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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 Ryan Mitchell Julius Capilitan Bindi Norwell SCOOP Business
EDITORIAL ENQUIRIES Century 21 New Zealand +64 9414 6041
ADVERTISING ENQUIRIES Century 21 New Zealand +64 9414 6041
WELCOME TO THE
FEBRUARY 2019 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 F E B R U A R Y
NZ MARKET UPDATE
02-03
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ANNUAL AWARDS
Regions a growing strength for NZ.
C21 announces 2018 winners.
Century 21 New Zealand National Manager,
SCOOP Business
06-07
Ryan Mitchell
C21 LIFESTYLE FINANCE UPDATE
04
Four house moving tips that could help to simplify your move.
How the Australian Royal Commission could affect NZ mortgage brokers. C21 Home Loans New Zealand, Julius Capilitan
FEBRUARY PROPERTY STATISTICS
05
Two-tiered real estate market continues as 5 regions see records prices. REINZ CEO, Bindi Norwell
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N Z M A R K E T U P DAT E
REGIONS A GROWING STRENGTH FOR NZ
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
Century 21’s new international branding has now been rolled out throughout New Zealand with our offices reporting a relatively strong summer so far. Real Estate Institute (REINZ) figures show the country’s regions continue to do well while Auckland has stabilised to a much more realistic place. The number of sales across the sector have come back overall and many doom and gloom merchants have been keen to jump on that. However business confidence is
the Reserve Bank further relaxing
Located at the southern end of
its tough 2013 lending restrictions,
Australasia’s largest freshwater lake,
effective from the start of this year.
Lake Taupo, Turangi is reinventing
What’s more, with employment prospects currently strong in New Zealand and house prices a lot were three years ago, the conditions
Wai Johnson and her team work
are rife for first-home buyers to
hard to promote the central North
enter the housing market. In fact
Island town but they also actively
it’s arguably the best conditions for
support the community with their
first-home buyers we’ve seen in
fundraising efforts helping to
over a decade.
retain the local rescue helicopter
Outside regional Auckland and
With its proximity to Lake Taupo,
continues to have a strong presence
Mount Ruapehu, and with the
in the Waikato, Central North Island,
famous Tongariro River running
Manawatu and the Kapiti Coast.
past it, Turangi “The Trout
few years. As an example, one of
consistently low.
Century 21’s star performers has
impact. However, I would argue this policy change has been offset by
for example.
central Wellington, Century 21 also
and interest rates remain
foreign buyer restrictions having an
players leading the charge. Not only does local franchise owner
These areas have enjoyed a great
pointing to the Government’s new
(Turangi) has been one of the key
more than sustainable than they
up, consumers are optimistic,
Some commentators have been
itself and Century 21 Premier
been popular salesperson Roger Webb. Roger is one of our number
Fishing Capital Of The World’ is increasingly known for the nearby skiing, hiking, mountain biking, whitewater rafting, and boating. But that wasn’t always the case.
one salespeople despite being
Turangi’s modest homes were
based in the small Central North
mostly built in the 1960s and 1970s
Island town of Turangi.
to house those working on the
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Tongariro hydro-power scheme.
also reported that 39 percent
New Zealand’s more expensive
Once the hydro dam scheme
of visitors last year came from
centres like Auckland, Tauranga
was complete, the Ministry of
Australia, followed by China,
and Queenstown.
Works sold off its housing stock
the United States, and the
in the 1980s. Now many of those
United Kingdom.
properties are coming back on the market again but are now viewed with extra appeal.
international study on housing
Today tourism is New Zealand’s
affordability, released in January,
biggest GDP export earner and it
identified Palmerston North as the
shows no signs of slowing down,
best place to buy property in New
Today Turangi is a beacon for
with some forecasting five
international backpackers and is fast
million visitors in the
becoming a key tourism destination
near future.
in the North Island. Plenty of accommodation and adventure tourism businesses are now based in the area and the town boasts a great selection of cafes.
Tourism has been great for many parts of regional
Century 21’s Roger Webb has been
New
all over it, doing the business and
Zealand, but
securing some great sales as the
so too has the
town’s fortunes rise.
advancement
What’s more with house prices in nearby Taupo only getting more expensive, many looking for a holiday house or to retire are now considering Turangi. Rents in Turangi are also increasing and so investors are also eying up Turangi for its healthy returns. So, what was once a place you passed through is fast becoming a destination in its own right. It’s a trend we’re now seeing that up and down New Zealand. Thirty
The annual Demographia
Zealand. The study calculated it would take just half
“Today tourism is New Zealand’s biggest GDP export earner and it shows no signs of slowing down, with some forecasting five million visitors in the near future.”
of communication enabling more
the number of years to buy a medianpriced house in Palmerston North earning the local median income, than it would for Aucklanders to buy in Auckland.
That international
people to work with greater
recognition sparked Tim Kearins,
flexibility and from the likes of
owner of Century 21 Premier
small towns. The Government too
(Palmerston North), into print!
is making a concerted effort to lift economic activity in the regions with its Provincial Growth Fund making ongoing taxpayer-funded investment announcements.
“Palmerston North has had some solid growth in house prices over recent years. However the good news is we’re still miles more affordable than the likes
Our regional cities and towns are
of Auckland and Tauranga…
also looking increasingly appealing
Having Palmerston North now
to the likes of those living in
internationally recognised as the best place to buy property is
years ago many Kiwis thought the
something we’ve known locally for
country’s provincial towns and cities
years, but we’re now very happy to
would be a thing of the past, but
share it with the world,” said Tim.
over the past decade many have flourished beyond recognition.
Going into February, Century 21
The ongoing growth of New
as well as the commercial capital
is well placed both in the regions,
Zealand’s tourism sector cannot be
of Auckland and the actual capital
underestimated. In fact, last year
of Wellington. There is plenty
records were broken with annual
to keep positive about including
visitor numbers reported at 3.8
New Zealand’s ongoing economic
million - up from 2.6 million just five years previously. New Zealand
strength, tourism growth, and its Source: https://www.stats.govt.nz/topics/tourism
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regional renaissance.
F I N A N C E U P DAT E
HOW THE AUSTRALIAN ROYAL COMMISSION COULD AFFECT NZ MORTGAGE BROKERS
BY J U L I U S C A P I L I TA N ,
C 2 1 H O M E LOA N S , N E W Z E A L A N D
The New Zealand Finance industry has always benefited from the services of Mortgage Brokers which allow customers access to the full market spectrum of loans, reliable nonincentive-based advice and a ‘customer first’ experience.
For some providers, this is upwards
to become Financial Advisors and
of 40% of where their business
certified to give tailored advice,
comes from.
and not just class advice, there will
This bank in particular sought to assure me that customers will always need reliable financial services. Rates are only heating up with some competitors reducing their offering to 3.99% for 12 months.
surrounding the recent Australian banking Royal Commission, I was invited to visit one of the big banks to discuss the market and the changes that is being recommended. The summary of the conversations I had with various representatives was that it is business as usual. Although the after-effects of this Royal Commission are being somewhat felt here across the Tasman, the banks in New Zealand do see significant value in the broker industry which accounts for a generous share of their business.
It’s also important to stress that, contact with our Australian counterparts, the situation here in New Zealand is very different. Our regulators have not indicated a significant change to the mortgage sector, they are in fact very supportive of the financial advice industry and the value of quality financial advice.
be guided on how to make good financial decisions, what structure they should have, how to pay off loans faster and what the benefits are in proceeding with their
Rightly so. Customers are increasingly time poor and while they may be experts in their own fields of work, they can become confused and frustrated at the process of gaining a loan and structuring their finances without the help and navigation of a professional. I pride myself on the ability to
MFAA CEO, Mike Felton said: “We believe significant policy changes must hold a competition, consumer choice and access to credit for marginalised groups as the highest priority, to protect outcomes for consumers.” Until banks qualify all their staff
C21 MARKET PULSE
Customers need, and want, to
transactions.
while we are keeping in close With so much speculation
always be a need in the industry.
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take away a lot of the burdens and pressures associated with purchasing property. Through diligent managing of paper work, I guide my clients through each stage and make them feel comfortable that they are in safe hands with what can often be a daunting experience.
F E B R U A RY P R O P E R T Y STAT I ST I C S
TWO-TIERED REAL ESTATE MARKET CONTINUES AS 5 REGIONS SEE RECORD PRICES
BY BINDI NORWELL, REINZ CEO
January has pointed to a two-tiered real estate market continuing with 14 out of 16 regions experiencing annual increases in the median price for residential properties, including 5 new record median prices, while Auckland and Canterbury saw prices fall, according to the latest data from the Real Estate Institute of New Zealand (REINZ), source of the most complete and accurate real estate data in New Zealand. The national median price for
Across the country, five regions
Outside of those records, regions
residential properties increased by
experienced record median prices:
with the biggest annual increase in
5.8% from $520,000 in January 2018 to $550,000 in January 2019.
•
(up from $488,500 at the same
Prices for New Zealand excluding Auckland increased by 10.1% to $473,300 up from $430,000 in
Waikato: +12.6% to $550,000
•
Manawatu/Wanganui:
In Auckland, prices fell -2.4% to
last year)
$286,000 at the same time
•
a -0.7% annual decline in median
Marlborough: +16.3% to the same time last year)
2016. Additionally, Canterbury saw •
Otago: +6.4% to $475,475 (up
house prices from $435,000 to
from $447,000 at the same
$431,900. This is consistent with
time last year)
the REINZ HPI which showed a -2.1% decrease for Auckland and -0.5% decrease for Canterbury.
•
Southland: +15.6% to $277,500 (up from $240,000 at the same time last year).
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•
Northland: +14.1% to $485,000 up from $425,000
•
Wellington: +12.2% to $562,000 up from $501,000.
$477,000 (up from $410,000 at
price for the region since February
Gisborne: +21.1% to $333,000 up from $275,000
+21.7% to $348,000 (up from
January 2018 - the lowest median
•
time last year)
January 2018.
$800,000 down from $820,000 in
median price were:
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A N N U A L AWA R D S
CENTURY 21 ANNOUNCES 2018 WINNERS
SCOOP BUSINESS W W W . S C O O P. C O . N Z
Century 21 New Zealand has announced its real estate winners for 2018 and it was a big night for a small Central North Island town at the Annual Awards Gala Dinner in Auckland on Saturday.
and achieve the best results but
highlights just how good he really
he’s part of a team at Century 21
is,” she says.
Premier (Turangi) that remains very community-focused,” says Ryan Mitchell, National Manager of Century 21 New Zealand.
Ms Johnson says the extra activity has meant Century 21 Premier (Turangi) has recently employed three more team members,
Franchise owner of Century 21
broadening its expertise and the
Premier (Turangi), Wai Johnson,
geographical area it services.
says for a small town to Roger Webb of Century 21 Premier (Turangi) was named Top Salesperson for the Year for Units (the number of properties listed and sold). It was also revealed that in the fourth quarter of 2018 Roger Webb took out both Units and GCC (Gross
real estate awards feat when you’re up against big guns from the likes of Auckland and Wellington.
This saw him finish the year as
“Turangi has
salesperson across the country. He also took away the real estate company’s prestigious Centurion Award on the night. “Roger is an absolute legend in and around Turangi. Not only does he understand the local market
Roger Webb of C21 Premier (Turangi) was named Top Salesperson for the Year for Units (the number of properties listed and sold).
is no mean
Closed Commission) categories. Century 21’s all-round leading
“We very proud of not
take away national
only our market position, but we work hard to constantly give back by supporting local charities and volunteer services. In fact, we’re hosting an Easter charity
enjoyed a significant lift
auction and evening on
in house prices and demand in
20 April to raise money for the
the past few years. Nonetheless it
Greenlea Rescue Helicopter. And
remains one of the most affordable
rest assured we’ll be putting Roger
areas in New Zealand. For Roger to
Webb’s auctioneering skills to good
achieve over $5 million in sales last
use,” says Wai Johnson.
year, and to list and sell the most properties for the company in 2018
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At the same time, local star Molly McLean was given the inaugural
Recognition Award, acknowledging
Wellington also won Top Auction
Other sales stars for 2018
her significant contribution
Office, Top Auction Lister of the
acknowledged on the night were
and team support as Office
Year, Highest GCC Growth, and
Alen Moshi of Century 21 First
Administrator at Century 21 Premier
Centurion Office for 2018.
Choice Realty (Wellington); Sally
(Turangi) for nearly five years.
“First Choice Realty in Wellington
Another small town near Taupo to
Central continues to deliver for
feature in the Annual Awards was
Wellington buyers and sellers
Mangakino with franchise owner
with another incredible sales
Christine Stevens of Century 21
performance last year. Hats off to
Stevens Realty winning 2018’s
Joe Lupi and his team who have
Top Principal (Units). While North
cemented themselves as market
Waikato had a particularly strong
leaders in the capital city delivering
fourth quarter, with Rookie of the
great results year in, year out,” says
Year going to Pescha Eccles from
Ryan Mitchell.
Century 21 Rural & Residential in Huntly.
Wang of Century 21 Darrak Realty (Albany); Gaile Pare (Century 21 Gadsby Realty, Te Awamutu), Tim Kearins and Andrew Pugh (Century 21 Premier, Palmerston North); Ian Pepper and Barbara Craig of Century 21 Rural & Residential (Huntly); and Fenny Ang of Century 21 Edwards Realty, Botany. The evening was also attended by
Century 21 Darrak Realty (Albany) won the Gold Hat Award for
chairman and owner of Century 21 Australasia Charles Tarbey and executive director, Michael Baliviera.
Joe Lupi owner of Wellington’s
achieving excellence in media
Century 21 First Choice Realty was
promotion for 2018. Administrator
“Our many and varied real estate
2018’s Top Principal (GCC).
of the Year went to Janine Hair
winners for 2018 reflect Century
of Century 21 Gold Real Estate in
21’s ongoing strength across New
Manurewa while PA of the year
Zealand’s main cities, regional
was awarded to Judith Solomon of
centres, small towns, and rural
Century 21 Edwards Realty, Botany.
districts. Our success in 2018
At the same time Jeh Wasti of Wellington’s Century 21 First Choice Realty was named 2018’s Top Salesperson (GCC). Wellington also took out Top Office for 2018
Century 21 Edwards Realty in
(Units and GCC), with runners-up
Botany also took out Top Property
Century 21 Darrak Realty, Albany
Management Office for the Year
(GCC) and Century 21 Premier,
– led by Vicki Southgate, Property
Palmerston North (Units).
Manager of the Year.
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bodes very well for 2019,” says Ryan Mitchell.
C21 LIFESTYLE
FOUR HOUSE MOVING TIPS THAT COULD HELP TO SIMPLIFY YOUR MOVE There is a lot involved in moving house – you have to organise, pack, clean and finally, move. And even though it may seem simple to put your belongings in boxes and relocate them, it is often a frustrating and overwhelming process.
PLAN YOUR NEW HOUSE
ESSENTIALS BOX
Planning where each item will go in
An essentials box is self-
your new house before you arrive
explanatory, simply set aside one
can be a great way to save time
box for your emergency essentials.
when unloading your items and
These items can range from
moving them inside. This method
toiletries, snacks, water, or even
also helps to prioritise items when
music for unpacking entertainment.
loading, which could spare you of any double handling upon arrival.
Many people make the mistake
DONATE ITEMS But there are steps you can take to help alleviate some of the stress and effort associated with moving. Here are four tips that could save you time or money during your next move:
SUITABLE TRANSPORT
of underestimating how many
Donating items is a great way to
things they own and therefore
lighten your load and declutter your
find themselves having to make
life before you move. It also helps
multiple trips. You can contact
those less fortunate, which is always
most good vehicle rental garages
a good thing.
and ask for their selection of vehicles. They will often be able to assist you in choosing the right truck. Alternatively, you can hire a removalist service to handle most of your heavy lifting. Regardless of your moving strategies or experience, it will never be an easy thing to move. But if you can recruit a few helpers and carefully plan your move, you can make it that little bit easier.
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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