REINZ Real Estate Magazine - Summer 2020/21

RealEstate SUMMER 2020/21

A REAL ESTATE INSTITUTE OF NEW ZEALAND PUBLICATION

$13.80 excl. GST for members

Digital Transformation in Property

• 2020 REINZ Awards for Excellence • Auckland Waterfront Revitalisation • Getting the deal over the line

THE 2

THE BMW 2 SERIES GRAN COUPÉ FROM $62,900* In life, you can follow ‘their style’ or define your own. This is option 2. The first-ever BMW 2 Series Gran Coupé.

The flowing contours and sporty silhouette make it every bit the classic coupé. Unrivalled handling and exhilarating performance ensure it more than lives up to its athletic appearance. Define your style in The 2 Gran Coupé.

Book a test drive at your local dealer today. bmw.co.nz/corporateadvantage *Offer based on a BMW 218i Gran Coupé at $62,900. Vehicle shown BMW 235i xDrive Gran Coupé priced from $91,400. Offer excludes on road costs. BMW New Zealand reserves the right to vary, withdraw or extend this offer. For full car specification see www.bmw.co.nz

RealEstate SUMMER 2020/21

A Real Estate Institute of New Zealand Publication

IN THIS ISSUE OUT & ABOUT 08 FEATURES 12 OBITUARIES 32 SECTOR GROUPS 40 EDUCATION 52 TECHNOLOGY 58 INTEREST STORIES 60 INDUSTRY 62 LEGAL 64

12

2020 REINZ AWARDS FOR EXCELLENCE

16 20 24 28 34

CELEBRATIONS AT 2020 AUCTIONEERING CHAMPIONSHIPS

AUCKLAND WATERFRONT REVITALISATION

40 50 58 60

MARLBOROUGH VINEYARD MARKET ENJOYING VINTAGE GETTING THE DEAL OVER THE LINE REINZ AND HOMEPREZZO LAUNCH NEW LOCAL SUBURB REPORTS THE IMPORTANCE OF ASKING FOR HELP

A YEAR WE WON’T FORGET INTERESTING LISTINGS OF 2020 DIGITAL TRANSFORMATION IN PROPERTY

ADVERTISE THROUGH REINZ The Real Estate Magazine is a quarterly publication distributed to 14,000 members of REINZ. Ad packages are available. If you are interested in advertising contact Kim Thompson - kthompson@reinz.co.nz

62

SUPPORTING POTENTIAL BUYERS

Become a Member Benefit supplier.

Contact Dee Crooks dcrooks@reinz.co.nz Wanting to sponsor a REINZ event?

Contact Louise Gordon lgordon@reinz.co.nz

KEY CONTACTS Real Estate Institute of New Zealand Inc PO Box 5663, Victoria Street West, Auckland 1142 Phone: 09 356 1755 Free Phone: 0800 473 469 Fax: 09 379 8471 Email: info@reinz.co.nz www.reinz.co.nz

Chief Executive

Bindi Norwell, Please refer all queries in first instance to Kirsty Loader, Ph: 09 356 1752, kloader@reinz.co.nz

Advisory Services

Amesha Rama, In-house Lawyer Ph: 09 359 5456, amesha@reinz.co.nz

Membership Team

Mary Rackham, Membership Services Manager Ph: 09 356 1750, mary@reinz.co.nz Karen Chambers, Membership Services Admin Ph: 09 356 1845, kchambers@reinz.co.nz Cindy Stowers, Membership Services & Web Admin Ph: 09 356 1849, cstowers@reinz.co.nz

Events

Louise Gordon, Events Manager Ph: 09 359 5454, lgordon@reinz.co.nz

Communications

Editors

Dee Crooks, Editor-in-Chief; Kim Thompson, Editor; Ph: 09 356 1753, dcrooks@reinz.co.nz

Dee Crooks, Head of Communications and Marketing Ph: 09 356 1753, dcrooks@reinz.co.nz

Design and Layout

Education

Printing

Belinda Woolrych, Education Director Ph: 09 359 5455, bwoolrych@reinz.co.nz

MacWork Design & Print info@macwork.co.nz Ovato Ltd

ISSN 2324-3791

Technology

Kirti Suman, Chief Digital & Innovation Officer Ph: 09 356 1761, ksuman@reinz.co.nz

Finance

Rowan Dixon, Chief Financial Officer Ph: 09 356 1762, rdixon@reinz.co.nz

PropertySmarts

Deborah Dunning, Product Manager Ph: 0204 185 5026, ddunning@reinz.co.nz

DISCLAIMER: Any views or opinions included in this publication do not necessarily reflect the views of the Real Estate Institute of New Zealand Inc but remain solely those of the author(s). REINZ is grateful to the companies who have advertised in The Real Estate magazine who enable us to bring this publication to our members. However, placement of advertising in this publication does not constitute an endorsement of the products and/or services shown. Neither is REINZ responsible for the accuracy of any advertising material.

Get onto your CPD now E DECEMB

R

31

– the last day to complete CPD for the year

The rules for new salespersons completing CPD changed this year. Salespersons who were newly licensed before 1 September this year must complete CPD in 2020.

If you’re a supervisor, you should check that your salespersons are on track to meet their obligations.

If they don’t complete their training by 31 December, their licence may be cancelled.

Make sure you understand your CPD requirements.

Visit rea.govt.nz/cpd rea.govt.nz/cpd

linkedin.com/company/realestateauthority

CEO UPDATE

Navigating through 2020

Bindi Norwell, CEO, REINZ

And just like that, we are at the end of another year. Over the last nine months or so, New Zealand has been moved up and down alert levels and we’ve gone in and out of lockdowns. Throughout the year, the real estate profession has stood strong, been flexible, adopted new technology and innovations and persevered. Hopefully now, we have a chance to reflect on the year that has been, acknowledge our learnings and celebrate all that we have managed to achieve.

REINZ has continued to work closely with Government and policy makers this year in regard to not only COVID-19 and the relevant guidelines issued throughout the year, but also making strides towards our decade long goal of regulating the property management profession. Before the October election, the Associate Housing Minister announced that they had heard the calls of the industry (including REINZ’s A Call for Change campaign) and committed to introducing a Code of Conduct for property managers. Additionally, Labour’s promise to review and amend the Unit Titles Act has been welcomed by REINZ, as it will provide greater transparency for consumers when buying apartments or townhouses run by bodies corporate.

The Residential Tenancies Amendment Bill 2020 received Royal Assent in midAugust, with some provisions taking effect immediately, while others will come into effect over the next year. Read more about the impacts of some of these changes on page 46.

2020 also saw the implementation of the Healthy Homes Standards Compliance Statement from 1 December (delayed five months from the initial 1 July deadline due to COVID-19). The Privacy Act 2020 has also now come into force, effective 1 December 2020 – you can read more about this on page 64.

This year, more than ever, the last quarter has been extremely busy for REINZ with five of our major events held in October and November. However, we are delighted that we were still able to have these events face-to-face with all of you, after so much uncertainty around events for so long.

6

|

The Real Estate Institute of New Zealand

The REINZ School Auctioneering Championships were held on 10 October, with competitors coming from three different schools this year – more on this on page 18. The Rising Star and Senior categories of the REINZ National Real Estate Auctioneering Championships were held on 1 – 3 November with a record number of competitors. Congratulations to Ned Allison for taking out the Senior Competition, and to Tina Chamberlain for winning the Rising Star’s category – the first time a female has taken the title. Read a full breakdown on page 16.

The Inspire | Motivate | Connect Conference and the Residential Property Management Conference were both held in mid-October with fantastic crowds of 250 – 300 people. Although we couldn’t have our international speakers there on the day, we were thrilled to be able to bring them to the stage via live hologram. This technology is something relatively new to the New Zealand Conference circuit and worked as a great solution to the barriers of COVID-19.

More about both of these conferences can be found on pages 38 – 39.

The 2020 REINZ Awards for Excellence were also held in mid-November with more than 550 attendees at red-carpet event, held at Cordis, Auckland. Congratulations to all the winners and finalists from the evening. A full list of winners and photos from the evening can be found on pages 12 – 15.

From an economic front, the last few months have continued to show the strength of the property market in New Zealand, with new record median prices being set each month. October was a particularly strong month with REINZ data

showing New Zealand reached a record median price of $725,000 and Auckland hit a median house price of $1,000,000 for the first time. David Norman has given us more insight into the economic state on page 24. We also shine a spotlight on different regions across the country, with a focus on Auckland, Marlborough, Taranaki and Wellington throughout the magazine.

Digital transformation continues to be an important aspect of the real estate profession, particularly as we face new challenges – I talk more about this on page 34. As part of REINZ’s ongoing dedication to bring new technology to the profession, we are excited to launch the new Local Suburb Guides along with HomePrezzo, which you can now use to create and personalise your own report with REINZ’s latest property market data through the REINZ Statistics platform, ready to distribute however you please – you can read more about this new product on page 58 – 59.

I’m always proud of the fantastic work the REINZ team undertakes, but in this year of COVID-19, I really want to make special mention of just how hard the team has worked. So, thank you for going above and beyond and for everything you’ve done for our members this year.

As we approach the final weeks of the year, we want to thank you all for your ongoing support and wish you a Merry Christmas and a Happy New Year. I hope you have a well-deserved break, enjoy the sunshine and find a great new location for a holiday destination. See you next year.

Merry Christmas!

Bindi Norwell

YOUR s s e cc

u S

At Harcourts as a Business Owner, helping you achieve success is OUR COMMITMENT.

Harcourts provides you with the strength of our global brand, world-class training, industry leading technology and international awards and recognition. Established on the foundations of a strong values-based culture, our commitment to helping others achieve success provides you the environment to sustainably and profitably grow your real estate business.

Find where you belong.

harcourts.co.nz/joinus Harcourts Group Ltd Licensed Agent REAA 2008.

OUT & ABOUT

Property Brokers acquires Southern Wide Otago On 30 September, Property Brokers proudly welcomed Southern Wide Otago into the Property Brokers family. As one of the largest non-franchised real estate companies in New Zealand, this move further reinforces its presence in the Otago Region.

John Faulks, Managing Director Otago / Rural Sales of Southern Wide Otago, says, “It is with great excitement that we are joining the New Zealand family-owned business of Property Brokers. We are in the envious position that the two cultures are very similar, and we will be able to add more value to our staff and clients with their superior systems, structures and nationwide network.

These factors, combined with Property Brokers’ regional focus on being part of the local community, will allow us to grow our people and client base and thrive in the Otago Region.�

Property Brokers is a proudly provincial company, is 100% New Zealand owned and has more than 750 staff across 70 locations, from the top of the north to the deep south.

Property Brokers & Southern Wide: from left Russell Lundy, Guy Mordaunt, Bill Highet and John Faulks

Bayleys expands the scope of its southernmost operations Leading national real estate agency Bayleys has expanded the scope of its southernmost operations, acquiring a shareholding in a boutique Southland property company specialising in farm sales.

Bayleys Southland and Country & Co Realty Limited will now be rebranded under the name Country & Co, in partnership with Bayleys.

Bayleys Southland is part of Bayleys Real Estate – New Zealand’s largest full-service real estate agency, with a network of some 90 offices nationwide and more than 2000 employees.

Country & Co Realty Limited has been operating in Southland for four years – and is now the leading rural real estate agency in the region. The agency has a current sales team of four personnel – comprising Pip Ryan, Paula Laughton, Matt Harrington, and Shay Moseby – who are all shareholders in the company. Combined, the quartet has more than 65-years rural real estate sales experience.

Best in New Zealand Barfoot & Thompson were recently named the best in New Zealand real estate through the International Property Awards, scooping awards in all five categories they entered in the Asia Pacific Property Awards 2020-21 category.

B đ&#x;?† est Lettings Agency đ&#x;?†Best Real Estate Agency Marketing đ&#x;?†Best Real Estate Agency Website đ&#x;?†Best Real Estate Agency - Over 20 Offices đ&#x;?†Best Real Estate Agency - Single Office (Pukekohe branch).

The leadership credits this amazing win to the collective efforts of the Barfoot & Thompson team.

Cooking up a storm for Starship The Barfoot & Thompson team have been cooking up a storm for the Starship Foundation with the launch of their lockdown-inspired cookbook, ‘Recipes from our Bubbles’. Cookbooks are being sold by local branches and online for $30. There is also the option of purchasing two cookbooks for $50, with one being gifted to a Starship essential worker who continued their role through lockdown.

8

|

The Real Estate Institute of New Zealand

Bayleys Taranaki acquires TSB Real Estate One of Taranaki’s biggest real estate companies has bought out one of the region’s oldest and most-established property sales institutions.

TSB Real Estate, which opened 30 years ago as a division of Taranaki Savings Bank (TSB), was acquired by Bayleys Taranaki on 22 October. It is Bayleys’ second buy-out of a Taranaki real estate firm in the last two years, having acquired Urban Studio in 2018.

Dean File, Bayleys Taranaki General Manager says: “We look forward to welcoming TSB Real Estate’s well regarded agents into the Bayleys family and helping them grow their business in a focused real estate environment.�

Quarterly winners named

by Century 21 Century 21 Queen Street Realty only opened a few months ago, yet the new franchise has scored three big victories in Century 21 New Zealand’s awards for the third quarter of 2020.

Queen Street sales star, Winson He, won Top Salesperson for the Quarter for both GCC (Gross Closed Commission) and Units (the number of properties listed and sold). Winson He also received a Platinum Award for sales.

OUT & ABOUT

Catch Barfoot & Thompson Property Management on air The Barfoot & Thompson Property Management team have taken to the air with the launch of their new radio show, Property Matters on Mondays at 4.15pm on Planet FM 104.6. The show features the latest news, updates, advice and opportunities in the property rental space. The inaugural episode kicked off with Kiri Barfoot sharing top property investment tips and the weekly shows will feature property managers providing expert advice.

“Our newest franchise in the heart of central Auckland is off to a flying start! Such early success reinforces the traction the reinvigorated Century 21 brand has been getting over the past year or so,” says Derryn Mayne, owner of Century 21 New Zealand.

Another starring central city franchise was Century 21 The Moshi Group, in Wellington’s Courtenay Place. Principal Alen Moshi took out Top Principal for both GCC and Units, while the team won Top Office for both GCC and Units. Alen Moshi also won a Diamond Award for sales.

Other Platinum recipients were Christine Stevens (Century 21 Stevens Realty, Mangakino); and Ivan Rakich (Century 21 Darrak Realty, Albany).

A milestone, three decades in the making Tuesday 18 August was a milestone for Roger Dawson, and one that could have easily slipped under the radar in these tumultuous times. While the rest of New Zealand was coming to terms with an abrupt end to Level 1, Roger was getting on with business and calling his 10,000th auction.

The Harcourts Grenadier auction specialist began his real estate career in 1983 and has been navigating sellers through sometimes choppy economic waters for over 30 years.

“This is just one of many uncertain environments we’ve been through, particularly here in Christchurch,” says Roger. “The stock market crash, the GFC, the earthquakes… but the reality is that people still buy and sell houses in uncertain times. Their family is growing, someone has died, a marriage has broken down, they’re retiring, or they want to reduce their costs. The reasons are generally the same, regardless of what else is going on in the world.”

Roger Dawson

RE/MAX New Zealand’s Queenstown rally sets high benchmark RE/MAX New Zealand recently held its second rally for the year in Queenstown with RE/MAX New Zealand CEO Don Ha commenting: “This is the first time the RE/MAX six-monthly awards have been held outside of Auckland. We decided on Queenstown to support the local economy as it has been hit hard by COVID-19.

“We won’t let this crisis steal our entrepreneurial dreams. We’re always moving forward and through the challenges, and there have been some amazing achievements throughout our network.”

The rally featured great speakers from RE/MAX ranks and external speakers including heavyweight champion title holder, Joseph Parker, who weighed in on the event in person to ‘punch out your doubt’, while Warren White, introduced by Mr Ha as ‘a legendary name in real estate’ discussed ‘resetting in the current climate’.

SUMMER 2020/21

|

9

OUT & ABOUT

Professionals Lower Hutt fundraising auction for Child Cancer Foundation Earlier this year Professionals Redcoats Limited held their Bevvies & Bid Charity Auction at the Lower Hutt Events Centre with over 300 people in attendance. With items for the auction generously donated by local people and businesses, they ended up raising over $44,000 for Child Cancer Foundation.

Professionals Lower Hutt alone has now contributed over $150,000 towards more than $5 million, raised overall by Professionals Real Estate Group.

Professionals have been a dedicated leading partner to Child Cancer Foundation since 1994. Child Cancer Foundation provide vital emotional and practical support for thousands of Kiwi families affected by childhood cancer.

Harcourts Charlton Property Management raises funds for I AM HOPE The I AM HOPE charity is able to continue its great work giving school talks across New Zealand, with a $6,900 donation from Harcourts Charlton Property Management through the Harcourts Foundation.

The charity travels the length and breadth of Aotearoa giving young people the opportunity to contribute directly to the social change I AM HOPE is working towards. Donations to I AM HOPE help keep the national conversation going with children and young people, by involving them and talking with them in their schools.

Owners of Harcourts Charlton Property Management said: “The work I AM HOPE do is life-changing, so we are thrilled to be able to help this charity continue to thrive with their excellent work”.

“The schools who open their doors so I AM HOPE can speak directly to their students are giving young people ownership of their own mental health development. We know this is something that will benefit each and every one of them longterm. We really hope that as more people become aware of this amazing charity, the more awareness there will be around the amazing work they do on a daily basis.”

Ray White Russell raises over $22,000 for women’s cancer Ray White Russell Director Dianne Wynyard and her daughter Glenda Wynyard have successfully raised $22,664 for women’s cancer research.

Dianne Wynyard said out of the 770 walkers in the Hawaiian Walk for Women’s Cancer, she finished fourth and her daughter was sixth on the fundraising ladder.

“Thanks to the support of the residents of Russell, and Glenda, we were able to raise more than $22,000 for this incredibly important cause.

Incredibly, Ray White also hosted a ‘blazing’ sausage sizzle at the finish line, and this raised $1,025 on its own.

“I was the oldest person to complete the walk and I would like to say a big thank you to my daughter, the Ray White corporate team, and the media for their exposure. The whole experience has been incredible and the support from Ray White New Zealand CEO Carey Smith has been amazing. Hopefully I have helped along the way.”

Professionals NZ receive top awards Professionals New Zealand was proud to announce the New Zealand winners from the Professionals Australia International Awards.

International Professionals Group Top Principal – GCI Colin Lock, Professionals Christchurch Ltd International Professionals Group Top Sales Team – GCI and Sales Team Brockelbank, Professionals Lower Hutt International Professionals Group Salesperson of the Year – GCI and Sales Wayne Barton, Professionals Wainuiomata International Professionals Group Office of the Year Professionals Lower Hutt

Dianne Wynyard (centre of the three) with fellow walkers Kerry Steel (left) and Colette Kershaw (right)

10

|

The Real Estate Institute of New Zealand

Professionals Group Top Company of the Year Professionals Redcoats Limited

OUT & ABOUT

SPOTLIGHT

Property Brokers announces appointment of Guy Mordaunt as Managing Director Property Brokers has recently announced the appointment of Guy Mordaunt as Managing Director. Guy takes over from outgoing Chief Executive Officer Bill Highet, after having worked through various roles in Property Brokers for over ten years.

Guy Mordaunt says, “It is an incredibly exciting time to be stepping into this role with Property Brokers at the forefront of the real estate industry. Over my ten years in the business, it has grown and stepped from strength to strength, into an organisation that delivers outstanding results for our clients and people and a Kiwi company New Zealand can be proud of.

From left Bill Highet, Tim Mordaunt, Guy Mordaunt

After over five very busy years at the helm, Bill Highet has decided to tender his resignation to spend more time with his family after many years of commuting between Auckland and Palmerston North.

“Although very sad to see Bill go, we completely understand his desire to spend more time with his family, and tip our hat to the fact that a huge part of our growth and success over the past five years has been down to his stewardship.”

During his time with Property Brokers, Bill has lead Property Brokers’ rebranding, and transition, from a team of 300 into a team of over 800 strong, spanning the length and breadth of provincial New Zealand. His dedication has resulted in the continued growth of a fiercely provincially-focused business.

“I have loved every minute of being a part of the Property Brokers family, and the decision to step out of the role of CEO has weighed heavily on my heart. Property Brokers people are some of the very best you’ll ever have the pleasure of meeting. I will cherish the friends I have made and hold onto the accomplishments that are part of my history,” he says.

Barfoot & Thompson Quiz Night fundraiser With a whopping total of $198,000, the Barfoot & Thompson Quiz Night fundraiser for the Starship Foundation was an outstanding success and its best result to date. Barfoot & Thompson has been a sponsor of the Starship Foundation since 2003 and a Five-Star Partner since 2004.

From company-wide initiatives, branch fundraising events, and individual salespeople’s efforts, the company is involved at every level in supporting the hospital and the people who are making a difference to Kiwi children’s lives.

The annual Starship Quiz night is always a highlight on the fundraising calendar, bringing our people, suppliers, and partners together in a fun environment to raise as much as possible for the Starship Foundation.

SUMMER 2020/21

|

11

2020 FEATURE

REINZ AWARDS FOR

EXCELLENCE

Bindi Norwell

Surprise performance from kiwi artist, Che-fu

The 2020 REINZ Awards for Excellence were hosted at Cordis Auckland on 17 November, with more than 550 attendees from across the country. As usual, this was a fantastic evening and a great opportunity to come together and celebrate the success of the profession. 41 awards were presented to individuals, offices and agencies from different sectors of the industry.

Bindi Norwell, Chief Executive at REINZ says: “Every year we have a significant number of high-calibre entries, many of whom have won their own local or agency awards making for some extremely tough competition. It has been great to be able to come together and celebrate success from across the country. To win one of these awards is to be the best of the best, and that is a noteworthy achievement.

12

|

The Real Estate Institute of New Zealand

“Thank you for helping to raise the bar of the real estate profession and for all your hard work,” concludes Norwell.

Many thanks to our key partners who make these events possible; realestate.co.nz and ABC Photosigns.

More photos from the evening can be found at www.facebook.com/ realestateinstitutenz

FEATURE

Residential Property Management Awards • Residential Property Manager – Rising Star of the Year: Sue Christie – Goodwins, Auckland • Residential Property Manager of the Year: Jen Neil, Harcourts Accommodation Centre, Christchurch • RPM Business Development Manager of the Year: Brendan Goodwin - Goodwins, Auckland • Small Office of the Year: Barfoot & Thompson, Stonefields • Medium Office of the Year: Harcourts Orewa – Tandem Property Management • Large Office of the Year: Crockers Property Management, Epsom

realestate.co.nz Multimedia Marketing Award • Scott Campbell & Shelley Molloy – Bayleys South Auckland Industrial

Innovation Award • Property Brokers – Property Management Integration

Community Awards • Small Winner: Bayleys Gisborne • Medium Winner: Whalan & Partners, Bayleys Christchurch • Large Winner: Harcourts Cooper & Co

Individual Real Estate Sales Awards • Manager of the Year: Megan Jaffe – Megan Jaffe Real Estate, Ray White, Remuera • Office Administrator of the Year: Jacky Grant – Goodwins, Auckland • Personal Assistant of the Year: Alice Napier – Lowe & Co Realty, Wellington

Residential Sales • Residential Rising Star of the Year: Richard Thode – Ray White, Epsom • Residential Salesperson of the Year – Volume: Cameron Bailey – Harcourts Gold Real Estate, Papanui • Residential Salesperson of the Year: Cameron Bailey – Harcourts Gold Real Estate, Papanui • Small Residential Office of the Year – Volume: Property Brokers, Waipukurau • Small Residential Office of the Year: Mat Andrews Real Estate, Bayleys Wanaka

• Medium Residential Office of the Year – Volume: Property Brokers, Whanganui • Medium Residential Office of the Year: Bayleys Ponsonby • Large Residential Office of the Year – Volume: Barfoot & Thompson, Pukekohe • Large Residential Office of the Year: Megan Jaffe Real Estate, Ray White, Remuera

Business Brokerage • Business Broker Rising Star of the Year: Jeff Wiley – LINK Business, Ellerslie • Business Broker Salesperson of the Year: Bruce Cattell – LINK Business, Ellerslie • Small Business Brokerage Office of the Year: LINK Business, Christchurch • Medium Business Brokerage Office of the Year: LINK Business, Bay of Plenty • Large Business Brokerage Office of the Year: LINK Business, Ellerslie

Commercial and Industrial • C&I Rising Star of the Year: Matt Webb – Regent Realty NAI Harcourts, Hawke’s Bay • C&I Salesperson of the Year: Greg Goldfinch – Colliers International New Zealand, Highbrook • Small C&I Office of the Year: CBRE, Wellington • Medium C&I Office of the Year: Colliers International New Zealand, Highbrook • Large C&I Office of the Year: Bayleys House, Auckland

Rural • Rural Rising Star of the Year: Dave Hutchison – NZR Real Estate, Wairarapa • Rural Salesperson of the Year: Ben Turner – Whalan & Partners, Bayleys Christchurch • Small Rural Office of the Year: Country & Co Realty, Invercargill • Medium Rural Office of the Year: Success Realty, Bayleys Hamilton • Large Rural Office of the Year: Bayleys Country, Tauranga

Agency Awards • Small Agency of the Year: LINK Business • Medium Agency of the Year: Harcourts Cooper & Co • Large Agency of the Year: Barfoot & Thompson

SUMMER 2020/21

|

13

FEATURE

14

|

Large Agency of the Year: Barfoot & Thompson

Medium Commercial & Industrial Office of the Year: Colliers International NZ, Highbrook

Community Award – Large: Harcourts Cooper & Co

Vanessa Taylor, realestate.co.nz

S mall Business Brokerage Office of the Year: LINK Business, Christchurch

S mall Residential Office of the Year – Volume: Property Brokers, Waipukurau Medium Residential Office of the Year – Volume: Property Brokers, Whanganui Innovation Award Property Brokers – Property Management Integration

The Real Estate Institute of New Zealand

FEATURE

Aaron Toresen, LINK Business

Large Residential Office of the Year: Megan Jaffe Real Estate, Ray White, Remuera

Large Rural Office of the Year: Bayleys Country, Tauranga

LINK Business celebrating a win

Residential Rising Star of the Year: Richard Thode – Ray White, Epsom

Jane Hamilton, Property Brokers

CONGRATULATIONS TO ALL THE WINNERS FROM OUR EVENT SPONSORS

SUMMER 2020/21

|

15

FEATURE

Celebrations at 2020 Auctioneering Championships

Mark Sumich, Chief Judge

Four and a half months after we had initially hoped to crown our 2020 New Zealand Auctioneering Champions, 46 auctioneers were awoken from their slumbers. REINZ hosted the 20th edition of this epic event a fortnight back at their palatial Grafton premises and no-one was disappointed. Some had been ready to peak in June, others at the amended September date, but two in particular had sat back and they pounced when Melbourne Cup Day was confirmed as 2020’s auctioneering Everest.

22 raconteurs emerged in the Senior Division for the new 2-Pool qualifiers and were put through a thorough examination in their Monday Heat. Properties in Cust and New Plymouth were under the microscope from this courageous collection of callers.

Some ended up being knackered in the Naki, while others cursed and cussed their way through North Canterbury.

While the late withdrawal of senior callers John Bowring and Mark McGoldrick was a shame, the surprise reappearance of 4-time winner Andrew North gave the field some real impetus and ensured that there would be no asterisk (ala Liverpool) alongside any victory.

Organisers were delighted with the 2-Pool concept, where seedings were announced, lots drawn for pool placements and sequences, while randomness played its role in which pool went first. There was nothing random about the potency of the standard, with Chief Critiquer and 2006 champion Phillip McGoldrick, elated at the overall standard, murmuring that the “bar had been well and truly raised”.

The emergence of youth in our ranks was a particularly welcome facet of the competition, but when the six sage selectors had their say, the average age of the finalists was no less than 45. While it is easy to say that the gap between the

16

|

The Real Estate Institute of New Zealand

top callers and the next tier is closing, the fact remains that these top few remain at the peak of their powers and are extremely hard to topple in a structured and tough introspection of one’s skills.

Defending champion Aaron Davis was sublime on Day 1, although that favourite’s tag has never sat overly straight around his broad shoulders. The aforementioned North brought all his vim and vigour to the rostrum and while there were a few questions asked, his vast experience saw him safely through. Perennial finalist Robert Tulp had undergone plenty of tweaking over the preceding weeks and his Heat call reeked of polish and pizazz, as he wandered into his umpteenth decider. Ned Allison is no slouch, nor is he a slow learner. The fallout from his failures in ‘18 and ‘19 had been a heavy burden following his flawless ‘17 victory, but he used those lanky levers to lasso himself straight into the shootout.

His Cantabrian colleague Conor Patton has been similarly frustrated of recent years, but 2020 had seen him pick up the Apollo title over that giant of Sydney Auctioneering, Clarence White. His riposte was a mercurial Heat call, a peerless precursor to yet another go at the gong. The forlorn Shane Cortese bristled with energy and left no stone unturned in classily chasing his stated bottom line… “a finals possie”. And he had it, but for a torturous 20 second

FEATURE oversight which opened the door - could anyone enter? In strolled the Swananoa Senorita, the ubiquitous Lisa YardleyVaiese. Looking like a mix of Trelise Cooper and Judi Dench, she just waltzed straight on through Cortese’s front door and into her debut REINZ final. It was noteworthy that Lisa had become our second only female finalist after Marian Tolich’s ‘come from nowhere’ performance at the turn of the century.

The emotions ran high that evening. 22 had put 16 months of preparation into that one call and despite having to only wait 8 more months for another crack, this is scant consolation. We saw career best calls from some (you know who you are), while very few were disappointed with this next rung on their ladder. It is fair to say that some of that mighty Marlborough Sauvignon Blanc may have played its part, but overall, it was clear that plenty of work had been done.

Melbourne Cup day saw the 6 finalists vanish to yet another multi-million-dollar pad miles from the City, while 24 Novices got the whips out, chasing an inscription on the Colin Brown Memorial. A 7am lockup proved challenging, but they all made it and when David Palfreyman emerged at 8.02, most of the judges were wiping bacon and eggs from their shirts. While David didn’t necessarily threaten this year (keep an eye on him though), many did and the event was literally in the balance until Travers Smyth traipsed off stage (full of pride) at 2.27pm. The raising

Lisa Yardley-Vaiese and Ned Allison

of the qualifying bar to “no more than 50 calls at the time of entry” ensured that this was always going to be a tough gig to conquer. Not one caller let themselves down and auctioneering backwaters such as Gisborne, New Plymouth, Dargaville and Dunedin provided plenty of panache, a plethora of passion and practically pictureperfect performances in front of rapturous audiences.

The fateful clock played its part again as some of the rookies liked the sound of their voice a little too much and cost themselves higher finishing positions. In the end we were thrilled to welcome our first ever female novice winner when the utterly delightful Tina Chamberlain capped off a tumultuous personal month with a stellar call and a highly emotional win. Tina’s drive and personal goals to bring an auction culture to the Hawke’s Bay is admirable and with top judge Sabine Davison of similar inclination, the Log of Wood may not be the only silverware residing in those Eastern regions.

Overall, the novvies were yet another notch up from previous encounters, with many having a real grasp of the competition nuances and displaying very employable credentials. Craig Stewart copped a few time infringements and allowed young Mike Wilson to leap into the silver medal possie, with particularly honourable mentions to Todd Sherley, Steph Bradley, Craig Stewart and Travers Smyth who completed the Top 6. All callers should be particularly upbeat over their calls and take the competition

as a springboard to furthering their auctioneering careers.

The Senior Final was always on a knife-edge with the Melbourne Cup imminent, so the callers entering with their $4M reserve, did not really need to be interjected by the Vendor prior to the start, to say that he had waived the Reserve and that the property was for sale to any bid! Overall that aspect was not particularly well handled, but the rest of it was. All 6 showed genuine class with plenty of positives throughout their 15 minutes. Patton was unique in his machinations and delivery as he sought his first win, the follically-challenged North was clever and direct as he chased a best-ever fifth win, Tulp was immediately proficient and in “sale” mode, chasing that inaugural title with accuracy paramount, Allison was outstanding in his vocabulary repertoire, his numerical prowess and his spontaneity, Yardley-Vaiese was proud, defiant and initially stoic in her resilience, while Davis was magnificent in defence of his crown, with astonishing numerical subtleties… until the very last bid.

The result saw Robbie Tulp grab his third runner-up medal, this time to the now “2-time winner”, Edmund Allison from Christchurch. Ned as he is affectionately known, is a dynamic and smart caller. He understands the competition idiosyncrasies intrinsically and had learned many lessons since his first title 3 years back. He now joins Roger Dawson and Daniel Coulson as 2-time winners of this prestigious title.

Mike Wilson

Robert Tulp

Tina Chamberlain

Ned Allison

SUMMER 2020/21

|

17

FEATURE

Kerikeri High School student wins 2020 REINZ Auctioneering Schools’ Championship REINZ is delighted to announce that Nicolas Powell, a Year 11 student at Kerikeri High School, is the winner of the 2020 REINZ Auctioneering Schools’ Championship.

In addition to being the 2020 REINZ Auctioneering Schools’ Champion, Nicolas is in the first XI football team, 1st XI cricket team and the school’s jazz band.

He is a librarian, enjoys debating, and has other extracurricular roles both at school and within the wider community.

The runner up in the competition was Molly-Love Louise, a Year 12 student from Epsom Girls Grammar School in Auckland. Molly-Love enjoys economics, learning new languages and all things sales-related.

This result comes after an afternoon of intense competition held at Events on Khyber in Grafton where 12 secondary school students from Kerikeri High School, Epsom Girls’ Grammar School and Diocesan School for Girls were vying to take out the title.

Bindi Norwell, Chief Executive at REINZ says: “The Schools’ Championship is such an exciting competition, getting to see these young adults try their hand at something new, and being so talented at it – it was certainly an impressive display of skills. Congratulations to all those who entered and thanks to their mentors who supported them with the challenge.”

Kerry Greenhalgh, Chief Judge of the Schools’ Championship says: “This is the third year of the REINZ Auctioneering Schools’ Championship and from humble beginnings this competition has morphed into a most highly recognised and anticipated date on the school calendar, as a vehicle for students from all backgrounds to certainly pit themselves against each other, but perhaps more importantly, against themselves, in the quest for greater self-confidence, self-esteem and self-belief.

“As time passes it seems very obvious that real estate is becoming increasingly a young person’s business, and, as an industry, it is imperative we continue to strive and encourage young adults to be confident that there is a long term career path in this most rewarding industry,” he concludes.

18

|

The Real Estate Institute of New Zealand

FEATURE

Auckland Waterfront Revitalisation

Fiona Knox, Priority Location Director – Waterfront, Panuku Development Auckland

One of the largest and most successful urban regeneration projects in New Zealand – Auckland’s inner-city waterfront, continues to evolve as a world-class public space to be enjoyed by Aucklanders and visitors alike.

20

|

The Real Estate Institute of New Zealand

FEATURE Over the past two decades, the regeneration of Auckland’s newest neighbourhood, Wynyard Quarter, has seen it evolve from an industrial port, once closed to the public, to a treasured place, guided by the people of Auckland who are passionate about the future of their citycentre waterfront.

Through wide consultation, Auckland Council, former councils (Auckland City Council, Auckland Regional Council), and other key organisations (Sea+City and Waterfront Auckland) have collated the public’s views into a number of strategic plans and documents in order to shape the city’s waterfront.

Opening up ways to explore and connect are a key component of these plans, as is ensuring that the design strongly reflects the waterfront’s heritage and retains elements of the area’s industrial history.

Mana whenua have participated in plans and the development at every opportunity, and their input is reflected in everything, from design and artwork to traditional native plantings, specifically created for our coastal conditions.

Panuku Development Auckland, on behalf of Auckland Council, is working closely with private sector partners to deliver this vision.

Our role is to ensure the area is developed in a place-based way. Key to this is agreeing up-front on key outcomes with development partners to create sustainable high-quality commercial, residential and public spaces designed with people and play at their heart.

We are now at the stage where we have or are about to open a range of major developments on the waterfront.

New Zealand’s first five-star Park Hyatt brand hotel recently opened on the eastern edge of Wynyard Quarter.

Reflecting its Waitematā Harbour location, the exterior design centres on the notion of a Māori cloak - embraced around the seven-storey building. Surrounding the Park Hyatt is a stunning water’s edge walkway, Ūrunga Plaza, offering unique views of the harbour. Connecting Karanga Plaza to the viaduct promenade for the very first time, the site’s transformation from industrial use to a public space was an exciting and welcome milestone.

Westhaven Marina

As the events of 2020 have shown, nothing is more important than building resilient, adaptable neighbourhoods, and Wynyard Quarter delivers an enviable range of high-quality sustainable housing for those looking to make this lively area their home.

Stunning apartments, townhouses and duplexes provide numerous opportunities for those looking for central waterfront living, including the award-winning Wynyard Central, 32 Halsey, and the soon to be completed 30 Madden.

As Wynyard Quarter’s business hub flourishes, the next development phase of the Innovation Precinct with our development partner, Precinct Properties, is already well underway with 10 Madden Street soon to open as the Media Design School’s new campus. As the only education provider to have a presence in the Innovation Precinct, its students at the private tertiary institute will be at the epicentre of New Zealand’s tech industry, with exciting opportunities right on their doorstep.

Cleverly weaving the entire neighbourhood together are pedestrian, pet and bike friendly laneways, playgrounds and open public spaces including the recently opened Amey Daldy park. As well as providing spaces to play and relax, these areas are home to some of Auckland’s most-loved events and activities and with new downloadable audio and visual guides available across the neighbourhood, exploring and connecting Wynyard Quarter’s landmarks has never been easier.

While new landscaping, street furniture and public artworks grace the surface, work is also happening below ground. New piping, combined with clever landscape design such as the tidal streetscaping of Tīramarama Way (stage 2), will filter stormwater before it flows into the harbour, and upgrading of the sewer network will support the forecast number of new residents in the neighbourhood.

North Wharf

SUMMER 2020/21

|

21

FEATURE

When it comes to entertainment, food and drink, Wynyard Quarter has quickly established itself as a popular destination with its variety of restaurants, cafes and an enticing calendar of events. It’s also busy preparing for a date at the end of the year with the 36th America’s Cup. Together with Wynyard Edge Alliance, Panuku has created a welcoming waterfront destination that will last well beyond a single sporting event, supporting our marine industry into the future. As well as platforms, berths and infrastructure for the syndicate bases, we’ve added additional public spaces including the newly-opened Silo Park extension.

Locals and visitors alike will be able to experience the excitement of the Race Village, situated on Hobsons Wharf. Opening from 15 December 2020, it stretches through the Eastern Viaduct and Western Viaduct up to the Jellicoe Car Park, with public access completely free. And, while we may not have re-opened our borders to international visitors when racing starts, the world will be able to experience the drama of the 36th America’s Cup, as well as the magnificence of Auckland and its waterfront through extensive international broadcasting and online coverage.

Auckland’s maritime industry is an important feature of the waterfront’s regeneration and we’ve partnered with Orams Marine, to support New Zealand’s leading role in the competitive international marine industry. At the corner of Beaumont and Jellicoe streets, known as Site 18, building of a marine centre is underway with a dedicated superyacht refit facility.

Jobs, offices, commercial space, and apartments will also feature in this exciting waterfront development.

Panuku has also restored the Percy Vos Boat Shed on the western edge of

22

|

The Real Estate Institute of New Zealand

Silo Cinema, Wynyard Quarter

Wynyard Point. As the first and last place in the country to build wooden boats, the shed and slipway are still in much the same condition as they were when the famous yard closed its doors in 1994. We’re converting this historic boatyard into a public place where visitors will have the chance to see, smell and participate in wooden boat-building, as well as learn more about Percy Vos. In the heart of Auckland’s marine precinct this working maritime heritage centre will alongside other key sites across the Auckland waterfront, acknowledge the importance of the City of Sails’ marine past.

Neighbouring Wynyard Quarter is Westhaven Marina, the largest marina in the Southern Hemisphere. Unmistakably one of Auckland’s most iconic locations, Westhaven Marina offers a welcome shared space both on and off the water for people from all walks of life to enjoy.

Westhaven Marina is currently undergoing one of the largest periods of development since it was founded in 1940. It is currently home to 1,800 recreational boats, four yacht clubs, many marine businesses, several hospitality establishments and occasionally, Owha the leopard seal.

There are a multitude of legacy projects underway that will improve the space not just for marine use, but for all Aucklanders to enjoy. Recently completed projects include a new section of promenade boardwalk along the water’s edge and the adjoining marine village. In a time of change, Westhaven Marina, remains a facility dedicated to the interests of boating and to the industry that the sector supports.

What’s next?

As the saying goes, good things take time, and the regeneration of this key

FEATURE

Westhaven Marina

TÄŤramarama Way, Wynyard Quarter

neighbourhood will continue over the next two decades. Once complete, Wynyard Quarter will be home to about 3,000 residents and 25,000 workers, who will be able to enjoy the parks, playgrounds, event spaces and laneways with great pedestrian, cycling and public transport links, throughout this prime waterfront neighbourhood.

Looking to the future, the development of the waterfront will continue to progress.

Panuku is currently reviewing a long-term strategy for development of Wynyard Point and surrounding areas and public consultation on the plan will begin early next year. The Wynyard Point Draft Masterplan will propose a refresh for the Wynyard Precinct as part of the Waterfront Plan. Wynyard Point is proposed to provide a mix of residential, retail, public open space and commercial development enabling the growth of a strong, diverse, resilient and vibrant community that is future-ready.

SUMMER 2020/21

|

23

FEATURE

A year we won’t forget The headlines

The textbooks never teach you how to forecast economic outcomes based on public health alert levels. Yet here we are, almost through a year we won’t ever forget.

Around 80,000 people have lost their jobs since March, and the unemployment rate has surged to, in our view, significantly above the official estimate of 5.3% for New Zealand and 5.6% for Auckland.

A second lockdown and a lower level of wage subsidy support than during the first lockdown meant Auckland’s unemployment rate has risen faster than the rest of the country’s.

New Zealand GDP fell by 12% in the June quarter, the biggest ever decline. The impact in Auckland is likely even higher.

That’s what happens when you shut down huge swathes of your economy for weeks to prevent a lethal virus from spreading through your population.

We are not out of the woods yet. Even without further lockdowns, it is likely the unemployment rate will rise. We anticipate

David Norman, Chief Economist, Auckland Council

it will peak around 7% although the official measures may show it peaking at a lower figure.

What we have learned?

We have learned a lot of lessons in the pure economic sense: • The pandemic can be beaten back through quick, decisive action • The cost of inaction, or the relative merits of our approach versus other countries’ approaches, have yet to be calculated.

This will be the subject of endless empirical studies in years to come • Ongoing process improvement must occur to overcome gaps we never knew existed just a few weeks ago, particularly at the border • Complacency literally kills

Unemployed: MSD Benefit recipients vs Stats NZ HLFS (000) 250

200

150

100

50

Jobseeker plus CIPR recipients

HLFS Unemployed

Source: Chief Economist Unit, Auckland Council; Statistics New Zealand; Ministry of Social Development

0 Sep–15 Sep-16 Sep-17 Sep-18 Sep-19 Sep-20

24

|

The Real Estate Institute of New Zealand

FEATURE Chief Eco Unit

Some views in May

Westpac

ASB

ANZ

Unemployment: 9.5% peak 7.1% by Dec 2021

Unemployment: 9.4% peak 7.2% by Mar 2022

Unemployment: 11% peak

GDP: -16.0% Jun 2020 (qtr) -7.1% Mar 2021 (y/y)

GDP: -17.3% Jun 2020 (qtr) -8.0% Dec 2020 (y/y)

House prices: +7.3% Jun 2020 (ann %) -6.9% Mar 2021 (ann %)

House prices: -5-10%

• Improved technology has been forced upon businesses that were badly prepared. These changes would have otherwise taken years • Necessity breeds innovation. Never in the history of humanity has so much money been thrown at defeating a single disease. The advances in vaccine trials and treatments in just 10 months has been staggering, and mortality rates globally have plummeted even as the virus spreads.

What economists got mostly wrong (and right) In the first week of April, I said that what many other commentators were suggesting – that the lockdown could last 6 to 12 months – was never going to happen, regardless of whether we beat the virus back. The country could not sustain more than 3-4 months of lockdown without irreparable economic and political damage.

I still hold that view. I suspect a further 6 weeks of Level 4 and Level 3 nationally would be possible before the economic ability to pay for, and public support for, such measures would wane and we would need to move into more of a ‘COVID as part of life’ scenario.

That is one of the few things I got right. I take little comfort from being perhaps the “least wrong” among commentators with a view on house prices, and even less from the fact that our unemployment views were the most pessimistic.

In fact, practically every indicator has turned out less bad than we thought would be the case.

• GDP fell ‘only’ 1.6% in March, and “only” 12% in June • More people could work under each level than at first expected, but even

Unemployment: 10-12% peak House prices: -5-7% from Apr20 peak

House prices: -15%

Bagrie

Alexander

House prices: -10% or more

House prices: -Will fall but buoyed by several factors

so, around 200,000 Aucklanders could not work under the wave two Level 3 restrictions • As a result, unemployment has “only” risen to (our estimate) 6.2% in Auckland • Retail trade has bounced remarkably • Air New Zealand massively underestimated the surge in domestic demand and is getting close to 90% of pre-pandemic levels • Business confidence has bounced and is now higher than in September 2019, when GDP was growing around 2.3% in Auckland and the unemployment rate was 4%. That says something about confidence measures.

Housing in more detail In ‘normal’ times, slashing interest rates and adding demand by removing loan-tovalue ratio (LVRs) restrictions would push up house prices. But back in May, when the consensus was that unemployment would run to between 9.5% and 12%, no one expected the impact we’re seeing on house prices.

With the hit to unemployment so much smaller, and an existing shortfall still of around 28,000 in Auckland, the market has responded spectacularly.

Many are quick to criticise the Reserve Bank, which in my view is unreasonable.

They, like everyone, expected disaster, and acted fast to try and provide stimulus to the economy. New Zealand has done better than expected, and it is right to re-impose restrictions on low equity investors, who have been disproportionately represented in new lending, as soon as practical. But in my view, LVRs should never have been imposed on first home buyers.

House price rises are also encouraging

more development. The number of new dwellings consented in Auckland, rather than declining, is the highest annual level ever, and we accounted for all growth in new dwellings consented in New Zealand in the 3 months to September.

Ironically, the house price rises that put home ownership out of reach for many, are the rises that get more houses built as developers become confident they can profitably sell after they develop.

Ongoing risks There are several risks that worry me.

• Rising inequality. Fiscal policy needs to work with monetary policy to avert what is shaping up as an even greater divide between landowners and renters • Where will the builders come from to build the 15,470 dwellings consented in the last year, especially with borders closed and an Australian economy (outside of Victoria) that has performed better than New Zealand’s now offering one-way quarantine-free travel to New Zealanders?

• When are we going to have a safe border policy in place that will allow sufficient skilled migrants and foreign students in?

• When will the “shovel-ready” projects, needed to get people back into work and fill the giant infrastructure deficit, actually begin to be delivered?

• How do we deal with city centres being hollowed out by the loss of tourists, international students, lower employment, and more people working from home?

• Once the “maths” of recovery has moved through, where will economic growth come from in late 2021?

SUMMER 2020/21

|

25

FEATURE

Taranaki property market shrugs off much of COVID-19’s property jitters

Dean File, Bayleys Taranaki General Manager

Taranaki’s property markets have remained largely resilient to the impacts of the COVID-19 effected year, according to one of the province’s biggest real estate agencies.

Trading data from Bayleys Real Estate shows that like many New Zealand regions, Taranaki came out “emotionally bruised but far from physically battered” by the impacts of 2020 lockdowns – with some property sectors faring better than others, and median residential property values now at an all-time high.

Bayleys Taranaki general manager Dean File says activity within the region since around May was generally reflective of what was going on elsewhere in the country.

“Once the bulk of the population got over the initial scaremongering forecasts of how COVID-19 was predicted to negatively impact on the economy, people have shaken off initial fears and returned to a more balanced approach to life. For those whose employment has remained intact in the new economy for example, life is back albeit with an air of caution – to what it was in January or February. That can certainly be said for the residential property market,” says Dean File.

“The wheels within the ‘machine’ began moving more freely in June and have progressively been churning solidly since.

With job security now more assured for many, new homeowners have been once again looking for entry-level to mid-price level homes, with owners in those brackets looking at moving up the ownership value ladder.

“Additionally, we have also seen a trickle of expats returning back to Taranaki as part of the

26

|

The Real Estate Institute of New Zealand

wave of Kiwis returning to their birthplace. In New Plymouth, those expats have anecdotally been active in the middle and upper-end price ranges for residential property.

“In New Plymouth’s residential property investment sector, we have recorded a significant increase in buyer interest – with virtually all enquiries coming from within the region. The common feedback being heard by our salespeople is that potential buyers who are no longer able to enjoy international travel due to border restrictions, are now flush with cash which they are looking to park at a time when retail bank term deposits are returning less than 1.5% per annum.

“While the share market as an investment vehicle is now far more stable compared to earlier in the year, the fact that residential property prices in Taranaki never dived as a result of COVID-19 gives a psychological reinforcement to investment in this asset class.

“This approach of course compounds on New Zealanders’ love for ‘brick and mortar’ property as an investment asset and is adding further fuel to activity in Taranaki – particularly in the entry to mid-price levels up to around $525,000 for New Plymouth and around $340,000 for the outlying townships in the region.”

Mr File said Bayleys Taranaki’s sales volume of residential properties throughout the province was up markedly on the comparable period

FEATURE

in 2019 – a fact reflected by the Real Estate Institute’s own industry-wide data. While sales numbers for the agency were well up, overall listings were down – showing that stock which had been sitting around on the market for months, was now being snapped up faster than replacement new stock was coming onto the market.

Mr File says this tight inventory pattern could loosen up post-election and coinciding with the traditional spring listing period in the run up to Christmas.

“With lower than normal - for the middle portion of the year – levels of new housing stock coming onto the market for sale, we have seen demand eat into supply levels. As a consequence, we are forecasting that the supply and demand equation will sustain pricing levels in the region at close to their current positions,” he said.

Mr File says that in the commercial property sector, New Plymouth had also replicated much of what had been unravelling throughout New Zealand’s cities on a proportionately smaller scale – with an increasing vacancy rate in the retail sector, particularly in the central business district and city fringe.

“It remains to be seen in the coming months how business tenants and owner/occupiers will react to what has happened in the economy over the past seven months. From what we can see so far, New Plymouth’s central business district office space has

certainly not been impacted in the same way Auckland or Wellington has been in the move to working from home for larger corporates.

“That’s because New Plymouth companies in commercial premises are generally small employers of up to around 15 staff, and therefore, there has been minimal downsizing of personnel numbers which bring with it the cost-saving benefits of moving into smaller premises.

“Professional services companies such as legal practices, accounting firms or civil engineering businesses for example, while initially unnerved at how COVID-19 could have impacted the economy, have emerged relatively unscathed revenue wise – leaving them comfortable operating in their existing premises and with little need to downsize elsewhere purely driven by economic necessity. Landlords have been supportive of their tenants too in this respect.

“And unlike Rotorua, Marlborough or Central Otago for example, international tourism is a much smaller part of Taranaki’s wider economy, and as such the downturn from that sector has been felt far less in the region.”

Mr File said industrial property confidence on the other hand had bounced back very quickly and is now just as robust as it ever was – underpinned by Taranaki largely being a ‘services’ and production-based economy. As a result, industrial property owners were far more comfortable holding

their asset than they were in say April or May. Consequently, with less stock on the market for sale, there were fewer transactions in that sector.

“Some developers in the industrial property market have put projects ‘on hold’ for the short to medium term until a fuller and clearer picture has emerged on just where the economy – both regionally and nationally – is heading. We’re certainly not seeing any major reaction to the Government policy of pulling back on support for the oil and gas sector – probably because the implementation of that policy is so far ahead in the future, if it happens at all,” he said.

Meanwhile, Taranaki’s rural property market had continued to tick over consistent with previous years “As ever, productive land is relatively tightly held in this province. While COVID-19 had a bigger impact on the likes of the retail sector sustained by discretionary spending, people have still needed to drink milk and eat lamb and beef – and we produce lots of that here in Taranaki,” Mr File says.

Reflecting the region’s confidence in the property market, Bayleys Taranaki recently announced its expansion within the province – acquiring former competitor TSB Real Estate, which specialises in the residential property sector. Salespeople within TSB Real Estate were offered continuity of employment with Bayleys.

SUMMER 2020/21

|

27

FEATURE

Interesting listings of 2020 It has been a year of defying predicted trends in the property industry, with a record low number of homes in the market and increasing average asking prices. In amongst this, we have seen some seriously unique homes listed on realestate.co.nz. We have put together a list of our favourite properties, including lavish modern luxury, fascinating architecture and grand estates renovated to impeccable standards.

Number 1: 172 Douds Road, Sefton Distinctive Norman castle and Gothic-inspired architecture, designed by Dean Buckeridge, this 453sqm home is our favourite find. With winding staircases, medieval-inspired fittings and a turret, it is a unique masterpiece. Set in the rolling hills of North Canterbury, this home has views across the Southern Alps and towards the ocean.

Number 2: 68 Molesworth Drive, Mangawhai ‘The Jetty House’ was thrust into the spotlight when it featured on Grand Designs New Zealand. The owners aspired to create a bolt hole with a story of New Zealand history. The architectural designer, Frank Stanton, was briefed to design the home based on a classic Kiwi boatshed, designed with four interconnecting pavilions that fit seamlessly on this outstanding waterfront 3,139sqm site. Its many remarkable elements include exposed recycled brick of Auckland’s ‘Real Groovy’ building and timber sourced from Te Puna Hall and Wellington’s Whitcoulls building.

28

|

The Real Estate Institute of New Zealand

FEATURE

Number 3: 43 Arney Road, Remuera At the prestigious top end of Arney Road, this historic Remuera estate sits on a rare 3,062sqm of land. Known as St Ann’s and enjoyed by just three owners since it was built in 1914 for Charles Nathan, it has been lovingly restored and meticulously maintained. The interior of the home is grand, yet welcoming, with a layout that spans across two floors at almost 553sqm plus a church-sized attic.

Number 4: 63 River Ridge Road, Wanaka Surrounds Hand-crafted in Canada by ‘Pioneer Log Homes of British Columbia,’ and shipped to New Zealand to be assembled by a local artisan, this award-winning log home looks out to the peaks of the Southern Alps. This is an impressive property, where every corner is a work of art and every wall is different. The private rural setting on 8.4 hectares adds to this charming home by offering peace and quiet.

Number 5: 9 Karahu Lane, Omaha This European inspired masterpiece sits on 848sqm of land right on the beachfront and boasts 300-year-old barn doors imported from Spain in the entranceway and French oak flooring throughout.

Previously owned by prominent New Zealanders, this home has been designed and decorated to the highest standard.

SUMMER 2020/21

|

29

FEATURE Number 6: 46 Hobson Street, Thorndon This exceptional residence is set on five titles across 1,911sqm, with dual access and parking, from Thorndon Quay. The adjoining property at 165 Thorndon Quay (zoned commercial) comprises 454sqm of land, providing numerous options for future use. Every box for modern day living has been ticked in this home, while it retains noteworthy original architectural features and its unique character. Enquiries over $7,950,000 are being sought.

Number 7: 7 Hidden Island Road, Jacks Point This Jack’s Point home was designed by award-winning architects Mason and Wales and completed by prestigious local builder Triple Star, offering the best of the best in design, construction and engineering. The five-bedroom, five-bathroom home is listed for $18,500,000.

Number 8: 222 Mt Horrible Road, Hadlow Built in the 1880s this property is a vision of grandeur that sits within secluded woodlands on the outskirts of Timaru. The heritage country residence is set on 11.6 hectares with another 1,719sqm on a separate title.

With 10 bedrooms in the main house and two separate apartments, this grand country retreat provides home and income opportunities.

30

|

The Real Estate Institute of New Zealand

ADVERTORIAL

Legal search agency – 40 years service to the real estate industry Eastbourne Search Company Limited is one of New Zealand’s longest running search agencies formed in 1980 by John and Cathy Deal, providing legal search services including land information.

Up until 1999 land title records were paper based and had to be photocopied at the local Land Titles Office. It was very timeconsuming and labour intensive. Rather than engaging their own staff to visit the various land title offices and real estate firms, valuers and lawyers found it more cost effective to utilise the services of Eastbourne Search.

Electronic records enable the business to thrive. Operating as licensed registered users with Land Information New Zealand they provide copies of the real-time current Record of Title as well as Historical, Unit or Guaranteed Titles together with related registered interests and plans. Ownership, boundaries, easements, covenants, caveats, leases and unit title body corp rules are examples of what can be bought to the attention of any prospective purchaser and legal advice is always recommended.

Eastbourne Search is a boutique family business with the personal touch.

John and Cathy Deal

Together with their long-time staff, John and Cathy provide a professional, efficient, confidential service to their nationwide clientele. Outsourcing has become a preferred way of business and several clients have been with them for many years. Clients especially value being able to talk to the staff member who conducted their search, or work through a complex request together with easy ordering and no subscription.

John and Cathy say the key to their longevity and success is an experienced team who go the extra mile, along with communication and trust. They believe that due diligence is an integral part of real estate business and are now finding that many agents are searching the title and all registered interests – for their own peace of mind and that of their clients.

EastbourneSearch SearchLtd Ltd Eastbourne Legal Search Agency Legal Search Agency

Celebrating40 40years yearsininbusiness business Celebrating Nationwide Record of Title Property Information Nationwide Record of Title Property Information Real-time current searches Historical Historical searches Real-time current titletitle searches titletitle searches Registered land interest searches Copies of Deposited, Unit or Flat Plans Registered land interest searches Copies of Deposited, Unit or Flat Plans Rural and land block searches Nominal land ownership searches Rural and land block searches Nominal land ownership searches search@eastbournesearch.co.nz search@eastbournesearch.co.nz

0800 22 22 62 0800 22 22 62

www.eastbournesearch.co.nz www.eastbournesearch.co.nz SUMMER 2020/21

|

31

OBITUARY

John Arnold Haig Robinson John Arnold Haig Robinson passed away peacefully at his home on 12 July 2020 at the incredible age of 95, after a short illness.

John was born in the Waikato where he started his real estate career.

He joined a local residential real estate agency in Hamilton before joining Barfoot & Thompson in Auckland. He opened and managed the Pakuranga office as well as the Otahuhu office until the late 70s where he opened his own business, Haig Robinson Real Estate on Great South Road in Papatoetoe. John was well-known in the wider Auckland market and specialised in the South Auckland market during his real estate career. He was active right to the end, so much so, that he completed his last transaction only seven weeks before he passed away.

He was well known and well connected in the industry and had many successes in the residential, property management and commercial and industrial sectors. John was awarded Associate status (AREINZ) in September 2004.

John was very motivated and had a strong character and great passion and natural intuition for real estate. He knew that if he ever wanted anything in life, he would have to work hard for it, something that stuck with him from his early life, and time spent serving on the HMNZS Achilles in WWII, at the young age of 15. In his down time, John was a very keen gardener and loved the outdoors. He loved anything to do with boats and being on the water. John was very much loved by his wife Danuta and their four children, who were all very proud of him.

Jack Brian Schaef Jack Schaef was born in 1933 in Brooklyn, Wellington, and passed away peacefully on 7 October 2020.

Jack Schaef was born in 1933 in Brooklyn, Wellington, and passed away peacefully on 7 October 2020. Jack started his career in real estate in the late 1960s before opening and managing his own business, Jack Schaef Real Estate, between 1982 and 2002.

Jack specialised in residential property management and managed a portfolio of rental flats in the Wellington region. He was passionate about affordable housing and advocated for it throughout his career. Jack also worked in the commercial sector while he owned his own company.

Jack was the Wellington District President for REINZ in the late 1980’s and was awarded Fellow Membership (FREINZ) in March 1989. When Jack wasn’t selling real estate, he worked on the family home and looked after it meticulously, much like he did with his attire. He was a dignified gentleman. Jack had a love of cars, particularly his vintage Jaguar and Chevy, as well as playing golf, camping or holidaying with his family, and being outside.

32

|

The Real Estate Institute of New Zealand

OBITUARY

Ivan Rackich

Long-time Auckland real estate identity, Ivan Rakich, has died aged 69.

“Ivan has been a successful franchise owner, valued colleague, respected mentor, and popular agent to so many over the years. It’s a big loss to the real estate industry,” says Derryn Mayne, Owner of Century 21 New Zealand.

In 2015 he launched Albany franchise, Century 21 Darrak Realty. He started the franchise employing just one other real estate salesperson.

Now Century 21 Darrak Realty boasts several agents and staff.

Ivan Rakich was no newbie to real estate. He came to Century 21 with over 40 years’ experience in sales and marketing. He was instrumental in building some of the best teams in real estate on the North Shore over recent decades.

“Ivan won a Century 21 Platinum sales award for 2020’s third quarter, which we only announced a couple of weeks before he died. Earlier this year, Century 21 Darrak Realty was named one of the Top 21 offices across Century 21 Australasia.

“Thanks to Ivan’s leadership and dedication, Century 21 Darrak Realty has been one of our best performing franchises. Most importantly, he was a good friend to many. Our sincere condolences go out to his beloved family,” says Ms Mayne.

Douglas Good 1931 - 2020 In his long life he had only two careers, supermarkets and real estate.

According to his wife Beryl he enjoyed both, frequently boasting that “he had never worked a day in his life”.

Douglas started real estate with Barfoot and Thompson but on purchasing a home in Coatesville, a semi rural area on the outskirts of Auckland, he set his own agency there, Good Realty.

He found time to be on the Auckland District Committee finishing up as Vice President. Subsequently he was appointed to its “think tank” and his work there endeared him to the Council of the REINZ who made him a Fellow in October 1994.

Eventually Good Realty was sold on (ironically it’s original premises are now occupied by Barfoots) and Doug, then in his seventies, retired to Omaha. But, unsurprisingly to those who know him, that retirement did not last long.

As they say “He never liked doing nothing.”

Contributed by Life Member Garth Barfoot

SUMMER 2020/21

|

33

FEATURE

Digital transformation in property Bindi Norwell, CEO, REINZ

With the arrival of COVID-19 we found ourselves in the most extraordinary – and almost surreal - circumstances, with just over four weeks of almost-total lockdown, followed by several more with various levels of restriction.

While some people were able to enjoy this time as an unexpected break, here in the property industry it was essential that the show went on.

Although April is now regarded as a month which was effectively lost, we have since seen a correction and uplift in property sales volumes and prices. Much of what was achieved during the higher alert levels was aided by ultra-modern digital tools, many of which had been rolling out at a rapid-rate over the past few years.

When physical encounters between vendors, buyers and property professionals were completely banned at level four, digital tools really came into play, hugely enhancing the traditional property listing.

They helped people progress with their plans to buy or sell property, despite the restrictions.

Organisations who had already embraced new technology and could support a property transaction by digital means were undoubtedly at an advantage during those unexpected long weeks. For example, those which offered prospective buyers and renters a much richer browsing experience when people were unable to visit properties in person helped support people’s decisionmaking from their homes.

Drones transformed the visual experience of property when they appeared on the scene a few years ago, providing the ability to showcase a property in its entirety, and even include the surrounding neighbourhood, whilst helping put the home into context.

34

|

The Real Estate Institute of New Zealand

Professionally produced videos are without doubt a valuable digital tool and when they’re shot and scripted imaginatively, a potential buyer is likely to engage well with the property, gaining a good sense of how it works in real life. When the video includes informed narrative from the property professional, that connection can then be further enhanced with online meeting apps such as Zoom or Facetime.

Property-hunters overwhelmingly say that a floor plan is crucial to their first impressions of a property, and today’s augmented-reality, interactive floorplans are a far cry from a simple architect’s drawing, which might have sufficed before.

Today’s cutting-edge technology enables buyers to consider potential placement of furniture and even imagine new colour schemes, general layouts, or explore potential for renovations. Virtual or 3D walkthroughs allow buyers to walk up and down stairs, through doors and even look into cupboards.

Meanwhile, near-field communication tools enhanced with artificial intelligence can support sharing information in real time, allowing a prospective to experience the property digitally on a smartphone or computer.

We mustn’t forget social media in general, where search engine optimisation is crucial to marketing success. With numerous online channels for promoting their properties, effective real estate professionals are putting their listings in a variety of places in order to gain maximum traction. Google,

FEATURE Facebook and Instagram are obvious contenders, and advertising in such places is less expensive and properties are more likely to be seen online by prospective buyers. Meanwhile, Twitter does its bit in keeping conversations going. While this may seem tough on print media, the reality is, that print still plays an important role in the overall marketing mix when taking a property to market.

Living with this uncertain outlook will mean it’s vital that processes can continue in person as well as digitally. Online auctions that can be held in a no-contact, digital environment, including participants from all around the globe is an example of this. Digital signatures on cloud based technology are another innovation which has necessarily been brought swiftly up to speed for current circumstances.

Although life in New Zealand is back to being as normal as it’s ever likely to be - for a while at least, keen interest in new technology, in property, is unlikely to diminish - particularly as we may be moving up and down the various alert levels for some time.

Consumers are increasingly embracing new technology with evidence of this happening in New Zealand during lockdown and being a resounding success.

If the experience is personalised and intuitive by leveraging smart data analytics this will only help improve the adoption of new technology.

With the increasing pace of change in technology, it is integral we continue to think outside the box and innovate with new digital tools and services that add value and make lives easier.

Many property professionals around New Zealand are currently marketing to growing numbers of overseas clients - and not

surprisingly, a lot of these buyers are expats, who want to come home and settle themselves and their families in a place they perceive as being safe.

In most cases, they’re imagining the quintessential Kiwi home with big rooms, high ceilings, lots of light, indoor-outdoor flow, and hopefully a beach nearby.

If property industry professionals are able to help whisk these people away – virtually - from their off-shore lockdowns to suitable homes in Aotearoa, they’re very likely to fall in love, and we’ll be more than happy to have them home. In any case, digital transformation has opened up more choice and capability to move between a physical and virtual experience when buying or selling property no matter the alert level or location we are in.

CONSUMERS ARE INCREASINGLY EMBRACING NEW TECHNOLOGY WITH EVIDENCE OF THIS HAPPENING IN NEW ZEALAND DURING LOCKDOWN BEING A RESOUNDING SUCCESS. SUMMER 2020/21

|

35

FEATURE

Auckland’s CBD holding up well, with its future secure

In many ways Auckland’s CBD is trailing behind the city fringe. Nonetheless, property values are holding up well with plenty of development and investment underway, according to New Zealand Mortgages & Securities (NZMS).

The commercial property lender says what has hit the central city hardest is not the economic fall-out from COVID-19, but the City Rail Link and other major infrastructure projections, which have effectively closed off large parts of the CBD. Downtown Auckland will bounce back and continue to reinvent itself as it always has.

Once upon time the council prohibited people from living there, then it was filled with international students, backpackers, and Airbnbs. Now we have high-grade apartments and a 5-star Park Hyatt in Wynyard Quarter. Twenty years ago, the bottom of Queen Street was littered with $2 shops, then in came Gucci and other luxury labels. Change is the only certainty.

While the CBD is now congested with

36

|

The Real Estate Institute of New Zealand

James Kellow, Director of New Zealand Mortgages & Securities

orange cones, the America’s Cup at the end of summer will give a sugar boost to the downtown economy. Then, once the $5b City Rail Link is completed in late 2024, Auckland will see some development of convenience retail and the likes around the new underground train stations, and more residential conversion of 1990s commercial offices.

While some observe that 2020 may change work habits forever, with more people working from home and meeting via Zoom, the head of NZMS believes the need for quality commercial office space will not diminish.

Sure, some consultants and some smaller SMEs have exchanged their leases for the kitchen table, but serious businesses can’t

FEATURE

... SERIOUS BUSINESSES ... NEED THE PERSONAL INTERACTION, WORKPLACE ENGAGEMENT AND SHARING OF IDEAS. THEY’LL KEEP DEMANDING HIGH-QUALITY, WELL-LOCATED OFFICE SPACE AND DEVELOPERS WILL KEEP BUILDING IT ...

profile remains strong, and of course business and consumer confidence, will eventually return.

As New Zealand heads out of the immediate global health crisis and into a post-COVID economic recovery, two things weigh in the central city’s favour: domestic spending and government investment.

We’re seeing more domestic travel with Kiwi families bringing the kids to Auckland, for example. At the same time, Aucklanders are spending their money on their homes or themselves. In fact, it’s hard getting a reservation in a good restaurant at the moment. Most are doing okay, with the lifting of restrictions, and summer, set to further boost people’s social appetite.

With Auckland’s commercial capital as the shopfront of New Zealand’s fastestgrowing and largest region, it will always attract significant council and government investment.

do this. They need the personal interaction, workplace engagement and sharing of ideas. They’ll keep demanding high-quality, well-located office space and developers will keep building it with obsolete buildings then repurposed.

As for commercial property owners and investors abandoning the CBD, that’s not going happen either.

Where else are they going to put their money? Property asset values continue to increase, and sure, rental yields are now well below 5%, but that’s still considerably higher than bank deposit rates, which are now converging on zero. We’re not seeing headlines about big buildings in the central city changing ownership, because they’re not for sale.

The likes of strata titles are being picked off, but funds and property syndications are struggling to secure significant product in the CBD. They know that advertising a good return in the current environment will see ‘mum and dad’ investors flock to solid ‘bricks and mortar’ security. But again, there’s just not the stock as property owners don’t want to sell.

Many landlords have taken a hit this year, but the good ones will survive, knowing that flexibility trumps vacant premises. Lazy or greedy landlords are the ones most at risk of losing tenants.

Landlords are having to give many tenants a leg-up but at the same time they know their yielding asset continues to appreciate.

The medium to long-term lease income

Less than 10% of Aucklanders live or work in the CBD, but it will always attract public money and projects. The government is now keener than ever to spend to stimulate economic activity. This should involve funding worthwhile CBD capital projects in Auckland Council’s City Centre Masterplan, which have been deferred for years.

Rather than doom and gloom, perhaps we’re in a honeymoon period with high government expenditure, strong property growth, record low borrowing costs all while New Zealand’s place and reputation in the world continues to soar.

New Zealand Mortgages & Securities is a specialist property financier. They have assisted with delivering nearly $2 billion of property development funding throughout Auckland. www.nzms.com

SUMMER 2020/21

|

37

FEATURE

The 2020 REINZ Residential Property Management Conference We were delighted to be able to host the annual REINZ Residential Property Management Conference on Thursday 22 October at LIFE Central in Auckland. With a theme of ‘Championing Excellence’, the conference MC Laura McGoldrick ensured the day was an upbeat experience for the record number of attendees and sponsors.

Hon Kris Faafoi, Associate Housing Minister spoke by video to attendees about Labour’s promise to continue moving forward with the regulation of the property management industry and to review the Unit Titles Act. Keynote speaker Liam Malone shared his personal story of ‘Championing Excellence’ which resonated well with the audience in what has been a challenging year.

For the first time, REINZ celebrated the success of those who had graduated with the New Zealand Certificate in Property Management, an industry qualification we now offer.

Networking drinks were held at the conclusion of the conference and

feedback received was that attendees really enjoyed the vibe of the day, the chance to hear a variety of speakers and, particularly, the ability to catch up with colleagues and clients in person.

Special thanks to all our event sponsors who made the conference possible.

Key Event Sponsor – Skills Event Sponsors – ABC Photosigns, Barfoot & Thompson, Fast Connect, Harcourts, Healthy Homes, Laser Plumbing Grey Lynn, Movinghub, Noel Leeming Commercial, Palace, Pickmee, PropertySafe I Maintenance Manager, Real-iQ, Real Landlord Insurance, Tapi, Tenancy.co.nz and Tether.

Image 38

|

The Real Estate Institute of New Zealand

FEATURE

Inspire | Motivate | Connect Conference 2020 brought holograms to the stage REINZ was delighted to host the 2020 Inspire | Motivate | Connect Conference in mid-October at LIFE Central in Auckland.

After months of COVID-19 uncertainty around events and whether they could continue in-person or not, there was significant energy in the room as around 250 attendees from across the country came together to connect in-person for the first time in months.

To avoid missing out on the knowledge of our Australian keynote speakers, due to closed borders, REINZ adapted to the new environment and beamed three Sydneybased thought leaders in live, via hologram.

It was one of the first New Zealand conferences to use this technology format and feedback confirmed that it was a great initiative.

Gavin Rubinstein, Tom Panos and Lisa Novak addressed some of the most popular sessions throughout the day via halogram, with attendees noting that they forgot they weren’t physically in the room with them.

A series of Real Talk sessions filled the middle portion of the programme and consisted of a collection of real estate professionals from across the country, and across the brands, who shared their thoughts, tips and tricks on specific aspects of the real estate profession.

Many thanks to the major event sponsors: Skills and ABC Photosigns.

Thanks also to all the event exhibitors and supporters: Withers Tsang, Woork, realestate.co.nz, Property Press, Barfoot & Thompson, Harcourts, James Group and Ray White Mt Eden.

SUMMER 2020/21

|

39

SECTOR RURAL

Marlborough vineyard market enjoying vintage period This year’s grape harvest coincided almost to the day with the start of New Zealand’s nationwide COVID-19 lockdown.

Earlier in the season, things appeared promising. Disease pressure was minimal, excellent growing conditions had followed plenty of December rain, and the need for irrigation was moderate. Then, just as the grapes were ready to pick, the lockdown was announced. After an initial panic, followed by intense co-operation and excellent innovation by growers, what could have been a disaster turned into a triumph. All available fruit came off the vines for one of the best harvests in living memory: perfect weather, clean fruit and a spectacular vintage.

Meanwhile out in the markets, during those initial stages of the pandemic the most optimistic forecasts were for a 10% drop in New Zealand wine sales, edging out to a worst-case scenario of a 25% freefall.

What actually occurred was the opposite: a 10% increase in wine consumption, with supermarkets reporting unprecedented demand, characterised as ‘six months of Christmas’ for wine sales.

This fuelled confidence in the industry, encouraged further by investors. Record sustained low interest rates are a strong incentive for those with equity to invest in land rather than keeping their money on term deposit. Recent viticulture sector modelling, authorised by Wine NZ and the Ministry for Primary Industries, indicates that in the year to June a typical Marlborough vineyard generated $27,900 per hectare income while incurring working expenses of $12,455, which is a $15,500 per hectare surplus, representing profit on capital employed of 5.5%. That made 2019/20 the third best year for growers since 2008, and a compelling return on investment, which appears sustainable.

This confidence is growing on itself, and driving development, mainly among

40

|

The Real Estate Institute of New Zealand

Joe Blakiston, Nelson Marlborough Sales Manager, PGG Wrightson Real Estate

corporates, including super funds and primary sector investment managers. This year the latter have been inundated by people wanting to invest in viticulture.

SIMILARLY, ALTHOUGH BANKS SEEM RELUCTANT TO FINANCE TRADITIONAL FARMING, THEY HAVE NO SUCH QUALMS ABOUT LENDING TO VITICULTURE. CAPITAL IS THEREFORE READILY AVAILABLE TO GROWERS. That gives larger corporates opportunities to increase scale, while investors will support medium-sized wineries to expand.

New Zealand currently has just shy of 40,000 hectares growing grapes commercially, 70% of which is in Marlborough, with 25,000 hectares in sauvignon blanc and 5,000 in other popular varieties including chardonnay, pinot gris and rose. We are in a consolidating market, where the big players are growing. Development forecasts for the coming years predict that the area planted in grapes will increase as

RURAL SECTOR

the viticulture sector continues to expand.

Growers are still developing new sites, as well as replanting existing blocks, and economies of scale will result in larger vineyards.

Historically, prices for viticulture land have varied, and will fluctuate based on the size of the property. Industry statistics indicate recent transactions in excess of $300,000 per hectare. Large scale land use change in Marlborough from pasture to viticulture is now close to complete. Most of Wairau Valley’s available land has grown vines for some time, and in recent years the same transition has worked its way through the Awatere Valley as the last few traditional 200-hectare-plus family sheep and beef properties have sold for planting in vines.

At the start of this year sales of larger fully developed Awatere Valley viticulture blocks ranged from $150,000 to $160,000 per canopy hectare, increasing to around $180,000 hectare post-lockdown, while Wairau Plains vineyards sold then in the $230,000 to $260,000 per canopy hectare bracket and are now closer to $280,000.

This reflects the premium the latter commands, although with available land in both Marlborough grape locations now close to saturation point, and larger growers

well-placed to expand, those pricing trends are likely to continue to step up as the market continues to strengthen.

A recently listed 29 hectare mixed farming property in Grovetown on the outskirts of Blenheim will test that growth. With a generous water right, this fertile flat land in the heart of Marlborough’s most desirable viticulture area is prime for a large scale vineyard development. Early enquiry indicates it will change hands in excess of $200,000 per hectare, which for bare land will set a new benchmark.

In the primary sector, we know not to take anything for granted however, and viticulture faces some issues.

Like most other growers, the biggest cloud is seasonal labour: are enough workers available this season, can the industry find more, can we persuade New Zealanders who have lost work to come on board, and will the government make allowances around the Recognised Seasonal Employer (RSE) scheme that brings migrant workers from the Pacific for vital vineyard tasks such as bud rubbing, leaf plucking, and the allimportant harvest?

On top of a likely labour shortage, growers

this season need to budget for an increase in the minimum wage.

A touch of spring frost has also caused concern. Although it is too early to determine what effect that will have on yield, it did potentially trigger significant damage to the early grape varieties, showing just how weather dependant the industry is.

At PGG Wrightson Real Estate we are fortunate to belong to a larger group, alongside other business units meeting sundry needs of primary producers. In my case, that means working frequently with FruitFed Supplies local team, capitalising on their practical expertise and contacts throughout the viticulture sector.

Staying in touch with colleagues elsewhere in the country, other segments of the wider horticulture industry are in a similar position to viticulture: plenty of enthusiasm from potential investors, though realising what a fortunate position they are in. Growers are inclined to stick for the strong returns rather, than twist and sell up. That makes it a sellers’ market for horticulture property, whether it be kiwifruit in Te Puke, cherries in Central Otago, apples and pears in Hawke’s Bay, or avocados in Northland.

SUMMER 2020/21

|

41

SECTOR LIFESTYLE

Lifestyle property trends differ by region

Sharon Kenny, Barfoot & Thompson Kumeu

Nick Bates, Barfoot & Thompson Pukekohe

As the dust settles in New Zealand, in a COVID-19 world, we are seeing changes across all aspects of our lives, from flexible working arrangements to an increased preference for shopping online. These changes are also contributing to a shift in property buyers’ preferences as people seem to now be more open to purchasing lifestyle properties, outside of Auckland.

We wanted to take a closer look at this phenomenon, and spoke to two of our top in-house experts on lifestyle properties.

Lifestyle markets are sharing in the buying activity being experienced in the urban areas At an industry level, the rural and lifestyle markets to the north and south of Auckland are sharing in the buying activity that is being experienced in the urban areas.

This is according to the recent Barfoot & Thompson housing market update by managing director, Peter Thompson.

Potential buyers are commenting that their keenness is in part due to the COVID-19 lockdowns.

In the former Rodney area north of Auckland, record sales have left listings for lifestyle blocks in short supply. To the south, particularly around Pukekohe, there is strong demand for properties in the $1 to $2 million price category. Lifestyle buyers are also interested in one hectare lots and land with transferable building rights.

The region northwest of Auckland is attracting lots of attention Sharon Kenny, recently appointed branch manager of Barfoot & Thompson Kumeu, shares her insights on what is happening with lifestyle properties. “We are seeing a real increase in things that, prior to COVID-19, were rare at best. For instance, expats wanting to return to New Zealand are buying properties sight unseen. This includes people from Australia especially.

42

|

The Real Estate Institute of New Zealand

There seems to be two types of people wanting to move out here. Those that are horse lovers and those wanting to escape the city for a more laid-back lifestyle. Those seeking a smaller lifestyle block are just seeking a more country lifestyle, compared to discerning luxury lifestyle buyers who are looking at property features like wine cellars and helicopter pads.”

Comparing the property buying patterns pre and post COVID-19, there are some key observations, says Sharon. “A lot of people who were planning to sell prepandemic, have changed their minds and have decided to stay put for now. This is mostly due to the fact that they realise that property in Auckland is commanding top dollar and they will be unlikely to find anything comparable to what they currently have in terms of quality. This has created a drop in listing inventory. Also, the commute to the city is a lot shorter than most people assume. A quick trip over the bridge and you are there in no time. Be aware though, that internet connections can be a challenge out here, so be sure you have that sorted before you commit to remote working. I am finding that often vendors are willing to transfer their internet service accounts to the new owners for an easy transition to their new home.”

On a personal note, Sharon shares what she loves about the area. “People here are so welcoming and kind. There is absolutely no

LIFESTYLE SECTOR

opposition or ill-will with people from the city joining the community. There are amazing salons, restaurants and boutiques. You don’t have to sacrifice a sophisticated lifestyle by moving out here, if that is your desire.”

“wriggle room” in their price range, offer it at the front-end of negotiation so they do not get pushed out by other people and end up disappointed. This may sound risky but going in hard at the start will position you most effectively.”

South of Auckland is a bit more business as usual

As to whether there’s been an influx of expats, as seen in other areas, Nick said, “We are seeing an uptick in enquiries via our online listing e-books (especially from Americans), but no, we are not doing a big amount of site unseen offers as such. There is no one demographic that is dominating the market right now for us. It is a good mix of people and property types across the board. If I had to hold to one thing that seems to be of the greatest interest, its developments and single homes.”

Nick Bates, Branch Manager of the Barfoot & Thompson Pukekohe, Pokeno and Tuakau branches, shares insights on what is happening south of Auckland. “Although there is a lot of talk about major shifts in real estate right now, we’re not seeing that in the south. Don’t get me wrong, sales are great and we are getting fantastic attendance at open homes, but there is no one major difference that I would deem a new trend”, he says.

“At a glance, stock levels are low and demand is high which is making things competitive for buyers. My advice to those wanting to purchase, is that if they have

So what else should potential buyers and residents know? “Given that stock levels are low, often sellers are not finding exactly what they are looking for to move on to.

That said, they are often depending on

their salesperson to find a new property for them. This means that salespeople may be contacting owners who have properties not currently on the market and asking if they would be willing to sell, since they have a willing buyer in their back pocket. To me that is great real estate at work!”

What can we glean from these two current market experiences?

Whilst each region experiences the lifestyle property market differently according to the demographics of the area, at an industry level, lifestyle properties are sharing in the buyer activity that is being experienced in the urban areas.

Making blanket assumptions rarely works so always do your research, comparisons and due-diligence before you even think about making an offer. Ask your salesperson for advice and guidance. The right person will be transparent with the good, the bad and the ugly with any area.

SUMMER 2020/21

|

43

SECTOR RESIDENTIAL PROPERTY MANAGEMENT

Dude, where’s my data?

(CLOUD SECURITY)

Duncan Abbott, CTO, Palace

A few years back, I had a very serious conversation with a client who wanted to confirm that the data we were holding was actually in a cloud... in the sky. I had to inform her that in fact all cloud-based data is stored in data centres throughout the world and the cloud is just an abstract term used to shorten conversations between technical and non-technical people of the world.

User: “Dude, where is my data?”

Techie: “In the cloud.”

The fact is even the most ‘technical’ individuals (including myself) cannot point to a physical computer or storage device and say with any kind of confidence that their data is stored on it (if the data is considered to be stored in the cloud).

This is due to the fact that most software engineers use certain providers to supply them with ‘Cloud Services and Storage’. To give you an example, our company, Palace, uses Azure (a cloud service provided by Microsoft). They offer all sorts of amazing solutions and storage options and even ask me which city in the world I would like those services to be hosted in… but that is it! So the closest I can get to knowing exactly where my data is, is a pin on a map. Doesn’t sound very safe and secure does it?

You may be surprised to know that modern cloud services can be extremely secure… or not at all secure… depending on how it’s implemented. So how can you, as a user, safeguard your precious data if even the software engineers that you rely on don’t know where it is? It’s all about asking the right questions of the right people, and if you’re up for it, doing a little research yourself.

Backup, Backup, Backup There is a common misconception that data stored in the cloud is backed up automatically. This is often true of application providers (e.g. Google Suite, Outlook 365 or Palace) as they are

44

|

The Real Estate Institute of New Zealand

obligated to provide a full service solution and make sure the infrastructure is robust enough to handle hardware, software and security faults, causing data loss.

However, if your property management company has contracted work to be done on your behalf to build your custom solution in the cloud or if you can’t find any backup information about an existing solution, the backup process may not be included in the end product (especially if you’ve focused on keeping costs low and the backup option hasn’t been discussed).

So, great questions to ask are: • Is the product and data backed up? ●• W here is the backup located? (Many cloud services offer something called geo-replication allowing you to mirror your data in different cities or countries. This can be a great way to ensure continuity of services, and data, in case of a disaster).

However, simply having a regular backup located somewhere other than where the service is hosted is a good start • What is the retention on the backups? (i.e. how many copies and over what period of time you may need to restore data back to) And is it appropriate for the type of data you are storing? This can affect your costs, so make sure you choose the right retention for you. If you’re storing data that does not change a lot over time (e.g. photos, signed agreements, etc.) you most likely do not need long term retention as your latest backup will contain all the files required.

If you’re talking about databases that

RESIDENTIAL PROPERTY MANAGEMENT SECTOR

change constantly over time with use, then your retention will need to be a lot more flexible ●• Can the disaster recovery plan be tested? A lot of data centres recommend you perform a test of your disaster recovery plan. This usually involves bringing services and data online through a restore or mirroring service to a different location or platform. This is really useful to get an idea of how long services and data will be offline during a disaster and making sure that all data is recovered as expected. If you use your own backup service, you can most likely test this yourself.

Security Security is a complex area for both users and ‘techies’ alike. There are, however, some pretty basic things you can check to start off with:

In simple terms this means that communication between your browser and the hosted site is either secure (via updated encryption) or not (either outdated or no encryption is implemented). You can query this with those hosting the site to decide on actions to take. It is now common practice to expect ALL sites to be encrypted in this manner regardless of how the site is used (simply ask your web host provider for an ‘SSL Certificate’) • If you have a login process which allows your users to set up an account, simply test the process (and get a friend to do this for you as well). Make sure the areas and data they have access to is appropriate for the accounts created.

Of course, security is far more than what users will see or have access to in a browser. Although you can ensure a site is secure (as above), it’s not always easy to know how secure the data is behind that site. This could include access to a database, storage service or external API (outside data source).

●• If you’ve asked a contractor or company to build a website for you (or are using a Security website on a regular basis) that requires user or‘techies’ feedback, theare, firsthowever, some pretty basic things you Security is a complex area interaction for both users and alike. There can check to start offthing with: you may want to check is how Whatever it is, the implementation of these secure that interaction is. All modern day services ● If you’ve asked a contractor or company to build a website for you (or are using a website is on often a regularcritical to the security basis) that browsers requires user will interaction or feedback, the lock first thing youto may want of to check how secure display a small next youris data.

Unfortunately, it is also that interaction is. All modern day browsers will display a small lock next to the site address at the top the site address at the top which looks extremely difficult for those with limited which looks like this: like this: technical knowledge to know the security risks these solutions pose. However, again, there are some pathways to peace of mind: Or they will tell you if a site is not secure:

Or they will tell you if a site is ‘Not Secure’:

Often, when asked directly it will ensure the appropriate security measures are talked through and implemented. It will also often prompt those implementing the product to take another look to confirm everything is as they say it is ●• If you’re still not sure or want that extra security, you could engage an independent third party. There are many companies that can perform security and penetration tests on your services (just Google ‘penetration testing’). They can even be hired to plan an attack on your sites and related solutions to hunt down vulnerabilities that have been missed. If you’ve got the budget, this is a great option to take. NOTE: Always make sure that all those involved in the site management (and users) know about this test, otherwise it can lead to some uncomfortable conversations.

So, at the end of the day, no matter how technologically inclined you are, there are always steps for you to take to ensure your data is safe. Just like when you visit a doctor, you can always get a second opinion.

• Simply asking those implementing your solution to talk you through the security of the data you’re storing (in layman’s terms) should enlighten you significantly.

In simple terms this means that communication between your browser and the hosted site is either secure (via updated encryption) or not (either outdated or no encryption is implemented). You can query this with those hosting the site to decide on actions to take. It is now common practice to expect ALL sites to be encrypted in this manner regardless of how the site is used (simply ask your web host provider for an ‘SSL Certificate’)

SUMMER 2020/21

|

45

SECTOR RESIDENTIAL PROPERTY MANAGEMENT

Fixed Term Tenancies reverting to Periodic Tenancies

Tania Ellis, Manager – Property Management Division, Whittle Knight and Boatwood

There are two main types of residential tenancies in New Zealand – fixed term and periodic.

Predominantly, property managers throughout the country have favoured the fixed term.

It provides security of tenure for both owner and tenant for a fixed period of time. On the whole, it works very well. For many within the property management industry, it has always been the popular option. However, with the recent changes to the Residential Tenancies Act (RTA), it appears that the powers that be have decided otherwise. As such, changes to this type of lease will come into effect from 11 February 2021.

In its current form, the fixed term tenancy can be terminated when the tenancy expires, provided the appropriate notice is given by the landlord or tenant and a reason is not required. However, going forward, some substantial changes will take place.

All new fixed term tenancies will only end if the tenant gives notice or the landlord has a valid reason to the end tenancy at the end of the fixed term. To see what a valid reason is, refer to section 51 of the RTA. Otherwise, the tenancy will revert to a periodic or the tenant can renew or extend.

Currently, to end or renew a fixed term tenancy, the owner must notify the tenant between 90 and 21 days before the end of a tenancy and the tenant must exercise their right to renew within 21 days of the tenancy ending. All this changes as of 11 February 2021. There is no timeframe as to when the renewal is sent. The tenant is under no obligations to inform you as to whether they wish to renew or not. If they do not

46

|

The Real Estate Institute of New Zealand

renew then the tenancy will continue as a periodic. If the tenant wishes to end the tenancy at the conclusion of the fixed term, then all they have to do is notify you in writing at least 28 days before the end of the tenancy.

Where there has been some legitimate concern about the changes is around student tenancies. These are generally always fixed for 12 months to fit in around the student year. There are many advantages to being a landlord of a student property, for example, a student property generally obtains a higher yield. There is the risk of increased wear and tear as well as noise issues, however, these concerns are minimal and are more than compensated by the higher rent return.

However, there is only a small window of letting opportunity each year for the advertising of student properties. To miss this ‘window’ of opportunity, means that while you may still rent the property out, you run the risk of not getting the

RESIDENTIAL PROPERTY MANAGEMENT SECTOR

best possible rent with the best possible applicants. Now that we cannot end fixed term tenancies by giving notice, there is an increased risk that landlords may miss out on rent.

Students may refuse to sign a renewal, meaning that the tenancy reverts to periodic. This means that students are free to give notice when it suits them, rather than being tied to a lease for 12 months.

A tenancy could end in November after exams, meaning a landlord may miss out on as much as 20% income over the year.

What we decided to do in our office was to move the start and end dates of our student fixed leases to November, rather than January and early February. This means that the tenancy will commence in November for a period of 12 months. We engage with our students prior to their exams. This is so we can find out what their intention is. The tenants will then hopefully either commit to a further 12 months or they will give us notice. This way we can try and

keep how we operate consistent, as well as minimise the risk to our landlords How successful will this be? Will it work? No one knows, but I’d be happy to report back on this in 12 months’ time to let you know.

The links below provide for the applicable sections of the Residential Tenancies Amendment Act 2020 which will amend the Residential Tenancies Act. The sections are: Section 60A amended by clause 41 “Fixed-term tenancy becomes periodic unless contrary notice given” and Section 51 amended by clause 32 – “Termination by notice” are the relevant sections. http://legislation.govt.nz/act/ public/2020/0059/latest/LMS294952. html?search=sw_096be8ed819e06ed_ fixed+term_25_se&p=1 http://legislation.govt.nz/act/ public/2020/0059/latest/LMS294938. html?search=sw_096be8ed819e06ed_ end+tenancy_25_se&p=1

Whittle Knight & Boatwood Ltd is a real estate company that has been part of the local Christchurch market for over 54 years. Tania has just celebrated 10 years at the helm of the property management division with Whittle Knight & Boatwood Ltd, and over 35+ years in the industry, which started in Sydney and has continued in Christchurch for the last 15 years. Whittle Knight and Boatwood is a REINZ member and was a supporter of A Call for Change.

SUMMER 2020/21

|

47

SECTOR COMMERCIAL

Wellington’s property market shows resilience in troubled year A global pandemic, local lockdowns, closed borders and enforced changes to work habits have caused huge disruption to the Capital’s property markets in 2020. However, strong underlying fundamentals underpin a positive outlook for the future.

Ian Little, Associate Director, Research, Colliers International

Adrian Goh, Research Analyst, Colliers International

Large government presence reduces volatility

New development meets high demand

While the beginning half of 2020 has seen vacancy rates within Wellington’s office sector increasing from historic lows, government occupation of approximately 35% of the CBD’s total stock acts as a shock absorber.

Prime grade vacancy, since the loss of stock following the Kaikoura earthquake, has been at negligible levels. Despite the increase in overall vacancy rates seen over the last 12 months, prime grade vacancy was recorded at just 0.6%.

As at June 2020, overall office vacancy had risen to 6.5% from 5.9% a year earlier, reflecting the combination of a small increase in total stock and a softening of demand occasioned by the impact of the COVID-19 pandemic.

Both factors will influence the market over the next two to three years with new supply set to add approximately 42,000 sqm to the city’s inventory over the next five years.

Colliers International forecasts that vacancy rates will increase through to mid 2023 peaking at about 10%. At this level though, vacancy will still only sit at around the average rate recorded since 2000.

Exceptionally tight market conditions have elicited a response from the development sector resulting in a pipeline of new and refurbished buildings which will be completed over the next three years. The impact on prime grade vacancy though, is likely to be minimal, given the high levels of tenant pre-commitment, which the developments have attracted.

The largest of the new developments, the first of two buildings in stage two of the Bowen Campus development, has secured EY and Fujitsu as anchor tenants. The BNZ bank is to occupy new

Wellington CBD office graph Prime

Secondary

Overall

Ju

n9 Ju 5 n96 Ju n9 Ju 7 n98 Ju n9 Ju 9 n00 Ju n0 Ju 1 n0 Ju 2 n03 Ju n0 Ju 4 n05 Ju n0 Ju 6 n0 Ju 7 n08 Ju n09 Ju n10 Ju n1 Ju 1 n12 Ju n13 Ju n14 Ju n15 Ju n16 Ju n17 Ju n18 Ju n19 Ju n20

20.0% 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0%

48

|

The Real Estate Institute of New Zealand

COMMERCIAL SECTOR premises at 1 Whitmore Street while Bell Gully has committed to Kumutoto (site nine). Government departments have underpinned demand for the refurbishment of the former Post Office building at 7 Waterloo Quay. Wellington Regional Council will, later this year, take occupation of the redeveloped former Farmers building.

volatility which the Wellington office market experiences has made CBD assets popular investment targets, although a shortage of stock being brought to market has limited transactions. One significant sales example though was the government tenanted Pastoral House which sold for $77 million to syndicator, Oyster.

Future development faces more challenges

Difficult year for retail sector 2020 has been a challenging year for the central city’s retail and hospitality outlets.

COVID-19 enforced trading restrictions had an immediate impact and this has been exacerbated by the ongoing border closure which has curtailed international tourism and the inflow of overseas students.

Given the current economic backdrop, it is likely further development will proceed at a slower pace than would have been the case prior to the COVID-19 pandemic. Colliers is aware of a number of potential projects, which could provide over 100,000 sqm of space, which have obtained consent, but are not yet under development, or are in the planning and feasibility stage.

Given this combination of events, it is hardly surprising that vacancy rates within the central city increased over the beginning half of 2020. As at the end of June 2020, overall vacancy stood at 6.7%, up from the December 2019 figure of 4.1%.

Development funding will be harder to obtain as the banks take a more risk-averse approach to lending. Ultimately though, tenant demand will be the key determinant of development timing. Once sufficient levels of commitment have been reached, schemes will move to the development stage, albeit that the required commitment levels are now higher than was the case in late 2019.

Vacancies rose across all precincts with the exception of Cuba Street which traditionally has very low vacancy rates.

The largest increases were recorded in Dixon Street which features a high proportion of hospitality outlets and Willis Street where the timing of the June survey coincided with the closure of a small number of larger premises such as the Burger King and Flight Centre premises.

Low interest rate environment bolsters investment market The low interest rate environment which has been in play since the GFC is now cemented in place for an extended period as central banks across the globe have reduced lending rates and reintroduced quantitative easing. This has resulted in an increase in demand for higher yielding assets.

Population growth provides long term support Ongoing population growth is strongly underpinning demand for retail services.

The latest population estimates released

by Statistics New Zealand show that the Wellington City district’s population grew by 5,000 between June 2018 and June 2020.

Low interest rates and the relative lack of

The central city’s population has also been expanding as apartment development have become more common, a trend which is likely to gather momentum as Wellington City Council promotes further intensification of residential development in the city through its proposed spatial plan.

The central city population is forecast to double over the next 30 years, according to the spatial plan, equating to an additional 18,000 people, which will clearly increase demand for retail and hospitality services.

Retail mix changing The city centre’s retail mix is changing, influenced by issues such as changes in shopping preferences and the expansion of online shopping.

Comparison of Colliers International’s survey data from 2016 and 2020 illustrates the main themes. The share of retail space occupied by retailers of durable goods and clothing has declined while the hospitality sector has expanded. The largest single occupier of space is the cafes, restaurants and takeaways.

Another growth sector has been personal care services, primarily, barbers, hairdressers and beauty salons which have benefitted from population growth and the fact that they do not face direct competition from online retailers.

Outlook remains positive While the economic implications of COVID-19 will be the primary short-term influence upon Wellington’s commercial property market; population growth, the strong government presence, low interest rates and, in time, the return of international students and tourists bolster a longer-term positive outlook.

Wellington retail graph

Overall Vacancy Rate

15.0%

Jun-19

Jun-20

10.0%

5.0%

0.0%

Overall

CBD Core

Lambton Quay

Willis Street

Manners Street

Dixon Street

Courtenay Place

SUMMER 2020/21

|

49

SECTOR COMMERCIAL

Getting the deal over the line

TAKEAWAY POINTS FROM A PURCHASER’S DD CHECKLIST

Urim Shin, Hesketh Henry

Many commercial property contracts will include a purchaser due diligence condition. These clauses may be as broad as they come, but purchasers are making a significant decision and understandably will require more time to thoroughly check whether the purchase will be a good investment.

As the broker of the deal, you must be careful not to provide any statements that may be construed as a misrepresentation. While always erring on the side of caution, you will also want to facilitate the deal in a way that the purchaser feels their requests are being sufficiently met. At times, deals fall through between a willing buyer and willing vendor due to miscommunications or frustrations in the information gathering process. And even though most of the substantive due diligence is facilitated by the parties’ respective lawyers, it is still helpful for agents to have an overall understanding of what a purchaser is looking for.

This article will provide clarity on purchaser expectations, which will help you and your vendor client to prepare in advance to enable a smoother, more hasslefree transaction. Before disclosing any documents to the purchaser, the general rule is to ensure the vendor’s lawyer has checked and approved all documents the vendor proposes to disclose.

Below, I will briefly discuss some of the documents that a purchaser may request as part of their due diligence.

1. Lease documents Where a property is tenanted, it is important

50

|

The Real Estate Institute of New Zealand

from the purchaser’s perspective that all lease documents have been properly executed. There needs to be a clear “chain” of documents from the original tenant to the current tenant. It may also help to check with vendor clients if all original copies of the documents have been retained. Depending on how old the lease is, there may be a complicated group of lease documents, and parties may find that a few of the documents are missing or that they are in need of ‘tidy ups.’

Lease documents may include deed of assignment of lease (records the original tenant’s transfer of lease to the new tenant), deed of variation of lease (records any variations made to the original lease for example, an extension of the lease term), deed of renewal of lease (records the tenant’s exercise of its right of renewal) or deed of rent review (records any changes in rental).

It is also important for purchasers that what they see on paper, is what is being practised in reality. Buyers may want to see monthly invoices for rental and outgoings issued to the respective tenants, OPEX budgets and any capital expenditure forecast. These documents are usually prepared by the vendor’s accountant and

COMMERCIAL SECTOR may be of particular interest to buyers where there are multiple tenants paying towards a proportion of the outgoings.

Buyers may also want copies of the tenant bank guarantee and/or cash bonds.

The relationship between tenant and landlord can sometimes be messy, and at times you may find (especially during COVID-19) that verbal arrangements have been made. Purchasers would want to have as much of these arrangements in writing for sake of clarity and certainty. You may also wish to enquire as to how long these arrangements will be in place and whether the terms of these arrangements are subject to any adjustments. If so, how will those adjustments will be agreed?

Where necessary, the vendor’s lawyer will be able to prepare a deed which formally records these arrangements.

Some vendors (and sometimes purchasers) may want a surrender of the current lease in substitution of a new lease in which case an Agreement to Lease may be required.

A new Deed of Lease might be preferable for purchasers who may want to start a relationship with the tenant ‘afresh,’ while the landlord may want to be ‘off the hook’ once the property is sold. However, this is not always the case, and a thorough check of the current landlord-tenant relationship by the vendor’s lawyer is critical.

2. Building warrant of fitness (BWOF) A BWOF is a council issued annual certificate that confirms a satisfactory compliance of council regulations relating to the safety of the building. A compliance schedule may include a list of specified systems such as ventilation, fire alarm, sprinkler, lifts and other systems that require ongoing maintenance.

There may be more than one compliance schedule for one building, for example, if there are multiple tenancies in a block of shops that require a number of fire sprinklers.

The BWOF confirms the compliance of all schedules under that one building. The warrant is issued upon inspection and certification by an independent qualified persons ‘IQP’ and once issued, it must be displayed in a publically visible area.

Attached to the BWOF are ‘Form 12A certificates’ issued by IQPs. Purchasers may want a copy of the BWOF as well as Form 12A certificates to check whether any specified systems have failed inspection and, if so, why.

3. Miscellaneous documents Depending on how complicated or

how large the transaction is, a buyers’ solicitor may also request a number of other documents from the vendor. These may include copies of any asbestos management plans and report, fire protection reports, seismic reports, lift or commercial door contracts, any maintenance agreements such as rubbish bins (especially when there are common areas), any machinery or plant contracts, any details of insurance covers and recent claims pending or settled.

Where due diligence conditions include a vendor obligation to disclose such information to the purchaser, we would often try to limit that obligation to the extent that vendors are only required to disclose information ‘actually held’ by them, and information ‘reasonably required’ by the purchaser.

This article has shed light on the expectations of a buyer carrying out due diligence. At the end of the day, an unconditional contract means a purchaser has satisfactorily carried out a balanced enquiry into the commercial value of the transaction as well the level of risk involved. It is my hope that this article has inspired ideas on ways that vendors and agents may navigate buyer expectations to successfully get even more deals over the line.

Disclaimer: The information contained in this article is of a general nature. It should be used as a guide only and not as a substitute for obtaining legal advice. Specific legal advice should be sought where required. If you have any questions on the above, feel free to give me a call at 09 375 8741 or email me at Urim.Shin@HeskethHenry.co.nz SUMMER 2020/21

|

51

EDUCATION

Complete your non-verifiable training by 31 December 2020!

REINZ has launched three brand-new webinar packages: • • • •

2 hours of non-verifiable training in each package Individual webinar purchases are also available Plus earlier this year we added two new compliance webinar packages $39.95 including GST – save up to 30% by purchasing a webinar package!

There are three sector-specific packages to choose from: • Rural Real Estate Essentials • Sales & Marketing Success Part 2 • Property Management Essentials Part 2 Go to reinzeducation.co.nz to book.

REINZ PERFORMANCE AND WELLBEING PROGRAMME STRATEGIES FOR PEAK PERFORMANCE

Our new online programme gives you the skills, tips and strategies to help you perform at your best.

The REINZ Performance and Wellbeing programme consists of four core topics: 1.

Developing your personal resilience 2.

Building a better work-life balance 3.

Managing stress and burnout 4.

Dealing with fatigue in a 24/7 world.

Guest speakers including Tom Panos, Josh Phegan, Tom Hector, Jared Cooksley and Steven Colligan Webinars vary in length with the core topics taking approx. 60-90 minutes and the guest speakers delivering between 15-45 minutes of content 10 non-verifiable hours and a certificate of completion Start when you like and work at your own pace!

A REINZ welcome pack including healthy tips by nutrition expert Niki Bezzant and a 30% off discount code for WOOP food boxes!

Contact education@reinz.co.nz for more information

52

|

The Real Estate Institute of New Zealand

Keynote speaker: Sarah Harmer Workplace wellbeing specialist.

BSc (Psychology), currently studying her Masters in Applied Positive Psychology.

PLUS...

TOM PANOS | TOM HECTOR | JOSH PHEGAN AND MORE!

REINZ member price $299+GST per person

Non-member price $399+GST per person

Group discounts are also available

Visit reinzeducation.co.nz to book today!

For your ultimate reward

Our commitment to independent Sales Associates is unwavering. We understand unlike any other that affiliating with a brand is an investment in your future – a statement that defines your vision for personal and professional growth. For those who seek an exceptional real estate career and life, there is only New Zealand Sotheby’s International Realty.

Be part of this exceptional network. Let’s have a conversation.

Call Chris Jones, General Manager Sales & Franchising 021 795 194

nzsothebysrealty.com AUCKLAND | WAIHEKE ISLAND | TAURANGA | ROTORUA | TAUPO | HAWKE’S BAY | MANAWATU WAIRARAPA | WELLINGTON | NELSON | MARLBOROUGH | QUEENSTOWN | ARROWTOWN | WANAKA Each Office Is Independently Owned and Operated. Browns Real Estate Limited (licensed under the REAA 2008) MREINZ.

REGISTER TODAY www.reinzeducation.co.nz

A Beginner’s Guide to Property Management Are you brand new to property management?

Do you need a basic introduction to the sector?

PROMOTIONAL PENS & BUSINESS GIFTS

with

Are you a manager with new staff to induct?

Looking to take your career to the next level?

Right now, we have leadership positions across provincial New Zealand and are looking for people to take up the challenge.

Are you looking for that special gift for clients?

TIONAL PENS & BUSINESS GIFTS OMOTIONAL PENS & BUSINESS GIFTS We have one of the largest selections of promotional products and business gifts in New Zealand.

Whether it is a change of scene, or ambition to grow, Property Brokers offers opportunity to the right person.

We are a motivated family-owned business who pride ourselves on our values based culture, and providing the best results in the industry. We have great people to work with, so if management is a challenge that inspires you, come see what it means to be “Proud to be here!”

oking for that special gift for clients?

Ph 0800 22 62 or 0274 985 362 you looking for22that special gift for clients? ave one of the largest selections john@idealpens.co.nz We have oneand of the largest otional products business giftsselections Call us now for a confidential chat about a move For more information and to view products visit in New Zealand. f promotional products and business giftsto a life less ordinary 0800 367 5263 www.idealpens.co.nz

in New Zealand.

the link to our new digital brochure 22Ask 62for or 0274 985 362 Real Estate Advertising Essentials

800 22 john@idealpens.co.nz

Ph 0800 22 22 62 or 0274 985 362

or email recruitment@pb.co.nz Property Brokers Ltd Licensed REAA 2008

BUSINESS FRANCHISE OPPORTUNITY

Picton & Sounds

Imagine living & working in one of New Zealand’s most idyllic areas, a sanctuary for your soul, situated on the edge of the internationally renowned Marlborough Sounds.

Enjoy the work/life balance others will envy, while also enjoying lots of free time to spend boating, fishing, cycling, golfing or sampling our world famous wine!!

The business is a high profile office on the main street of Picton and has an established history of 22 years. There is an excellent client base (a large proportion from Canterbury) plus a proven Property Management business.

Capture the spirit & invest in your life today, your playground is waiting‌..

Astute business investors will realise the potential. An AREINZ License will be available to purchasers without the qualification.

For further details in confidence please contact: Business Owner Brenda Davey P 027 442 2693 | E brenda.davey@harcourts.co.nz or Harcourts Regional Manager Jim Davis P 0274 336 930 | E jim.davis@harcourts.net Deadline Sale: 1pm 1st February 2021, Hardy Jones Clark Solicitors Office 76 High St Blenheim 7201.

Picton Property Centre Ltd Licensed Agent REAA 2008

HOT BUYS! Exclusive to REINZ members

We’ve excited to bring you this years HOT BUYS from a selection of our member benefit suppliers. Take advantage of these great summer deals exclusive to REINZ members and only available for a limited time!

50% OFF Headlight Restorations, now only $25.87!

Headlights looking dull? Struggling to see properly at night? Let us restore your headlights to like-new condition. Was $51.75, now just $25.87 inc GST! Available online only at beaurepaires.co.nz/headlight-restoration. Use coupon code XMASLIGHT to redeem your discount. Valid from 01 December 2020 – 31 January 2021. *Conditions apply. For full T&Cs, visit beaurepaires.co.nz/reinz

$155 per night including breakfast for 2!

Heritage Queenstown is offering REINZ members an exclusive discounted accommodation rate, plus complimentary breakfast for two when you book your Queenstown getaway this summer!

Discount is valid for stays between 26 October 2020 to 31 March 2021. T&C’s apply. Book online heritagehotels.co.nz/REINZ

Sunscreen & Hand Sanitiser bundle 500ml $20+GST (save $9.50+GST) Stay safe this summer with OPD’s sunscreen and hand sanitiser bundle! Includes SPF 50 very high sunscreen protection and an effective 75% alcohol hand sanitiser, both in a convenient pump bottle - Ideal for open homes!

Contact sales@opdepot.co.nz to place your order. Deal expires 31 Jan 2021 or while stock lasts.

3 months FREE plus FREE Training Join the industry’s leading AML/CFT solution today. REINZ members who sign up for an AMLHub subscription between 1 December 2020 and 31 January 2021 will receive first 3 months free plus free start up training. Contact the AMLHub team on 09 520 1144 and quote your REINZ member number.

Should you have any queries regarding Member Benefits, please contact Dee Crooks, dcrooks@reinz.co.nz or ph 09 356 1753.

Buy one Eco Gift Box and get the second Eco Gift Box half price!

A special gift for you and someone special. Our A special gift box for you ECOofGIFT BOXES selection quality homeware and boutique and someone special natural cleaning range makes the perfect gift idea. Discount is automatically applied at checkout when you add two gift boxes to your order. Deal expires 31 January 2021. Shop online at greensense.co.nz/collections.

Get 15% off DL Fridge Magnet Calendars when you order 100 or more in one order!

The perfect size to fit in envelopes which can be sent to potential customers or placed in letterboxes. Use promo code* MAG15 at checkout to claim your discount. *Promo code expires 31/01/2021. reinz.branders.nz/product/dl-calendar-fridge-magnet

Run a pre-audit check for antimoney laundering compliance for $143 (10% off) Use regulatory technology to identify deficiencies before auditors! We guarantee a quality online compliance review for only $143 or your money back. Buy online at aml360software.co.nz - scroll to bottom of the website to claim your 10% discount.

Sign up and get a 2-month FREE subscription Holiday Spend & Save Buy one advert & save 5% Buy two adverts & save 10% Buy three adverts & save 15% Get access to the best virtual tour creation platform for real estate agents, including services from virtual tour videos to floor plans.

Smooth integration with all the CRMs and listing pages. Redeem your 2-month FREE subscription today. Deal will expire 2 months after signing up and you must sign up before 31/01/2021.

Visit istaging.com/reinz-holiday-deals-2020

To qualify for the special, the adverts must be paid for in advance and used within 6 months from the purchase date. Simply give us a call on 0800 638 968 or email sabrina@nyj.co.nz and mention this ad and we’ll take care of the rest! Deal expires 31/01/2021.

For more summer deals, download the REINZ app and claim discounts and deals from suppliers such as Torpedo7, 1-day.co.nz, Give Plants, Hertz, Thrifty, Bunnings, Placemakers and BigSave Furniture.

T&Cs apply as per each individual offer.

SUMMER 2020/21

|

57

TECHNOLOGY

REINZ and HomePrezzo launch new Local Suburb Guides With the property market busier than ever, REINZ has teamed up with HomePrezzo to help members work ‘smarter’ not ‘harder’. Our new Local Suburb Guides will help you to free up time otherwise spent on digital marketing in order to be able to focus on important tasks such as selling houses and getting new listings.

Six ways to use your REINZ Local Suburb Guide REINZ Local Suburb Guides make it quick and easy to create a valuable, data-driven report about your local suburb. They use the latest REINZ data and you can customise the reports with your own agency brand, colours, logo, photos and recent sales.

They’re so easy to do, you’ll soon be looking for new ways to use them to promote yourself. Try these ideas out:

1. Hand out at Open Homes Print out the Local Suburb Guides on your office printer or get them professionally printed out and take them to open homes.

It will help you justify an asking price by showing buyers what other properties in the area are selling for.

2. Use as a talking point when you’re door knocking One of the hardest things about door knocking and cold calling is trying to build a rapport with the person on the other side of the door. When you have a free gift in the form of a Local Suburb Guide, you’ve got a great talking point as you can show them how the market is performing and fire up their curiosity. Leave it behind to make a lasting impression. Beats a magnet any day!

3. Share on Facebook The Local Suburb Guide can also be created as a digital report and shared quickly and easily on Facebook. Post your report, share it with your target audience in that suburb, and make a comment about how the market is performing, to get people interested. If you encourage people to click on the report and download it, you’ll also

58

|

The Real Estate Institute of New Zealand

Kylie Davis, HomePrezzo

improve your Facebook engagement and capture vital metrics for your next post.

4. Upload to your website Add the Local Suburb Guide to your website and encourage visitors to share their email details in return for downloading their own copy. It will help you create a list of leads to follow up later. If you put a Facebook pixel onto your landing page, it will also allow you to re-target those who visited with future campaigns on social media.

5. Tweet them out Tweet about your report and some of its key statistics to create multiple posts for Twitter, and schedule them at different times of the day to see which gets the best results. If you’re directing people to a website to access the report, it’s another way to gather valuable re-targeting data.

6. Email to past - or present clients REINZ Local Suburb Guides are a great ‘light’ touch to engage with potential sellers and buyers who have just joined your database, as the data is updated every month. They are also a useful tool to share with past clients and landlords on a regular basis. Quarterly is ideal as it gives you a good reason to follow up with them afterwards.

Create an image to illustrate the report and share it inside your email with a link that takes your clients to the landing page. If you’re using an email platform, such as ActivePipe, each time someone clicks on the link to read the report, you’ll receive valuable targeting data inside your dashboard.

POWERED BY:

Instant Local Suburb Guides Update your sellers and buyers on how their local suburb is performing with the new Local Suburb Guides from REINZ and HomePrezzo.

FREE 7 Day Trial

■

Create reports with the latest REINZ property market data. Individuals can sign up for $30 a month for the first 3 months, then $49 per user thereafter

■

Personalised with your brand colours, logo and photo

■

Create reports for as many suburbs as you want in just minutes to send to your contacts

Coming Soon!

Keep an eye on In The Know for more details

INTEREST

The importance of asking for help

Jasmine Platt, Founder, Real Estate Leaders

I often get calls from salespeople asking for advice. Often, they’re struggling with their results or career, and they’re looking for direction, but they don’t feel they can talk to their manager about it. Sometimes it’s clear from the conversation that their manager’s leadership leaves a lot to be desired and some basic (or serious amounts of!) leadership training wouldn’t go astray! Other times, they’re struggling and suffering in silence, feeling rudderless, and they can’t speak to their manager about it. And it’s hardly surprising, when you think about it.

It’s well-known in the industry that the protection of egos and images drive many salespeople to hide their true thoughts, feelings and struggles.

The adage ‘fake it till you make it’ perpetuated in the industry may have some public-facing merits, but when ‘faking’ competence and confidence extends to the team environment, it can lead to considerable lags in (or complete absence of) important developmental support.

When salespeople feel they are ‘on show’ and are without the support, training, coaching, ability or confidence to perform competently, this can lead to feelings of loneliness and isolation, despite being part of a ‘team’.

This tendency to hide our struggles, can be traced back to our genetics – to Darwin’s ‘survival of the fittest’ theory of evolution.

The theory suggests that when resources are limited (think listings), organisms best adjusted to their environment are most successful in surviving. And in our industry, survival is best achieved through confidence (real or faked) and action.

Which is great if you know what action to take and how to do it competently!

However, if you’re feeling out on a limb, because you’re operating in an environment where support is missing and 1:1 coaching

60

|

The Real Estate Institute of New Zealand

isn’t the norm, it can be hard to put your hand up and ask for help.

If you’re not making the sales that you want or need to make, it’s important that you do seek assistance.

One of my favourite quotes about help, by Barack Obama, is: “Don’t be afraid to ask questions. Don’t be afraid to ask for help when you need it. I do that every day. Asking for help isn’t a sign of weakness. It’s a sign of strength. It shows you have the courage to admit when you don’t know something, and then allows you to learn something new.”

Maybe the person you need help from is your manager. Maybe it’s a real estate or success coach or a programme of training. Maybe it’s a colleague you can trust to help you think through what’s challenging you and who can help you upskill or put together your business and marketing plan. Either way, get help!

People can’t help you if you don’t ask.

Often salespeople don’t ask for help because they don’t actually know what they need help with. So instead, they don’t speak up and time moves on, while they struggle and suffer in silence. This has led to many a salesperson’s career failing – don’t do that!

Here are five general rules for how and when to ask for help – and get the support you need.

INTEREST How to ask for help

3. Be graceful in your approach

1. Do your homework

People are busy – and they’re far more likely to want to help you if you are graceful in how you approach them. Approach the person you want help from – and tell them you’d love their help or advice. Before telling them what you’re needing help with, see if they’re open to you sharing what you’re grappling with. (If they’re not, for the sake of your relationship, don’t get bitter or resentful. Find someone else who is able and willing to help!)

You want people to want to help you.

Research suggests that people are more likely to want to help if you demonstrate you’ve put effort in yourself first. In other words that you not come off as lazy and not wanting to do the work yourself! So, before you ask for help, there’s some work to do to prepare: • Identify the specific outcome you’re struggling with - or the specific skillset or area of knowledge you don’t yet have, and want to develop • List the actions you’ve already taken to achieve that outcome – and/or any fears that you feel are standing in the way of you taking action • Identify possible ideas for actions you could take to produce the outcome, skillset or area of knowledge you’ve identified. (Consider things you could study, research, practice or role-play that would help you to build your competence and confidence).

2. Pick your audience Identify who can help… or at least, who you want to ask first! It might be your manager, sales manager, or a trusted colleague. If you don’t have anyone available, maybe you need to consider the level of support available at the agency you’re with – or hire a mentor whose expertise is in the area you’re looking to develop.

4. Be specific – but lay the groundwork for creativity and collaboration If they are happy to help, tell them the outcome you’re struggling with, or the skillset/knowledge you want to develop.

This gives them direction on what you’re trying to achieve.

Share the ideas you have and ask them what they think - or if they have any suggestions. This respects their time and demonstrates that you’re not being lazy by using them and their ideas without some effort on your part.

If they have great suggestions and you’d like further help from them, ask them if they’d be willing to help you. If they are, come up with ideas for how you might go about it.

5. Demonstrate your gratitude Be sure to thank them. If they’re part of your team, gratitude builds

trust, relationship and creates a more collaborative culture in the team. Do credit them publicly at a later date for their help!

In conclusion, your career matters. While some salespeople might be independent lone-rangers who appear to achieve their goals alone and pride themselves on being self-sufficient, most of us don’t reach our potential without great amounts of help!

If your goals are riding on you getting help in some area you’re struggling, it’s important you get that support.

For the most part, people want to help.

Unless you’re part of a ‘dog-eat-dog’ team, your manager or team mates might be a great place to start. If not, find a mentor and/or consider finding a new manager!

Either way, people can’t know what you need if you don’t ask.

Jasmine Platt is the Founder of Real Estate Leaders. As a high-performance specialist, she works with head agencies, branch leaders, franchise owners and salespeople to help them lift their results, make more money and win more of their time (and sanity) back in the process. To speak with her about how she can help you, email her directly at jasmine@realestateleaders.co.nz

SOMETIMES IT TAKES MORE COURAGE TO ASK FOR HELP THAN TO ACT ALONE.

SUMMER 2020/21

|

61

INDUSTRY

Nadine Thomas, Industry Insights and Engagement Manager, REA

Supporting potential buyers to better understand the multi-offer process With so much competition in the market right now, we’re seeing an increase in calls to REA from potential buyers who are confused about the multi-offer process.

Here’s how licensees can support buyers to navigate this process.

In the later part of this year, competition for property has been fierce. At the Real Estate Authority (REA), we have been getting a large number of calls from potential buyers who are confused about the multi-offer process. Complaints can arise because potential buyers have not understood the process correctly and feel they have been treated unfairly, particularly if their offer has not been successful. The best way for you to support buyers in a multi-offer situation is to provide them with clear information about the process and make sure they have understood this.

unfair pressure on your vendor or potential buyers when trying to secure a sale, so always keep this top of mind.

The process should be fair and transparent to all parties

• explaining that the vendor may choose to negotiate with one potential buyer to the exclusion of others or choose to negotiate with all interested parties

The process followed in a multi-offer situation can differ from agency to agency.

The process is not defined in law or set by us at REA but there are principles in the professional conduct and client care rules that apply. While your primary obligation may be to the vendor, you must also take care to treat all parties fairly and ensure the process is transparent. Rule 6.2 says “a licensee must act in good faith and deal fairly with all parties engaged in a transaction”. The rules also say you must ensure that you’re not putting any undue or

62

|

The Real Estate Institute of New Zealand

The most important requirement is to ensure that all parties understand that they are participating in a multi-offer situation.

You can also support potential buyers by: • encouraging them to put in their best and highest offer, because they may only have one opportunity to do so • recommending that they do their homework about the property before making an offer

• making them aware that they can withdraw their offer (or counter-offer) at any time before acceptance.

Documenting the multi-offer process We encourage all agencies to have clearly documented policies and procedures for the process they will follow when a multi-offer situation arises. This will help

INDUSTRY

you and your agency to have a consistent process and will enable you to provide clear information to vendors and buyers about what process will be followed.

Potential buyers should be informed they are in a multi-offer situation, and this is often done by having them sign an acknowledgement of multi-offer form.

When a potential buyer has signed a written offer but refuses to sign a multi-offer form or acknowledge they are in a multi-offer situation, rule 10.10 requires that their offer is still presented to the vendor. You may wish to document that this interested buyer was informed of the multi-offer situation.

If a buyer pulls out, leaving only one interested buyer to make an offer, the remaining buyer is no longer in a multi-offer situation. They should be informed of this change in case they want to review their offer before it is presented to the vendor.

If an agency’s standard multi-offer process is not suitable for a particular situation, you may depart from it as long as the process remains fair. In that case, the best practice is to advise the parties that the process has changed from what has previously been explained to them and ensure you document all conversations.

Information to empower buyers and sellers When a potential buyer calls REA and tells us that they feel the odds are stacked against them in a multi-offer process, we explain that this process is actually used to give all interested buyers a fair opportunity to submit their best offer. It also gives the vendor a good picture of market interest and the level of competition for the property.

Consumers who have a good understanding of the process going into things are less likely to be confused or feel disgruntled down the track, and this applies to both vendors and potential buyers. You can encourage them to visit REA’s consumer website, settled.govt.nz, to find comprehensive and independent information designed to help guide buyers and sellers as they tackle a property transaction.

Find more information and advice for real estate professionals at rea.govt.nz, or speak to our team on 0800 367 732.

SUMMER 2020/21

|

63

LEGAL

Privacy Act 2020 and mandatory privacy breach reporting The Privacy Act 2020, has now come into force, as of 1 December 2020. Under the new Act, if your agency has a privacy breach that is likely to cause anyone serious harm, it is legally required to notify the Office of the Privacy Commissioner (OPC), and the affected persons as soon as practicable. This will be called a “notifiable privacy breach”.

Up until 1 December, notification of privacy breaches were voluntary.

What is a privacy breach?

The new Act provides two interpretations as to what a privacy breach is, in relation to personal information held by a company or organisation (agency). These include: • unauthorised or accidental access to, or disclosure, alteration, loss, or destruction of the personal information; or • an action that prevents the agency from accessing the information on either a temporary or permanent basis;

|

The Real Estate Institute of New Zealand

When is a breach notifiable?

A privacy breach is notifiable when it is reasonable to believe the breach has caused, or is likely to cause, serious harm to the affected individual(s). The Act provides several factors that an agency must consider when deciding if a breach is notifiable: • any action taken by the agency to reduce the risk of harm following the breach; • whether the personal information is sensitive in nature; • the nature of the harm that may be caused to affected individuals;

The first meaning is what is commonly understood to be a privacy breach. This includes incidents such as unauthorised access to a system, losing devices such as laptops or USBs that contain personal information, or accidentally disclosing personal information to the wrong person.

• the person or body that has obtained or may obtain personal information as a result of the breach (if known);

The second meaning encompasses incidents such as ransomware attacks.

This form of cyberattack has become increasingly common in recent years.

It is important to note that the breach is notifiable when it is reasonable to believe the breach has, or is likely to cause, serious harm. If or when the belief is ‘reasonable’ is a matter for the agency to determine.

In a ransomware attack, an outside user gains access to systems or databases, and either locks the users out or encrypts their files. Often the hacker will subsequently demand a financial payment in return for restoring access or providing a key to decrypt files. There have been several incidents where companies have refused to make payment, and sensitive information has been deleted or released to the public.

64

Alan Knowsley, Managing Partner, Rainey Collins Lawyers

• whether the personal information is protected by a security measure; and • any other relevant matters.

Who must the breach be reported to?

If the breach is notifiable, it must be reported to the Privacy Commissioner and the affected individual (as stated above). The agency must notify the affected individual as soon as reasonably practicable after becoming aware that a notifiable breach has occurred (unless an exception applies).

LEGAL

AGENCIES NEED TO UNDERSTAND THAT A FAILURE TO NOTIFY THE COMMISSIONER OF THE BREACH, WHERE REASONABLE BELIEF EXISTS, IS AN OFFENCE PUNISHABLE WITH A FINE OF UP TO $10,000.

The Act provides a detailed list of requirements that must be included in a notification to the Commissioner or affected individual.

A notification to the Commissioner from an agency must: (a) describe the privacy breach, including—

(i) the number of affected individuals (if known); and

(ii) the identity of any person or body that the organisation suspects may be in possession of personal information as a result of the privacy breach (if known); and

(b) explain the steps that the agency has taken or intends to take in response to the privacy breach, including whether any affected individual has been or will be contacted; and (c) if the agency is intending to give public notice of the breach, set out the reasons justifying that action (this can only be done in special circumstances set out in the Act); and (d) if the agency is relying on an exception, or is delaying notifying an affected individual or giving public notice, state the exception relied on and set out the reasons for relying on it or state the reasons why a delay is needed and the expected period of delay; and (e) state the names or give a general description of any other agencies that the organisation has contacted about the privacy breach and the reasons for

having done so; and (f) give details of a contact person within the organisation for inquiries.

A notification to an affected individual or a representative must: (a) describe the notifiable privacy breach and state whether the organisation has or has not identified any person or body that the agency suspects may be in possession of the affected individual’s personal information (but, must not include any particulars that could identify that person or body, unless certain exceptions apply); and (b) explain the steps taken or intended to be taken by the organisation in response to the privacy breach; and (c) where practicable, set out the steps the affected individual may wish to take to mitigate or avoid potential loss or harm (if any); and (d) confirm that the Commissioner has been notified; and (e) state that the individual has the right to make a complaint to the Commissioner; and

(f) g ive details of a contact person within the organisation for inquiries.

A notification to an affected individual may identify a person or body that has obtained or may obtain that affected individual’s personal information (where the identity is known) if the agency believes on reasonable grounds that identification is necessary to prevent or lessen a serious threat to the life or health of the affected individual or another individual.

A notification to an affected individual must not include any particulars about any other affected individuals.

Notification must be made as soon as practicable, but may be provided incrementally, provided it is done as soon as practicable.

Mandatory breach reporting will be a new process for companies and agencies. It is important that you understand, and have a plan in place, on how to respond to potential privacy breaches, otherwise you could face expensive fines.

The OPC will be launching the tool Notifyus which will assist agencies to assess whether a privacy breach is notifiable or not.

Alan is the managing partner of the firm and practises in the litigation and dispute resolution areas with particular emphasis on employment, education, health, insurance and charities. Alan has many years’ experience in employment law, representing employers and employees and advising on how to get the best possible outcome. He can assist you with getting your employment agreements fully compliant with the law as well as with personal grievance claims, mediations and Employment Relations Authority hearings. www.raineycollins.co.nz SUMMER 2020/21

|

65

PropertySmarts NZ’s most up-to-date property information tool Utilising our up-to-date data, real estate professionals can prepare a quality CMA in PropertySmarts with ease and speed.

The best value property information tool in New Zealand.

N mo ow re inc ru lu ra de ld s at a!

FREE 2 Week Trial

Find. Compare. Build. Done!

Contact us for your Free Trial - Get PropertySmarts today!

Call us toll free on 0800 473 469 or email membership@reinz.co.nz

PropertySmarts is exclusive to members of REINZ.

Explore the best gifts of the season with the only gift guide you’ll need.

Don’t forget to use your REINZ app in store to access your preferential pricing. noelleeming.co.nz

n2062-REINZ Advert-180mmx130 v02.indd 1

2/11/20 3:14 PM

Serious about property* *since 1978 – ie: long before it became a fashionable strapline in a swanky TV advert

www.propertypress.co.nz