C21 Market Pulse Dec 2018

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P U L S E

D E C E M B E R

M A R K E T

C21

PUBLISHER Century 21 New Zealand Ltd

CONTRIBUTORS Ryan Mitchell Vanessa Taylor Chris Gray

EDITORIAL ENQUIRIES Century 21 New Zealand +64 9414 6041

ADVERTISING ENQUIRIES Century 21 New Zealand +64 9414 6041

WELCOME TO THE

DECEMBER 2018 ISSUE OF

C21 MARKET PULSE

DISCLAIMER We have in preparing this information used our best endeavours to ensure that the information contained therein is true and accurate, but accept no responsibility and disclaim all liability in respect of any errors, inaccuracies or misstatements contained herein. Prospective buyers and sellers should make their own enquiries to verify the information contained herein. All information contained in the CENTURY 21 New Zealand Ltd website is provided as a convenience to clients. All links to property prices displayed on the website are current at the time of issue, but may change at any time and are subject to availability.

For more information on our Privacy Policy please refer to: www.century21.com.au/privacy

C O N T E N T S D E C E M B E R

NZ MARKET UPDATE

02-03

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C21 LEADS THE WAY

Buyers and sellers doing thier homework.

3 ways Century 21 gives its agents

Century 21 New Zealand National Manager,

competitive advantage.

08

Ryan Mitchell

TRAVEL 09 PROPERTY REPORT

04-05

Hamilton Island, the beautiful island escape.

Kiwi’s passion for property continues to

INTERIOR DECORATING

soar in November.

Realestate.co.nz Head of Marketing, Vanessa Taylor

INVESTMENT PROPERTY UPDATE

Home styling tips for beginners.

06-07

Is now a good time to renovate?

Your Empire CEO, Chris Gray

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N Z M A R K E T U P DAT E

BUYERS AND SELLERS DOING THEIR HOMEWORK B Y R YA N M I T C H E L L ,

N AT I O N A L M A N AG E R , C E N T U R Y 2 1 N E W Z E A L A N D

While 2018 saw the New Zealand real estate industry experience a decrease in sales volumes overall, the national median value of properties has remained stable.

National Manager of Century 21

region’s fringe– like Wellsford in

people according to Statistics New

New Zealand Ryan Mitchell says

the north, Kumeu in the north-west,

Zealand’s June 2018 estimate,

there’s plenty to be optimistic about

and Pukekohe in the south - have

which is 33.3 percent of New

going into 2019 with every office

enjoyed significant growth.

Zealand’s population. That’s up

looking forward to the year ahead and now showcasing Century 21’s new international branding to boot.

Auckland has seen the number of

about 500,000 in just 20 years!

investors purchasing properties

Known as “the City of Sails”,

fall while the number of first-home

Auckland has some feel good

“Some Kiwis seem to be on the

buyers securing mortgages has

factors on the horizon. Millions of

sidelines waiting for a signal to act.

risen helped by plateauing prices,

dollars are now being pumped into

However, I would argue now is the

lending rules softening, and record

the city’s waterfront infrastructure

time to act. Prices are holding up

low interest rates – under four

ahead of it hosting the 36th

pretty well for vendors. While for

percent in some cases.

America’s Cup with Emirates

the likes of first-home buyers there are more opportunities out there.”

Ryan points out that Auckland has one thing no other city in New

Team New Zealand defending the title in 2021. Later that same year Auckland will host politicians and

Ryan says it’s clearer than ever

Zealand can take for granted and

that New Zealand is far from being

that is unrelenting population

one real estate market. Going into

growth. Regardless of any current

2019 there remains significant

real estate trends in Auckland,

“Century 21 New Zealand has great

differences between each of the

it’s long-term future is secure as

representation across our largest

regions and cities.

Australasia’s fastest growing city.

city, with some of our highest

Auckland hasn’t moved much in

The Auckland metropolitan area

the past year although parts of the

has a population of 1,628,900

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leaders from across Asia-Pacific for the APEC Leaders’ Week.

performing offices in the south, north and east of Auckland

continuing to deliver for their

set to be stronger than many

As well as more buyers now taking

clients. Real estate agencies are

commentators were predicting

their time to do their homework,

rife and competition is fierce

during winter,” he says.

vendors are increasingly assessing

in Auckland but to their credit our offices have each secured themselves as market leaders in their respective communities.”

In December chairman and owner of Century 21 Australasia, Charles Tarbey, visited New Zealand and like the National Manager,

Ryan says another consistent

is enthusiastic about

top performer in the company is

the opportunities

Century 21 First Choice Realty

Century

based right in the centre of the

21’s new

capital city, Wellington. While

international

Auckland and Christchurch have

branding

been relatively flat, overall property

and market

values in Wellington surged by

positioning

7.4 percent to $740,000 in the

bring.

12 months to November 2018, according to a OneRoof Property Report.

Meeting with

negotiate, and sell.

“That’s where Century 21 New Zealand has an advantage over local competitors. Our

“Without doubt 2019 will be an exciting year for Century 21 New Zealand with a lot more great stuff set to unfold”

business owners and salespeople know what methods work for each individual property and in today’s market there isn’t a one method fits all.

Tailoring to suit a

New Zealand

vendor’s needs and wants

franchisees Charles

but also the market is of high

Century 21 also continues to have

stressed that with much

a strong presence in the Waikato,

of the country returning to more

Central North Island, Manawatu

realistic and sustainable prices

and the Kapiti Coast. These areas

many Kiwi real estate agents

have enjoyed a great few years with

are having to change their

2019’s statistics also predicted to

sales strategy.

be strong.

an agent’s ability to market,

priority to all our team. The fact that the public is also noticing our new branding is a timely bonus,” he says.

Delighted with Century 21’s profile

Gone are the days of an agent

this summer, Ryan says feedback from New Zealand’s offices and

New Zealand consumer confidence

listing a property on the internet,

has seemed to have bounced

standing back at the open home,

back, with the latest outlook at

and waiting for it to sell within a

its strongest level in six months

few days. In today’s environment

according to the ANZ Roy Morgan

agents need to get out and build

Consumer Confidence Index at the

and maintain strong working

“Without doubt 2019 will be an

end of 2018.

relationships with both buyers and

exciting year for Century 21 New

sellers. The skill of negotiating a fair

Zealand with a lot more great stuff

sale price both parties are happy

set to unfold.”

“As I’ve said before, this summer probably won’t be a recordbreaking one, but it’s definitely

with is also key.

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salespeople on the company’s fresh look and proposition confirms the change has been very positive on their side of the Tasman as well.

PROPERTY REPORT

KIWI’S PASSION FOR PROPERTY CONTINUES TO SOAR IN NOVEMBER Kiwi’s passion for property continues to soar. November marks the first full month of new legislation restricting foreign ownership, and Central Otago-Lakes loses its crown on asking prices to the Auckland region.

B Y VA N E S S A TAY L O R , HEAD OF MARKETING R E A L E S TAT E . C O. N Z

“sensitive”. In general, it means

Investment Amendment Bill, either

that existing homes can only be

directly or indirectly. The region’s

bought by New Zealanders and

average asking price in November

residence-class visa holders who

fell to $857,011, representing an

have spent the majority of their

18.9% fall compared to the previous

time in New Zealand. Australian

month. New listings fell by 4.6%

and Singaporean citizens are also

in November (247 listings). This

eligible. Users of the site who

is compared to 236 new property

resided from within New Zealand

listings in October, which were at

accounted for 65.2% of traffic

the much higher average asking

during November. In terms of

price of $1,057,019. “It was back

international visitors, Australian

in August this year that Central

Real-time statistics from realestate.

browsers were the second largest

OtagoLakes took the crown off

co.nz show New Zealander’s

group to search on realestate.co.nz

Auckland as the region with the

passion for property continues to

(18.6%), followed by the US (9.6%).

most expensive average asking

soar, with 1,157,371 unique browsers

There is no evidence to suggest

price. “It could be that in the run

active on the site during November.

that interest has dropped or lifted

up to the new legislation there was

“This is the highest level of visits

specifically as a result of the Bill

an influx of top end properties that

to the site since March 2017,” says

coming into effect. “While Australia

owners were eager to get across

realestate.co.nz spokesperson

and the US account for 28.2% of

the sold line. Or they were testing

Vanessa Taylor. Two recent external

all unique browsers to our site,

the market and would have been

property milestones did not appear

there’s a relatively small number of

open to a sale at the right price.

to drive “more than usual” traffic

international visitors from all other

“Now that the foreign ownership

to realestate.co.nz, she says. “In

countries (less than 7.0%) making

window has largely been closed,

the two days following last week’s

up the balance,” says Vanessa.

they may well have sold the property or taken it off the market

Reserve Bank announcement, which gives the banks more flexibility around loan-to-value ratios (LVRs), traffic remained consistent with the rest of the month.” The second milestone was the Overseas Investment Amendment Bill, which came into effect on 22 October, classifying residential land as

CENTRAL OTAGO-LAKES DISTRICT LOSES TOP ASKING PRICE POSITION TO AUCKLAND REGION The Central Otago-Lakes District may well be the first region to feel the impact of the Overseas

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either to retain, or to consider other options in the future,” says Vanessa.

“Time will tell what it means for the Central Otago-Lakes District.”

In the meantime, the Auckland region average asking price remains under the one million dollar mark, standing at $949,345 in November,

which is 1.6% lower compared to

“While the Auckland region

Auckland region fell in November

the previous month. “The Auckland

registered a 17.2% drop in new

by 1.6% to $949,345 compared to

average asking price has sat around

listings in November compared to

the prior month. The Wellington

the $950,000 mark all year and it’s

November 2017, the boost of new

and Canterbury regions were a

positive to see the region remaining

listings in October has resulted in

mirror image, with Wellington’s

so stable,” she says. Nationally, the

a positive net effect when the two

average asking price rising 1.1% (to

average asking price in November

months are considered collectively.”

$640,634) while the Canterbury

stood at $653,575, which is a

The total number of homes on the

region fell by 1.1% (to $492,897).

3.3% decrease on the previous

market in Auckland in November

The Waikato region, which

month. “While there has been

is up 5.0% compared to November

registered a record asking price

some regional variances this year,

2017, representing 10,431 homes

in October ($584,755), remained

nationally we have seen a relatively

to choose from. “Overall, when we

static in November, registering less

stable asking price environment,

look at the two months together, the

than a one per cent fall in asking

with average asking prices sitting

net outcome is that there is more

price (down 0.9%) to an average

around the $650,000 mark during

choice for property seekers,” says

asking price of $579,482.

2018.”

Vanessa.

SPRING THE NEW SUMMER FOR AUCKLAND REGION “Following a massive lift in new listings in October (20.1% increase compared to October 2017), it’s no

ALL TIME ASKING PRICE HIGHS IN BAY OF PLENTY, NELSON & BAYS AND SOUTHLAND. MAIN REGIONS RELATIVELY STATIC.

ASKING PRICE CORRECTIONS IN HAWKE’S BAY, MARLBOROUGH AND MANAWATU/WANGANUIN REGIONS Three of the four regions which

surprise that the Auckland region

While the main regions remained

registered all-time asking price

dominated property search terms

relatively static on average asking

highs in October (Hawke’s Bay,

on the site in November,” says

prices, three regional areas reached

Marlborough and Manawatu/

Vanessa. “We had a really good

all-time asking price highs. The

Wanganui) came back to earth

start to spring and Aucklanders

Southland region led with a 6.9%

with asking price decreases in

were making the most of it by

increase in the average asking price

November. “The Hawke’s Bay and

putting their properties online early

compared to the prior month, to

Marlborough regions are known for

to maximise selling opportunities

$321,216. This was followed by the

their lifestyle benefits, particularly

before the festive season.”

Bay of Plenty (up 6.6% to $680,754)

in summer and all three regions

“Effectively the Auckland region

and Nelson & Bays (up 1.5% to

are coastal, but perhaps they

was a month ahead of the traditional

$651,686).

went out early with an optimistic

start to the summer market and as a consequence this meant we saw fewer new listings in November.

Looking at the four main regions, property asking prices in the

view in September,” says Vanessa Taylor. The November average asking price in the Hawke’s Bay region fell 7.0% compared to the previous month to $507,085. In the Marlborough region, average asking prices fell 3.6% to $507,783 and the Manawatu/ Wanganui region fell 3.0% to $365,318 compared to October.

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I N V E ST ME N T P R O P E R T Y U P DAT E

IS NOW A GOOD TIME RENOVATE? B Y C H R I S G R A Y, C E O, YO U R E M P I R E

With so many people struggling to get preapproved to buy a bigger home or to buy more investment properties, could now be the time to undertake some renovations instead?

APRA and the Banking Royal Commission have made it harder for nearly all of us to borrow money but they haven’t made it impossible.

Banks do get you to jump through

property’s capital growth

prices rise and fall as demographics

considerably – even in a flat

change. Converting a 3 bedroom

market – and can reduce future

house into a 2 bedroom house so

maintenance or repairs down the

you can get your dream walk in

track.

wardrobe may suit you, but may not

Most people’s experience of renovating is that it either takes them twice the amount of time they originally estimated or it costs twice as much as they initially calculated.

And for some, it’s twice the time and twice the budget.

Here are my five top tips for profitable renovations:

money as they have shareholders to keep happy.

Whilst you may not be able to raise enough funds to upgrade your home or buy another investment, you still might be able to raise enough funds to renovate your current properties.

Renovating can improve your

2. Renovate to your tenant’s needs not yours.

If you’ve got an investment property, you might not be the same demographic as the tenants that are likely to rent it, so it’s important to bring in a property

more hurdles, but they are open for business and do still want to lend

make a lot of financial sense.

manager to get their advice as 1. Renovate for a future sale.

Whilst everyone has individual tastes, it’s important for the future re-sale of your property that it appeals to the audience. Speak to your trusted real estate agent to find out who is the likely buyer for your property and what they may look for in a home or investment.

This can often change over time as

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to what works and what doesn’t.

Dimmer switches, overhead fans and air conditioning can seem like a great idea, but if they are the things that are likely to constantly break down and are non-essential, they are probably better left out of your renovation. Go for what’s practical, hard wearing and colour schemes that work for the majority.

3. The little changes can make the

find great experts is through

likely to live in for a long time.

biggest differences.

recommendations. Consult with

However, it’s always worth taking

In many cases, you don’t

family, friends, buyer’s agents and

an unemotional snapshot at the

real estate agents for advice. We

same time.

necessarily have to undertake a large-scale renovation to lift a property’s value. Sometimes, small alterations including new light fittings, landscaping, blinds

charge a fee for our service, but often we’ll save many times that in better-planned renovations and on time and on budget guarantees.

or curtains, door handles and a fresh coat of paint can make a big difference to a property’s overall appearance. Carpets and walls are the majority of a property’s surface and very easy to upgrade.

ABOUT THE CONTRIBUTOR 5. Double-check your plans with an independent valuer.

Chris Gray is CEO of Your Empire, a buyer’s agency which builds property portfolios for

If you ask ten people for an opinion, you’ll usually get ten different views on what’s right. I often ensure that I never under or over capitalize

time-poor people – searching, negotiating, renovating and managing property on their behalf. Chris’s team buys 1-2 properties a week and often spends $5m+ a year renovating on others’ behalf, providing a

4. Hire a professional.

by getting an independent valuer to

unique insight into market conditions and

For large-scale renovations and

double-check my numbers. They

buyer and seller sentiment. Chris hosts

projects, don’t skimp on expert help. Paying for the best builders, project managers and tradespeople can often ensure that the work is

can tell you what your property is worth now, what it’s likely to be

various heads of property research companies and major industry figures. Chris

can make sure the renovations cost

is a qualified accountant, buyer’s agent and

you less than the difference.

standard and is council-approved,

Renovating isn’t always about the

time. One of the best places to

News Business channel, where he interviews

worth post renovation and then you

completed to the best possible which will help you come sale

“Your Property Empire’ each Friday on Sky

money, especially if you’re looking at improving the home that you’re

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mortgage broker.

For more information visit www.yourempire.com.au www.chrisgray.com.au and follow Chris on Twitter: @ChrisGrayEmpire.

C 21 L E A D S T H E WAY

3 WAYS CENTURY 21 GIVES ITS AGENTS COMPETITIVE ADVANTAGE Cooling conditions in some of the traditional Australian key markets and with ever-increasing levels of rivalry mean that it is more important now than ever for agents to have competitive advantage. Century 21 chairman and owner Charles Tarbey unpacks three key initiatives the network provides to get its agents ahead.

industry dynamics.

3. Business support

He said that this allows for early

But Mr Tarbey was also quick to

identification of both growth and problem areas in the business.

just talk and attractive branding.

“Our focus is on ensuring that our

“We have a world-class, real-

value offering to agents is as strong

specifically for our agents and

2. Saturation marketing

with a global website that promotes

offices,” the chairman said, “along

“Our marketing clearly promotes and differentiates our offices in the field. I believe that growth will take care of itself if we do these, and other little things, right.”

Mr Tarbey said.

“So our offices were well placed to benefit

aggressive digital marketing, clever use of video and ongoing investment into SEO.

well supported from a technology standpoint.”

launched marketing

“Century 21 has

technology,”

properties in several languages,

“We believe the C21 network is

points to C21’s recently

1. Tech investment

heavily into

time CRM that was developed

as it can be.”

To this end, Mr Tarbey

always invested

point out that more is required than

campaign, saying

“We believe the C21 network is well supported from a technology standpoint.”

off the sweeping technological changes and changing consumer habits that have affected the industry over the last decade.”

Mr Tarbey said that it was important to keep abreast of changes and

that the initiative was already yielding results.

“We recently launched one of our largest marketing campaigns in

Australian history in order to promote the repositioning of our brand. This investment is already benefitting our offices and helping to strengthen the network.”

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The story 3 ways Century 21 gives its agents competitive advantage appeared on Real Estate Business (REB).

Article Link: https://www.realestatebusiness.com.au/ better-business/17759-3-ways-century-21gives-its-agents-competitive-advantage

T R AV E L

HAMILTON ISLAND, THE BEAUTIFUL ISLAND ESCAPE

Take a tour around stunning Hamilton Island and experience the lifestyle on offer.

their discretion. Refuelling stations

homes encompass the marina on the

situated in each accommodation hub

Island’s west coast.

ensure no guests end up stranded on their journeys.

For added convenience, guests have access to a medical centre, post office, general stores, bottle

In the heart of the Great Barrier

shops and several boutiques and

Reef, and part of the Whitsunday

gift stores. Island visitors are also

archipelago, Hamilton Island is a

spoilt for choice when it comes to

world-class holiday destination.

dining and drinking, with options

Featuring various luxury resorts,

ranging from renowned fine dining

mesmerising views and an

restaurants and bars to relaxed cafes

abundance of friendly wildlife, it is

and family-friendly takeaway.

the epitome of island escapes.

Even though Hamilton Island

With its proximity to the Great

is prized for its luxurious

Barrier Reef and the Whitsundays,

accommodation and serene

Hamilton Island is renowned as the

atmosphere, there are also a variety

perfect base for exploring one of

of activities available for adventure

the natural wonders of the world.

enthusiasts. Local tour guides offer

The headland, located just off the

a range of offshore exhibitions, such

coast of Conway National Park in

as swimming tours of the Great

North-East Queensland, Australia, is

Barrier Reef, Whitsunday island

a paragon of convenience. Equipped with a private commercial airport and state of the art marina, getting

Hamilton Island boasts a variety of beautiful accommodation options

there has never been easier.

with stunning views and unparalleled

Famous for its relaxed transportation

Island’s northern tip, is exclusively

network, Hamilton Island provides guests holding a valid drivers license with the opportunity to rent a golf-buggy for the duration of their stay. Guests can use the buggies to free-roam the roads of the island at

tranquillity. Qualia, located on the for adults. The family-friendly Beach Club, Reef View Hotel and Palm Bungalows can be found on the main beach on the Island’s east side, while the Yacht Club Villas and holiday

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excursions and scenic flights. On the mainland, guests seeking an adrenaline rush can hire watersport equipment, ride quad bikes, race go-karts and more. Alternatively, the Island’s incredible 18-hole golf course and indulgent day spa are perfect for those looking to unwind.

I N T E R I O R D E C O R AT I N G

HOME STYLING TIPS FOR BEGINNERS It can be hard to know how to style a room, especially if you have no experience or if your existing furniture does not suit your new house. But this should not discourage you from enjoying your home dĂŠcor journey.

interior design. Adding layers and elements of the same colour can be a powerful way to tie a room together. Specialists typically do this in the form of throw rugs, pillows and wall items.

Using items that complement each other within a room tends to create flow and balance, which are

up your room and ease the rest of

Stylish rooms often have a

likely to be the biggest item in your

centrepiece. It could be a view, a

lounge room.

artwork to name a few. The first

SYNERGY

first is usually the best way to size

room, for example, your lounge is

create amazing living spaces.

your home:

room, starting with the biggest item

item is generally the theme of the

IMPACT

king-sized bed, a fireplace or an

that could have a positive impact on

When deciding on the layout of a

your design process. The biggest

Many strategies exist to help you

Here are four interior decorating tips

BIGGEST FIRST

item to catch your eye as you enter the room is typically the centrepiece, but this does not limit you to one striking design asset per room. Finding the right balance between your focal point and accompanying elements is often the best way to create impact in a room.

fundamental attributes of stylish

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PAINT, PAINT, PAINT Paint is a renovation buzzword, and for a good reason. A layer of paint can completely change the colour palette and style of a room. This can be an effective solution if you need to rework a room to match your furniture or if you want a feature wall as your centrepiece.

DON’T SETTLE FOR AVERAGE 70% of homesellers settle for the first real estate agent they meet. Don’t settle, speak to a Century 21 agent today.

C21.co.nz Source: NAR Profile of Home Buyers and Sellers, 2017