C21 Market Pulse | November 2020 | New Zealand

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P U L S E

N O V E M B E R

M A R K E T

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

NOVEMBER 2020 ISSUE OF

C21 MARKET PULSE

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

C21 NEW ZEALAND NEWS

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LOSS OF A LEGEND

Set for strong summer, but listings alarmingly light.

Big loss to the real estate industry.

CEO, Century 21 New Zealand, Derryn Mayne

Cameron Brewer

THE TIME IS NOW

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PROPERTY MARKET UPDATE

First home buyers abuzz – LVRs would be a cruel blow.

Auckland median house price hits $1M mark.

Cameron Brewer

REINZ CEO, Bindi Norwell

CENTURY 21 CHAMPIONS

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Quarterly winners named by Century 21.

Cameron Brewer

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CENTURY 21

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08-09

C21 NEW ZEAL AND NEWS

SET FOR STRONG SUMMER, BUT LISTINGS ALARMINGLY LIGHT

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

This coming summer is looking stronger than we thought possible just eight months ago, but the quantum of success relies on Kiwis being prepared to sell their properties, as listings remain at an absolute premium.

REINZ has released its Monthly Property Report for October which shows median house prices across New Zealand up by 19.8%, compared to October 2019.

and faster sales. Mortgage rates

in sight as inventory levels have

keep hitting rock bottom and the

lifted by 3.2% since September.

economy is doing better than was earlier expected.

big difference for many vendors

However, 2021 is proving difficult to predict. When you

holiday scheme ending in March and possibly the return of LVRs also then, if I were contemplating

presentation.

"This summer will be a great time to market your house with limited competing listings, but very strong buyer demand resulting in more and faster sales."

selling, I’d be

around the country saw record

listing now – in a

median prices during October,

rising, hungry market.

including Auckland up by 16.3% in

Despite the number of sales

of $1 million.

are telling us they won’t go near properties without a price.

They have a budget and are tired of going into multi-offer

blown out of the water.

Not advertising an asking price

dramatically up and the ‘days to sell’ falling, REINZ has revealed the

This summer will be a great time

number of properties available for

to market your house with limited

sale nationally was down by -18.7%

competing listings, but very strong

in October compared to 12 months

buyer demand resulting in more

earlier. However, there is some relief

C21 MARKET PULSE

First-home buyers

situations and being

In total, 10 regions and 28 districts

12 months to new record high

currently selling property: Putting a price on it; and online

consider the likes of the mortgage

I believe two things are making a

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can of course benefit a vendor, but they also run the risk of putting off many potential buyers who think it’s just too hard or beyond them.

In the age of lockdowns, limited

The latest REINZ statistics reinforce

travel, and people buying sight

that this summer is an opportune

unseen, never before has a

time for vendors to sell, and invest

property’s online presentation been

in their sale, with professional

more important.

online presentations returning

Staging an empty house can

sellers huge dividends.

add tens of thousands of dollars,

Those Kiwis prepared to list

especially if buyers are making their

their property this summer, and

determinations via their computer.

make a really good job of it, won’t

Professional photography is also

regret their decision. Global

critical including the likes of virtual

uncertainty remains, but clearly

tours, video, and drone footage.

not for New Zealand’s real estate

3D floor plans also bring a

market this summer.

property to life.

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CENTURY 21

THE TIME IS NOW

FIRST HOME BUYERS ABUZZ – LVRS WOULD BE A CRUEL BLOW “Open homes are buzzing with first home buyers, which is great to see.

However, if the Reserve Bank brings back LVRs, first home buyers could sadly be hit the hardest, particularly those whose parents can’t help with a deposit,” says Derryn Mayne, Owner of Century 21 New Zealand.

Her comments follow the Reserve Bank warning it’s looking at the prospect of re-introducing loan-to-value ratio (LVR) limits on mortgage lending.

“Not enabling as many first home buyers into the market would be such a cruel blow given record-low interest rates while rents remain high. The problem is not first home buyers as they’re struggling to snap up anything at the moment, yet they could soon be collateral damage,” says Ms Mayne.

LVRs were introduced back in 2013 to cool the property market by slowing down liberal lending.

Then in April this year, the Reserve

occupiers, many had to stump up

Bank removed all LVR restrictions

with a six-figure sum before the

for 12 months. At the time Century

bank could even consider them.

21 celebrated the move, noting it

LVRs created two tiers of young

would enable more young Kiwis to

people – those whose families

buy their first homes with lower

could financially help them into a

deposits now required.

house and those who couldn’t. I’d

“It’s not as though first home buyers are getting easy money.

hate to see that again.”

The head of Century 21 says fair

Not at all! Deposits

enough for the Reserve

still need to be

Bank to intervene if

paid, and banks

the retail banks

are looking closer than

"...this may well be the

ever when

best chance young Kiwis

assessing

were lending irresponsibly, but her company had

have to buy a house in

lenders’

not seen any

their lifetime."

ability to

evidence of that.

service loans.

“We often hear

First home

the ‘haves’ and

buyers then have

‘have nots’ will be

to compete with the

determined by those who

likes of hungry ex-pats and investors, and more often than not, they miss out on their dream property.

come out of this Covid economy with property. We as a country need to encourage young people into home ownership, rather than

The prospect of shutting many first

pulling up the ladder behind us.

home buyers out completely would

Afterall, this may well be the best

send a terrible signal,” she says.

chance young Kiwis have to buy

“When 20% deposits were required from most owner-

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a house in their lifetime,” says Derryn Mayne.

CENTURY 21 CHAMPIONS

QUARTERLY WINNERS NAMED

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

Alen Moshi also won a Diamond

(Century 21 Gadsby Realty,

Award for sales.

Te Awamutu).

Other Platinum recipients were

Property Management Office for

Christine Stevens (Century 21

the Quarter under 250 (the highest

Stevens Realty, Mangakino); and

number of new managements

Ivan Rakich (Century 21 Darrak

by an office with less than 250

Realty, Albany).

managements) was won by

Gold Awards went to Ian Pepper Queen Street sales star, Winson He, won Top Salesperson for the Quarter for both GCC (Gross Closed Commission) and Units (the number of properties listed and sold). Winson He also received a Platinum Award for sales “Our newest franchise in the heart of central Auckland is off to a flying start! Such early success reinforces the traction the reinvigorated Century 21 brand has been getting over the past year or so,” says Derryn Mayne, Owner of Century 21 New Zealand.

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

(Century 21 Rural & Residential Real Estate, Huntly); Iresh Tennakoon (Century 21 Local Realty, Papakura); and Andrew Pugh (Century 21 Premier Palmerston North).

Silver Awards went to Kevin Ratnayake and Gary Bal (Century 21 Local Realty, Albany); Tim Kearins (Century 21 Premier Palmerston North); Stephen Hudson (Century 21 Darrak Realty, Albany); Holly Dong (Century 21 Edwards Realty, Botany); and Barbara Craig (Century 21 Rural & Residential Real Estate, Huntly).

Dhillon (Century 21 Local Realty, Papakura); Alan Young (Century 21 Sunrise Realty, Somerville); Mark and Colleen Edwards (Century 21 Premier Palmerston North; and Eli Gadsby and Rebecca Fraser

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North. Property Management Office for the Quarter over 250 was again awarded to Century 21 Edwards Realty in Botany. Janine Hair (Century 21 Gold Real Estate, Manurewa) won Property Manager of the Quarter.

Julie Verrall was Administration Team Member of the Quarter and Jerry Li was Personal Assistant of the Quarter - both from Century 21 Edwards Realty, Botany.

Salesperson Anjali Amarasinghe (Century 21 Local Realty, Papakura) won the Quality Service Award, while fellow Papakura salesperson,

Bronze Awards went to Kanwar

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Century 21 Premier Palmerston

CENTURY 21

Kanwar Dhillon, received the Recognition Award.

“The third quarter saw significant real estate activity from the Century 21 family in our smallest towns right through to our largest cities.” says Derryn Mayne.

LOSS OF A LEGEND

BIG LOSS TO THE REAL ESTATE INDUSTRY Long-time Auckland real estate identity, Ivan Rakich, of Century 21 Darrak Realty in Albany has died aged 69.

“Century 21 was shocked and saddened to learn of Ivan’s passing.

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

Ms Mayne says Ivan Rakich was an enthusiast who exuded plenty of positive energy. He loved people

awards and supported community

in real estate on the North Shore

causes involving local rugby and

over recent decades.

primary schools.

“Ivan won a Century 21 Platinum

“It’s a very sad time for the Century

sales award for 2020’s third quarter,

21 family,” says Charles Tarbey,

which we only announced a couple

Owner of Century 21 Australasia.

of weeks before he died. While

"I was only recently speaking

earlier this year, Century 21

with Ivan and he was so excited

Darrak Realty was named one

about the prospects for 2021 and

of the Top 21 offices across

the years ahead. He was a great

Century 21 Australasia.

contributor to all who knew him and an outstanding practitioner who will be sadly missed,” says Mr Tarbey.

“Thanks to Ivan’s leadership and dedication, Century 21 Darrak Realty has been one of our best

Ivan Rakich was no newbie to real

performing franchises. Most

estate. He came to Century 21 with

importantly, he was a good

over 40 years’ experience in sales

friend to many. Our sincere

and marketing. He was instrumental

condolences go out to his beloved

in building some of the best teams

family,” says Ms Mayne.

and excelled in the real estate environment.

In 2015 he launched Albany franchise, Century 21 Darrak Realty.

Former local MP Hon Murray McCully cut the ribbon to officially open the office at 231 Dairy Flat Highway in the old Albany village.

Mr Rakich started the franchise employing just one other real estate salesperson. Now Century 21 Darrak Realty boasts several agents and staff. The team has won numerous

Former Foreign Affairs Minister and MP for East Coast Bays, Hon Murray McCully, cuts the ribbon with the late Ivan Rakich at Century 21 Darrak Realty’s opening in Albany on 3 September 2015.

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CENTURY 21

REQUEST YOUR

FREE PROPERTY APPRAISAL

CENTURY 21 agents have made it easy for you to find out the current value of your property.

Simply visit C21.co.nz/sell to book your obligation-free property market appraisal.

C21.co.nz/sell

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

AUCKLAND MEDIAN HOUSE PRICE HITS $1M MARK IN OCTOBER

BY BINDI NORWELL, REINZ CEO

Median house prices across New Zealand increased by 19.8% from $605,000 in October 2019 to a new record median high of $725,000 in October 2020; and up from $689,000 in September this year (a 5.2% lift) according to the latest data from the Real Estate Institute of New Zealand, source of the most complete and accurate real estate data in New Zealand.

Median house prices for New

– something no one anticipated

built at speed and at scale,”

Zealand excluding Auckland

or expected just six months after

says Norwell.

increased by 15.4% from $520,000

the entire country came out

in October last year to a new record

of lockdown.

median price of $600,000, and up

“In addition to Auckland, 9 other regions and 28 districts around the

“With Auckland City ($1,200,000),

country saw house prices reach new

Manukau City ($1,001,000 – a

record medians in October showing

new record) and North Shore City

how low interest and mortgage

Additionally, Auckland’s median

($1,150,000) all having median

rates, the diversion of spend on

house price increased by 16.3%

house prices in excess of $1 million

overseas travel to property, expats

from $860,000 at the same time

it’s not surprising that the Auckland

returning home, the removal of

last year to $1,000,000 a new

region hit the million-dollar mark.

LVRs and a fiercely competitive

from $585,000 in September this year (a 2.6% increase).

record high, and up from $955,000 in September this year (a 4.7% increase). In total 10 regions saw record median prices during October.

“While this is a significant milestone, it raises serious questions around future affordability for Auckland residents

market due to the lack of listings has been contributing to price rises over the past few months,” she continues.

wanting to get a foot on the

“While every region in the country

Bindi Norwell, Chief Executive at

property ladder. It also highlights

saw price rises, regions of particular

REINZ says: “October 2020 will go

just how important it is that

note included Manawatu/Wanganui

down in ‘housing history’ as being

legislation such as the RMA is re-

which had a record median price

the point in time when Auckland

addressed quickly by the current

of $470,000 and 5 districts with

region’s median house price hit the

government so it is fit for purpose

record medians; Waikato with a

milliondollar mark for the first time

to help support more houses being

record median price of $655,000

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and 4 districts with record medians

October sales count since October

“New Zealand’s housing market is

and Wellington with a record

2006 (14 years).

extremely buoyant at the moment,

median price of $785,000 and

with more than 8,800 properties

For New Zealand excluding

6 districts with record medians.

sold around the country – that’s

Auckland, the number of properties

Also, Rotorua District ($580,000),

more than 283 properties sold

sold increased by 14.2% when

Tauranga City ($810,000), Lower Hutt ($761,000) and South Taranaki ($345,034) have had record median prices for 3 months in a row now

every day in October. The last

compared to the same time last

time we saw sales volumes of this

year (from 4,982 to 5,690) – the

magnitude was back in May 2016

highest number of properties sold

when the market was very strong,

since March 2017 (43 months) and

and Christchurch City ($526,000)

and prices were rising across many

the highest October sales volumes

has had a record median for 2

parts of the country.

since October 2006 (14 years).

months in a row.

$

ANNUAL ME DIAN PRICE CHANGES $

$

16.3% AUCKLAND

$

Record Median Price

23.2%

NATIONAL MEDIAN PRICE:

10.5%

15.9%

$

25.6%

29

$

17.5%

10.3%

MANAWATU / WANGANUI

$ $

TASMAN

$

17.4%

$

SOUTHLAND

over the past few months, we wouldn’t be surprised if the Reserve Bank goes ahead with its proposal to reinstate LVRs before the 12-month period is up – particularly for

In Auckland, the number of properties sold in October increased by 50.9% year-on-year (from 2,081 to 3,140) – the highest since March 2015 (67 months) and the highest October sales volumes since October 2003 (17 years).

The number of residential

Only one region, Nelson, saw an

New Zealand increased by 25.0% from the same time last year (from 7,063 to 8,830) – the highest number of properties sold in 53 months (May 2016) and the highest

20.8% WELLINGTON

9.7% CANTERBURY

22.7% OTAGO

investors,” points out Norwell.

properties sold in October across

26.8%

HAWKE’S BAY

MARLBOROUGH

WEST COAST

“Given the price rises we’ve seen

34.1% GISBORNE

12.9%

MEDIAN DAYS TO SELL:

16.2%

BAY OF PLENTY

NELSON

19.8%

Source: REINZ Monthly Property Report 12 November 2020.

$

WAIKATO

TARANAKI

$725,000

16.5% NORTHLAND

annual decrease in sales volumes with the number of properties sold in October falling by just one

“Again, we’ve seen more than half (9 out of 16) of the regions across the country with annual sales volume increases in excess of 20% in October – this is just not what anyone expected to happen and shows just how much people’s concern around future price rises is adding to their determination to buy now before prices potentially rise even further,” continues Norwell.

property from 102 in October 2019 to 101 this October. Wellington’s sales volumes remained flat at 750.

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