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P U L S E
N O V E M B E R
M A R K E T
C21
PUBLISHER Century 21 New Zealand Ltd
CONTRIBUTORS Ryan Mitchell Julius Capilitan Bindi Norwell
EDITORIAL ENQUIRIES Century 21 New Zealand +64 9414 6041
ADVERTISING ENQUIRIES Century 21 New Zealand +64 9414 6041
WELCOME TO THE
NOVEMBER 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 N O V E M B E R
NZ MARKET UPDATE
02-03
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THE EXPANDING CITY
06-07
Exciting times for the city of sails.
New Zealand economic fundamentals strong. Century 21 New Zealand National Manager,
FACELIFT YOUR WALL
Ryan Mitchell
HOME LOAN STRATEGIES
04
The feature wall — four ideas that could make an impact in your bedroom.
Plan your property freedom. Century 21 New Zealand Financial Services General Manager, Julius Capilitan
PROPERTY SALES INCREASING
05
Spring sprouts into action with highest number of sales in 5 months, says REINZ. REINZ CEO, Bindi Norwell
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CENTURY 21
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N Z M A R K E T U P DAT E
NZ ECONOMIC FUNDAMENTALS STRONG 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
With a change to a Labour-led Government just over 12 months ago, business confidence fell somewhat as was expected but the country’s economic fundamentals remain very strong, says Ryan Mitchell, National Manager of Century 21 New Zealand. Unemployment is down to 3.9%
estate winners across its offices
a notable highlight with East
(its lowest in a decade), interest
and salespeople for the third
Auckland taking the crown for
rates remain low, the country’s
quarter of 2018. The spread and
property management,” observed
economic growth is healthy, and
depth of the recipients
the Government is producing
showed Century
surpluses.
21’s strength
“As a country we’re going into summer pretty positively. House prices, particularly in Auckland, have steadied but there’ll still be plenty of buyers out there really keen to purchase real estate. It probably won’t be a recordbreaking summer, but it’s definitely set to be stronger than many commentators were predicting six months ago,” he says. This month Century 21 New Zealand announced its real
the new National Manager in New Zealand.
“We’re off to a great start with the entire Century 21 New Zealand team more determined than ever to keep delivering for Kiwis” says Ryan.
continuing in many of New Zealand’s main cities, regional centres and small towns “Wellington’s
was appointed to the role in October after a stint as the real estate company’s Network Development Manager and prior to that was Century 21’s top
strong and ongoing
performing salesperson
sales performance was
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Ryan Mitchell
02
in New Zealand.
CENTURY 21
Originally from North London in
The branding is modern and stylish
I’m excited about the opportunities
England, Ryan has been a licensed
and will assist us in attracting a new
our repositioning and new look will
real estate salesperson for over
workforce of industry professionals
help deliver,” he says.
eight years. He held the title of
towards the brand.
Ryan says continual growth of the
“Top Salesperson Of The Year” for
C21 brand throughout the country
two consecutive years – 2016 and
is his focus.
2017 - across the Century 21 New
His priorities for Century 21 New
Zealand group.
Zealand include investigating
“Ryan brings fantastic firsthand
untapped locations for new offices;
experience and knowledge of
increasing business development
the real estate industry as well
support to existing franchise
as plenty of success. We’re
owners including recruitment,
delighted to now have him
retention and sales training;
heading Century 21 New
encouraging greater use of
Zealand,” says Charles
social media in sales and
Tarbey, chairman and owner
marketing to ensure better
of Century 21 Australasia.
targeting and traceability; and
This year Century 21
growing a company culture based
announced its international
on exemplary service and results.
rebranding campaign which
“We’re off to a great start with the
includes a refreshed colour palette
entire Century 21 New Zealand
and a shortened, modernised brand
team more determined than ever
name - C21. Now being rolled out
to keep delivering for Kiwis.”
across New Zealand, the company’s
says Ryan.
new branding and new messaging
www.century21.co.nz
has been well received. It’s built around defying mediocrity
Ryan Mitchell – National Manager
“The new C21 branding is on
and delivering extraordinary real
of Century 21 New Zealand
another level and I really like it.
estate experiences to consumers.
(021) 222-4666
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CENTURY 21
H O ME L OA N ST R AT E G I E S
PLAN YOUR PROPERTY FREEDOM
BY J U L I U S C A P I L I TA N , GENERAL MANAGER, CENTURY 21 NEW ZEALAND FINANCIAL SERVICES
General Manager of Century 21 New Zealand Financial Services, Julius Capilitan, shares his strategies for repaying home loans quickly.
homeowners should not lose sight
to make the most of economic
of the big picture and a smart
highs and lows. It’s fine in a Bull
strategy for paying as much off your
market to be on the old adage
mortgage as possible to become
of interest only and realise your
debt free faster. Importantly, just
property value through capital
because it is possible to secure
gains. However, when you have a
a 3.95% percent on a
Bear market, you could be
home loan for one With the lowest one-year rate
year, in certain
that New Zealand has seen in its
circumstances
history, recent reports suggest New
it may be more
Zealanders are now securing loans
beneficial
and paying off their homes faster
securing a
than ever before.
long term
Many homeowners may recall in
view of 5.09%
the 1990’s where interest rates
sliding backwards in
“For investors we recommend actively managing equity positions to make the most of economic highs and lows.”
percent for
equity based on decreasing home values around your area. Lastly, make sure you have a plan on your property. Gone
were upwards of 20 per cent. In
five years.
2010, New Zealand’s floating rate
When discussing
reached upwards of 10 per cent
repayment strategies
and now in 2018 homeowners
with many of our first
are enjoying rates as low as 4 per
home buyers we consider the
property portfolio. Have goals
cent. Historically speaking a good
amount they can afford each
around your entry into the property,
mortgage rate in New Zealand has
week, and then discuss setting this
what you would like the asset to
always been in the vicinity of
repayment in line with their overall
achieve, how you want to exit and
7 per cent.
goal. As a result, when rates are
when will you know that your overall
Many of the economists I speak with
low, these first home buyers are
objectives have been fulfilled.
don’t know how long these good times will last, with most major banks predicting increases for the end of 2019 through to early 2020. While the banks will heavily contest for 1 – 3 year fixed term rates,
We recommend you actively manage your
paying off their mortgage faster. Similarly, when rates are up they are not feeling the pinch of increased interest repayments. For investors we recommend actively managing equity positions
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are the days of ‘set and forget’.
04
CENTURY 21
PROPERTY SALES INCREASING
SPRING SPROUTS INTO ACTION WITH HIGHEST NUMBER OF SALES IN 5 MONTHS, SAYS REINZ The number of residential properties sold across New Zealand increased by 15.5% yearon-year – the highest number of sales in 5 months 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 number of properties sold nationally increased from 5,880 in October 2017 to 6,791 in October 2018 – an increase of 911 houses.
•
•
•
BY BINDI NORWELL, REINZ CEO
Southland: +32.9%
increase when compared to the
(from 146 to 194 – an additional
same time last year which is a
48 houses)
significant increase.
Canterbury: 28.7%
“September was very quiet in
(from 757 to 974 – an additional
terms of the number of properties
217 houses)
sold and we predicted that with the increase in listings coming to
Otago: 23.4% (from 342 to 422 – an additional 80 houses).
September’s. With strong sales this month, it’s our belief that in the current market that New Zealand is
REINZ says: “October saw the real
taking a different path to what we’re
estate market spring back into
seeing across the Tasman at this
action with the volume of sales
point in time.
increasing nationally by 15.5% when compared to the same time last year. This is the highest number of sales for a month of October in
Auckland, the number of properties
2 years and is the equivalent of an
sold increased by 15.6% – 654
additional 29 houses sold each day
more properties when compared to
across the whole month. It should
October 2017 (from 4,189 to 4,843).
also be noted that last year’s sales
properties sold increased by 15.2%
would be much stronger than
Bindi Norwell, Chief Executive at
For New Zealand excluding
In Auckland, the number of
the market that October’s sales
volumes were impacted by the election.
“October also saw the introduction of the foreign buyer ban and while there have been pockets around the country of people talking about a rush ahead of the ban. With Statistics New Zealand’s September quarter figures showing the lowest level of foreign buyers since they began keeping records, we’re confident that most of October’s
or 257 more properties, from 1,691
“Regionally, we saw increased sales
lift in volume is attributable to
in October 2017 to 1,948 in October
volumes in 13 out of 16 regions
the spring lift rather than a rush
2018.
with 10 of those 13 regions seeing
of foreign buyers looking to get
double digit increases. But the
in ahead of the ban,” continues
stand out results belong to the
Norwell.
Regions with the largest increases in sales volumes were:
South Island with the highest
•
Marlborough: +46.2%
volume growth seen in the southern
(from 78 to 114 – an additional
half of the country – particularly
36 houses)
in Marlborough which saw a 46.2%
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THE EXPANDING CITY
EXCITING TIMES FOR THE CITY OF SAILS
Auckland is the fastest growing city in Australasia and one of the most multi-cultural in the world. People are moving to Auckland in droves not only for the jobs, but the unparalleled lifestyle the region offers.
Manukau and Kaipara harbours on
University of Auckland. Established
the west. There are also about 50
in 1883, it remains the country’s
volcanoes within an area of 1,000
largest university.
square kilometres, forming many of the hills, lakes and basins across the region.
one city in the 1920s, Auckland’s districts and cities merged to
Auckland is also home to a
become one ‘Super City’ in
number of islands in the stunning
2010 governed by the Auckland
Hauraki Gulf. The best known and
Council. The region now has a total
most visited is Waiheke
population of over 1.6 million
Island, which is only a 40-minute ferry ride
There is always something
from downtown and
happening in Auckland from major
a haven for foodies
sporting events, concerts and
and summer
festivals to outdoor adventures,
weddings.
designer shopping and world-class
The isthmus was
wine and food.
Like Brisbane’s amalgamation into
first settled around
people, projected to
“The region now has a total population of over 1.6 million people...”
reach two million by 2033, by which time close to 40% of the country will reside there. Over the past decade, Auckland
Auckland’s Maori name is Tamaki-
1350AD and the
makau-rau, meaning “Tāmaki with a
area’s Maori population is
hundred lovers,” in reference to the
estimated to have peaked
desirability of its fertile land at the
at 20,000 before the arrival
as New Zealand’s main international
hub of waterways in all directions.
of Europeans.
gateway. Landmarks such as the
Sitting on an isthmus, the Auckland
Today Auckland’s central business
region boasts three harbours – the
district is home to New Zealand’s
Waitemata on the east and the
major financial centre and also the
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has worked
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successfully to become a popular visitor destination as well
CENTURY 21
Auckland Art Gallery and Auckland War Memorial Museum, the Sky Tower, and many parks, waterfront
restaurants, and theatres are
APEC Leaders’ Week. Earlier that
among the city’s significant tourist
same year, Auckland known as
attractions.
“the City of Sails” will host the 36th America’s Cup
Auckland International
with Emirates Team New
Airport is the country’s
Zealand defending the
largest and busiest airport,
title.
processing over 19 million passengers in the
The challenger series
year ended October 2017
and the America’s Cup
– over 10 million of those
will take place across the
on international flights.
Hauraki Gulf and into the
Continued and significant
Waitemata Harbour, up to
growth is forecast by the
Auckland’s iconic harbour
airport located in the region’s
bridge and downtown CBD
south with a second runway to
with plenty of vantage points
be constructed in the coming years.
for spectators on land.
Clearly now New Zealand’s commercial capital, Auckland was once also the country’s political capital before Wellington replaced it in 1865.
Modern Auckland is deemed to However in 2021, it will be Auckland that hosts politicians and leaders from across Asia-Pacific for the
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CENTURY 21
be one of the most liveable cities in the world, having been ranked third on the 2016 Mercer Quality of Living Survey.
FAC E L I F T YO U R WA L L
THE FEATURE WALL If your bedroom is lacking character or if you simply want a change, delegating a wall to be a feature wall could be the perfect solution.
can even be used for motivational
such as extravagant wall clocks and
purposes if you decide to use
heritage themed items. However,
positive messaging. Decals are also
two of the most popular wall
generally removable, making them a
accessories are ornate mirrors and
solid option for tenants.
sizeable painted artworks, both capable of giving any bedroom a facelift.
TEXTURES A feature wall can be just about anything from a collection of photos to beautiful wallpapers, or merely a different coloured wall to the rest.
Textured wallpapers and floor to ceiling wainscoting can be great
STRIPES
ways to add contemporaneity and
Painting vertical stripes or buying
sophistication to your bedrooms.
striped wallpaper can make your
Here are four feature wall ideas
Unlike traditional feature walls,
ceiling seem taller, making it an
that could make an impact in your
these walls can have aspects that
excellent feature wall for smaller
bedroom:
pop while others recess, creating a
bedrooms. The same can be done
more engaging space.
with horizontal stripes, only they make the room feel wider. Stripes
WALL DECALS Wall decals are vinyl stickers that
BOLD ACCESSORIES
can be affixed to your walls or other
Hanging bold accessories to create
smooth surfaces. They come in
a feature wall can be an excellent
many sizes and designs to suit an
way to add excitement and interest
array of different interior styles.
to your bedroom. There are a wide
Wall decals can be an easy way
variety of beautiful ornaments
to add personality to a room, and
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can also be useful for drawing attention to a particular feature in a room, such as a window or clock. Stripes can be different colours and widths, making them a versatile option that can be suited to almost any bedroom.
WE DON’T DO LIP SERVICE
Actions prove who someone is, words just prove who they want to be. Don’t fall for lip service, speak to a Century 21 agent today.
C21.co.nz