APRIL // 2019
Newsletter Harcourts Team Group Team Group Realty Limited Licensed Agent REAA 2008
Wellington hits new record while property prices cool in Auckland Source: Trademe Property - 25 March 2019 February was yet another strong month for the Wellington property market with the average asking price reaching an all time high of $638,000, up 13.5 per cent or $75,000 on last year, according to the latest Trade Me Property Price Index.
URBAN PROPERTIES IN WELLINGTON SOAR “Apartments, townhouses and units in the Wellington region saw some incredible year-on-year growth in February, with the average asking price soaring 25 per cent.”
Trade Me Property’s Aaron Clancy said property prices in Wellington have experienced “phenomenal” growth since early 2018 and are expected to continue. “While homeowners will be happy, those trying to get a foot on the first rung of the Wellington property ladder will be finding it that much harder.”
Mr Clancy said Wellingtonian buyers were favouring urban properties as house prices increased, with strong doubledigit growth across apartments, townhouses and units in the region.
“The average asking price rose across region in February with property prices in Upper Hutt (up 11.7 per cent to $558,100), Lower Hutt (up 7.5 per cent to $581,300) and Masterton (climbing 13.6 per cent to $428,000) reaching record highs. Wellington Central (up 7 per cent on last year to $741,800), Carterton (up 20.7 per cent to $454,550) and Porirua (up 9.7 per cent $ 630,900) also saw strong year-onyear growth. “A lack of supply is driving these record-breaking property prices with the number of properties for sale down 4 per cent on the year prior which is making it tough for prospective buyers in the region.”
“These types of properties require a smaller deposit and less maintenance than a house which is why they are popular in the current hot Wellington property market.”
ALL URBAN PROPERTY
APARTMENTS
NEW ZEALAND
WELLINGTON
$574,200
$530,500
7.6%
24.8%
$667,300
$551,350
13.6%
15.5%
$631,600
$611,150
7.8%
28.2%
$436,200
$402,300
0.7%
20.4%
Annual Change in Property Price Index: Wellington TOWNHOUSES Property prices have increased
13.5% Compared to last year
UNITS
Harcourts is the fastest growing and largest real estate group in New Zealand, with more than 900 offices across nine countries along with more than 6,600 sales consultants and a growing property management team. Please visit www.teamharcourts.co.nz for more information.
Interest Rates Lender
Flt.
1yr
2yr
3yr
5yr
Kiwibank Kiwibank Special ASB Bank BNZ – Std, FlyBuys BNZ – Spec Classic ANZ
5.80 4.80 4.94 5.24 5.04 - 4.05 3.99 4.49 4.29 5.80 4.45 4.49 4.89 5.49 5.90 4.69 4.59 4.99 5.39 - 4.05 3.99 4.49 5.79 4.55 4.49 4.99 5.69
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Why are Auctions so popular? The two biggest fears in real estate are an owner underselling and a buyer paying too much. With the open and transparent environment that the auction room creates, the owner gets a very real view of where the value of their property lies, once buyers have finished competing against each other and, in some cases, where on-floor negotiations are conducted by the auctioneer, the owners then decide whether they want to sell or not. The protection of a reserve price set by owners keeps them in total control over the level at which their property will be sold. As with any negotiation, a buyer’s competition is not the owner or salesperson, but other buyers. In the auction room they get to see genuine and real-time competition. If during the auction a buyer doesn’t hold the leading bid, they simply get the attention of the auctioneer, either by a hand gesture, nod or voice, to make their next bid and they are back in front. The buyers have total control over their negotiations and the amount of money they are prepared to offer.
If during the auction the bidding stops at a level at which the auctioneer doesn’t have the instructions to announce the property will be sold, the auction is paused. Negotiations between the highest bidder and the owner will take place and, in most instances, an acceptable level is established, the auctioneer announces the new figure to the room, asks for further interest and, if there is none, the property is sold. An auctioneer is a professional negotiator – that’s their job. In the auction room they take the time factor out of what can be under other methods a long process and put deals together quickly and for cash. With most of the auctions that Harcourts list, free building and LIM reports are available to the buyers: proof they are dealing with motivated owners who, rather than pricing their property and getting it wrong and the property remaining unsold, understand that it is only worth what a willing buyer will pay and will accept that value on the day. Auction as a method of sale is our company’s most successful method, and we are often asked why this is so. The transparency of the open forum, where buyer competes with buyer and the owner gets to see the event, is the right position from which to make good informed decisions.
While every effort has been made to ensure that the information in the publication is accurate we recommend that before relying on this information you seek independent specialist advice.