J A N U A R Y
M A R K E T
2 0 1 9
P U L S E
C21
PUBLISHER Century 21 New Zealand Ltd
CONTRIBUTORS Ryan Mitchell Bindi Norwell Eliot Hastie Chris Gray
EDITORIAL ENQUIRIES Century 21 New Zealand +64 9414 6041
ADVERTISING ENQUIRIES Century 21 New Zealand +64 9414 6041
WELCOME TO THE
JANUARY 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 J A N U A R Y
NZ MARKET UPDATE
02-03
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REASONS TO CONSIDER RENTVESTING
Buyers and sellers doing their homework.
5 reasons to consider rentvesting this year.
National Manager, Century 21 New Zealand —
Your Empire CEO, Chris Gray
06-07
Ryan Mitchell
C21 LIFESTYLE PROPERTY REPORT
04
Tips for transforming a new house into a home.
REINZ figures show lowest number of properties sold for the month of december for 7 years. REINZ CEO, Bindi Norwell
GLOBAL AWARD
05
Century 21 brings home global award. Real Estate Business Journalist, Eliot Hastie
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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 , CENTURY 21 NEW ZEALAND
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.
Auckland hasn’t moved much in the past year although parts of the region’s fringe– like Wellsford in the north, Kumeu in the north-west, and Pukekohe in the south - have enjoyed significant growth. Auckland has seen the number of investors purchasing the number of first-home
New Zealand Ryan Mitchell says
buyers
there’s plenty to be optimistic about
securing
going into 2019 with every office
mortgages
looking forward to the year ahead
has risen
and now showcasing Century 21’s
helped by
new international branding to boot.
plateauing
sidelines waiting for a signal to act. However, I would argue now is the time to act. Prices are holding up pretty well for vendors. While for the likes of first-home buyers there are more opportunities out there.” Ryan says it’s clearer than ever that New Zealand is far from being one real estate market. Going into 2019 there remains significant differences between each of the regions and cities.
The Auckland metropolitan area has a population of 1,628,900 people according to Statistics New Zealand’s June 2018 estimate, which is 33.3 percent of New Zealand’s population. That’s up about 500,000 in
properties fall while
National Manager of Century 21
“Some Kiwis seem to be on the
Australasia’s fastest growing city.
prices, lending rules
just 20 years!
Ryan says it’s clearer than ever that New Zealand is far from being one real estate market. Going into 2019 there remains significant differences between each of the regions and cities.
softening, and
Known as “the City of Sails”, Auckland has some feel good factors on the horizon. Millions of dollars are now
record low interest
being pumped
rates – under four
into the city’s
percent in some cases.
waterfront infrastructure
Ryan points out that Auckland has
ahead of it hosting the 36th
one thing no other city in New
America’s Cup with Emirates Team
Zealand can take for granted and
New Zealand defending the title in
that is unrelenting population
2021. Later that same year Auckland
growth. Regardless of any current
will host politicians and leaders
real estate trends in Auckland,
from across Asia-Pacific for the
it’s long-term future is secure as
APEC Leaders’ Week.
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“Century 21 New Zealand has
back, with the latest outlook at
relationships with both buyers and
great representation across our
its strongest level in six months
sellers. The skill of negotiating a fair
largest city, with some of our
according to the ANZ Roy Morgan
sale price both parties are happy
highest performing offices in the
Consumer Confidence Index at the
with is also key.
south, north and east of Auckland
end of 2018.
continuing to deliver for their clients. Real estate agencies are rife and competition is fierce in Auckland but to their credit our offices have each secured themselves as market leaders in their respective communities.” Ryan says another consistent top performer in the company is Century 21 First Choice Realty based right in the centre of the capital city, Wellington. While Auckland and Christchurch have been relatively flat, overall property values in Wellington surged by 7.4 percent to $740,000 in the 12 months to November 2018, according to a OneRoof Property Report. Century 21 also continues to have a strong presence in the Waikato, Central North Island, Manawatu and the Kapiti Coast. These areas have enjoyed a great few years with 2019’s statistics also predicted to be strong. New Zealand consumer confidence has seemed to have bounced
As well as more buyers now taking
“As I’ve said before, this summer
their time to do their homework,
probably won’t be a record-breaking
vendors are increasingly assessing
one, but it’s definitely set to be
an agent’s ability to market,
stronger than many commentators
negotiate, and sell.
were predicting during winter,” he says.
“That’s where Century 21 New Zealand has an advantage over
In December chairman and owner
local competitors. Our business
of Century 21 Australasia, Charles
owners and salespeople know what
Tarbey, visited New Zealand and
methods work for each individual
like the National Manager, is
property and in today’s market there
enthusiastic about the opportunities
isn’t a one method fits all. Tailoring
Century 21’s new international
to suit a vendor’s needs and wants
branding and market positioning
but also the market is of high
bring.
priority to all our team. The fact that
Meeting with New Zealand franchisees Charles stressed that
the public is also noticing our new branding is a timely bonus,” he says.
with much of the country returning
Delighted with Century 21’s profile
to more realistic and sustainable
this summer, Ryan says feedback
prices many Kiwi real estate agents
from New Zealand’s offices and
are having to change their sales
salespeople on the company’s fresh
strategy.
look and proposition confirms the
Gone are the days of an agent listing a property on the internet,
change has been very positive on their side of the Tasman as well.
standing back at the open home,
“Without doubt 2019 will be an
and waiting for it to sell within a
exciting year for Century 21 New
few days. In today’s environment
Zealand with a lot more great stuff
agents need to get out and build
set to unfold.”
and maintain strong working
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PROPERTY REPORT
REINZ FIGURES SHOW LOWEST NUMBER OF PROPERTIES SOLD FOR THE MONTH OF DECEMBER FOR 7 YEARS The 2018 year ended with a fizz rather than a bang, with the lowest number of residential properties sold for the month of December for 7 years, 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.
BY BINDI NORWELL, REINZ CEO
-24.3% year-on-year and was the lowest for the month of December in 10 years. Bindi Norwell, Chief Executive at REINZ says: “While December is usually a quiet month as people focus on Christmas holidays, December 2018 was extremely quiet with the lowest number of properties sold for the month of December for seven years. Additionally, 12 out of 16 regions saw an annual decrease in the number of properties sold.
In December 2018, the number of houses sold across New Zealand decreased by -12.9% year-on-year to 5,330, down from 6,117 – 787 fewer houses.
“With national listing levels down -11.3% in November and -13.3% in December, it’s not entirely surprising that December was a quiet month in terms of sales volumes. However, what we’re
For New Zealand excluding
hearing is that part of the lower
Auckland, the number of properties
sales volumes can also be attributed
sold decreased by -8.2% when
to some vendors’ understanding of
compared to December 2017, from
the value of their home. A realistic
4,352 down to 3,994 – 358 fewer
approach to market value may help
houses and the lowest for the
vendors sell their property in a
month of December in 5 years.
more reasonable timeframe,” points
In Auckland, the number of
out Norwell.
properties sold decreased by
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Regions with the largest annual fall in volumes were: • Auckland: -24.3% (from 1,765 to 1,336 – 429 fewer houses) •
Taranaki: -23.0% (from 161 to 124 – 37 fewer houses) – the lowest for the month of December since December 2013
• Wellington: -16.2% (from 792 to 664 – 128 fewer houses) • Otago: -14.6% (from 391 to 334 – 57 fewer houses • Southland: -13.4% (from 142 to 123 – 19 fewer houses) – the lowest since April 2017. However, there were some regions that saw an annual increase in sales volumes during December including: • West Coast: +42.9% (from 28 to 40 – an additional 12 houses) • Tasman: +29.4% (from 51 to 66 – an additional 15 houses) • Gisborne: +15.2% (from 46 to 53 – an additional 7 houses) • Hawke’s Bay: +7.2% (from 195 to 209 – an additional 14 houses).
G L O B A L AWA R D
CENTURY 21 BRINGS HOME GLOBAL AWARD
BY ELIOT HASTIE, AT R E A L E S TAT E B U S I N E S S
Century 21 Real Estate, franchisor of the Century 21 brand, has received global recognition for its brand reinvention at the Inman Innovator Awards in the US.
continues to dynamically change
will provide our offices with a
and evolve, we’re constantly
competitive advantage in their local
challenged to progress and push
markets,” Mr Tarbey said.
the industry forward, which was a huge motivating factor behind this year’s rebranding campaign,” the CMO said.
to connect the new brand with
currently in the process of being
consumers.
updated after it was announced at their Australasia conference.
forward-thinking
Chairman and owner of Century 21 Australasia Charles Tarbey announced
individuals and companies in the industry. Chief Marketing Office for Century 21 Cara Whitley said that real estate was in a
“Connecting a brand in a positive way with consumers is a proven tactic that can both build brand equity and drive sales,” the chairman said.
state of flux and that was what prompted the reinvention by Century 21. “As the real estate industry
21 was connecting with the
Century 21 offices in Australasia are
for most innovative marketing recognises visionaries and
with how the new-look Century industry, and now they just needed
Century 21 took out the accolade campaign at the awards, which
Mr Tarbey said that he was pleased
the pending launch and said that the seven-figure marketing spend would leverage all
way with consumers is a proven tactic that can both build brand equity and drive sales,” the chairman said. The 2018 Inman Innovator Awards were announced at the Inman Connect conference in San Francisco and brought together over 4,000 agents, brokers, CEOs and other members of the industry.
types of media to promote the group’s new brand.
“We are confident that our upcoming marketing campaign is aspirational and powerful enough to do this and
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The story 3 Century 21 brings home global award on Real Estate Business (REB). Article Link: https://www.realestatebusiness.com.au/ breaking-news/17538-century-21-bringshome-global-award
REASONS TO CONSIDER RENTVESTING
5 REASONS TO CONSIDER RENTVESTING THIS YEAR B Y C H R I S G R A Y, C E O, YO U R E M P I R E
Rentvesting – renting where you want to live and buying where you can afford – is a great long-term wealth creation strategy, suitable for seasoned investors and new market entrants alike.
prices will generally increase faster than your ability to save, so it makes financial sense to enter the market somewhere affordable while renting elsewhere.
2. TREAT IT AS A BUSINESS If implemented correctly, rentvesting can provide long-term financial and lifestyle benefits, even better than living in your own
CHRIS GRAY’S ADVICE FOR ADOPTING A RENTING INVESTMENT STRATEGY:
home. For instance, if you own a $1 million property, but want to upgrade to a more expensive property, it would make more sense to keep your existing property,
With housing affordability an ongoing hurdle to home ownership
1. DO YOUR HOMEWORK
rent it out, then buy another $1 million property - rather than
in many Australian suburbs, it’s
If you’re considering adopting
buying a $2million home. Why? If
no surprise that rentvesting has
rentvesting to build a property
you receive approximately $800
become more popular in recent
portfolio, I would suggest you do
or $900 dollars a week for each of
years. In fact, rentvesting has
your homework. For rentvesting to
them, that’s a total $1,800 monthly
formed an integral part of my
be effective, you need to compare
income. That $1,800 a week rental
personal property investment
the rental returns and capital
income could then be used to rent a
strategy for the last 15 years. I’ve
growth predictions for a median-
$3-4million property for the buyer
not lived in my own home for many
priced investment property to
to live in themselves. Rent money is
years and don’t see myself doing
the relative rental returns and
only dead money if the equivalent
so in the foreseeable future - the
capital growth of a more expensive
funds are not reinvested elsewhere.
financial and lifestyle benefits are
property that you would ideally live
too great.
in. If the difference is in your favour,
For first home buyers especially,
then it can work.
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3. SEEK ADVICE FROM PROFESSIONALS
any investment, it is essential to
If you’re unsure about rentvesting,
removing fixed mindsets associated
consult an independent valuer. They can give you advice on how rentvesting can be used to build a property portfolio. Not only do they have a good understanding of the typical prices in your area, but will also be able to provide you with an unbiased assessment of a property’s true value.
4. CONCENTRATE ON THE NUMBERS
concentrate primarily on what the numbers say. That includes with renting from purchase decisions. In Australia, there is a perception that renting is for poor people; unlike other parts of the world, few high income earners want to go into their office and admit they rent, which is understandable. I have rented
5. BE OPEN-MINDED For rentvesting to be effective, you’ve got to like change. A fear of being unable to rent a property for a long period of time is a factor that holds many consumers back from renting. In most cases though, landlords are unlikely to evict good tenants and even if they do, it doesn’t necessarily have to be a negative - it can be an opportunity
multi-million dollar properties
to upgrade to a better property.
with 360-degree views of Sydney
If you’re thinking about rentvesting,
Harbour and still experienced renting stigma from owneroccupiers in the area. Being labelled
Many investors can fall into the
a ‘poor renter’ is a small price to
trap of making an emotional
pay to rent at a quarter of the price
purchase decision, preventing
others are paying to live in the
them from seeing the long-term
same area.
now could be the optimum time to trial it for yourself - it could give you the lifestyle you’ve always dreamt of, while setting you up for a profitable future.
financial benefits of an investment strategy like rentvesting. As with
ABOUT THE CONTRIBUTOR Chris Gray is CEO of Your Empire, a buyer’s agency which builds property portfolios for 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 unique insight into market conditions and buyer and seller sentiment. Chris hosts “Your Property Empire’ each Friday on Sky News Business channel, where he interviews various heads of property research companies and major industry figures. Chris is a qualified accountant, buyer’s agent and mortgage broker. For more information visit www.yourempire.com.au, www.chrisgray.com.au and follow Chris on Twitter: @ChrisGrayEmpire.
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C21 LIFESTYLE
TIPS FOR TRANSFORMING A NEW HOUSE INTO A HOME If you have recently moved into a new house or apartment, it can take a few weeks until you are completely settled in. There are many new things you have to familiarise yourself with, including your new suburb, appliances, neighbours and spaces. Because of this, your new home probably feels more like a new
PERSONALITY
your home might begin to feel more
Often a good way to ease the
to unwind.
like a hotel room, making it difficult
adjustment is to personalise your spaces with items or furniture that have value or meaning to you. Collectables, travel souvenirs, family heirlooms and artworks are
Filling your home with comfortable furniture can add warmth and homeliness, and can be a great way to soothe the transition.
all great examples of items that can give a room a more personable feel.
COMFORT
Buying quality rugs for your tiles or
house or a new apartment.
Your home should be the place you
Here are three touches that could
feel most comfortable and relaxed.
help transform your new house into
But if you focus too heavily on style
a home:
and impact when decorating, you may end up sacrificing your own comfort in the process. As a result,
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floorboards can make rooms more personable and inviting. They are nice to walk on and are natural air filters. Additionally, buying soft blankets for your living, lounge, rumpus and media rooms can make them more relaxing and cosy.
RELENTLESS MOVES
Big dreams are realised after small goals are achieved consistently. Speak to a Century 21 agent today to find your dream home.
C21.co.nz