Property Talk
SUMMER 2018
What’s Happening in the Auckland Market? The trend in the median price is now tapering off with the volume trend continuing to fall. The days to sell trend continues to ease. The House Price Index is remaining fairly steady, having increased slightly over the past 12 months.
C
ompared to December 2016 the median price increased 2% to be $870,000. Papakura District was the big mover with a 14% increase in median price over the year. At the opposite end of the scale the Auckland City median price dropped 6% compared to the same time last year. Compared to November 2017, the region’s median decreased 1% despite many TA’s having an increase in median price. The large drop in Rodney, a moderate drop in Auckland City and no movement in Manukau City were the exceptions. On a seasonally adjusted basis, Auckland’s median price had a 1% increase compared to November, indicating the month on month decrease experienced this past month was not quite as large as typically happens moving from November to December. Sales volume in the Auckland region decreased 12% compared to November, with strong decreases in sales numbers across most TA’s, Waitakere being the exception with a 3% decrease. Compared to December 2016 sales fell 6% with volumes decreasing in most TA’s, this time Franklin City and Auckland City were the exceptions with a 41% and 1% increase respectively. On a seasonally adjusted basis, sales volumes increased 7% compared to November indicating that the large decrease in sales from No-
vember was quite a bit smaller in magnitude than the expected decrease when moving from November to December. The median number of days to sell improved one day from last month, moving from 35 days to 34 days. The median number of days to sell was the same as December 2016. Over the past 10 years the median number of days to sell during December for Auckland has been 32 days on average. There are now 24 weeks of inventory in the Auckland region, an increase of 9 weeks compared to December 2016 and the third highest number of weeks of inventory after West Coast and Northland. Bindy Norwell, REINZ CEO, says “The Auckland market has been affected by multiple influences in the last quarter of 2017. Buyers are being more considered and not rushing in to buy. However,
vendors’ expectations are still high and haven’t adjusted with the change in the market – but well priced properties that meet the current market expectations are still selling well across all price ranges. The issuing of the Council CV data has also made for some difficult conversations as many vendors believe this is exactly what their property is worth. However, in some areas median prices are above the CV e.g. Franklin, and in other areas they are below the CV e.g. Auckland City, so it’s important people talk to a licenced real estate agent to understand what their property may actually be worth. There are approximately 30% fewer investors in the market with many looking to sell their portfolio rather than expand it. A number of investors in the area are also looking to exit the market.”
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REINZ House Price Index (HPI)
REINZ Residential Statistics Report for December 2017
The REINZ House Price Index for New Zealand increased 3.8% year-on-year to 2,655. The HPI for New Zealand excluding Auckland increased 6.8% from December 2016 and Auckland’s HPI increased 0.7% for the same period. The REINZ HPI also showed that five regions (Waikato, Bay of Plenty, Tasman/ Nelson/ Marlborough/West Coast, Otago and Southland) all reached new highs during December indicating strong value growth in these areas. Regions with the highest growth year-on-year were Gisborne/Hawke’s Bay (up 15.0% to 2,332), Southland (up 13.4% to 2457) and Manawatu/Wanganui (up 11.0% to 2,437).
DAYS TO SELL The median number of days to sell a property nationally increased by one day (from 31 to 32) when compared to December 2016. Regionally, West Coast saw the biggest increase in the number of days to sell (up 26 days to 189), followed by Taranaki (up nine days to 36), Nelson (up eight days to 29) and Tasman (up seven days to 30).
Strong end to 2017, with house prices up 5.8% in December “Median house prices across New Zealand have increased 5.8% in December, representing an increase of $30,000 since the same time last year. This increase defies the predictions of many commentators who approximately a year ago were adamant that house prices would fall in 2017. There is some hope, as the rate of price increases has decreased significantly compared to previous years, meaning that if the trend continues, there is more of a chance that those saving for a house deposit can keep up with increasing property prices,” says Bindi Norwell, CE at REINZ.
$550,000
national median sale price
32
Median days to sell in DECEMBER
Median house prices for December 2017 were recorded as follows: Northland Auckland
Regions with the biggest decreases year-on-year included Gisborne and Southland (both down three days to 28 days) and Hawke’s Bay (down two days to 27) the lowest number of days to sell for the month of December in nine years.
$445,000 $870,000
Waikato
$525,000
Bay of Plenty
$598,000
Gisborne Hawke’s Bay Manawatu/Wanganui Taranaki Wellington Nelson Marlborough Tasman West Coast Canterbury Otago Southland NZ excluding Auckland NEW ZEALAND TOTAL
$305,000 $418,000 $285,000 $360,000 $560,000 $515,000 $372,000 $550,000 $185,000 $439,000 $396,000 $247,000 $450,000 $550,000
The REINZ House Price Index shows:
Increased / Decreased
MEDIAN PRICE CHANGE YEAR-ON-YEAR NATIONAL: UP 5.8% TO $550,000
RECORD MEDIAN PRICES
Waikato $525,000 Bay of Plenty $598,000 Wellington $560,000
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National
+3.8% on Dec 2016
National ex Auckland
+6.8% on Dec 2016
Auckland
+0.7% on Dec 2016
National
-0.3% on Nov 2017
National ex Auckland
-0.1% on Nov 2017
Auckland
-0.5% on Nov 2017
For more REINZ HPI information, see https://www.reinz.co.nz/reinz-hpi Source: REINZ
After Dark As dusk descends, clever lighting can accentuate your home’s best assets and alter the mood indoors and out. Not just a practical consideration, with a raft of dynamic design possibilities, lighting can enhance your experience in and around the home. Whether you are seeking to accentuate architectural features, transform your outdoor entertaining areas or inject some excitement into your interiors, lighting is a vital aspect worth investing in.
OUTDOOR LIVING Once the sun sets, clever lighting design increases safety and security, by illuminating paths, steps and doorways, while creating a captivating ambience. Dining at dusk is now a magical experience, where landscaping elements such as fish ponds, swimming pools, sculptures, trees and plantings emerge from the shadows. For a warm, enchanting glow, tea lights in glass jars can be hung from tree branches or fairy lights can be draped over table settings.
TASK VS AMBIENT Most areas in the home will benefit from a combination of task and ambient lighting, unless they function exclusively as utility spaces. Bedrooms and bathrooms, as well as living and
kitchen/dining areas will demand both as the needs of the occupants change throughout the day and night, and depending on the activity. Task lighting, in the form of LED strips can be integrated into custom-made joinery in kitchens, bathrooms, bedrooms and walk-in robes, and this can be combined with a mix of hanging pendants, wall lights and table lamps for an intimate, relaxing atmosphere.
SHOW STOPPING PENDANTS Lighting can create instant impact in the foyer, or bring focus to specific zones within larger spaces, like over the dining table in an open plan living room. High-octane drama can be created with a single statement pendant in a stairwell, or with smaller pendants clustered together at different heights. And, as powder rooms increase in
popularity, you can pull out all the stops, using a killer combination of pendant lights, mirrors and artisan wallpaper.
ARCHITECTURAL HIGHLIGHTS As technology advances at breakneck speed, developments in home automation and electrics have paved the way for ingenious and impactful lighting design – to maximise your home’s best assets after dark. Strategic lighting not only improves safety and security, but also adds magical ambience to your outdoor areas. Uplighting accentuates textures of building materials and enhances key architectural features, and this can be pre-programmed to come on the minute the sun begins to fade.
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pehi.johnston@mikepero.com Mike Pero Real Estate Ltd Licensed REAA (2008) Statement relating to passing over of information - mikepero.com/receivinginformation