C21 Market Pulse | April 2020 | New Zealand

A P R I L

M A R K E T

2 0 2 0

P U L S E

C21

PUBLISHER Century 21 New Zealand Ltd

CONTRIBUTORS Derryn Mayne Bindi Norwell Cameron Brewer

EDITORIAL ENQUIRIES Century 21 New Zealand +64 9414 6041

ADVERTISING ENQUIRIES Century 21 New Zealand +64 9414 6041

WELCOME TO THE

APRIL 2020 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 A P R I L

C21 NEW ZEALAND NEWS

02-03

2 0 2 0

PROPERTY MARKET UPDATE

Real estate industry witnesses’ impressive

Auckland and NZ hit record median prices before

compassion.

COVID-19 hit.

CEO, Century 21 New Zealand, Derryn Mayne

REINZ CEO, Bindi Norwell

BUYERS ONLINE

04-05

HOME HUB

Positive that Kiwis are busy online house hunting.

Future-proof the heart of your home.

Cameron Brewer

As featured in the latest edition of Home Beautiful Magazine

EXPANDING NETWORK

06-07

Two new offices for Century 21 New Zealand.

Cameron Brewer

C21 MARKET PULSE

01

CENTURY 21

08-09

10-11

C21 NEW ZEAL AND NEWS

REAL ESTATE INDUSTRY WITNESSES’ IMPRESSIVE COMPASSION

B Y D E R R Y N M AY N E , C E O, C E N T U R Y 2 1 N E W Z E A L A N D

It’s incredibly impressive how Kiwis have dealt with the Covid-19 lockdown restrictions and uncertainty, with the real estate industry witnessing first-hand some great examples of people stepping up.

Most of our Century 21 franchises

between tenants now struggling

have significant rental portfolios,

to pay the rent while landlords

with the property management work ongoing and in many cases, busier. Having that diversity is an incredible strength for a real estate business at a time when

While real estate transactions may

house sales

have gone into hibernation, our

have effectively

company continues to experience

halted.

plenty of activity including two new Century 21 franchises opening in Papatoetoe and Queenstown during March.

Property managers

fixed costs, including insurance and

“We’re seeing neighbours and communities coming together like never before, with the likes of groceries being dropped off at the doors of elderly.”

council rates, and of course rely on the property income to meet their own cost of living.

So many landlords are responding so

are quickly finding

positively. I’ve had a

themselves negotiators

C21 MARKET PULSE

continue to face a number of

02

CENTURY 21

number who we work with in my own franchise offering significant rent reductions for the coming weeks, with some even offering rent free periods. It’s incredibly heartening, particularly when

Will landlords really get a mortgage holiday?

landlords traditionally receive a lot of unwarranted flak and they’re not getting the financial relief many think they are.

Century 21 has this week blitzed social media with an explanation of the recently announced mortgage holiday scheme and what it means for eligible landlords experiencing a drop in income due to Covid-19.

While many can defer their mortgage payments for up to six months, this is no holiday. Landlords will continue to accrue interest, meaning over the longer term their debt will only be larger and their mortgage will take longer to repay. Once tenants understand this, they’re more willing to land at a reasonable place as they can see landlords are not getting off lightly.

Century 21’s salespeople continue to liaise with both vendors and buyers, while the principals of each franchise are regularly catching up via teleconference, with those under the Century 21 brand supported and keen to support others.

We’re still getting enquiries and questions from prospective buyers, and we’re continually amazed at how philosophical our vendors remain, not to mention the genuine care many landlords are showing in these unsettling times.

We’re seeing neighbours and communities coming together like never before, with the likes of groceries being dropped off at the doors of elderly. It’s an incredibly

COVID-19 Update: Alert Level 4 Restrictions As you are no doubt aware, all Kiwis are currently facing the recent challenge presented by the Coronavirus (COVID-19) outbreak.

Here at CENTURY 21 we have implemented cautionary procedures to ensure the safety of not only our staff, but that of our vendors and buyer community.

Please rest assured that we will dedicate the same level of care, expertise and professionalism that you have come to know.

No face-to-face interaction at Alert Level 4 In addition to phone calls, CENTURY 21 is well equipped technologically to service you and your property through video conferencing, online apps and a variety of industry tools.

We are facing unprecedented times and our priority is to keep everyone safe and healthy, and up-to-date on property matters to ensure your goals are achieved. Our team is across all the required health practices and will always act in the best interests of your property.

heartening time to be in real estate.

C21 MARKET PULSE

03

CENTURY 21

BUYERS ONLINE

Positive that Kiwis are busy online house hunting

C21 MARKET PULSE

06

CENTURY 21

“Despite a nationwide property report showing new listings in March down 16.5% on the same time last year, it’s great that serious buyers have remained active online during the lockdown,” says Derryn Mayne, Owner of Century 21 New Zealand.

“We’re all taking a wait and see

The Century 21 real estate boss

approach, but it’s really encouraging

is under no illusion that it will be

that many Kiwis are using this time

challenging but believes there could

to look at property via the internet.

be a flurry of activity post-lockdown

The quality of a vendor’s online

with Kiwis keen to get out, assess

marketing strategy is suddenly even

their options, and make decisions.

more important.

“A lot of people are clearly doing

She says including the likes of virtual

their homework now. Not only is

tours, floor plans, video and drone

it positive for prospective buyers

footage can only help when potential

to be using this time wisely, but

buyers are forced to surf the net

prospective sellers should also

from home. What’s more, the likes

use the lockdown to prepare their

of videos can be easily circulated

property inside and out for a future

on social media, increasing a

appraisal and sale,” she says.

property's exposure.

She says while this latest property

Ms Mayne says despite real estate

report confirms a significant hit

transactions in hibernation and open

for listings, it also highlights that

homes banned, there remain plenty

prior to the lockdown the industry

of Kiwi families needing to move or

experienced a busy start to 2020

find a bigger home, empty nesters

with a rising market.

wanting to downsize, and first-home buyers keen to make the most of the record-low interest rates.

“We went into the lockdown with all the real estate fundamentals looking strong and housing stock in clear

“We’re seeing major widespread

demand. If we can come out of it in a

disruption, but that won’t stop

timely and positive way, we may just

people buying and selling houses

be surprised by the level of activity

when we come out of the lockdown.

that returns,” says Derryn Mayne.

People’s aspirations will continue, and their housing needs and

Her comments follow realestate.

circumstances will keep changing.”

co.nz releasing its New Zealand Property Report for March.

While the country’s level 4 restrictions to combat the Covid-19 pandemic had an immediate impact on new listings at the end of March, average asking prices last month remained buoyant across the country - up 5% on a year ago.

The popular real estate website also reported that the average time Kiwis spend on realestate.co.nz has increased significantly since the lockdown was put in place.

THINKING ABOUT BUYING PROPERTY? We can help you, talk to us today or CLICK HERE to start your search.

C21 MARKET PULSE

07

CENTURY 21

EXPANDING NETWORK

TWO NEW OFFICES FOR CENTURY 21 NEW ZEALAND

Century 21 New Zealand continues to sustainably expand, with two new franchises opening in South Auckland and Queenstown.

More recently he worked as a

Mr Kumar looks forward to

project manager for some South

recruiting salespeople and being an

Auckland residential property

effective team leader, supporting

developments, giving him great

the sales team to reach their full

experience and exposure to the

potential and making every real

construction sector. However, the

estate transaction as easy as

attraction of selling property again

possible. Areas they will cover

was too strong.

“The opening of a new office in Papatoetoe further strengthens our strong presence in South Auckland.

We’re also delighted to now have an office in central Queenstown, marking Century 21’s return to the South Island,” says Derryn Mayne,

include Papatoetoe, Otahuhu, Mangere,

“Century 21’s

“Century 21 remains in good shape helped by our strong community connections and the considerable business experience our franchise owners bring.”

rebranding really appealed to me, and once an opening came up in

and Manukau.

The Century 21 Shane & Co owner already has a well-

Owner of Century 21 New Zealand.

Papatoetoe,

Born and bred South Aucklander

Century 21’s

Shane Kumar is the principal of

head office and

Century 21 Shane & Co, located at

things got rolling

37 Charles Street in Papatoetoe.

really quickly. There

The franchise owner has a Bachelor

will be some challenging

of Property degree from the

times ahead, but Century 21

University of Auckland and has

is well established to ride out

of online platform PropertyTree

worked for several years in the

any storm, and the New Zealand

is a huge advantage to owners,

wider South Auckland area as a

property market will always return

managers and tenants.

successful real estate agent.

with vigour,” he says.

I contacted

C21 MARKET PULSE

06

established residential property portfolio and considerable

experience in all aspects of property

CENTURY 21

management. He says his use

At the same time at the other end of

finance sector, gaining considerable

represent more momentum for

the country, Century 21 Aurora Real

experience in IPOs and asset

the real estate company following

Estate has opened its doors at 1 - 7

management, and then as a real

a high-profile global rebrand,

Earl Street in Queenstown.

estate salesperson for Century 21 in

and New Zealand regaining

Shanghai and Beijing.

more ownership and autonomy

Principal Ria Leung says throughout

of Century 21 on this side of the

the Covid-19 lockdown, enquiries

The new franchise owner is an

about new residential builds from

experienced specialist in property

international investors continued,

investment, with a strong focus on

“Century 21 remains in good shape

with New Zealand seen as a safe

professional advice and outstanding

helped by our strong community

bet when it comes to property

customer service. Century 21

connections and the considerable

investment.

Aurora Real Estate is also

business experience our franchise

focused on growing its property

owners bring. We continue to take

management portfolio.

a positive approach when it comes

Ms Leung loves the Central Otago lifestyle and looks forward to seeing

Tasman last year.

to New Zealand’s property market,

the buzz return to Queenstown -

“I really enjoy working with overseas

New Zealand’s tourism jewel. An

buyers and advising them on New

already established real estate

Zealand’s investment rules and

name in Central Otago, her focus

legal requirements. I know first-

is on Queenstown, Arrowtown,

hand just how well recognised and

Pictured above:

Cromwell and Wanaka.

regarded Century 21 is in China for

Left - Shane Kumar, Principal

Moving to New Zealand in 2012, she has been a successful real estate agent in the South Island

international sales, so I’m delighted to fly the flag in Queenstown,” says Ms Leung.

for six years. Prior to that, she

Ms Mayne says the new Papatoetoe

worked for over a decade in China’s

and Queenstown franchises

C21 MARKET PULSE

07

CENTURY 21

supporting our franchises, vendors, buyers, landlords and tenants as best we can,” says Derryn Mayne.

C21 Shane & Co papatoetoe.century21.co.nz

Right - Ria Leung, Pincipal C21 Aurora Real Estate queenstown.century21.co.nz

P R O P E R T Y M A R K E T U P DAT E

AUCKLAND AND NZ HIT RECORD MEDIAN PRICES BEFORE COVID-19 HIT

BY BINDI NORWELL, REINZ CEO

Median house prices across New Zealand increased by 13.7% in March to a new record median price of $665,000, up from $585,000 in March 2019 and eight regions saw new record medianprices, according to the latest data from the Real Estate Institute of New Zealand (REINZ).

Median house prices for New

28.7% increase to $431,250 up

in a row where every region in the

Zealand excluding Auckland

from $335,000 at the same time

country saw an annual increase

increased by 13.3% to a new record

last year

in median prices; it also marked a

median price of $555,000, up from $490,000 in March last year.

In Auckland, median house prices increased by 11.1% to a new record median price of $950,000 – up from $855,000 at the same time last year, and a $65,000 uplift on February 2020.

In addition to Auckland, record median prices were recorded in: • Northland with a 14.1% increase

to $565,000 up from $495,000

at the same time last year

• Waikato with a 13.4% increase to

$600,000 up from $529,000 at

the same time last year

• Manawatu/Wanganui with a

• Taranaki with a 13.3% increase to

$425,000 up from $375,000 at

the same time last year

• Tasman with a 10.7% increase to

$670,000 up from $605,000 at

the same time last year

• Canterbury with a 6.8% increase

to $490,000 up from $459,000

at the same time last year

• Southland with a 28.2% increase

to $374,580 up from $292,105 at

the same time last year.

Bindi Norwell, Chief Executive at REINZ says: “March was an extremely buoyant month for residential property across the country. March marked four months

C21 MARKET PULSE

08

CENTURY 21

new record median price for the country at $665,000 and record median prices in 8 regions including Auckland and saw 12 out of 16 regions with doubledigit annual median price increases.

“What we can say is that before COVID-19 hit New Zealand’s shores, the property market was in a strong period of growth which now includes the Auckland market, which had 5 consecutive months of year-on-year growth, following two years of stable prices,” she continues.

“How big the effects of COVID-19 are is up for debate, but the impact will depend on a huge

number of factors including how

The number of properties sold

impact of the lockdown week on

long the country is in an Alert

in March across New Zealand

sales volumes,” says Norwell.

Level 4 lockdown for, the level of

decreased by -4.8% from the same

unemployment, consumer and

time last year – from 7,213 to 6,866

business confidence levels, people’s

– 347 fewer properties and the

ability to access finance (and

lowest number of properties sold in

finance their own mortgages) and

the month of March in 9 years.

how long the wider economy takes to recover. Property is a long-term investment and the market will recover; however, the question is, how long it takes to recover.

“The Auckland region eclipsed its

“Right now, in the Alert Level 4 lockdown period, people are still able to list their property for sale, but inspections can only be carried out online or via means such as

For New Zealand excluding

virtual reality or ‘walk-through’ type

Auckland, the number of properties

tours. Going forward, we expect

sold decreased by -11.1% when

people will take a bit of a ‘wait and

compared to the same time last

see’ approach when it comes to

year (from 5,130 to 4,559) – 571

listing their property for sale. But

fewer properties.

for those who have decided

previous record median price set

$

ANNUAL ME DIAN PRICE CHANGES $

$

AUCKLAND

$

Record Median Price

$

9.5% $

MEDIAN DAYS TO SELL:

9.2%

30 Source: REINZ Monthly Property Report 15 April 2020.

back in March 2017 ($900,000) with a $65,000 uplift on February

across the Auckland region, new record medians were set in Auckland City where prices increased by more than a quarter (26.3%) from the same time last year to $1,200,000, Manukau City (up 11.1% to $930,000) and Waitakere City (up 8.9% to $841,000),” continues Norwell.

1.3% GISBORNE

28.7%

10.8%

MANAWATU / WANGANUI

HAWKE’S BAY

13.4%

10.7%

10.3%

TASMAN

WELLINGTON

MARLBOROUGH

$

WEST COAST

$

$2,097 a day in March. Looking

13.4%

NELSON

13.7%

meaning that house prices rose

$

TARANAKI

$665,000

13.7% BAY OF PLENTY

WAIKATO

13.3%

NATIONAL MEDIAN PRICE:

2020 to hit the $950,000 mark,

11.1%

14.1% NORTHLAND

6.8% CANTERBURY

28.2%

11.3%

SOUTHLAND

OTAGO

“The first quarter of the year has

after 4 weeks of being locked in

seen 2,000 fewer new listings

their ‘bubble’ that they don’t like

come to the market than the same

their house anymore, they will

time last year, so when you take

be desperate for the chance to

that into account, plus the impact

move, so there may be some great

of 6 days of lockdown because of

opportunities for those wanting to

the impact of COVID-19 then it’s

buy and sell in the coming months,”

understandable why the number of

continues Norwell.

properties sold in March has fallen nearly 5%. This is backed up by REINZ’s seasonally adjusted sales volumes figures, which show based on what happened in February we would have expected a much better result in March and this is likely the

C21 MARKET PULSE

09

CENTURY 21

Click here to read the entire report

AS SEEN IN THE L AT E S T E D I T I O N O F

HOME HUB FUTURE-PROOF THE HEART OF YOUR HOME AND ADD VALUE WITH A ST YLISH KITCHEN RENOVATION IN ASSOCIATION WITH

A

modern kitchen can breathe new life and personality into your home. But renovating one is no small task and you need to think long-term. Not only do you want a kitchen that won’t date, you also want to make sure it adds value to your home. Even if you’re not planning on selling any time soon, you should always consider your future buyers to maximise your home’s potential value. We asked a property expert for his view on the key items to add to your kitchen renovation list, for maximum return on your investment.

FOR HELP WITH BUYING AND SELLING PROPERTY VISIT C21.co.nz

A DV E RT I S E M E N T A DV E RT I S E M E N T

GET VISUAL We’re not suggesting that manifestation is the answer to all your property aspirations, but visualisation is a savvy starting point. Envision your perfect home in all experienced its“Over glory –thetheyears size,I have the style, the suburb… Keep it semisituations whereyour people buyvilla thepipedreams kitchen for now), realistic (shelve Tuscan and the rest of the home comes withinto your desires but still think freely. This will help tap it!”get saysyou Charles Tarbey, and thinking aboutChairman how you of want to live. Sure, Century 21 Australia.

“This the budget, heart but perhaps ocean views may fall outsideisyour of a home as such, theaccess better to thea beach or bay. you’d settle and instead for easy kitchen, the better the opportunity for a Scrawl down all your ideas to refer back to later. quick sale and a better price.”

1. ADD ANNICE-TO-HAVES ISLAND ADD THE BENCH Below your must-haves, start noting down the features Thedeem number one thing you appealing, butonnotbuyers’ essential. A walk-in kitchen wish lists is ample bench space, wardrobe? You wouldn’t turn it down, but it’s not make notes Charles. An island is a great way to achieve extra bench, storage space and seating, while also optimising your existing floor plan. “A kitchen that allows GO BACK TO BASICS a family the space to move around together, and is set up in such a way considerations that a familyImportant can all casually eat in it atare the minimum number of bedrooms, the same time will always be attractive,” number of bathrooms their says Charles.

When choosing anand island, minimum size. look for a storage-savvy design that has an overhanging countertop formight stoolsinclude to a Other must-haves slide underneath. powerpoints garden or Built-in deck, off-street parking or are a must. an internal laundry.

or break. It might be the same for a pool. Interior features could also fall into this category – think hardwood flooring and stone countertops, as well as central air conditioning or a fireplace. Check in with your above-mentioned visualisation notes as you go, picking out the elements that are enticing, but also attainable.

CONSULT THE EXPERTS Finally, round out your list with a little expert intel. The agents at real estate organisation Century 21 will share some “value” items to consider tacking onto your list.

As the name suggests, these are features that will add value to your property over time. Think a great bathroom, dual-pane windows, or close proximity to top schools.

While these items shouldn’t take over your wants and wishes, they’re nevertheless worth keeping in mind as you navigate the inspection circuit (now armed with a handy priority list, so you never swerve off course again!)

2. UPGRADE YOUR Location may be paramount – 3. SPLURGE ON HIGH COUNTERTOP perhaps you want to be within walkingEND APPLIANCES

A tired countertop down school the – orGood appliances anchor a kitchen distance ofcan yourbring children’s whole vibe of your kitchen.

While it mayon a and enhance its functionality. Stainless maybe you have your heart set be tempting to look to of what’s trending, steel is a failsafe option that always certain cluster suburbs.

Charles recommends going for a feels luxe. Matching your appliances Also consider liveability: is timeless option. “Kitchens are personal. from the same collection or brand renovating an option, or are you keengives a cohesive look. Built-in One that’s neutral can be decorated to find atouch, homewhich and move straight with a personal is ideal,” he in? appliances are appealing and room for advises. It’s not just the buyers who will a double fridge is a must. If you can appreciate it – a classic look gives you only splurge on one item, make it a gas more flexibility to update your styling cooktop, as it’s one of the most-used regularly, too. Using engineered stone, appliances in the kitchen. Finally, don’t marble and porcelain benchtops is forget the dishwasher. It can be a dealmoney well spent. breaker for some buyers.

FOR HELP WITH BUYING AND SELLING PROPERTY FOR HELP WITH BUYING AND SELLING PROPERTY VISIT C21.com.au VISIT C21.com.au

CROWD PLEASER A KITCHEN WITH ENOUGH ROOM FOR A FAMILY TO MOVE AROUND AND SHARE A MEAL TOGETHER HAS TIMELESS APPEAL