE EN NT TU UR RY Y 2 21 1
PAINT, PAINT, PAINT Paint is a renovation buzzword, and for a good reason. A layer of paint can completely change the colour palette and style of a room. This can be an effective solution if you need to rework a room to match your furniture or if you want a feature wall as your centrepiece.
DON’T SETTLE FOR AVERAGE 70% of homesellers settle for the first real estate agent they meet. Don’t settle, speak to a Century 21 agent today.
C21.co.nz Source: NAR Profile of Home Buyers and Sellers, 2017