REINZ Real Estate Magazine - Summer 2021/22 by reinz_info

RealEstate SUMMER 2021/22

A REAL ESTATE INSTITUTE OF NEW ZEALAND PUBLICATION

$13.80 excl. GST for members

Queenstown Lakes District continues to flourish

 2021 REINZ Awards for Excellence  A new way to buy a first home with

shared ownership  Vendor tips: How to find the right home stager

YOUR s s e cc

u S 021 3-2 201

Re al E i es state Ag enc

At Harcourts, providing you with an unrivalled foundation for success is OUR COMMITMENT. As a Harcourts Sales Consultant, you’ll have the strength of a global brand, world-class training, industry leading technology and an international recognition program behind you. If you’re looking to achieve next level success, join New Zealand’s largest real estate company.

Find where you belong.

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

THE MOST VALUABLE PROPERTY IN REAL ESTATE IS PEOPLE. Professionals Real Estate New Zealand is a co-operative group founded by Real Estate people for Real Estate people. All fees paid go into providing services to our members and we aim to provide the best value experience for our owners and our clients through independent ownership and collaboration. We have core areas available across New Zealand and ownership options for businesses at different levels of maturity from start ups to multi office operations. If you are looking for a step up with a group focussed on the success of its people, go to professionals.co.nz/ownership or contact Nick Reid on 021 721 915 or nick.reid@professionals.co.nz

RealEstate SUMMER 2021/22

A Real Estate Institute of New Zealand Publication

IN THIS ISSUE OUT & ABOUT 08 FEATURES 12 SECTOR GROUPS 24 FINANCE 32 EDUCATION 39 TECHNOLOGY 42 INTEREST STORIES 46 INDUSTRY 58 LEGAL 60

2021 REINZ AWARDS FOR EXCELLENCE

18 20 24 30 36

QUEENSTOWN LAKES DISTRICT FLOURISHES GROWING WELL ON THE KĀPITI COAST

44 50 56 62

FOUR REASONS TO BUILD RELATIONSHIPS WITH BUYERS

HOW IS THE PRIVACY ACT 2020 RELEVANT TO AGENTS?

HOT BUYS — EXCLUSIVE TO REINZ MEMBERS VENDOR TIPS: HOW TO FIND THE RIGHT HOME STAGER BUSINESS UNUSUAL: COVID-19 AND REAL ESTATE ADVOCACY

NEW RULES FOR LAND SALES TO OVERSEAS INVESTORS COMMERCIAL AND INDUSTRIAL MARKET ROBUST REINZ RPM SECTOR GROUP

ADVERTISE THROUGH REINZ

Become a Member Benefit supplier. Contact marketing@reinz.co.nz

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 Eilish Emery – eemery@reinz.co.nz

Wanting to sponsor a REINZ event? Contact Holly Adams hadams@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

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

Advisory Services

Melisa Beight, General Counsel Ph: 09 356 1760, mbeight@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

Holly Adams, Events & Sponsorship Executive Ph: 09 356 1755, hadams@reinz.co.nz

Communications

Marie Cahalane, Head of Communications Ph: 09 356 1755, mcahalane@reinz.co.nz

Education

Lisa Stern, Learning Programmes Manager Ph: 09 356 1755, lisastern@reinz.co.nz

Editors

Marie Cahalane, Editor-in-Chief; Eilish Emery, Editor; eemery@reinz.co.nz

Design and Layout

MacWork Design & Print info@macwork.co.nz

Printing Ovato Ltd

ISSN 2324-3791

Technology

Ian Smith, Senior Data & Platform Manager ismith@reinz.co.nz

Finance

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

PropertySmarts

Call REINZ Membership on 0800 473 469, option 1

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 The rules for new salespeople completing Continuing Professional Development (CPD) have changed. Salespeople who were newly licensed before 1 September this year must complete their CPD in 2021. If you’re a supervisor, you should check that your salespeople are on track to meet their obligations. Those who don’t complete their training by 31 December may have their licence cancelled.

Make sure you understand your CPD requirements. Visit rea.govt.nz/cpd rea.govt.nz/cpd linkedin.com/company/realestateauthority

CEO UPDATE

Reflecting on an eventful 2021

Jen Baird CEO, REINZ

It’s an interesting time for New Zealand’s real estate profession. From adapting ways of working through differing alert levels and New Zealand’s longest lockdowns to recognising and moving toward a new data-enabled, digital future, real estate and property management professionals have continued to serve buyers, sellers, tenants and landlords all the same.

Over the course of 2021, this profession has shown immense resilience, collaboration and commitment to doing the right thing. I want to give a special acknowledgment to our Auckland members who have spent a long stint in lockdown. I know that this one has been especially difficult. In these unprecedented times, your institute has also remained resilient. We have tirelessly advocated for sensible guidelines from our regulator, and for those in the wider government machine to understand our profession’s specific circumstances and make their considerations from a position of knowledge. We have been fortunate to work in a part of the economy where demand hasn’t been impacted so harshly by the pandemic this year — and you have continued to serve New Zealand well over this time. Others haven’t fared so well, particularly small businesses. As we draw closer to Christmas, I encourage you to shop local, and support a small business near you. As a nation, it is the least we can do. Despite COVID-19, REINZ was delighted to host the 2021 REINZ Awards for Excellence in September. For the first time, the Awards were hosted virtually, the live event broadcast from Hamilton. It was a great success, with more than 550 viewers from all around the country tuning in to celebrate success across the real estate profession. Although from afar — it was wonderful to see you all online, and

The Real Estate Institute of New Zealand

we hope you had a great evening. A big congratulations to our winners and finalists on the night. You can read more about the Awards on page 13. We also held our Annual General Meeting (AGM) as a virtual event in November. We look forward to introducing you to our new Regional Directors, Treena Drinnan and Malcolm Morris, in the next issue of the magazine. I want to make a special mention to our departing directors Wendy Alexander and Mark Coffey. After eight years, Wendy leaves a lasting legacy of service at REINZ. As many of you know, Wendy was the Acting Chief Executive of REINZ to cover the period between Bindi Norwell’s departure and my appointment as the new Chief Executive. The team at REINZ and I are forever grateful for Wendy’s valued input over her tenure and the positive impact she has had on our organisation. Throughout Mark’s tenure on the board, he has brought the voice of our regional members to the table. His understanding of the differing needs of members and his commitment to supporting you has made a tangible difference to how and what REINZ delivers. Recently, he has been part of the working group that has seen REINZ improve its working relationship with ADLS for the benefit of our members and your customers. It is bittersweet to see them both go as we look forward to welcoming new voices and fresh perspectives to the REINZ Board.

We also said farewell to two members of our Senior Management Team, Kirti Desai, REINZ’s Chief Digital & Innovation Officer, and Belinda Woolrych, REINZ’s Education Director. Both have played important roles in the organisation, and we wish them all the very best in their future endeavours. We were delighted to welcome Miles Fordyce on board as our new Digital & Innovation Officer in December. REINZ’s new Head of Communications, Marie Cahalane, joined us in September and has already made her mark. You can read more about Marie on page 12. We have some wonderful articles to get you through to the end of the year (and will make for some great reading over the summer break) in this issue of the magazine. We delve deep into the exciting growth in Queenstown and the Kāpiti Coast (page 18 and page 20), discuss Kainga Ora’s new shared ownership scheme to help first home buyers (page 46), draw on the importance of real estate businesses giving back to the community (page 48), and much more. I hope you take some time to reflect on your successes over this year, and take some much needed R & R before heading into 2022 with all guns blazing — as we in the profession tend to do! Thank you for your ongoing support. Meri Kirihimete and have a Happy New Year. Nga mihi, Jen Baird

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OUT & ABOUT

Papakura wins ‘Top Office’ in C21’s quarterly awards — again Papakura’s Century 21 Local Realty has again won Top Office for the Quarter in Century 21 New Zealand’s third quarter awards for 2021. “Local Realty is barely two years old, yet the franchise has already taken out many sales awards. They’ve been one of the Top 21 offices across Century 21 Australasia, Century 21 New Zealand’s Top Office for 2020 and, for the second quarter running this year, Local Realty is Top Office,” says Tim Kearins, Owner of Century 21 New Zealand. The South Auckland franchise on Papakura’s Broadway was named Top Office for the third quarter for both GCC (Gross Closed Commission) and Units (the number of properties listed and sold). “The third quarter saw New Zealand go into Level 4 lockdown, with the entire Auckland region in lockdown for the second half of the quarter. Despite this and ongoing restrictions in real estate, Century 21’s salespeople and offices throughout the country have done a phenomenal job. This all bodes well for a strong summer, with activity already on the rise,” says Kearins.

New Zealanders rate Harcourts #1 for service for the fifth year in a row

Professionals primed for growth Nick Reid has joined the team at Professionals National Support Centre based in Newmarket, Auckland. As the new Business Development Manager, Nick will be responsible for growing the membership of New Zealand’s largest real estate cooperative. With over 15 years of experience as a salesperson, most recently with apartment specialists Ockham Residential, Reid will play a role supporting Professional’s 45 offices across New Zealand with development. “I’m thrilled to be joining the Professionals at an exciting time for the organisation. I’m looking forward to talking with real estate business owners about their goals and how Professionals can help them achieve theirs,” Reid says. Shaun Taylor, CEO at Professionals, is delighted to be able to attract someone of her calibre to join the tight-knit Professionals team.

“It’s truly an honour to be awarded the Reader’s Digest Quality Service Gold Award for real estate agencies for a fifth consecutive year,” says Harcourts New Zealand Managing Director Bryan Thomson. “It’s a vote of confidence from New Zealanders and one that we don’t take for granted. “In uncertain times, we all look to people and brands that we can trust. Harcourts has a long history of providing a professional and personalised service that gives our clients peace of mind. When they work with Harcourts, they’re confident they’ll get a great result, but we can’t be complacent,” he adds. “In the environment we’re currently working in, our people, processes and technology must be constantly adapting to make good on our promise of exceptional service, year after year. Being awarded the Gold Quality Service Award for five years and the Reader’s Digest Most Trusted Award for nine consecutive years tells us we’re doing that.”

Nick Reid

Ray White’s virtual training platform ‘invaluable’ during lockdown Throughout New Zealand’s Alert Level 4 lockdown, Ray White relaunched its virtual training platform featuring 69 guest speakers. Running from 23 August to 20 September, the training was well attended by members, with more than 9,500 people tuning in to virtual training sessions. Guest speakers included Golf Warehouse CEO Eric Faesenkloet, Briscoes and Rebel Sport CEO Rod Duke, 38th Prime Minister of New Zealand Sir John Key, renowned industry speakers Josh Phegan and Tom Panos, ASB Economist Chris Tennent-Brown, independent economist Tony Alexander and rugby coach Sir Graham Henry. “The virtual training program has been a great way to stay motivated and connected,” Ray White Sandringham agent Alastair Hubbard said. “It was inspiring to hear how some of our top-performing salespeople and business owners have created their success.” As a new agent, Glen Thompson from Ray White Richmond said having access to so much motivational content was invaluable. “The breadth of topics and quality of speakers helped to give me knowledgeable insights and hearing the success stories of top performers and what their focuses are, gives you confidence that you’re doing the right thing and have chosen the right career!” Thompson said.

The Real Estate Institute of New Zealand

OUT & ABOUT

Mike Heard joins Property Brokers as Hawke's Bay and Gisborne Rural and Lifestyle Area Manager Born and bred in Hawke's Bay, Mike's hugely successful career in rural real estate spanning over 12 years has seen him achieve many notable awards along the way and well over $200million in sales across Hawke's Bay to date. "It's really exciting to be leading the East Coast, rural team. I am fortunate to be in the enviable position of pooling talents and working with a great bunch of people. And, like me, they love heartland New Zealand and want to see it thrive, consistently adding value to the communities they call home," says Heard. Conrad Wilkshire, General Manager at Property Brokers, says: "We are thrilled to welcome Mike into the Property Brokers family. He's well-known and respected in the area, and we're confident that the rural team will benefit from his broad knowledge; they are in great hands under his leadership." "Our experienced rural team and vast grassroots real estate knowledge bolstered by in-depth data from Farmlands, our strategic partners, means that we are in a great position to deliver clients with smarter solutions. It's an exciting time to be in rural real estate," continued Wilkshire.

Mike Heard

Professionals expands with North Otago office Professionals Group New Zealand welcomed Maree Thorpe and her team to the cooperative group as Professionals North Otago. Maree has been operating in the town and surrounding area for the past 15 years. She is passionate about her community and “doing it with a difference to make a difference”. Shaun Taylor, CEO of Professionals NZ, couldn’t be happier. “From the first time I met Maree, I was impressed with her integrity and willingness to go the extra mile for her clients, and this is true of her fantastic team as well. Their values are aligned with the groups’, and they are a welcome addition to our national network,” Taylor says. “After discussions with Shaun and other Professionals members in the South Island we decided to move, and we couldn’t be happier. Professionals gives us the benefit of a national brand and the independence to run our business the best way that works for us and our community,” confirms Thorpe.

Ray White New Zealand celebrates its 2021 winners Some 2,000 Ray White New Zealand members tuned in online in September to celebrate their best performers of 2020 - 2021 at the virtual annual awards ceremony. Ray White New Zealand CEO Carey Smith said he was proud of every member, their achievements, and their resilience for the 2020 - 2021 financial year. “Ray White in New Zealand has continued to go from strength-to-strength this year, selling over $18billion worth of property and managing 20,050 properties for landlords,” Smith said. “The last 12 months have seen the company increase its sales volume by more than 42% and has been a record year throughout the 187 offices. “The recognition awards are an important part of the celebration of the contribution that members have to the organisation of Ray White.” Smith said that the performance of the network over the past 12 months had been extraordinary. SUMMER 2021/22

OUT & ABOUT

Harcourts supports Whale Tales Community Art Trail In January, Whale Tales hits Auckland offering locals and visitors the chance to participate in a 12-week free public art trail. All thanks to a special partnership between WWF-New Zealand, Wild in Art and Harcourts New Zealand. The trail will feature 80 1.8m whale tail sculptures designed by well-known and emerging kiwi artists/studios which will be dotted throughout streets, parks and open spaces. There will also be 80 smaller tails decorated by students and the opportunity to participate virtually through a learning programme. “It’s been a difficult year of pandemic for many, so we are keen to enable a free event that will lift up spirits for a majority of Aucklanders and visitors to the region this summer,” says Bryan Thomson, Harcourts New Zealand Managing Director. “Many of our Harcourts business owners across Auckland have donated a small whale tail to local community groups or schools to decorate and display in public places, so the rest of the city can enjoy the event as well.” “After the art trail is finished, our award-winning auction team will auction off the large tails to raise funds for WWF-New Zealand, particularly for their critical work in protecting and restoring our Hauraki Gulf treasure.”

Spreading love during lockdown With the lockdown being tough on some people, various Barfoot & Thompson teams took the opportunity to reach out to small businesses, neighbours and clients to make their days a little brighter. Kurtis Thompson, Head of Property Management at Stonefields branch, went above and beyond by delivering fresh fruit and vegetables to terrific tenants on behalf of their thoughtful landlords. The team at Otahuhu, while at Shanti Niwas, gave 400 grocery packs to the community. Bags of goodies were also given to Waitakere COVID-19 vaccination centres to enable them to attract more people to come and get themselves vaccinated. In Kumeu, Property Manager Jenny Rollinson came to the rescue of a family left homeless after the recent floods. She found them an alternate rental and paid the first two weeks' rent. Steven Maserow, Branch Manager at Howick reached out and supported a local eatery by buying $500 worth of rolls, which he asked to be paid forward to community members.

$67,000 donated to help the West Coast Property Brokers Westport Branch Manager, Charlie Elley, was thrilled to hand over a cheque for $67,000 to Buller District Mayor Jamie Cleine, contributing to the Buller Mayoral Relief Fund, helping those in the West Coast community who need it most. When they saw that some West Coast residents needed a hand after severe flooding last month, the Property Brokers family came together to help make a difference. Each of Property Brokers’ 80+ branches took part in a nationwide morning tea to raise funds. Guy Mordaunt, the group’s Managing Director, matched the donations dollar-fordollar resulting in over $14,000 being raised. A charity auction at the NZ Realtors Rural Conference, driven by Property Brokers West Coast Area Manager Gareth Cox, and with the help of the NZ Realtors Network, saw a further $54,490 raised.

Harcourts Foundation donates over $40K in the latest round of grants In August, Harcourts’ charitable arm, the Harcourts Foundation, completed its quarterly grants round, which saw 21 grants made to community organisations throughout the country totalling over $40,000. Harcourts offices and team members throughout New Zealand have a long history of giving to their local communities and supporting those in need by donating a percentage of their commission from the sale of properties. These funds are administered by the Harcourts Foundation and every dollar donated goes into communities where they’re needed. The contributing offices know their local communities best and decide which charities, groups, or projects they wish to support in their area. Examples include local schools, surf lifesaving clubs, Riding for the Disabled, Hospice and other small charities which struggle to find funding. Harcourts’ purpose of helping others achieve success is intrinsically linked to the Foundation’s purpose of providing ongoing support to assist, grow and enrich their communities. It is through the success of their businesses that they provide much-needed support to the communities in which they live and work in.

The Real Estate Institute of New Zealand

Special thanks to Property Broker’s strategic partners, Farmlands Cooperative, who donated auction items, Peter Thompson from Barfoot & Thompson, who generously donated on the night, and to Global HQ, Stuff, Tim Mordaunt, Great Journeys of NZ, Monk Family, Paroa Hotel, Christian Cullen, realestate.co.nz, Forest 360 and The Westport News. An outstanding team effort to support a wonderful community!

OUT & ABOUT

SPOTLIGHT

Quizzing raises over $260k for Starship At the annual Barfoot & Thompson Quiz Night, a record-breaking amount of over $260,000 was raised for the tiniest patients in Starship's Neonatal Intensive Care Unit (NICU). Thanks to the incredible generosity of all contributors, phototherapy lights to treat jaundice, syringe feeding pumps to support neonatal babies who struggle to feed properly, infusion pumps to manage the administration of antibiotics, and other vital equipment and funds were donated to the hospital. “Giving back to our community is an incredibly important part of our family-owned business and Starship’s ongoing impact on the health and wellbeing of children makes Starship a natural partner for us to support,” says Peter Thompson, Managing Director at Barfoot & Thompson.

Harcourts Cooper & Co ‘Measure Up’ for basketball fans! Harcourts Cooper & Co recognised the phenomenal growth in the sport of basketball within their local community, taking the opportunity to support the newly established Auckland Huskies. Formed in 2020 to take up the NBL Auckland Franchise, the Huskies had their first season based at Eventfinda Stadium in Glenfield, Auckland.

Ray White Home and Garden tour supports Ronald McDonald House Ray White Canterbury fundraised for Ronald McDonald House South Island through its Home and Garden Tour. 100% of the proceeds from the Ray White Home and Garden Tour 2021 went to Ronald McDonald House South Island. Ronald McDonald House South Island is an independent charitable trust that provides free accommodation and support to families who must travel to Christchurch and Invercargill for their child’s medical treatment.

Not only are the Huskies taking the New Zealand basketball world by storm — with a stunning first season culminating in a semi-final spot — but they’re also closely aligned to Cooper & Co’s values. The team at Cooper & Co aim to create better communities through their partnership with organisations such as LifeChanger Foundation — an organisation dedicated to identifying and developing inspiring mentors within their communities.

Each year the charity provides a home-away-from-home for more than 1,200 families.

This has allowed Harcourts Cooper & Co the opportunity to take their partnership with the Auckland Huskies out and about into the local schools in the North Shore community. The players enjoy getting the opportunity to interact and engage with the next wave of basketball talent in Auckland, and deliver holistic self-development workshops for children and teens to create and sustain safe and resilient communities.

Alice Mackenzie, Ray White Canterbury relationship manager, said businesses, brands and individuals contributing to the day’s planning meant some pretty great surprises were planned to give the tour a point of difference.

Harcourts Cooper & Co and the Auckland Huskies are looking forward to building on these connections with the community in 2022 and rewarding their awesome new following of fans with another exciting season of basketball ahead.

Held on 6 November, the Ray White Home and Garden Tour provided a rare glimpse into a hand-picked selection of some of Christchurch’s beautiful private homes and gardens, all while supporting an important cause.

“It’s important to Ray White Canterbury to make our tour memorable,” Mackenzie said. “We were blown away by the enthusiasm for the event.” SUMMER 2021/22

FEATURE

REINZ’s new team member The REINZ team recently welcomed its new Head of Communications, Marie Cahalane. Here’s a quick introduction and some information to get to know our new team member.

Head of Communications Marie joined REINZ mid-September during Auckland’s Alert Level 4 lockdown as the new Head of Communications where she forms part of the Senior Leadership Team and reports directly to the Chief Executive. Prior to joining REINZ, she worked in a New Zealand-based tech start up, where she was Head of Content and Communications. Her team led communications, engagement and content across the broad remit of the business — supporting customers at all stages of their journey, as well as corporate clients. Originally from Ireland, Marie moved to New Zealand from London, where she worked in publishing — focused on the public and private sector across health investment, general practice and education. Prior to which she worked in a PR and Marketing agency. When away from her desk, you’ll probably find Marie with her nose in a book, or you won’t find her because she’s out walking New Zealand’s stunning trails. She has a huge interest in the arts — from music and performance to art for art’s sake.

Proud to work with REINZ and its members Contact Vikash Reddy to get your insurance sorted 027 562 0411 vikash.reddy@crombielockwood.co.nz crombielockwood.co.nz

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27/10/21 1:42 PM

FEATURE

2021 REINZ AWARDS FOR EXCELLENCE

REINZ Chief Executive Jen Baird and MC Mark Bunting

The much-anticipated 2021 REINZ Awards for Excellence was — for the first time — transformed into a live virtual event, held in Hamilton on 16 September. More than 550 viewers from around the country tuned in to celebrate success across the profession. COVID-19 alert level restrictions took the event online but didn’t dampen excitement on the day.

It was a fantastic evening, which saw 40 awards presented to individuals, offices and agencies from various sectors of the profession.

RPM Business Development Manager of the Year: Ngaire Baker — Harcourts Gold Property Management, Christchurch

Following the illustrious event, Jen Baird, Chief Executive at REINZ, congratulated all finalists and winners on their achievements. “You should all be extremely proud of everything you have accomplished over the awards period. Every year we see such a high calibre of entries coming through, and this year was no exception, even with the changing landscape of the real estate profession in response to COVID-19. “We are so pleased that we were able to come together virtually to celebrate the success of real estate professionals from across the country. Thank you to all our finalists and winners for continuing to raise the bar for the real estate profession,” she added. Many thanks to our key partners who make these events possible; Skills, realestate.co.nz, and ABC Photosigns. A video of the online event is available on the REINZ YouTube Channel.

Medium Agency of the Year: Harcourts Cooper & Co, Auckland

SUMMER 2021/22

FEATURE

2021 REINZ AWARDS FOR EXCELLENCE Winners from the evening were: Residential Property Management Awards  Residential Property Manager — Rising Star of the Year:

Andrea Boussicot — Ray White Best Property Management, Auckland  Residential Property Manager of the Year: Jen Neil — Harcourts Grenadier Accommodation Centre, Christchurch  RPM Business Development Manager of the Year: Ngaire Baker — Harcourts Gold Property Management, Christchurch  Small Office of the Year: The Rental Bureau, Auckland  Medium Office of the Year: Ray White Best Property Management, Auckland  Large Office of the Year: Property Brokers, Palmerston North

realestate.co.nz Multimedia Marketing Award  Linda Simmons — Bayleys Devonport, Auckland

Innovation Award  Housemart Queenstown

Community Awards  Small Winner: Ray White Bishopdale & Strowan, Christchurch  Medium Winner: Collective First National Wellington

Individual Real Estate Sales Awards  Manager of the Year: Catherine Goodwin — Goodwins, Auckland  Office Administrator of the Year: Nadia Fisher — Housemart

Queenstown  Personal Assistant of the Year: Rebecca Watts —

LINK Business, Auckland

Residential Sales  Residential Rising Star of the Year: Tony Bonne — Ray White

Ohope, Bay of Plenty  Residential Salesperson of the Year — Volume: Yvenna Yue —

Harcourts Hamilton Central City — Monarch Real Estate  Residential Salesperson of the Year: Cameron Bailey — Harcourts Gold Papanui, Christchurch  Small Residential Office of the Year — Volume: Property Brokers Westport, West Coast  Small Residential Office of the Year: Harcourts Henderson Heights, Blue Fern Realty, Auckland  Medium Residential Office of the Year — Volume: Property Brokers Whanganui

 Medium Residential Office of the Year: Bayleys Ponsonby, Auckland  Large Residential Office of the Year — Volume: Barfoot &

Thompson Pukekohe, Auckland  Large Residential Office of the Year: Ray White Remuera

Megan Jaffe Real Estate, Auckland

Business Brokerage  Business Broker Rising Star of the Year: Peter Gouverneur —

ABC Business Sales Dunedin  Business Broker Salesperson of the Year: Linda Harley —

ABC Business Sales Tauranga  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 ABC

Business Sales Auckland

Commercial and Industrial  C&I Rising Star of the Year: Calum Ironside — Colliers

International Hawke’s Bay  C&I Salesperson of the Year: Greg Goldfinch — Colliers

International Auckland South  Small C&I Office of the Year: Colliers International Auckland North  Medium C&I Office of the Year: Colliers International Auckland South  Large C&I Office of the Year: Bayleys House, Auckland

Rural  Rural Rising Star of the Year: Stephen Thomson — Bayleys

Gisborne  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: Bayleys Success Realty Hamilton  Large Rural Office of the Year: Bayleys Success Realty Tauranga

Agency Awards  Small Agency of the Year: Harcourts Gold Real Estate,

Christchurch  Medium Agency of the Year: Harcourts Cooper & Co, Auckland  Large Agency of the Year: Barfoot & Thompson

CONGRATULATIONS TO ALL THE WINNERS FROM OUR EVENT SPONSORS

The Real Estate Institute of New Zealand

FEATURE

Rural Rising Star of the Year: Stephen Thomson

Community Service Award — Medium: Collective First National Wellington

Small Residential Property Management Office of the Year: The Rental Bureau, Auckland

Large Agency of the Year: Barfoot & Thompson

Residential Rising Star of the Year: Tony Bonne — Ray White Ohope, BOP

Large Rural Office of the Year: Bayleys Success Realty Tauranga

Community Service Award – Medium: Collective First National Wellington

Medium Residential Office of the Year — Volume: Property Brokers Whanganui

SUMMER 2021/22

FEATURE

Business Broker Salesperson of the Year: Linda Harley, ABC Business Sales Tauranga

Community Award Small: Ray White Bishopdale and Strowan, Christchurch

Small Business Brokerage Office of the Year: LINK Business Christchurch

Office Administrator of the Year: Nadia Fisher — Housemart Queenstown

The Real Estate Institute of New Zealand

RPM Manager of the Year: Jen Neil — Harcourts Grenadier Accommodation Centre, Christchurch

Business Broker Rising Star of the Year: Peter Gouverneur — ABC Business Sales Dunedin

FEATURE

Medium Commercial and Industrial Office of the Year: Colliers International Auckland South

Residential Salesperson of the Year — Volume: Yvenna Yue, Harcourts Hamilton Central City — Monarch Real Estate

Small Agency of the Year: Harcourts Gold Real Estate, Christchurch

Residential Salesperson of the Year: Cameron Bailey — Harcourts Gold Papanui, Christchurch

RPM Medium Office of the Year: Ray White Best Property Management, Auckland

Manager of the Year: Catherine Goodwin — Goodwins, Auckland

Rural Salesperson of the Year: Ben Turner — Whalan & Partners, Bayleys Christchurch

SUMMER 2021/22

FEATURE

Queenstown Lakes District continues to flourish

Peter Harris, Economic Development Manager, Queenstown Lakes District Council

Before COVID-19, the Queenstown Lakes District was experiencing the fastest rate of resident and visitor growth in Aotearoa New Zealand. More than 2,000 people were relocating to the district annually, growing from 15,000 residents 30 years ago to our current population of 42,000.

The local economy was strong — GDP growth was more than double the national average — with low unemployment. But such a boom came with its growing pains. Investment in infrastructure struggled to keep pace with the rate of growth, resulting in some challenges, including housing affordability and congestion. The pandemic and closed borders added an unexpected twist to these challenges, especially impacting the district’s celebrated tourism and hospitality sectors. It also provided opportunities to refocus. Interestingly, the prediction when COVID-19 arrived in 2020 was that it was going to hit construction and house prices. That hasn’t played out. In fact, it’s the opposite, pushing people into reassessing their lives and where they want to live. People have had the chance to work remotely, and if they can do that, then they start ask themselves, where do I want to live? Queenstown and Wānaka still top that list for a lot of people.

The Queenstown Lakes Spatial Plan The assumption that Queenstown Lakes will remain an attractive place to live, work and visit underpins the Queenstown Lakes Spatial Plan. The Grow Well Whaiora Partnership between QLDC, Kāi Tahu and the Government has developed this plan.

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Whaiora translates to ‘in the pursuit of wellness’. The plan is a long-term framework for how and where the district can grow best to ensure our social, environmental and economic prosperity. It will support good access to facilities, jobs and public transport. We recognise development will happen primarily around the existing urban areas of Queenstown and Wānaka. This will help preserve areas of outstanding natural beauty highly valued by the local community, Kāi Tahu and visitors. Growth could also happen around the smaller towns of Hāwea, Luggate and Kingston, which can potentially offer a wider range of house price points than Wānaka and Queenstown.

Planning a sustainable future The Spatial Plan acknowledges that one of the most pressing issues facing Queenstown Lakes is the lack of affordable housing. Along with other proposed planning tools, such as a Housing Strategy and Inclusionary Zoning, it aims to improve housing choice and quality. Two further priorities for the Grow Well Whaiora Partnership are the creation of a Destination Management Plan and a Diversification Plan for the district. It’s no secret that the number of tourists before COVID-19 was putting pressure

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on the environment and the community. Locals have sent a clear message that when visitors return, it must be sustainable and create value in a way that ultimately makes our home a better place over time. Hence destination management planning, based on achieving regenerative tourism by 2030 — led by Destination Queenstown, Lake Wānaka Tourism and QLDC. The aim is to build a collaborative tourism system that aligns with community values and benefits people and the natural environment. This work is about making our district a great place for locals, guests and our environment. It aims to do the right thing for those who live here as well as visit.

So, we’re also developing a Diversification Plan which aims to reduce the district’s reliance on tourism. This is a form of economic insurance protecting us from future shocks. We’re looking at how we can support new initiatives and encourage businesses beyond hospitality and tourism. Home for Healthier Business is one such initiative. The campaign is dedicated to attracting business leaders and talent here and promotes the advantages of our unique lifestyle and entrepreneurial community spirit. We want people to see our district as a place to do business, rather than just a nice place to come for a holiday or retire to and put your feet up.

Diversification for endurability

The hope is diversification will boost the district’s economic resilience and boost incomes at the same time.

At the same time, there is widespread acknowledgement that Queenstown Lakes needs to reduce its reliance on tourism. In 2019, six out of ten workers in our district worked in tourism related jobs. We knew having this many eggs in one basket made the district vulnerable, but COVID-19 has been a stark reminder of why we need to create a more balanced economy.

Queenstown Lakes is always going to be a place people are drawn. We will ride this wave out of the pandemic. Economic diversification will take time, and the silver lining is that we can be better in the long-term, with a more resilient economy, more affordable housing, and ultimately greater wellbeing for people who live here and come to visit.

To learn more about the Queenstown Lakes District Council Spatial Plan visit https://www.qldc.govt.nz/your-council/ council-documents/queenstown-lakes-spatial-plan. To learn more about the Queenstown Lakes District Council Economic Development Unit visit https://www.qldc.govt.nz/community/economic-development. To learn more about Home for Healthier Business visit https://healthierbusiness.org/.

SUMMER 2021/22

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Growing well on the Kāpiti Coast Elspeth McIntyre, Senior Communications Advisor and Engagement, Kāpiti Coast Council

The Kāpiti Coast is rapidly shaking off its image of a string of sleepy seaside villages full of baches and retirement homes, and mellow cousin to the more sophisticated metropolitan Wellington.

Improved transport networks now make it a comfortable one-hour rail commute to the Capital. The Transmission Gully expressway from Wellington will open the district up to further growth. But for at least three decades, people have been arriving in growing numbers for the beautiful beaches, warmer and calmer climate, and family-friendly atmosphere. It’s now among New Zealand’s fastest growing regions. The population increased by 23,000 over the past 30 years to 57,000 and is expected to swell by another 32,000 over the next 30. That’s roughly equivalent to adding the number of people already living in the area from south of Waikanae through to Raumati.

Primed for growth The predicted growth won’t happen all at once, but the Kāpiti Coast District Council is already planning for it. The Council consulted (19 October to 19 November 2021) with residents on its approach to growth for the next 30 years in tandem with its strategy for a diverse, cohesive and connected network of open spaces. Council General Manager Strategy, Growth and Recovery Natasha Tod, says the district is well on its way to achieving its vision of a thriving environment, vibrant economy and strong community. “We’ve developed a substantial work programme to help stimulate our local economy as it rebuilds from the pandemic and to build resilience for the future.

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“We’re investing $225.3million in our capital works programme over the next three years. That’s an average of $75.1million a year — more than triple the spend for each of the last three years. “Increasing our investment will allow us to ‘build back better’ from COVID-19, and future-proof our infrastructure, services and community facilities. This will enable us to accommodate the growth we’re expecting and ensure new development is adequately serviced,” she says. “We’re seeing really strong interest from developers in residential development in Kāpiti, in large part due to the improved transport networks to Wellington. But I think in addition to that, people are looking at new ways of working, especially remotely, and the secret's out about our great climate and fabulous lifestyle.”

The question of housing stock Like the rest of New Zealand, Kāpiti is experiencing a shortage of housing stock and a rise in house prices. The lower quartile house price in the district increased by 435% between 2001 - 2021. “We’ve been seeing about 250 new houses a year built here, but the predicted growth means we need double that,” Tod says. “It’s pleasing to see developers showing interest in different types of housing. A lot of our district’s easily developed land has been taken, so medium density housing like townhouses and apartments offer

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more affordable, easily maintained and stylish options for people looking for a change of pace.”

We’re working on continuous improvement to position us better for the community growth we’re expecting,” he says.

Building the future

But the national building material supply chain problems are also biting in Kāpiti.

The past three years have seen an average 19% growth in building consents issued by the Council, according to Group Manager Regulatory Services, James Jefferson. Despite the extra pressure, including processing 26 building consents from home during the latest lockdown, staff were still turning them around in an average of 12 to 13 days instead of the statutory 20 days, he says. “We’ve got a good relationship with the local building industry, and we’ve resourced and prepared ourselves better. We’ve taken on more staff and have more coming.

“Builders are asking to put consents on hold due to supply chain and labour shortages — this has significantly increased and reinforces the national picture. We’re no different. “The underlying problem is the huge number of houses that need to be built, but the difficulty getting qualified people means we’ve had to fail a lot of inspections. The shortage of qualified construction labour and supervision means the inspectors are almost having to be quasi trainers, which we are being careful to avoid.

“I’m unapologetic about failing inspections — we’re the guardians of the public who put hundreds of thousands of dollars into their key investment — they have to know it will be durable. We don’t want a repeat of the leaky homes debacle of the 1990s — that’s why inspectors do what they do,” Jefferson says. The Council’s response has been to set up a sector group to better educate professional consent agents from the developers, planners and architects through to the builders and building supply industry. “Our goal is to get the number of requests for further information down. They can cause massive rework and delays for everyone. The sector group aims to improve the process from initial idea through to completion, to create a quicker and smoother ride for everyone,” Jefferson says. SUMMER 2021/22

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Hot demand for construction board made from packaging waste

Tim Marshall, Senior Account Director, Wright Communications

New Zealand builders can now replace plywood, particle board and plaster board with low carbon, environmentally sustainable construction boards made from everyday packaging waste. Used beverage cartons, soft plastics and coffee cups are all being converted into saveBOARD building products.

The waste-to-building material technology has been brought to New Zealand by saveBOARD, whose first plant has just opened at Te Rapa near Hamilton. The factory will divert up to 4,000 tonnes of waste from landfills every year to produce 200,000 construction boards. saveBOARD makes an impact resistant board with similar performance to plywood, oriented strand board (OSB) and particle board that can be used for interior and exterior applications. The technology to make the boards was developed in the United States, where it’s been widely used for more than a decade. Tesla chose the membrane roof substrate for its 200,000m2 Gigafactory in Nevada. The Tesla roof equates to upcycling 2,000 tonnes of composite plastics and saves 336,000 kgs of embodied CO2 compared to using plywood. Paul Charteris, saveBOARD Co-Founder and CEO, says making high-performance, low carbon building materials using 100% recycled materials from everyday waste is a game-changer for sustainability in the construction industry.

Moons align to create demand Since the initiative was announced in March, enquiries and demands from architects and construction companies have gone through the roof. More than 300 companies are lining up to buy saveBOARD

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products, with one company wanting to take 25% to 30% of its production capacity. Charteris says the moons have aligned to create real demand for this new product:  COVID-19 has affected the international

supply chain creating a shortage of imported building materials  James Hardie has closed a division in

New Zealand, exacerbating this shortage  Unable to spend their money on

international travel, New Zealanders are splashing out on home improvements  A housing increase means there was

existing high demand for building materials  Climate change means architects and

building companies are looking for every opportunity to specify or use low carbon building materials. “Each year, more than 400,000 tonnes of packaging waste are sent to landfills. Packaging material is a highly engineered product that is a resource we can upcycle into a circular building product. “Everything that goes into saveBOARD is locally sourced, so there is no importing from China. It is made right here in Hamilton from post-industrial and consumer packaging waste material received from large food and beverage companies — such as Fonterra and Frucor — that want to meet ambitious waste reduction targets.

FEATURE “saveBOARD is a healthy product made with zero water, zero glues, zero chemicals and zero VOC emissions or formaldehyde. It meets all obligations under the Building Act, reduces waste from the environment and achieves up to a 90% reduction in embodied carbon. We can also take back the offcuts to be remanufactured into new boards, providing a zero waste to landfill solution,” Paul adds.

Australian grant to set up NSW plant In addition to its new Te Rapa facility, saveBOARD has received a A$1.74 million grant from the Australian and New South Wales Government towards setting up a A$5million facility to enable more packaging to become 100% recyclable, in line with Australian national packaging targets. The Australian saveBOARD plant will reprocess used beverage cartons, collected through a container deposit scheme, soft plastics and coffee cups collected through the 'Simply Cups' recycling programme. It

will also source material from document recycling company Shred-X. The project is the first collaboration between Tetra Pak and SIG Combibloc in Australia under the umbrella of the Global Recycling Alliance for Beverage Cartons and the Environment. It is a joint initiative with saveBOARD and its supporters Freightways and Closed Loop.

A perfect example of a circular economy Building a circular economy also requires backing from key industry partners. saveBOARD has funding and support from food processing and packaging solutions company Tetra Pak, freight and logistics company Freightways and circular economy pioneer Closed Loop. Tetra Pak Oceania, Managing Director Andrew Pooch says the solution demonstrates Tetra Pak’s commitment and contribution to a low carbon economy. “It is more than just an investment for us. It is the right thing to do to help limit

waste to landfill and support a technology that improves local waste collection and recycling infrastructure.” Mark Troughear, Chief Executive Officer at Freightways, says its investment in saveBOARD allows the logistics company to grow its waste renewal division through a commitment to circular waste solutions with minimal carbon kilometres while providing a new strategic growth category. “saveBOARD completes an end-product solution for Freightways, where waste can be regenerated and reused into world-class products while utilising our core capabilities in pick-up, process and delivery channels,” he adds. Rob Pascoe, Managing Director at Closed Loop, says saveBOARD products will be the interior and exterior board products with the lowest carbon footprint on the market. Adding that, “saveBOARD promises a better, greener and more affordable solution that can lead us towards a more sustainable future. It’s the perfect example of the circular economy in action.”

If you’re wanting to learn more about saveBOARD head to www.saveboard.nz, connect to linkedin.com/company/ save-board/ or email enquiries@saveboard.nz.

SUMMER 2021/22

SECTOR RURAL

New rules for land sales to overseas investors

New Zealand’s land is a valuable resource and essential to our long-term prosperity. The Overseas Investment Act 2005 sets strict rules around overseas investments in New Zealand’s land and residential real estate. This includes buying a home, farmland or land for development. The rules also cover leases of more than ten years of investing in a business that owns or controls sensitive land, like owning its premises.

Put simply, if an overseas person wants to buy or lease land, then some form of overseas investment approval will probably be required. Rule changes for overseas people buying land in New Zealand came into force on 24 November 2021 and are the final stage of law changes in a programme that started in 2018. The latest changes include some important new rules for the sale of farmland to overseas buyers. Real estate agents active in the rural property sector need to be aware of these.

Advertising for farm sales Before an overseas buyer can purchase New Zealand farmland, there is a requirement that the land is first advertised locally, so New Zealanders know it is for sale and have the opportunity to consider buying it. These rules are being strengthened and modernised.

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The new rules clarify and strengthen requirements for the sale of this land. It will now be called ‘Fresh or Seawater Areas’ under the Overseas Investment Act. If an overseas investor is buying land or taking up a Crown pastoral lease, any Fresh or Seawater Areas must be first offered to the Crown. The Crown has the right to acquire these areas but may decide not to.

Timeliness for applicants New assessment timeframes will apply to decisions on applications for overseas investment consent. These aim to speed up the process and give buyers and sellers more certainty. Timeframes will vary depending on the type of application. They are expected to be challenging to meet and require significant improvements to timeliness. A phasing-in period is likely as the improvements take effect.

The new rules mean farmland must be advertised online and in print for at least 30 days before an agreement with an overseas buyer can be entered into. An exemption in certain circumstances is available. More detail is available on the overseas investment pages of the Toitū Te Whenua (LINZ) website.

Overseas buyers who have a residence class visa and are committed to living in New Zealand can apply to buy one home in which to live. For these applications, the timeframe will be ten working days. The time increases to 30 working days if the land is also sensitive for another reason, such as a lifestyle block on rural-zoned land.

Changes for special land

Other purchase approvals, for example, buying a farm, are more complex to assess and longer timeframes will apply.

Rules about what is currently known as ‘Special Land’ are also changing. The land types include marine and coastal areas, or the beds of rivers, streams or lakes. It is less common to see this sort of land included in a sale, but it is particularly sensitive under the Act.

Anneke Turton, Reform Programme Manager, Toitū Te Whenua Overseas Investment

Will New Zealand benefit? The reforms will also change how many applications to buy sensitive land are assessed through the Benefit to New Zealand Test.

RURAL SECTOR

The new Benefit to New Zealand Test is designed to give a more certain approach to assessing the benefits of proposed investments. The changes are intended to streamline the assessment process and simplify applications. The new test also includes a higher threshold for overseas investments in farmland, requiring potential overseas buyers to show that their investment will bring substantial benefits in particular areas.

Assessing overseas investments Toitū Te Whenua’s Overseas Investment team receives and assesses applications from overseas investors. They also support the Ministers who make decisions on applications and make some decisions under authority delegated by the Ministers.

focusing screening and assessment on investments that present more risk, to help ensure our country’s valuable lands, significant business assets and fishing quota are protected for the benefit of all New Zealanders.

The changes to the Overseas Investment Act are designed to streamline requirements for investors. This includes

More information about the law changes, implementation dates, what is covered by the regime and how to make an application is available on the Toitū Te Whenua website https://www.linz.govt.nz/.

SUMMER 2021/22

SECTOR RURAL

New ETS accounting method and implications for land transactions

Oliver Hendrickson, Director Forestry & Land Management, Te Uru Rākau — New Zealand Forest Service

The Government recently made announcements on the key settings for averaging accounting. The new carbon accounting approach fundamentally alters how many carbon credits a newly registered post-1989 forest will earn in the Emissions Trading Scheme (ETS). It will be mandatory from 1 January 2023, but there are options for forests registered between 1 January 2019 and that date. It is important for people promoting property sales to understand how averaging accounting for forests in the ETS applies to specific land.

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RURAL SECTOR

Our previous article (winter 2021 issue) explained the differences between post-1989 and pre-1990 forest land (which has obligations if it is deforested) and some of the forestry ETS implications. When providing advice or preparing marketing materials, establishing the difference and the ETS implications are the first steps.

How averaging accounting will work

Rākau — New Zealand Forest Service and completing an emissions return. The participation is transferred to the new owner, including any liability for future harvesting or deforesting and future earning potential of the land. The units already earned by the forest are not. How this is sorted out is up to the parties involved in the transaction.

A post-1989 forest — land where forest is first established after 31 December 1989 — can enter the ETS and earn units under the new averaging accounting rules from 2023. It will earn units on its first rotation up until it reaches a set age (called the average age) — 16 years for radiata pine, but generally a higher age for other species. It earns no more units at that point, but the owner will not have to pay any units back to the Government if the forest is harvested or the tree species changes. The owner must simply keep the land in forest cover.

Purchasers of land with forest registered in the ETS must be aware of their ETS obligations going forward. Failing to comply with these obligations can have serious consequences. For example, from 1 January 2022, infringements may be issued for failing to transfer participation in the ETS correctly. There are also other penalties if the emissions return is not correctly submitted. Infringements will start at $1000 for individuals and $3000 for companies, and penalties for incorrect returns or failures to submit returns can be considerable — in the $10,000s or $100,000s.

Considerations for land already in post-1989 forest

When was the land registered in the ETS?

There are different things to be aware of depending on whether land has never had forest, is already planted, or is recently harvested. The implications for land which already has forest on it, or is recently harvested, are discussed here in simple scenarios where there is a small forest which is all the same age and is harvested at the same time.

Is the land already registered in the ETS?

The next thing to consider is when the land was first registered in the scheme. If registered in the ETS before 2019, it must stay on the existing stock change method for carbon accounting and cannot transition to averaging accounting1. The stock change method rewards units for as long as the forest grows, but there are significant surrender requirements when the forest is harvested. This surrender is capped at the number of credits the forest has earned since it was registered — which may be considerable if the land changes hands late in its growth cycle.

The first thing to check is whether the forest land is registered in the ETS. A land status notice registered on the title — look under With the stock change approach, if the ‘Interests’ for ‘… Notice pursuant to Section forest was registered after it was ten years 195(2) Climate Change Response Act 2002…’. old, it may not have any credits left over after paying them back at harvest. A forest If the land is registered in the ETS, the that has already been harvested and is on vendor and purchaser have obligations the stock change method will earn credits to ensure the proper transfer of ETS participation, including notifying Te Uru again as the second rotation grows, but it

will have to surrender all the credits it has earned if harvested. If the forest is registered in the ETS after 1 January 2019, it will be on the stock change approach when registered. However, the owner can choose to transition to averaging accounting in 2023. This is a one-off opportunity. If they do not choose to transition in 2023, they will stay on stock change accounting.

How old is the forest? With averaging, the age of the forest is very important. A forest that has reached its ‘average age’ before registration or is on its second or subsequent rotation will not earn any credits. For example, radiata pine forests planted before 2003 will be older than 16 — their ‘average age’ — in 2019, so they will not earn units under averaging. The less time between planting and registration, the more earning potential the forest has. If the forest has already been harvested, it won’t earn any units under averaging accounting. This is because it’s unlikely to store any additional carbon compared to its first rotation and the policy intent of averaging is to encourage new forest establishment. From 2023, as an alternative to averaging, post-1989 forests can register into the permanent forest activity and earn units on the stock change approach but cannot be clear-fell harvested for 50 years.

Buyer beware Due diligence is essential for land sales that may have implications in respect of forestry in the ETS. Depending on management of the forest, many factors may affect the purchase price for the forest land, including costs from surrendering units at harvest or possible benefits from future earning of units. Particularly for large or complex forests, the advice of a consultant or professional adviser with experience in the ETS is recommended.

Disclaimer: The information above only highlights some of the key considerations relating to forestry in the ETS but is not comprehensive.

For more information or enquiries visit mpi.govt.nz/ets, email climatechange@mpi.govt.nz or call 0800 CLIMATE (0800 25 46 28) and select option 2. 1. Note that Ministers are yet to consider their approach to this issue.

SUMMER 2021/22

SECTOR COMMERCIAL & INDUSTRIAL

Navigating the tourism property industry during unprecedented times Having been involved with the sale of accommodation businesses since 1984, we’ve seen many challenges and some seemingly serious threats that the tourism/accommodation industry has faced in the past.

A few come to mind — previous pandemics such as SARS, the Gulf War, the global financial crisis (GFC), soaring aviation fuel prices, and the carbon footprint disincentive to long distance air travel. However, the COVID-19 pandemic has posed a new significant challenge for the industry. When the accommodation industry is going well, the tourism property industry goes well, which is driven by several factors, not necessarily in sync with elements driving the residential or commercial real estate markets. For instance, the timing could have it that the residential market is not overly buoyant; however, record visitor numbers from overseas tourists are driving sector demand and consequently prices achievable for accommodation properties and businesses.

COVID-19 and tourism/ accommodation What happened over the months following the first lockdown in March 2020 was rather interesting. A report from the ANZ bank economists pointed out that overseas departures exceeded foreign arrivals from late April to mid-October 2020. In other words, there were more people in New Zealand than usual during those winter months. It turned out that tourist and holiday destinations, particularly in North Island locations close to population centres, had the best winter months ever. Certain South Island destinations also did quite well, but it has been challenging for those more reliant on the international visitor and more remotely located.

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Kelvyn Coffey, Principal, Coffeys Tourism Property Brokers Ltd

Another factor in several localities has been the pandemic’s effect on supply and demand. A significant number of hotels elected to close and are unable to be opened again quickly. Many hotel rooms are now MIQ facilities. Social housing is absorbing a lot of motel accommodation, reducing the supply of rooms available to the market. Some peer-to-peer listings, such as Airbnb, have been taken out of the market and leased as a residential tenancy. With the no cause termination regulations now in place, many of these won’t be able to return to the short-term accommodation market quickly.

Impacts on tourism property sales In the tourism property industry, between 70% and 80% of motels in New Zealand operate through a long-term registered lease. Our sales mix nationally usually reflects that, with many of our transactions being for leasehold/business sales. While we have not been breaking any records since the COVID-19 outbreak, our volumes have been surprisingly good and certainly better than one would have expected back in March 2020, when uncertainty around the economy was significant. The ratios have changed over the past 18 months, with more freehold real estate transactions taking place, either as the sale of leased land and building investments or freehold going concerns where the business and real estate are sold to the same buyer. This increase in freehold sales may be partly due to the confidence in other sectors of the real estate market, combined with low interest rates.

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The limiting factor for us achieving sales for freeholds has generally been the low level of listings. The current environment has brought about more willingness to sell the assets (for a variety of different reasons), so more freehold listings lead to more sales.

The potential of easing restrictions As alert level restrictions ease in Auckland and New Zealand as a whole reaches its vaccination targets and transitions to the COVID-19 Protection Framework, it is expected that border restrictions too will ease. With this comes the potential return of some overseas tourists and greater freedom of movement for domestic tourists.

IT TURNED OUT THAT TOURIST AND HOLIDAY DESTINATIONS, PARTICULARLY IN NORTH ISLAND LOCATIONS CLOSE TO POPULATION CENTRES, HAD THE BEST WINTER MONTHS EVER.

As a result, many in the tourism property industry anticipate a sharp increase in activity in response to pent-up demand. It will be interesting to watch this space as we step foot into a more hopeful 2022. SUMMER 2021/22

SECTOR COMMERCIAL & INDUSTRIAL

Commercial and Industrial market robust despite COVID-19

COVID-19 restrictions have posed many challenges across New Zealand in the latter part of 2021. Still, Colliers observes that the commercial and industrial property market remains strong as it moves into 2022.

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While there was a large amount of uncertainty during the Alert Level 4 restrictions in 2020, investors and developers were less perturbed this time around. Gareth Fraser, Director of Investment Sales at Colliers, says the sentiment in the sector is positive despite Auckland facing months of restrictions and other parts of the country impacted through varying levels. “During the five weeks of Alert Level 4 restrictions in August and September, we transacted more than 40 property sales across Auckland with a combined value of more than $250million,” Fraser says.

“Some of those transactions were conducted off-market, while others were able to take place because the campaign was launched far enough in advance of the lockdown to enable buyers to inspect the properties before the restrictions were in place. “In 2021, people had greater access to technology with more tools to be able to work remotely, which contributes to improved productivity across the industry. “While we experienced a degree of scepticism about the immediate future of commercial property during last year’s

COMMERCIAL & INDUSTRIAL SECTOR national lockdown, the market rebounded so strongly that investors were more relaxed and optimistic when this year’s restrictions were enforced, meaning the market remained strong,” he concludes.

Firm demand, strong sales Some of the notable transactions during Alert Level 4 came from a variety of commercial offerings, including eight Gull service stations spread across the North Island that sold for a combined sale price of just under $32million, representing a blended yield of 4.4%. There was also the market-leading $30.05million sale of the Synlait Milk facility in Richard Pearce Drive in Māngere brokered by the team at Colliers Highbrook. Fraser says the demand for land suitable for terrace housing or townhouses remains insatiable among developers and investors. “This is exemplified by the recent sales of properties in the rapidly-gentrifying suburb of Panmure that are zoned residential — Terrace Housing and Apartment Buildings Zone under the Auckland Unitary Plan, which is a high-intensity zone enabling a greater density of development than previously provided for. The sales were all over $2,700 per square metre on land; one was over $3,000 per square metre, while one sold nine days before auction day. All were sold to developers who see the vast potential on offer in properties of this nature. “The flexible zoning gives developers a range of options for the future. The Government’s October announcement regarding housing density has only injected further optimism in the sector around what can be built in the future.”

A positive outlook Given Alert Level 4 restrictions were only in place for a short period outside of Auckland compared to last year’s lengthy national lockdown, it helped the market remain in a good position. As COVID-19 restrictions ease and we look ahead to next year, Fraser says the market has ramped up significantly. “Following the initial period of sales early in Alert Level 4, there was a two-to-three-week

plateau as agencies struggled to launch new campaigns due to the inability for buyers to inspect. But the announcement of Alert Level 3 meant inspections could proceed, and campaigns commenced. During the past few months, we have seen a deluge of stock coming to the market and a huge amount of off-market activity,” he says. “October to December is usually the busiest time in the market as everyone focuses on the Christmas deadline, but that was pushed into overdrive this year due to the backlog caused by COVID-19. “Whilst inspections are more cumbersome due to compliance with COVID-19 restrictions, running campaigns remotely has become the new normal, including online auctions and prospecting, proposals, negotiations, and marketing meetings taking place via video calls.” Fraser says the knock-on effect of the COVID-19 backlog means it is likely that 2022 will get off to a faster start than usual. “Generally, the market takes a little while to get going in the new year as people slowly return to work. We think we will see more stock on the market in January and February 2022. “This is the direct result of many campaigns being deferred from 2021 because of the lag effect of time lost in Alert Level 4 as some vendors wanted to wait until the restrictions eased before they launched their campaign.”

Property investment — an attractive prospect Colliers’ recent research suggests that commercial property investment remains an attractive investment option, especially in a high inflation environment and low returns from term deposits. While increases in interest rates are occurring, these are well-signalled, incrementally adjusted, and from a low base. The research suggests a strong and growing number of buyers are searching and competing for a small pool of high-calibre properties. With the impact of rising interest rates upon market activity likely to be limited, this provides a clear signal for an active market ahead.

IN 2021, PEOPLE HAD GREATER ACCESS TO TECHNOLOGY WITH MORE TOOLS TO BE ABLE TO WORK REMOTELY, WHICH CONTRIBUTES TO IMPROVED PRODUCTIVITY ACROSS THE INDUSTRY. SUMMER 2021/22

FINANCE

COVID-19 and the economy THE UPS AND DOWNS, AND EVERYTHING IN-BETWEEN

Miles Workman, Senior Economist, ANZ

In the early days of the pandemic, the very reasonable expectation was that locking down a hefty chunk of the economy for a couple of months would initiate a crisis of confidence, with firms shedding headcount and delaying investment, and households tightening their belts. It didn’t.

A cocktail of economic conditions While confidence did fall off a cliff initially, it bounced back quickly and, in some cases, hit higher levels than before. The economic recession was sharp but so too was the rebound. The lockdown-sized hole in the economy was effectively put on the Government’s balance sheet for taxpayers to deal with another day. It wasn’t just a fiscal stimulus. There was also monetary policy: interest rates were slashed, the money supply was rapidly expanded (via quantitative easing), and restrictions on investor lending were eased on the assumption that housing market confidence had been destroyed and unemployment would rise sharply. But household incomes have proven to be largely insulated, the labour market bounced back, COVID-19 was successfully contained, and most importantly, the fundamental undersupply of houses persisted. So all that cheaper and easier money culminated in a rather crazy pace of house price increases — as well as a significant shot in the arm for domestic demand. Combine this stimulated demand with a reduced economic capacity to supply goods and services to meet it — as health restrictions limit labour supply and productivity globally, and as some capital and labour go into hibernation (such as that related to international tourism), we have ended up with a rather inflationary cocktail

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of economic conditions. Annual consumer price inflation threatens to touch 6% — a pace not seen since the 1980s (ex-GST). But we do expect official cash rate (OCR) hikes to take the pressure off in time.

The reality of the situation Undoubtedly, the economy was in a very strong, albeit wonky, cyclical position heading into the current lockdown. With everything going to plan, that momentum should stick around on the other side, but the longer restrictions last, the less likely that will become. Construction is booming and retail spending has been strong (despite lockdown impacts and supply shortages). However, there’s still a sizable national net income loss bubbling away in the background with international tourists still missing in action. Some hospitality businesses were barely standing on their feet again when the Delta strain of COVID-19 necessitated renewed lockdown measures. Some businesses won’t survive to see borders reopen to vaccinated travellers once more. So far, we’ve filled the loss in aggregate income with copious amounts of household and Government debt. But it’s simply not economically sustainable to rely on that get out of jail card for long — debt carries a long-lasting legacy.

FINANCE

This time around there’s also a lot less housing-induced domestic demand waiting to be unleashed as soon as restrictions are eased. Rather, many previous housing market tailwinds are now becoming headwinds. Mortgage rates are lifting, loan-to-value ratio (LVR) settings have been tightened, affordability constraints are biting, the end of the QE-driven money supply impulse means credit conditions are tighter than previously, Government policy changes have taken the wind out of the sails of investor demand, and housing supply is catching up to demand.

House prices trends New Zealand housing cycles are notoriously tricky to predict. But once they turn up or down, they tend to gather momentum quickly. We’ve pencilled in a soft landing for house prices from here, with annual inflation slowing into 2022. However, from such ridiculous levels relative to household incomes, a correction in house prices is a genuine possibility. To help calibrate your thinking to how eccentric the market has been and get a feel for what a negative housing shock might look like, consider the 11% peak to trough fall in house prices that followed the GFC. The GFC erased a little less than 1.5 years of house price gains. If 1.5 years of price gains were erased now, prices would fall around 30%.

While significant house price falls are a risk, this is certainly not our expectation. For that to occur, we’d likely need to see a negative household income shock. But in fact, the labour market is very tight (in aggregate), and wages are growing. While many households probably are correct in feeling like they are going backwards (as consumer price inflation outpaces wage growth), that’s a markedly different scenario for the housing market to a weak labour market and rising unemployment.

Outlook We’ve got a rough couple of months ahead with COVID-19, but high and growing vaccination rates provide a path forward. The growth drivers as we head into 2022 will be a different mix than in 2020 - 2021. Not only is the housing impulse fading, but the bulk of the fiscal impulse is also in the rear-view mirror, and monetary conditions are tightening. However, households are in good shape overall and, if the labour market holds up as we expect, that’ll be a much more sustainable driver of economic expansion. With any luck, gradually reopening our borders to vaccinated travellers and diminishing supply bottlenecks over 2022 will be the cherry on top. As with everything in life, changing the recipe isn’t always popular with everyone, and it doesn’t always improve the end product. There are certainly lingering risks out there, but that’s the way the cookie crumbles. SUMMER 2021/22

SECTOR RESIDENTIAL PROPERTY MANAGEMENT

Taking a leap of faith to start a property management business

Grace Wu, Managing Director at LJ Hooker Mount Albert and mother of two, spoke with Head of Property Management at REINZ, Joanne Rae, about her journey of moving from employee to business owner and mustering up the courage to pursue her passion.

It’s almost two years since I started my own property management office at LJ Hooker Mount Albert. Whilst it was indeed a journey, it was my best career move so far because it has enabled me to have a healthy work-life balance with my family. Working in the real estate industry and meeting other likeminded people gave me the confidence to embark on this business opportunity.

When starting my office, my priorities were being a REINZ member and connecting with TPS and Palace. The LJ Hooker brand gives us a marketing advantage as it’s well known and trusted. Our team prioritises having the best software and tools to be more efficient with what we are doing.

In my previous role, I drove back and forth from Mount Albert to South Auckland for eight years — stuck in traffic for several hours, always with the fear in the back of my mind that no one would give me business if I moved from where all my connections and networks were. However, with constant encouragement from extraordinary people in the industry, including my previous employers, teammates, clients and friends, I decided to begin my own property management company.

Adopting a growth mindset

Building a brand By getting advertisements in the paper, making cold calls and using good old-fashioned word of mouth, we began to build the strength of a great brand. I was lucky to have previous employers pass me a few managements along the way in the early stages, for which I’m incredibly grateful. Additionally, I was fortunate to have many great connections before starting this office, which has kept me up to date with the latest laws and legislation.

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Grace Wu, Managing Director, LJ Hooker Mount Albert

We always gave ourselves plenty of capacity to grow and maintain the momentum. We have never let ourselves be in a situation where our team is too busy with too little administrative support. I believe if you want to grow your business, you must make sure the capacity is there. For each milestone we reached, we had planned for a new member to come on board. When I was in the planning stage of the business, I already had two people in my mind who I felt would be an excellent fit for the team. I invited them to join me right from the beginning. A top salesperson once told me that real estate is all about teamwork, and with this in mind, our team conquered challenges and worked tirelessly to grow the business. We celebrated every little win. Now, we are a team of five and looking to recruit again. The team knows they are well-supported and that we will all help each other.

RESIDENTIAL PROPERTY MANAGEMENT SECTOR

I BELIEVE IF YOU WANT TO GROW YOUR BUSINESS, YOU MUST MAKE SURE THE CAPACITY IS THERE. FOR EACH MILESTONE WE REACHED, WE HAD PLANNED FOR A NEW MEMBER TO COME ON BOARD. Opportunities for improvement

Looking forward

During the COVID-19 lockdowns in 2020 and the change in tenancy laws with emergency legislation, we realised we needed to increase our knowledge, systems and procedures to deal with a multitude of challenges. These challenges enabled us to be a better team. While we all have property management qualifications, we regularly enrol for training and conferences to relearn and retrain — we believe you can never be too experienced to learn more.

Looking back, you may wonder would I do it all again if I had the choice? I have absolutely no regrets. There is always business for those who offer outstanding customer service and are passionate about what they do. Recently, we were awarded Best Property Management Office at the national LJ Hooker Awards, and I am so proud to work in a business that helps both our landlords and tenants daily. So, the answer is yes. I would absolutely do it all again. SUMMER 2021/22

SECTOR RESIDENTIAL PROPERTY MANAGEMENT

REINZ RPM Sector Group Jo Rae, Head of Property Management, REINZ

REINZ currently has five sector groups, with one dedicated to property management. Given the numerous changes we have seen regarding the property management industry, the feedback and insight from the residential property management group members are invaluable to the industry. The members represent independent companies and larger brands to provide comprehensive regional representation. Each member can serve a maximum of three two-year terms, which the REINZ Board elects. In September 2021, three of our longer-term members retired from their positions after many years of service, including Melanie Rouse from Harcourts Hamilton Rentals, Dan Lusby from Tauranga Rentals and Tania Ellis from Whittle Knight in Christchurch. Will Alexander also recently resigned, having moved on from his role as General Manager of Property Management for Property Brokers. We want to acknowledge the time and expertise they have each provided for what spans many years.

Your current Residential Property Management Sector Group members are:

in property management in 2007 as a portfolio manager with the Ray White Group. It was a chance encounter with his property manager at the time conducting a routine inspection at home, who suggested he should look into the profession himself. Little did he know that suggestion would alter his future forever. Since then, Zac has had several roles within the industry running portfolios for property management teams — before taking a leap of faith and starting his own property management business. Zac has always been hungry to grow and challenge his skill set and remains ever thankful that this industry continues to provide him with the opportunities to do just that. In 2013, the CEO of Ray White approached Zac about joining the corporate team as the New Zealand Head of Property Management. He recalls reading through the job description at the time, not knowing what it really meant or whether he was capable of the challenge — but knew it was the perfect next step!

Zac Snelling Head of Property Management, Ray White New Zealand Initially looking to forge a career in property valuation, Zac found himself

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As the Head of Property Management, Zac has overseen the continued growth of the Ray White property management network and its staff, who now manage more than 20,000 properties with a portfolio value of well over $15billion. He remains incredibly passionate about the industry and its people and sees his role as a way to help support and develop the people and businesses within his network.

Jodine Clark Operations Manager — Property Management, Harcourts New Zealand Jodine has 30 years of experience in the New Zealand real estate industry, having worked at the coalface of property management and senior management roles in residential and commercial property management. She has extensive experience in body corporate management, holiday rentals and business management, and expertise in property management software, systems, and processes. In her current role as the Property Management Operations Manager for Harcourts, Jodine facilitates and delivers training, events, business planning, communications and day-to-day support for over 200 Harcourts property managers, managers, and business owners throughout the country.

RESIDENTIAL PROPERTY MANAGEMENT SECTOR best in her people by listening, recognising talent, and hiring people that have the right personality for the field. Recently, she launched the Property Management Academy, an intensive practical programme intended for those new to the industry. Gold standard training modules provide a rich, hands-on education on the rules, processes and technology around taking care of both the landlord’s assets and tenants' homes.

Christian Casbolt Chief Executive Officer, Oxygen Group Limited Christian’s career has included senior management roles across various industries, with the last 11 years in the real estate sector. For six years, he has headed up Oxygen which provides property management and body corporate services across the Wellington and Hawke’s Bay regions. Prior to this, he was General Manager across Oxygen and its sister company Professionals Redcoats Limited, primarily focused on leading the shared service teams, including HR, marketing, finance, and administration functions. In his current role, he has been instrumental in setting the strategic direction for Oxygen and navigating the challenges and opportunities facing the sector. He has focused on understanding the customer experience and delivering superior service by building strong teams with an empowered and collaborative culture coupled with leading-edge technology solutions.

She is constantly looking at ways to raise professional standards to ensure best practice is always followed. Sam previously designed and implemented a blended learning platform by introducing ELEVATE. The in-house accredited training programme builds employee skills across many aspects of our business, including growth, marketing, technology, systems/ operations, customer service, managing staff, coaching, personal development, and open communication.

she felt most passionate about. Pam works hard to make sure that her team is professional, successful, and result-orientated while maintaining empathy and good relationships with their clients. She aims to provide her team with the knowledge and training to be great and confident property managers. She advocates warm and healthy homes for all tenants and ensuring that tenants are treated with respect. The McDonald family privately owns the company, and their philosophy of family values and trust is embodied in everything their team seeks to achieve within their working lives.

She is also a part of the company’s ongoing programming to support and empower women to help them to succeed. Over time, she has seen her division grow to over 18,000 properties, and in 2021, she opened a new branch in Tauranga. Sam is also an active member of the REINZ RPM steering committee, striving for change and the improvement of industry standards.

Hayley Stevenson Managing Director, Housemart Queenstown Hayley started as a receptionist in a property management business in Perth 30 years ago before working her way up to Directorship of Housemart Queenstown — working just about every property management office role in between. Hayley has bought, sold, and grown businesses from scratch and won multiple awards for each of them.

Pam Hight Rental Division Manager, McDonald Real Estate

Samantha Arnold General Manager of Property Management, Barfoot & Thompson New Zealand With over 25 years experience in the residential property management industry, Samantha (Sam) has invaluable knowledge and expertise in all aspects of property management. As part of her management strategy, she focuses on bringing out the

Pam oversees the rental division at McDonald Real Estate in Taranaki, with dedicated property managers in each of their eight branches around Mount Taranaki. Pam’s career in property management started in 2000 in the Stratford office, where she was a property manager for many years. Her longevity in this role gave her insight into just about every aspect of this challenging industry.

Hayley firmly believes work within the industry should be fun. She wants to be the best in her field, values team culture, good systems and looks to create a calm work environment. Hayley has a wide range of knowledge and experience as an administrator, property manager, manager, director, and business owner. She is passionate about seeing property managers get the support and tools they need to grow their careers and wants to see the property management sector develop further.

In 2014, Pam became the Rental Division Manager and discovered this was the role SUMMER 2021/22

SECTOR RESIDENTIAL PROPERTY MANAGEMENT

2021 milestones in Residential Property Management 2021 saw several milestones reached in the property management sector. Let’s revisit some of the primary focuses of the sector over the year and what it will mean as we step foot into 2022.

Many of the regulations introduced under the Residential Tenancies Amendment Act 2020 were brought into force on 11 February 2021. In terms of security of residential tenure, an exception to the new regulations was fixed-term tenancies signed prior to this date. This has created some confusion, as these tenancies retain the right to end their tenancy under the old notice periods and can be renewed, extended or varied without losing that ability.

Healthy Homes Standards Healthy Homes Standards were a top priority for property managers, with all boarding houses to be compliant by 1 July 2021 and all private rental properties to comply within 90 days of any new or renewed tenancy entered on or after 1 July 2021. All private rentals are required to be compliant with Healthy Homes Standards by 1 July 2024.

REINZ members have indicated that many landlords have gone ahead and completed their Healthy Homes Standards in advance of their Healthy Homes compliance dates.

A growing profession

Further Alert Level 4 lockdowns generated uncertainty and concern for tenants, The Real Estate Institute of New Zealand

The measures seek to provide clarity and certainty for landlords and tenants in the case of a return to Alert Level 4. REINZ provided written and oral submissions on this Bill. While we supported the Bill’s intentions, we expressed our concerns that the tenant would need to be 60 days in rent arrears before the landlord’s right to terminate the tenancy would be permitted under the Bill. Property managers want to work with tenants who are in arrears; often, a mutually agreeable repayment plan is more manageable than a large debt to repay. REINZ also provided valuable member feedback to government departments on other important issues such as the methamphetamine review, physical assault implications and family violence regulations. However, the review dates have been delayed due to COVID-19.

COVID-19 Response (Management Measures) Legislation Bill

landlords and property managers. The Government introduced the COVID-19 Response (Management Measures) Legislation Bill that, if passed, will allow restrictions against tenancy terminations to be switched on and off in response to Alert Level 4 by ministerial order.

As the primary focus has been on the heating standards and installation of heat pumps, concern was raised by many, including REINZ, that the heating formula may need some fine-tuning. The Government has acknowledged that this needs to be reviewed, and we are waiting for further information.

However, the recent lockdown created setbacks for contractors and the supply of items such as heat pumps and vapour barriers. REINZ provided examples to the Government regarding this concern and requested an extension of three months to the Healthy Homes Standards timeframe for tenancies entered into or renewed after 1 July 2021. We await further updates on this.

Jo Rae, Head of Property Management, REINZ

It is encouraging to see a trend towards private landlords using professional property managers to manage their investments. Data obtained from the Tenancy Services Bond Centre indicated that of the total bonds lodged in the past 24 months, over 50% were lodged by property management companies. Property managers are continuing to upskill, which has seen an increase in members completing REINZ’s Beginners Guide to Property Management and The New Zealand Certificate in Property Management. REINZ will continue to increase educational offerings for this sector and provide ongoing guidance and support into the new year.

EDUCATION

What’s coming up in the education space in 2022? The last quarter of 2021 saw a lot of planning and refining of the REINZ education strategy, leaving us ready and raring to go into the 2022 education space. REINZ’s ‘Live Online’ verifiable training is new and successfully transitioned to accommodate those forced schedule changes. We are pleased to announce we will continue to offer our limited attendance ‘Live Online’ verifiable training sessions throughout 2022, which provides a ‘face-to-face’ environment, but in the comfort of your home. REINZ plans to run multiple sessions next year, along with the standard face-to-face sessions across the country.

2022 Destination events — face-to-face verifiable The training is designed for you to start at the beginning of the year to draw on the knowledge for longer; the earlier you complete it, the more pertinent and useful the course. You can choose from locations such as Auckland, Wellington, Christchurch, Taupo and Hamilton, with more to be announced soon.

2022 Non-verifiable training — soon to be released! REINZ provides relevant educational content, and we have had a considerable amount of engagement with the industry and are delighted to share the following upcoming content. See what is coming up below: Marketing with purpose — How to make generosity your new growth strategy Situational awareness for property professionals — Staying safe and aware in your surroundings

Recruitment & retention — Foundation of high performing teams RPM insights: Staying on the pulse — Unit Titles and body corporates, making insurance claims, how-to list on realestate.co.nz and more Rural short course — Basics of New Zealand Emissions Trading Scheme and a panel with rural experts answering REINZ member's questions Beginner's guides — Guides will soon be available for commercial and industrial property management; selling and leasing commercial and industrial, and residential sales.

2022 More training for Residential Property Management Awareness around keeping yourself safe on the job has been front of mind for our industry. REINZ has created a short course specifically about awareness of one's surroundings and identifying potential threats and dangerous situations. REINZ also aims to deliver two face-to-face training sessions with Phil Thompson, Co-Founder and International Director of Protect Self Defense. REINZ is working with a local territory to provide information and awareness for property managers and tenants on ways to enforce safety around pools and prevent injury or drowning. This will include a clause for management authorities, tenancies agreements, a webinar and a useful information sheet for owners, tenants, and property managers.

To learn more about what courses REINZ has to offer, please reach out to education@reinz.co.nz or head to www.reinzeducation.co.nz for all available courses. SUMMER 2021/22

EDUCATION

Marketing with Purpose: 3 Steps to Connect

Julie Dyer, Founder, Real Estate for Good and writer of the REINZ ‘Marketing with Purpose’ course

Have you ever wondered how much ‘giveback’ comes from the real estate profession? Or what impact it has had?

As a creative marketing strategist with over a decade of experience in the industry, I have felt incredibly inspired by the generosity of agents and the amount of time, money and energy already contributed to the local and wider communities. Unfortunately, despite the enormous amount of giving back, consumer perceptions are still low, which may have to do with few brands successfully sharing their story of social change or weaving their giveback into their marketing campaigns. An impressive 85% of consumers are now seeking a responsible product or service, which can mean you are missing out on the opportunity to increase consumer engagement, referrals and sales. If you are unsure of where to begin, here are three steps to get you started.

1. Choose your cause Research and choose your cause. Make sure you involve your entire team in this process. It will uplift and inspire, as well as enhance team culture.

2. Understand the story The next step is to understand the vision and mission of your cause. Set giveback goals and commit to creating change.

3. Inform, inspire and connect Great, now it is time to inspire others by sharing your story so that consumers seeking a responsible service choose you. Sound simple? Remember, like everything, there is an art to social change marketing. If you deliver your message in the wrong way, it may seem like you have an agenda, which can negatively impact your brand. For this reason, I have developed the ‘Real Estate for Good’ accreditation logo, which — in a similar way to the ‘heart’ tick — will gently indicate that you care.

What does the future look like for the industry? As far as perceptions go, I would have to say it is looking promising. Social change marketing is here, and there is no longer the need to keep inspirational stories hidden behind closed doors. By putting your best foot forward, you will be recognised as the pillars of the community and seen in the most favourable light, helping you connect with your audience and enabling your business to thrive.

This article is written by Julia Dyer, founder of the Real Estate for Good Initiative, and ‘Marketing with Purpose’ course writer for REINZ. Visit realesteforgood.co.nz to become accredited and differentiate your brand today. Together, we can make an incredible difference.

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RPM Conference 2022

People Purpose & Passion

Join keynotes, Hon Poto Williams, Paula Bennett and Tony Alexander, MC Kerre McIvor and hear lots of relevant Property Management speakers at the 2022 REINZ RPM Conference. Proudly sponsored by:

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THURSDAY 10 FEBRUARY 9:00am - 5:00pm LIFE Central Auckland Tickets: reinzconference.com

TECHNOLOGY

Housemart Queenstown: small, but with big ideas

Julie Johnston, General Manager, Housemart Queenstown

At the 2021 REINZ Awards for Excellence, the team at Housemart Queenstown were proud to take home the Innovation Award after demonstrating innovative systems that benefit the output of our work. We’d like to introduce you to our newest addition ‘Pando’ — a workflow management tool, business dashboard and analytics software designed to streamline key property management processes.

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TECHNOLOGY It just goes to show that you don’t have to be a big corporate team to be innovative. Craig King, Property Manager at Housemart Queenstown, has a passion for new technology and ideas, leading him to adopt an additional IT and development role. Craig took a small idea and created a system with huge benefits for our company. Two years on, we would like to introduce you to Pando, designed and developed by Craig from scratch. Pando has allowed us to grow as a company by giving us the confidence that everything is in order and the data to support this. The name Pando is Latin for ‘I spread/grow/ expand’ and enables data to be pulled from third parties like Palace, Pipedrive, MS Office, Trello and DocuSign. It then compiles the data in one framework to monitor performance, bottlenecks, workload and compliance, and run customisable audits. We like to describe Pando as a fantastic piece of kit!

So how did Pando come about? Craig is very process driven and constantly on the lookout for ways to streamline procedures and minimise time spent on repetitive tasks by automating part or all the process where possible.

Previously, we used a whiteboard in our office to display our leasing funnel, KPIs and data summaries. This key information guides our team meetings and is a centralised point we constantly utilise during our work week. However, tracking important information this way was very time consuming and involved a lot of manual editing. We first replaced the whiteboard with a large television, and our Excel wizard (Craig, of course) designed a spreadsheet to display the same information, also accessible from everyone’s PC. But it still required manual input and wasn’t very aesthetically pleasing.

document generator (auto-filling data for tenancy agreements, bond forms, renewals and integration with online software), and customisable audits and KPIs can be displayed on personalised dashboards and shared amongst the team. Property managers can prioritise tasks and monitor portfolios, and users can semi-automate more tasks and have greater control of their data. We are encouraging Craig to get this on the market to help others out, so come and find him at the 2022 REINZ RPM Conference and watch this space!

The first iteration of Pando replaced the Excel spreadsheet with a database of information pulled from Palace and other applications, and a new user interface, refreshing automatically every 15 minutes. This has now developed into a dashboard offering detailed information in a clear and user-friendly format.

Tested for time-saving With the wealth of information coming through the web application, it became clear that other timesaving ideas could be tested. Pando now incorporates a

REINZ RentalSmarts

Access via REINZ’s Statistics Platform https://statistics.reinz.co.nz/home FREE for REINZ Property Management members

You can now create detailed online rental appraisals in a matter of minutes!

SUMMER 2021/22

TECHNOLOGY

Four reasons to build relationships with buyers

Kylie Davis, HomePrezzo

Here are four reasons why providing amazing service experiences to buyers can support — and turbo charge your listing strategy. And four tips to help you build them!

1. Buyers can feel overwhelmed Buyers can feel overwhelmed with finding suitable properties themselves, decide how much to offer, organise finance and negotiate with you — a trained agent who does this every single day. While we know that as an agent, you’re paid to look after the interests of sellers — buyers are hungry for help. And let’s face it, they make up half of the deal on what is the most expensive thing any of us ever buy. So, it’s important to raise the bar on ways to manage them.

2. Buyers are often sellers right now With a low level of stock in the market at present, many potential sellers are hesitant to list in case they can’t find a better property. That’s why we’re seeing a lot more ‘buyer sellers’ in the market now. These are people who want to find and secure the property of their dreams first — then they’ll put their current home on the market. Having a good buyer relationship strategy can help identify leads directly from these types of buyers.

3. Buyers are always your next sellers Research from ActivePipe shows that 61% of sellers would prefer to use an agent they’ve used previously — they want someone they can trust. The ActivePipe research shows how important it is to continue

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a relationship with previous buyers throughout their home ownership period. When it is time to sell, you can then be the one they turn to because of your long-standing relationship.

4. Buyers are always potential business referrers Every buyer has friends and family who are also sellers and buyers of real estate. When buyers have a great experience purchasing their home, they generally recommend their agents’ services sending you warm leads. Equally, when buyers receive poor service for the most significant purchase of their lives — they will tell friends and family the agents to avoid.

Tip 1: Scale how you help Your primary focus as an agent is to look after the interests of your seller. If you try to be in constant contact with every buyer in the market, you may end up neglecting paying clients. To take better care of buyers, look at efficient ways to help so that it’s quick and easy to do — but still feels like great service. Technology is key.

Tip 2: Create guides and reports Sharing information about the market and how it is performing is a great service to buyers. It provides them with independent context on the price estimates of the

properties you're selling and, when it aligns with their own research, trust can be established quickly. REINZ Market Reports have been designed specifically for this purpose to make it quick and easy to generate the insights that lead to better buying decisions.

Tip 3: Share your reports digitally and in-person Making copies of the REINZ Market Report for your suburb available for buyers at inspections or free collection at your office is a great way to verify the prices you are seeking on current listings and shares your market knowledge. It also gives buyers a lasting document to take home. Links to the PDF of your REINZ Market Reports can also be sent out via email in digital marketing campaigns to your current buyer lists, shared on Facebook and targeted or uploaded to a website landing page.

Tip 4: Share reports to past clients It's not just current buyers who will find your REINZ Market Reports valuable. Share them with past clients as part of reengagement campaigns quarterly or twice-yearly to maintain a long-term relationship that can span years. They will value you keeping them up to date and sharing your knowledge, and when the time comes for them to sell again, you are the first agent that comes to mind.

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.

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INTEREST

A new way to buy a first home with shared ownership

Jason Lovell, Home Ownership Products Manager

In Aotearoa, we are continuing to see exponential increases in house prices and more first home buyers priced out of the housing market. The new shared ownership scheme offered by Kāinga Ora — Homes and Communities is a different approach through which more households can achieve home ownership. Home ownership can be a daunting prospect and yet remains a dominant aspiration for many New Zealanders. However, not everyone’s journey into home ownership is the same, and not all home buyers require the same level of support. We are finding that many households, especially first home buyers, need a helping hand to guide them through the process and support them into home ownership. However, even with a deposit and pre-approved home loan, some households can find themselves still unable to afford home prices in the current market. “Aspiring home buyers will always begin their journey at different stages and require different levels of support along the way. Whether this is general advice, a greater understanding of support options available to them, or direct financial assistance,” explains Home Ownership Products Manager Jason Lovell. “As home prices continue to climb in New Zealand, we are seeing more and more first home buyers priced out of the current market, or unable to put down the required savings for a deposit on a home, even if their household income means they could be able to afford the repayments on a home loan.” As part of an ongoing effort to provide more options for home buyers, we launched First Home Partner in October 2021. This is a new shared ownership scheme where Kāinga Ora will partner with a household and provide them with an equity contribution toward their home purchase, becoming co-owners of the new home with them.

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How shared ownership works Shared ownership means that instead of owning the home outright, a household initially purchases it with a third party, who takes an ownership stake in return for an equity contribution toward the home’s purchase. The household then buys this share back from the third party — in this case, Kāinga Ora — over time until they are the sole owner. The make-up of shared ownership with First Home Partner is affected by several factors, including:  How much of a deposit the buyer has and

is able to contribute  How much a bank is willing to lend as a

home loan  How much of a contribution Kāinga Ora

will make towards purchasing the home. There are eligibility criteria for First Home Partner. Applicants will need to be purchasing a brand new home, not have received previous shared ownership support from Kāinga Ora, earn a household income under $130,000, provide a 5% minimum contribution towards a deposit for the home purchase, and be in a financial position to meet the lending requirements of a participating bank. “We have worked closely with Westpac and BNZ to help shape and design First Home Partner to be relevant and accessible to aspiring buyers, and both banks are on board as foundation supporters of the scheme. We are grateful for their ongoing

INTEREST SUPPORTING MORE NEW ZEALANDERS INTO OWNING THEIR OWN HOMES IS A COLLABORATIVE EFFORT ACROSS GOVERNMENT AND BUSINESS, AND THE FIRST HOME PARTNER SCHEME IS A NEW AND EXCITING ADDITION TO THE PRODUCTS AND SERVICES THAT KĀINGA ORA CAN OFFER TO HELP KIWIS ACHIEVE THEIR ASPIRATIONS OF HOME OWNERSHIP. JASON LOVELL expertise and support in bringing First Home Partner to the market,” says Mr Lovell. Through First Home Partner, we can offer a maximum contribution of 25% of the purchase price or $200,000 towards a home purchase — whichever is lower. This is assessed case-by-case for each applicant to reflect their personal circumstances and the type of home they are looking to buy that best suits their household.

Helping first home buyers become full homeowners We want households to succeed in their goals and become full home owners as soon as practically achievable. First Home Partner is unique because our equity contribution is not a loan, does not have annual fees for the first 15 years of ownership, and is not interest bearing. Our relationship with the household also doesn’t stop at moving day. We work with the household through a Goals Management Programme as long as we remain co-owners in the home. The programme is designed to help support the household to stay on track with becoming a full home owner. It includes guidance for buying the share back from Kāinga Ora, maintaining the home, and assessing any changes in the household’s personal or financial circumstances to help make sure goals remain achievable.

Multiple pathways into home ownership There isn’t a one-size-fits-all approach to achieving home ownership. First Home Partner joins a suite of other products available for first home buyers that include the First Home Grant, the First Home Loan, and the KiwiSaver first-home withdrawal. It is a goal of Kāinga Ora to support more New Zealanders into home ownership. More kiwi households living in their own warm, dry and secure homes is a positive outcome for New Zealand. More information about First Home Partner, and other home ownership products offered by Kāinga Ora, is now available online at kaingaora.govt.nz/home-ownership/.

SUMMER 2021/22

INTEREST

The importance of giving back to the community Real estate provides an opportunity to help people move forward in their lives — an intrinsic component of the community where agents can meet people and develop close connections that create the potential for a closer and more prosperous community.

Gareth Robins — Managing Director, Collective First National Wellington

William Yip — Performance Director, Collective First National Wellington

The winners of the Community Service Awards at the 2021 REINZ Awards for Excellence, Collective First National Wellington, and Ray White Bishopdale & Strowan in Christchurch, share the importance of giving back, and how their branches contribute to the betterment of their communities. Collective First National Wellington — Winner of Community Service Award — Medium The support and enrichment of our local community is something that is extremely important to us at Collective First National. When we rebranded in early 2020, our direction was clear from the outset; we wanted to be a force for good in the area, channeling company profits into programs and facilities that make our local community a better place to live. The Collective Community Hub opened to the public in May 2021. Since it opened its doors, more than 7,500 community members have made use of the state-of-the-art space. Even more

The Real Estate Institute of New Zealand

Barry Ellis — Business Owner, Ray White Bishopdale & Strowan, Christchurch

satisfying are the 650 events held in this community space free of charge. The Collective Community Hub has so far absorbed an investment in excess of $300,000, which Collective First National has fully funded.

A local focus, a space for community Unlike other local real estate companies that often direct profits offshore, every property sold through Collective First National contributes funds back into this fabulous facility as well as a multitude of other community groups. In addition to the hub, $75,000 has been raised and distributed to worthy causes throughout Wellington and Porirua over the past 18 months. The Collective Community Hub consists of one large meeting room seating up to 75, one mid-sized meeting room seating up to 25, two board rooms that seat eight and an open plan workspace/meeting space. There are excellent projectors, audio and

INTEREST large screen TV facilities, plus a kitchen and accessible bathrooms. Some of the groups that have made good use of the space include: The Swans Nest, to provide interactive sessions for children with terminal illnesses; Take 10 to run after-school care for local kids; the Wellington City Council which holds consultation meetings with the community; St John to provide first aid classes, and many more. These and other groups can provide sessions and classes at no cost because they are able to use the community hub space free of charge. Our entire team is looking forward to watching the difference this facility continues to make in our community in 2022. Ray White Bishopdale & Strowan — Winner of Community Service Award — Small For real estate businesses, giving back is about making a difference and seeing the change we can make, while enjoying the relationships and moments that come from community involvement.

Giving back has the potential to bring a team closer, and this is something we have experienced at Ray White Bishopdale & Strowan. By getting the team involved, we have shared memorable experiences, developed new trusted relationships, and gotten to know each other on a different level.

An opportunity to give back We are always on the lookout for opportunities to get involved and contribute to community wants and needs — no matter how big or small. Over the last 12 months, our initiatives have included environmental, sponsorship, fundraising, events and special moments, and the team have much fun and laughter along the way. Amongst the activities we have undertaken, a standout was hosting Batman and Catwoman dinner with the families at Ronald McDonald House Charities (RMHC). The charity supports families when their child is in a New Zealand hospital, away from home. It’s a cause close to the heart of the entire Ray White network. This was an opportunity to bring a smile to these families’ faces and to create lasting memories for the children.

Build your brand and earn what Build y you deserve. Agent X isn’t a franchise. In fact, we exist to liberate you from the restrictions of what traditional real estate master franchises have to offer. Our structure instead empowers high-performing real estate salespeople to earn what they deserve, and to take control of their professional future by building their own independent brand.

Learn more www.agentx.nz Contact us for a 100% confidential chat about joining AgentX P: 021 648 707 E: mitchell@agentx.nz SUMMER 2021/22

Hot Buys — Exclusive to REINZ members We’re delighted to bring you this year’s 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.

Wanting to look for more discounts? REINZ’s app gives members full access to a range of member benefits, whether you’re purchasing in store or online, the REINZ app is easily accessible with all the latest deals and discounts. From appliances, business and office suppliers to vehicle and fuel costs, financial and insurance — there is something for everyone. Download the app from Apple Store for iPhone users, or Google Play for Android users.

Holiday Spend & Save Buy one advert & save 5% Buy two adverts & save 10% Buy three adverts & save 15%

To qualify for the special, the ads 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 31/01/2022.

FREE Promotional Video of your Property! Limited marketing budget? Fearless competition? We want to help! Free promotional video with every $7 plan. Get your FREE video now: https://www.istaging. com/partner/?cpn=reinz Easy-to-use, real estate oriented and flexible platform for all budgets. iStaging's services include: smartphone capturing virtual tour, floor plans, virtual open house solutions and more. Smooth integration with TradeMe, realestate.co.nz and all the local listing pages.

The Real Estate Institute of New Zealand

Taking Cordis Auckland to new heights Inspired by a visionary blend of contemporary design, the Pinnacle Tower is poised to set a new benchmark for modern luxury in Auckland. Step inside and join us on a journey to a place where the sky is the limit with our exclusive REINZ special Premier Pinnacle Tower room rate of $299 including GST, per room, per night, including accommodation and breakfast for one person. Stay period: 1 December 2021 – 31 March 2022 excluding Christmas Day & New Year’s Eve. Terms & Conditions apply: Subject to availability. Rate includes breakfast for one in Eight Restaurant. $30 per person for additional breakfasts. To book your stay, head to www.cordishotels.com/ auckland and insert ‘SREINZ’ in the promo code field which will show the Premier Pinnacle Tower rate. You can also email cdakl.resv@cordishotels.com for reservation enquiries.

$100 OFF a $249 annual subscription Since launching in 2019, BusinessDesk has established themselves as the premium location for insightful news and commentary with more than 20 journalists covering business and the economy, including real estate. Use coupon reinz100 at checkout. Valid until January 31 2022. Check out https://businessdesk.co.nz.

10% OFF Beany accounting packages for life! Online, fast connected and clever. Meet Beany accountants. We’re big on being there for you, yet we’re completely online. Forget dressing up and driving to meetings, you get your own dedicated accountant who can focus on your business, not commutes and printer jams. Use offer code REINZ for 10% off accounting packages. Head to https://beany.com/get-started/?referralCode=REINZ.

Up to 40% OFF online Get set for a kiwi summer with a wide range of products from Torpedo7, whether it’s hitting the trails or a weekend away camping Torpedo7 will have you ready to explore! Simply use the code REINZSUMMER online at checkout. Online only at https://www.torpedo7.co.nz/ — you’ll get up to 40% off, valid from the 30 November 2021 – 28 February 2022. Proud partners of CSC Group NZ. Terms and Conditions: Discounts are off RRP. If the product is already on promotion customer will receive the lower offer or promo pricing. Not all products are eligible for a discount. Variations in the regional COVID-19 Alert Levels may cause a delay in non-essential orders being shipped. Not available in conjunction with any other offer. Excludes Bikes and Frames, Electronics, Freight, Gift Cards and Workshop Services.

Pilot MR Ballpoint Pen $19.95 excl GST each A sleek and stylish ballpoint pen with a smooth twist mechanism. These pens deliver classic style with an engravable barrel and packaged in a gift box, ideal for a deserving client or two. 1.0mm medium tip. Blue ink. Refillable with Pilot MR BRFN-10M ballpoint refills. Head to https://bit.ly/3mfxPi8 to place your order. Offer expires 31 January 2022 or while stocks last.

Save 13c on fuel this summer REINZ members who use their REINZ Mobilcard at participating Mobil stations will receive 13 cents per litre discount off the pump price for petrol and diesel. Following the promotional period, you will continue to receive 11 cents per litre off the pump price. If you don’t have a REINZ Mobilcard please follow the link below to apply and ensure you advise you are a REINZ member on the application. No card fees, no transaction fees. Standard Mobilcard T&Cs apply. 13 cpl discount offer available from 1 November 2021 – 31 January 2022. 11 cpl discount will apply following this period. To apply now, go to https://mobilcard.co.nz/Site/Application For further information please contact matthew.o.john@exxonmobil.com.

If you are interested in becoming a REINZ member benefit supplier, contact mcahalane@reinz.co.nz to discuss eligibility. SUMMER 2021/22

INTEREST

The upshot and the lowdown on accountability HOW (AND WHY) LEADERS NEED TO SUPPORT THEIR SALESPEOPLE TO WIN

Jasmine Platt, Founder, Real Estate Leaders

You want results, but some of your salespeople aren’t doing what it takes. You’ve invested your hard-earned cash, made the career change to leadership, and their lack of activity is frustrating. I get it.

One thing I often hear from leaders who are frustrated with their teams’ sales results but have no real strategy is the catch cry: “We need to hold our salespeople accountable.” The only problem with this sentiment is that it doesn’t work. At least not when it’s accompanied by a resentful energy and without any strategy for ‘how’. Often, trying to hold people ‘accountable’ without an adequate understanding of the psychology of leadership leads to issues with culture, retention and reputation in the marketplace. Unless those salespeople have proven to be prohibitively high-maintenance (in time and energy) and low-value, they represent potential. That potential is worth harnessing. In this article, I’ll share three things: 1. The brain science that clearly explains why accountability doesn’t work; 2. The fundamental realities that make “accountability” risky; and 3. An alternative for lifting activity and sales that works.

What the brain science has to say about accountability If you want to hold your salespeople accountable, there are two key things you need to understand about the brain. The first is the ‘fight, flight or freeze’ phenomenon. The second is about the specific rewards the brain needs and risks if it doesn’t get it.

The Real Estate Institute of New Zealand

You’ve likely heard of the fight, flight or freeze tendency of humans under threat. We all have a hard-wired, primitive part of our brains (called the limbic system) designed to keep us alive. When our limbic system is activated, we will perceive a threat and immediately and unconsciously work on resolving it — through fight, flight or freezing. When managers attempt to ‘hold salespeople accountable’ without understanding the psychology or taking care about how they approach it, they risk a significant likelihood of activating the limbic system within their salesperson’s brain, causing them to perceive threat. The second thing to understand, which is connected to the first, is what the brain needs. In his best-selling book, Your Brain at Work: Strategies for Overcoming Distraction, Regaining Focus and Working Smarter All Day Long, Dr David Rock shares five things our brains fundamentally need to work well. According to science, Rock explains that our brains need Status, Certainty, Autonomy, Relatedness, and Fairness. In other words, people want to:  Have and maintain positive status (in their

own and others’ minds)  Feel certain and safe about where they are  Experience autonomy

INTEREST  Feel related to the people around them (or

at the very least, not in conflict)  Be fairly treated (according to how they

perceive fair treatment). If any of these are not present, our brains go into fight, flight, or freeze mode — and our behaviour gets hijacked. Promoting accountability isn’t wrong in and of itself. However, if not done well, you risk threatening the critical needs of the brain — which is not conducive to changing behaviour. Nor is it helpful for your salespeople’s mindset or performance, and they will move away from whatever you’re trying to achieve.

Six fundamental realities that make accountability risky 1. When people are underperforming — particularly when they know they are — and feel financially threatened as a result, they tend to be already beating themselves up. Piling on them is likely to make it worse. 2. Salespeople are self-employed contractors. If you treat them in ways they don’t like, there are plenty of competing offices that will snap them up.

Here are five tips to help your salespeople to win:

3. People like to be treated well and be well thought of, even if they’re underperforming.

1. Stop thinking about accountability — and start thinking about support.

4. People are in real estate to achieve their goals. Even if they aren’t clear on their goals, they don’t care about your goals (and you could argue that they shouldn’t).

2. Realise that lack of activity is often the by-product of lack of confidence, which is the by-product of a lack of competence or clarity. Leadership is the critical ingredient for building competence and clarity.

5. People don’t like being held accountable unless they are clear on their goal and have invited or welcomed accountability to help them achieve it. 6. If they leave, you can bet your last dollar they will make it about you and tell others. You risk getting a poor reputation for being a poor leader (even though it may seem an entirely unfair reflection).

An alternative to accountability You want your salespeople to win. After all, when they win, you win. Further, it’s your job to help them succeed.

3. Get to know your people as human beings. (What are their goals? What matters to them?) 4. Build a development program that supports, trains and coaches salespeople in the critical skills and phases where salespeople fall down (i.e., listing presentations, negotiation, objection handling, etc.). 5. With the above four points in mind, build a well-considered, step-by-step process that starts from the very first conversation you ever have with them

and continues till the moment they walk out the door on their final day. The common assumption of business owners in real estate, and any other sales-driven industry, is this: “Just recruit some people and tell them what to do.” That assumption leads to an ‘abandon and hope’ style of leadership.

‘Abandon and hope’ doesn’t work — but neither does ‘accountability without support’ Accountability in our industry tends to be a reactive measure, reserved typically for under-performers, rather than part of a broader and well-thought-out people strategy. If you want your salespeople to win, think of accountability more in terms of support — a supportive process that includes coaching, training and mentoring to help them win at achieving their goals, and you have a recipe for success. Is it easier said than done? Yes, but it can be done!

If the productivity and results of your people are problems that you are dealing with as a sales leader, let’s jump on the phone and I’ll share with you how I can help you improve your team’s productivity and performance. To book a time, visit my new website at www.realestateleaders.co.nz — or email me at jasmine@realestateleaders.co.nz. Jasmine Platt helps real estate agency leaders to lead and grow successful real estate sales teams, make more money and win more of their time (and sanity) back in the process.

SUMMER 2021/22

INTEREST

‘Giving back is key to being good at real estate’ WISDOM FROM A HUMBLE REALTOR WHO’S SEEN IT ALL Age is merely a number when it comes to Allan’s expertise and skill in the real estate profession. Having recently turned 90, Allan has experienced 35 eventful years in real estate. His ultimate purpose is to serve as someone people can trust, and he has attained a passion of giving back and sharing his knowledge with others.

Before real estate, Allan was an engineer deeply involved in the motor industry right up until his mid-50s. It was at this time a friend of his asked if he had ever considered working in real estate. Having bought and sold houses in the past and enjoying it, Allan spent some time considering a potential new career on an extended trip overseas with his wife. By the time the plane hit the tarmac back home, he knew his answer.

A change of scene Embarking on a new career at 55 shows it’s never too late to start something new. A bold move, but something Allan felt was his true calling. His only regret was not being introduced to the profession earlier. Taking up his first position as a licensee in Waikanae, it is fair to say that Allan is in it for all the right reasons — he is passionate about meeting people and building trust. “The moment you know you are winning at your job, is when people call you up and want to deal with you,” he says. When looking back at his career, Allan says his proudest moment was being the first person in Australasia in the LJ Hooker group to be awarded Life Membership of the Captain’s Club — and it wasn’t an easy feat. The criteria for Life Membership was ten consecutive years in the top 5% high-performing salespeople of the company in Australasia — and if you missed one year, you had to start again.

The makings of a great real estate professional Despite his love for the industry, it hasn’t all been joyous. One year into his real estate career, the stock market crashed, and Allan found himself dealing with people who had invested all their money into shares to be left with nothing. “It was a sobering experience to see people in that state in my short time working as a licensee,” Allan says. These experiences influenced his opinion of what makes a good real estate professional, and that is those who give back. Allan’s

The Real Estate Institute of New Zealand

Allan Hodges

mantra throughout his work is ‘you only make in life what you give’ — life cannot be all about taking. “You have to be helpful to not only your clients and customers, but to your fellow staff members as well. There are too many people in this world who take. If you want to be good at real estate, you have to give,” Allan adds. Allan stayed true to this and later in his career took an assessor’s role at LJ Hooker, where he marked over 3,000 papers. He never failed anyone. If someone needed help passing their studies, he would ring, email, or talk to them and guide them through the paper as he knew how much these people wanted their real estate license. Allan then decided to sit his papers for an Agent’s Licence and soon after became an Associate Member of REINZ (AREINZ).

35 years — more to give Still working as a Supervisory/Compliance Executive at Lakeland Realty to this day, his knowledge about the industry isn’t all that easy to come by, which is why he aspires to share it with anyone wanting to listen. “I don’t want to just shut the door to real estate as I feel all that knowledge would be wasted. If I could share it with someone or groups of people, I would hope it would be beneficial to them,” Allan concludes.

FINANCE

How to manage your personal finance amidst a pandemic

Hannah McQueen, Enable.Me

2021 started with such optimism — it was going to be different to its pandemic-afflicted predecessor. The country was COVID-free, a vaccine was on its way and a return to normality was just around the corner. But we all know how that went — the Delta variant had other ideas. So, if you’ve reached the end of the year feeling tired but without much progress to show for it, odds are you’re not alone. We’re now wise enough not to count on next year being COVID-free, but now’s also the time to find ways to improve your progress on the financial front. In fact, it’s something you should be prioritising amid ongoing uncertainty. Here are four quick tips to get you started.

Where to start? Lots of things have changed amid COVID-19 — interest rates hit record lows but are now rising, the share market plunged then rebounded, and new investment property tax rules were introduced. One of the first things to put on your financial ‘to-do’ list is to review where you’ve invested your money. That includes investment properties — are they still fit for purpose following the regulatory changes? Managed funds and KiwiSaver — their performance, fees, and your investment settings. What do you owe? What’s the interest rate, ownership, and debt structure? Basically, an annual performance review to ensure your money is working as hard as it can be.

Systems win where willpower fails Daily life taxes our willpower, so creating systems to make it easy to stick to your plan is essential. It could be setting up a separate food account, so you know when you’re overspending; establishing direct debits so you always get the prompt payment discount; or even downloading a parking app so you never get stung by parking tickets.

Track your progress Getting ahead starts with working out where you’re heading! Then, break it down into smaller steps so that you can measure your progress towards the chunkier goals. Nothing motivates you more effectively than seeing results.

Optimise to maximise People hungry for a great investment return often overlook the risk-free gains to be made by optimising their situation. We tend to squander 15% of our incomes on things that don’t make us any happier — outdated insurance policies, credit card interest or inefficient mortgage structures — identifying and retaining those funds presents a huge opportunity to put that money to good work.

Hannah McQueen is a financial adviser, chartered accountant, personal finance author and the founder of Enable.Me — financial strategy and coaching. Head to https://www.enable.me/ to learn more.

SUMMER 2021/22

INTEREST

Vendor tips: How to find the right home stager

Karen Jackson, Managing Director, Lifestyle Finance

As any real estate agent knows, staging a home can be a crucial selling point when it comes to marketing a property. And to achieve that emotional connection between the property and the buyer, enlisting the help of a professional home stager can be invaluable.

With this in mind, here are some expert tips on finding a good home stager who is experienced enough to make their property stand out in this hot market.

Use a professional or DIY? If you have a flair for interiors, it may be tempting to stage the property yourself. Sometimes, it can be as easy as rearranging existing furniture, removing clutter or adding some artwork. However, keep in mind that experienced home stagers know what makes buyers tick and how to use staging to highlight the best features of your property. Of course, it’s an additional cost to factor in, but if carried out properly, staging can be an ‘investment’ in emotional appeal.

How much does professional home staging cost? Fees may vary widely based on the stager’s experience and competency. While it’s better not to choose on price alone, you may want to know what options are available within your budget. When it comes to ball-park figures, the prices depend on the size of the property and period length. Usually ranging from as little as $1,000 to $5,000 (and even more at the highest end) for a five-week period.

The Real Estate Institute of New Zealand

It’s crucial to find a balance between what you’re comfortable paying and what you’d like to achieve. Keep in mind that hiring a less expensive stager doesn’t guarantee that you’ll save money. Some stagers may cost less, but they might also use cheaper furniture and accessories. If the look is not aligned with the property and your target buyers, it may affect the sale price. The good news is you may not need to choose between your budget and your property opportunities. With our ‘Advertise now pay later’ option, you can borrow up to $15,000 (or higher amounts on request) to fund the marketing of your home and you won’t have to make any repayments for 90 days. It’s longer than most vendors need to find a buyer.

Have they received formal training? Though certification isn’t mandatory for home stagers, it goes to show that the stager has invested in their professional development. Most courses focus on providing market knowledge as well as teaching targeted lifestyle design skills. It can also be a good idea to ask the stager how they’re keeping up to date with staging trends and new techniques.

INTEREST Keep in mind that a good decorator or interior designer doesn’t always equate to a good home stager. In fact, these two professional figures have opposite goals; interior designers personalise the space to reflect the owners, while home stagers de-personalise it to create buyer appeal.

How does their portfolio look? More than any certification they might have, a home stager’s portfolio is a representation of who they are and their body of work. Aside from asking for simple background information (e.g., whether the stager has a solid track record with clients), portfolio photos will give you an idea of the variety of styles the stagers use, their overall design sense and the quality of the accessories they use.

Are you ‘compatible’? It may sound unimportant, but how you interact with your home stager is also key. After all, this is someone you’re allowing into your home, so you need to feel confident asking questions, and importantly, trust that they can get the job done. If you’re not satisfied, make sure you ask for clarifications before and even during the contract signing. You can get a good idea from how they respond to your queries and from the information they provide you with.

How we can help Home staging isn’t only for high-end listings: any property can benefit from quality staging, no matter their price point. Seeing the property furnished, rather than empty, helps the buyer mentally move in. By using the right scale furniture, staging can even help small properties feel larger. *Sources: The Staging | Houzz | Itwdesign

Like to get started? Learn more about our ‘Advertise Now, Pay Later’ finance tool by heading to https://www. lifestylefinance.co.nz/advertisenow-pay-later, or give the team a call on 0800 100 265 if you’d like to discuss your needs.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance

SUMMER 2021/22

INDUSTRY

Nadine Thomas, Head of Engagement, Insights and Education, REA

Marketing: Licensee’s obligations to vendors and potential buyers ‘My buyer’. It’s a term commonly used by a licensee to refer to a potential buyer they have established a connection with and introduced to a property. Helping buyers navigate the tricky world of purchasing a property is a significant part of the work that a licensee undertakes. However, licensees must understand clearly who they are representing and be open and transparent about it with all parties.

It’s an exciting time to be part of the industry, but there is no doubt that low housing stock is putting pressure on buyers, vendors, and real estate professionals alike.

have introduced ‘their buyer’ to a property listed by a colleague, they still have a fiduciary obligation to the vendor (the client) and not ‘their buyer’.

Securing a listing and working with a vendor to market and sell their property is the backbone of a licensee’s role. In a typical transaction, where a buyer is introduced by the listing licensee, it should be clear-cut who the licensee represents and where their fiduciary obligations lay.

A good way to remember this is to ask yourself, ‘who pays my commission if this transaction is successful?’ Whilst you may only be entitled to receive part of the commission if “your buyer” is the successful buyer, it is the vendor (the client) that pays that commission. Fiduciary obligations override internal agency commission policies. You should avoid giving the potential buyer (the customer) the impression that you’re working on their behalf, when in reality your fiduciary obligation is to the vendor (the client).

But what happens when another licensee from your agency gets involved in the transaction by introducing ‘their buyer’? The key rule for licensees to remember is that, in a particular real estate transaction, a real estate professional can represent either the vendor or the buyer — but never both at the same time.

Rule 9.14

Rule 9.1

A licensee must not act in a capacity that would attract more than one commission in the same transaction.

A licensee must act in the best interests of a client and act in accordance with the client’s instructions unless to do so would be contrary to law.

When a vendor signs an agency agreement, it is important to remember they are listing with the company licensee, not the individual listing licensee. All licensees who work under the company licensee are bound by fiduciary obligations to the vendor (the client). Whilst a licensee may

The Real Estate Institute of New Zealand

The Code of Conduct sets out this expectation under Rule 9.1:

Cold calling in a vendor market In a market with low listings and plenty of buyers, cold calling is a legitimate way of contacting homeowners to check whether they want to sell their property.

INDUSTRY

There is nothing wrong with cold calling potential vendors, but again, the licensee must be open and transparent about who they are representing. If you sign an agency agreement with a vendor, your fiduciary obligations are to the vendor and not your database of potential buyers.

Buyer’s agent Although still relatively uncommon, buyers may choose to engage a licensee through an agency agreement to assist them with purchasing a property, especially in the current market. Under this arrangement, the buyer pays the licensee according to their agreement upon the successful purchase of a suitable property. In the instance when a licensee is engaged as a buyer’s agent and approaches a home owner on behalf of their buyer, they are not allowed to offer their services to the potential vendor. They must disclose to the vendor that they are acting on behalf of a buyer and act in the best interests of their client — the buyer.

NOTE: If the vendor has an agency agreement with another listing agency, professional ethics denotes that both licensees should liaise with each other to allow each licensee to fulfil their fiduciary obligation to their client. For more information, refer to Rule 4 Interpretation in the Real Estate Agents Act (Professional Conduct and Client Care) Rules 2012, which defines customer and client, with the client being whoever holds the Agency Agreement with an agent to carry out real estate agency work. Find out more at rea.govt.nz.

To help inform consumers on all the issues to consider when buying or selling a residential property, we created settled.govt.nz. We encourage licensees to share this website with consumers to ensure to help them with navigating the property transaction. SUMMER 2021/22

LEGAL

Next edition of the ASPRE (AGREEMENT FOR SALE AND PURCHASE OF REAL ESTATE)

The ADLS ASPRE Sub-Committee — of which REINZ is a part — has been working on the next edition of the Agreement for Sale and Purchase of Real Estate (ASPRE). The eleventh edition will be released in the new year.

The next edition of the ASPRE follows an extensive review process that incorporated input from the legal and real estate professions. REINZ has worked closely with ADLS to represent member feedback throughout the drafting process. The focus was on three primary areas: formatting and usability, the purchase price allocation (PPA) addendum, and the inclusion of a new COVID-19 clause.

Formatting and useability Following significant feedback, the eleventh edition of the ASPRE will address members’ concerns around formatting and useability, to deliver a better experience for all involved in the transaction process. We are hopeful a multitude of small changes and more space where you told us you needed it, will make the forms more useable.

PPA Addendum In July 2021, important changes to the Income Tax Act 2007 relating to purchase price allocation come into force. These aim to prevent taxpayers from allocating asset values to get a more favourable tax outcome when buying or selling assets such as property. ADLS and REINZ issued an addendum to the ASPRE, Tender Agreement and Business Agreement to allow parties to deal with a PPA under the new rules. As members voiced strong opposition to its inclusion as a General Term, it will remain an optional addendum.

Inclusion of a COVID-19 clause COVID-19 has disrupted business as usual. Following the first lockdown — where some buyers and sellers found themselves unable to settle — COVID-19 clauses were introduced. The real estate profession called for a COVID-19 deferred settlement clause to be included in the next edition

The Real Estate Institute of New Zealand

Melisa Beight, General Counsel, REINZ

of the ASPRE as a General Term. REINZ advocated strongly for this, and a new COVID-19/pandemic clause will be included as a General Term. The ADLS/REINZ COVID-19 clause will also be available in eForms in the interim, as an optional clause, which REINZ strongly recommends is used in the ASPRE. REINZ has also requested a bespoke COVID-19 clause for the Auction Agreement.

What’s next? Following the release of the ASPRE, the Tender Agreement, Auction Agreement and Business Agreement will follow.

Final word REINZ members have been front of mind throughout this process. Your feedback has shaped the eleventh edition of the ASPRE. Looking forward, REINZ and ADLS are exploring ways we can better work together. We want to ensure industry representation on the ADLS ASPRE Sub-Committee for the following edition, and we’re pushing for user testing of the eForms functionality pre-release. We believe those who use these resources day-to-day and understand the issues first-hand, should have a guiding voice. Finally, a massive thank you to all of you for your feedback over the past months. We look forward to delivering the next edition of the ASPRE in the new year. REINZ will provide support to members around the new ASPRE. Timed to coincide with the release, we will run webinars and share detailed information sheets. For any additional questions, please reach out to advisory@reinz.co.nz.

LEGAL

A fresh look at directors’ duties in our modern world

Joyce Chiu, In-house Counsel & Advisory Services, REINZ

Conventionally, the primary objective of a company is to make its shareholders a financial profit. However, that is not essential, especially when the company’s shareholders determine the company’s purpose. Every company sets its own objectives; it is how these objectives are pursued and achieved that is the measure of a company's success. A Director’s duties should, therefore, be measured against the company’s chosen objectives. The Companies (Directors Duties) Amendment Bill was introduced to Parliament on 23 September 2021, and it is currently awaiting its first reading. The Bill amends section 131 of the Companies Act 1993 pertaining to Directors’ duties to act in good faith and in the company’s best interests.

When the Bill receives Royal Assent and passes into law, Directors will have the statutory mandate to consider matters beyond a company’s profitability. Such matters include recognising the principles of Te Tiriti o Waitangi, environmental impacts, ethical behaviour, fair and equitable employment practices, and the interests of the wider community. This broader remit is in line with the growing interest for Directors to recognise the concept of modern corporate governance theory. We see that there has

been an increase in scrutiny for companies to be responsible and liable for social and environmental concerns that influence our communities and natural environment. As the Bill currently stands, these duties are permissive rather than mandatory. However, it is a legislative acknowledgement of what many Directors may already be practising and what is considered to reflect a company’s best interests. REINZ awaits as to whether the Bill will achieve its aim after receiving the Select Committee’s recommendations.

COVID-19 rent abatement provisions in leases On October 5 2021, REINZ filed public submissions on the Government's proposal to uphold an implied term — also known as a 'no access' clause — in commercial leases that do not already contain a rent reduction clause. The Act received Royal Assent on 2 November 2021, and is now in force. Our submissions raised members’ concerns about how quickly the COVID-19 Response (Management Measures) Legislation Bill (Bill) reached the final step before becoming law, with only two weeks for the Finance and Expenditure Committee to consider all submissions and proposed suggestions. REINZ also raised that the inability to access commercial premises was not an indicator of a tenant’s inability to pay rent and expressed concerns about the unbalanced burden placed on commercial landlords to ease the effects of COVID-19. The Finance and Expenditure Committee published their recommendations on 14 October 2021.

The Committee’s suggestions were limited to the implied term beginning on August 18 2021, and for certain types of leases to be excluded from the legislation. It also recommended that mediation be the default process to deal with any resulting disputes. The Committee stated the new implied term should emulate clause 27.5 of the of the Auckland District Law Society's Deed of Lease, to provide for what constitutes a fair and proportional rent abatement where a tenant cannot access the premises due to an epidemic. The Committee acknowledged that it struggled with the criteria to determine what would be considered eligible for rent relief

amongst tenants. No solution or alternative criteria was recommended. The Select Committee noted official guidance is currently being developed as to how a ‘fair proportion’ should be assessed, while allowing for a degree of flexibility for negotiation to be led on a case-by-case basis. However, this guidance will not have any legal force. Although we have yet to receive this guidance, I think it fair to say that many of us will be disappointed by the lack of guidance in this regard, as this provided an opportune moment to minimise disputes between commercial landlords and tenants. SUMMER 2021/22

LEGAL

Business unusual: COVID-19 and real estate advocacy

Melisa Beight, General Counsel, REINZ

Amesha Rama, In-house Counsel, REINZ

As your industry body, our imperative is to support you to navigate the ever-changing COVID-19 landscape. The profession has shown resilience and the ability to adapt quickly and effectively to restrictions, and we’re glad to be on that journey with you.

REINZ plays a proactive role in providing guidance around COVID-19. Since New Zealand returned to varying levels of lockdown in August, we’ve been working closely with government bodies — including the Real Estate Authority (REA), the Ministry of Business Innovation & Employment (MBIE), the Ministry of Justice, and the Ministry of Housing and Urban Development (HUD).

was updated seven times in less than a month. Alert Level 3 ’stages’ have been added, and a new COVID-19 Protection Framework announced, providing for a ‘traffic light’ system, currently in draft. Many a late night has been spent poring over the fine print since the lockdown was announced on 17 August and, with our Chief Executive, in discussions with the regulators late into the night.

REINZ is working closely with the REA to ensure members have a single source of clear guidance — the REA website. Our relationship is collaborative. The REA is responsive to our feedback on behalf of members, including amending its guidance where it may be unclear or ambiguous to real estate professionals.

The REINZ team has needed to be across all changes and be highly responsive to meet members’ needs for accurate, up-to-date information. REINZ has advocated for more property viewings — we even had to battle to retain the two visits per property per day — to increase the number of attendees from the same household and to have a greater ability to move house between alert levels. We have also worked with the regulators to seek clarification of Health Orders when Government departments interpreted the same Health Order differently, to give real estate professionals clarity and ensure business continuity.

We also have a strong relationship with MBIE/Tenancy Services. While we have created REINZ guidelines for residential property managers, this is supported by consultation with MBIE. REINZ's Head of Property Management, Jo Rae, has been instrumental in driving this.

The Real Estate Institute of New Zealand

A rapidly evolving landscape

Advocating for real estate continuity

Through changing alert levels, Health Orders — and amendments — have come thick and fast. At the time of writing, we are currently on Health Order No. 12 — which

Frequent changes and much uncertainty have added to what has been a challenging time for everyone — personally and professionally. For our part, REINZ will

LEGAL

continue to provide guidance and advocate on behalf of members. We want you to know that we are representing you where it matters at Government level. We have made some real gains too. The property viewing restrictions have now been eased to allow members of one household per property visit, with no limit on the number of visits per day — provided all other requirements are met and a virtual inspection is not possible or practical. Over recent months, updated guidance has been issued to members within hours of all Government announcements. Huge volumes of queries have been answered, and REINZ has worked with ADLS to include a permanent COVID-19 clause in the next edition of the ASPRE as a General Term. In the meantime, the clause has been made available in eForms as an optional clause, to support continuity until the next edition of the ASPRE is released. Shortly there will be a bespoke COVID-19 clause for the auction agreement as well.

detailed information sheet, working with health & safety experts to ensure clear and accurate guidance.

certificate requirements in high-risk settings. This new framework will replace the current alert level system.

That guidance applies to the alert level system and, at a high level, provides that:

The intention is to provide a simplified risk-based assessment for businesses on whether they can require staff to be vaccinated — which is welcomed. There are many considerations that arise for the real estate profession under the Protection Framework. For example, will auctions, open homes, and open rental viewings be considered ‘events’ under the new system, and if so, how will the issue of vaccination certificates be managed in practical terms.

 You cannot unilaterally mandate that all

staff must get vaccinated  You must assess the nature of the role, not

the individual  You can require that certain work is

performed by a vaccinated person where: - It is a public health requirement specified under the COVID-19 Public Health Response (Vaccinations) Order - You have completed a health & safety risk assessment, which concludes that certain work needs to be performed by a vaccinated person. WorkSafe has provided guidance on the risk factors to consider.

Vaccinations and real estate business

The Government focus to date has been on work with a high risk of contracting and transferring COVID-19 and interaction with vulnerable groups, such as health and childcare.

REINZ has provided detailed guidance for members to help them navigate these challenging times. In addition to initial vaccination FAQs, we have published a

However, the Government’s COVID-19 Protection Framework introduces a new three-level approach to managing COVID-19 in the community and vaccine

REINZ will continue to provide the latest guidance, working with Government bodies and independent experts to ascertain what changes will mean for the real estate profession. Once we have a clear view of the changes, we have education webinars planned to ensure our members are up-to-speed. Ours is a public facing profession, and in these challenging times, we need to be kind and to show respect. REINZ supports the vaccination campaign and understands the need for the public to have confidence in the real estate profession, and to feel safe when viewing a property. However, we also support freedom of choice for members and the wider public. SUMMER 2021/22

LEGAL

Privacy and real estate — how is the Privacy Act 2020 relevant to agents?

Louisa Joblin, Associate Commercial Lawyer, Rainey Collins

The new Privacy Act 2020 came into force at the end of December 2020. It brought changes that mean privacy needs to be taken into greater consideration by businesses and organisations that collect, store, use and disclose personal information about individuals. Privacy is essential when business activities involve handling personal information.

Real estate work involves dealing with a large volume of personal information, and it is vital that agents and agencies know, and comply with, their privacy obligations.

form. People must be given the option to opt-out from giving information and being contacted, which may be as a tick box the physical form.

To consider whether something is personal information, you will need to ask: is there a reasonable chance that someone can be personally identified with this information?

Store information safely and securely

In real estate, this is likely to include information such as full legal names, email and telephone details, residential addresses, door and alarm access codes, financial information, family information (for example, sickness or death of a family member as the basis for a sale), and sale history records. So, what are some fundamental ways to protect privacy when performing your day-to-day role?

Make it clear what information is collected and why If using a sign-up sheet at open homes, you must include a privacy statement on the form outlining the purpose of collecting the information, who will see and have access to it, and the individual’s right to access and correct the information they provide. 'Access' to the information includes all the people at the open home using the same

The Real Estate Institute of New Zealand

You must store personal information responsibly and ensure that unauthorised people cannot view or access that information. Prevent unwanted access by using separate forms for prospective purchasers at open homes, securing information in locked files or password protected folders, and re-checking email addresses to ensure any personal information goes to the correct recipient.

Only use personal information for the purposes it was collected You will naturally be handling large amounts of personal information relating to offers, finance, and Sale and Purchase Agreements. You must ensure that every piece of information is used solely for the purpose for which it is collected. You must only disclose personal information when it is in line with the purpose for which it was collected, or otherwise with the individual’s consent (except in very limited circumstances such as an emergency).

Retention and secure destruction Once you no longer need the personal information you have collected, you should dispose of it securely, whether it is a digital or physical format. You should not retain information longer than for the purpose for which it was required.

Access and correction People have the right to request access to and correction of any personal information held about them. Generally, an organisation must provide access to the personal information it holds about someone if they ask to see it and correct it as requested — unless there is good reason to refuse an access and/or correction request. Generally, your day-to-day handling of personal information will be secure if you get the privacy basics right. This includes setting strong passwords which are changed regularly to secure information, verifying who you are sending personal information to, and ensuring physical documents are locked away from unauthorised access. If in doubt, talk with your agency’s Privacy Officer.

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FRANCHISE OPPORTUNITIES Contact us now to discuss how to take the first step tim.kearins@century21.co.nz or 027 449 5547 SUMMER 2021/22

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REINZ Real Estate Magazine - Summer 2021/22

Articles inside

Reflecting on an eventful 2021

Privacy and real estate — how is the Privacy Act 2020 relevant to agents?

Business unusual: COVID-19 and real estate advocacy

A fresh look at directors’ duties in our modern world

Next edition of the ASPRE

Marketing: Licensee’s obligations to vendors and potential buyers

Vendor tips: How to find the right home stager

How to manage your personal finance amidst a pandemic

‘Giving back is key to being good at real estate’

The upshot and the lowdown on accountability

The importance of giving back to the community

A new way to buy a first home with shared ownership

Four reasons to build relationships with buyers

Housemart Queenstown: small, but with big ideas

Marketing with Purpose: 3 Steps to Connect

What’s coming up in the education space in 2022?

2021 milestones in Residential Property Management

REINZ RPM Sector Group

Taking a leap of faith to start a property management business

COVID-19 and the economy

Commercial and Industrial market robust despite COVID-19

Navigating the tourism property industry during unprecedented times

New ETS accounting method and implications for land transactions

New rules for land sales to overseas investors

Hot demand for construction board made from packaging waste

Growing well on the Kāpiti Coast

Queenstown Lakes District continues to flourish

2021 REINZ Awards for Excellence

REINZ new team member

Out & about