The Reserve Bank of New Zealand (RBNZ) has cut the official cash rate by 0.5 basis points, bringing it down to 4.75 percent. This is the second consecutive rate cut, signaling an improvement in economic conditions and a return of inflation to the RBNZ's target range. As a result, the reduction in interest rates is already positively impacting the property market.
With two consecutive rate cuts, we’re seeing a significant uplift in buyer activity and confidence. More people are attending open homes and there has been a noticeable increase in auction participation.
While buyer interest is rising, it has not yet resulted in substantial changes in property prices. According to the latest CoreLogic data, property prices remain relatively stable, with the median house price down by just 0.5 percent in September compared to a year ago.
This stability suggests that, while more people are ready to make purchasing decisions, the market is still benefiting from balanced conditions that are essential for sustainable growth. The stability in property prices and reduced interest rates create better opportunities for first home buyers wanting to enter the market.
These rate cuts have provided much-needed relief for borrowers, making homeownership more accessible and giving those on the fence the confidence to take action.
With the reduction in the bright-line test, decreasing mortgage rates and the government's new support programme for residential construction, developers are likely to be more motivated to invest in new builds, helping to grow our housing stock.
We expect that the combination of improving economic indicators, steady property prices and lower borrowing costs will continue to provide opportunities for buyers and sellers alike, fostering a positive outlook for the property market as we move into the warmer months.
As always we hope you enjoy this publication.
Kind regards
Brent
Brent Worthington Principal and Licensee Agent
0292 965 362
LJ Hooker Town & Country Rent Exchange Property Management
1/233 Great South road, Drury
How to Style Your Outdoor Space to Sell in Spring
When preparing your home for sale, it's easy to focus on making the interior shine, but don't overlook the power of a well-styled outdoor space. In fact, creating an inviting and functional outdoor area is just as important as the indoor spaces. As the spring selling season bursts into full bloom, now is the perfect time to make your property stand out to discerning buyers.
So, how can you give your home the edge and maximise its appeal? The answer lies in styling. Statistics show that homes that are properly styled can increase their final sales price by up to 10 percent. Additionally, a well-presented property tends to attract more interest and sell faster.
While it’s important to consider the entire property, we’re focusing on the outdoor space for this post. After all, with spring upon us, the great outdoors becomes an extension of our living spaces.
Create a lasting first impression at the entrance
You’ve probably heard the phrase, “you never get a second chance to make a first impression”. This rings especially true when it comes to the front of your home. Your property’s curb appeal is the first thing potential buyers see, and a welcoming entrance sets the tone for the rest of their visit.
As the garden starts to come to life with the change of season, take the opportunity to tidy up your front section. Mow the lawn, trim overgrown hedges, and pull out those pesky weeds. If you have a front gate, ensure it’s in good working order it’s often the first thing visitors interact with, so a wellmaintained gate makes a positive impression.
If your property doesn’t have a fence, consider adding one. Fences offer a sense of privacy, security, and appeal to families and pet owners. They can also give the illusion of a larger front yard an easy win when aiming to boost your home’s perceived value.
Don’t forget the details: clean out gutters, wash your windows, and remove any cobwebs. A quick water blast of your driveway and pathways can make them look fresh and inviting. Keep these areas swept and clear, especially before any open homes.
Embrace spring with fresh flowers
Nothing says spring quite like fresh blooms. Spend time weeding and refreshing your garden beds. Add vibrant spring flowers that will still be in bloom during your open home viewings. Whether you plant them in the garden or in pots, these pops of colour will enhance your home’s charm and appeal.If you don’t have an existing pathway, consider adding one. A path can guide buyers directly to your front door and add structure to your section. Simple white pavers set against a green lawn are timeless, but there are plenty of options depending on your budget and style preferences.
For homes without front sections, you can still create a beautiful entryway with window planters, clean shutters, and good lighting. Ensure your house number is clearly visible, so visitors can easily find your property and are greeted with a welcoming facade.
Highlight outdoor living spaces
In New Zealand, outdoor spaces are highly prized. Whether it’s a garden, courtyard, or deck, these areas offer valuable space for entertaining or relaxation. For many buyers, a well-designed outdoor area is like adding an extra room to the house. It’s another strong selling point, so show buyers how they could use the space.
Start by giving your outdoor furniture a refresh. If your table and chairs look worn, clean them up or replace them with more modern options. Dress up the area with colourful placemats, outdoor cushions, and a few flowering plants as a centrepiece. Consider setting the table to create a lively, welcoming atmosphere. An umbrella can provide both shade and style, making the space even more inviting.
You can also lean into the vibe of your neighbourhood. If you’re near the coast, installing an outdoor shower can be a practical and appealing feature. In leafy, family-friendly suburbs, a hammock or a simple swing in a tree can create a laid-back feel that resonates with prospective buyers.
Zone your garden for functionality
Just like you create functional zones inside your home, the same approach works wonders outdoors. Help buyers envision how they might use different parts of the property For example, set up one area for dining or entertaining, another for gardening or a small vegetable patch, and if space allows, a play area for children. These zones add variety to your outdoor space and help families see the potential for different activities.
If your property is short on garden space, such as an inner-city courtyard, maximising what you have is key. Start by creating a focal point—something like a water feature, an elegant urn, or a statement plant placed strategically at the farthest point from the entrance. This draws the eye and gives the illusion of depth and space.
For small courtyards, large pavers can make the area feel more expansive by reducing visual clutter. Stick to lighter colours for your outdoor structures to keep the space bright and airy, as dark tones can make an already small area feel more enclosed.
Even if you only have a small balcony, you can transform it into a charming outdoor retreat. A small table and chairs, along with a planter filled with spring flowers, can make the space feel like an ideal spot for a morning coffee or evening relaxation.
Helping buyers envision their future
When buyers walk through your property, you want them to imagine themselves living there, enjoying the space, and making it their own. By taking the time to thoughtfully style your outdoor areas, you can help them do just that. From curb appeal to functional outdoor living zones, these simple yet effective strategies can set your property apart this spring and lead to a successful sale.
Please don't hesitate to contact our team who can ably assist you with any property management matters you may have or if you have any questions about anything in the newsletter or property management in general.
October Newsletter
The benefits of using LJ Hooker /RentExchange PropertyManagement
To succeed in property investing, you need the right team to support you. RentExchange can help you maximiseyour returns - offering a mix of investment and propertymanagement to address every possible circumstanceon your behalf.
With professional property management by your side, you can be assured of a reliable income stream, accurate tax records and exceptional service for both you and your tenant.
We also keep you updated about any potential problems and suggest a course of action to respond to any situation. There are other advantages too, let’s take a look:
1. Experience on your side
AtRentExchangewe seehundreds of rental applications and are experienced at interviewing tenants, reference checking and reviewing rental history to make sure the best applicant will be living in your property. There are several ways that we effectively screen candidates and leave the final decision to you.
2. Reduce risk
By engaging a RentExchange property manager, you reducethe chance of having a vacant property thereforelowering your risk of lost income. Our property managers can access several tenant databases, which allows us to find a suitable replacement quickly when needed.
Whether you're managing an existing property or exploring new investment opportunities, it's crucial to stay ahead of the market.
Book a rental appraisal for your chance to win $10,000*.
3. Decrease tenant turnover
It is important to keep tenants happy as they will be more likely to want to stay and renew their lease. If there is an issue, our property managers are available to address problems at all hours of the day.
4. On-time rent
We know consistent rent collection is imperative to successful property investing. Our property managers detail the income, expenses, owner payments, and any outstanding invoices. This allows landlords to stay on top of costs and be organised come tax time.
5. We stay on top of maintenance
Keeping on top of repairs is key to fostering positive tenant and landlord relationships. It also prevents small problems from developing into something more costly. As part of a large real estate network, Rent Exchangeproperty managers have negotiating power with localtradespeople, allowing us to provide better prices onmaintenance jobs.
6. Avoid unpleasant confrontations
We are a buffer between you and the tenant - our property management team are equipped with knowledge and experience to deal with problems, such as late payments through to damaged property. We are proactive in handling complaints and have excellent communication.
With the sun shining and gardens in bloom, it is little wonder that spring is a fabulous time to sell property.But with the warmer weather also comes an increase in listings, meaning if you are looking to sell your investment property then you could face increased competition.
Taking the time to make sure it is well-presented will increase your chance of attractingmultiple offers and even a higher sales price.
But before you start ripping out the kitchen, speak with your LJ Hooker property manager and sales agent. They will be able to advise on how to make your property more attractive for another investor or owner-occupier without the fear of overspending.
To help you getstarted, we’ve compiled 8 top tips for preparing to sellyour investment property this spring.
1.Highlight financial returns
Your agent should provide clear data on rental income, expenses, and ROI (Return on Investment), along with historical performance metrics and future growth potential.
2.Location, location, location
Proximity to shops, transport hubs, schools, and universities are all important factors to investors. If you are selling an apartment, be sure to point distance to local parks and sports fields and include it in your advertising copywriting.
3.Showcase features
Highlight key factors that will be appreciated by tenants, such as air-conditioning, a study nook or a master bedroom with an ensuite. Outdoor flow to a terrace or balcony can also impress an investor as it will be attractive when leasing.
4.Presentation
Staging is an effective way to make your investment stand out from the crowd. While it is an additional expense, you can focus on key areas such as the lounge, kitchen and master bedroom. Staging can attract five to 10 per cent of the final sale price, so it can be worth the effort and investment. Wanttosavethi
5. Maximise natural light
Painting walls in white reflects light and creates the illusion of more space. It also adds a sense of cohesion between rooms. Clean windows can also create a positive first impression.
6. Repairs and maintenance
If you’ve owned your investment property for a while, then regular maintenance inspections should mean it is looking in good shape. Steaming cleaning carpets is an inexpensive way to freshen the interior.
7. Make sure your property is compliant
Rental properties must be safe and secure for tenants andcomplywiththeresponsibilitiesunderthe ResidentialTenanciesAct1986.
8. Neutralise any bad smells
If you’ve allowed past tenants to keep a pet, then you may need to eliminate any lingering odours. A professional deep clean before going to market will reach all those hard-to-reach areas. Think clean and fresh fragrances such as citrus, pine and vanilla.
When a fixed-term tenancy agreement is approaching its end, landlords and property managers often face the challenge of either finding new tenants or encouraging current tenants to stay.
Finding new tenants can be both time-consuming and costly, making it essential to focus on retaining quality renters whenever possible. By understanding why tenants decide to move and taking steps to encourage tenancy agreement renewals, landlords can reduce vacancy periods and turnover costs. Here’s a closer look at the top reasons tenants move and what you can do to keep them in a fixed-term tenancy.
Top 5 reasons tenants move
1.Affordability issues
One of the most common reasons tenants move out is affordability. Changes in financial circumstances like job loss, a reduction in income, or unexpected expenses such as medical bills can make the rent unaffordable. Even if it’s not the landlord’s fault, tenants may need to find cheaper accommodation to manage their cash flow.
2.Job change or relocation
When tenants change jobs or relocate for work, they often need to move to be closer to their new workplace or to adjust their living situation based on their new income. Downsizing or upgrading based on a new job is also common, meaning tenants may look for a property better suited to their updated financial position.
3.Maintenance issues
If maintenance concerns are neglected, tenants can become frustrated and seek alternative accommodation. Whether it’s an unaddressed problem they’ve previously reported or constant issues cropping up, a poorly maintained property can lead tenants to look elsewhere. Ensuring prompt attention to maintenance issues is crucial for tenant satisfaction.
4.Renter's market opportunities
When the market is favourable to renters meaning there are more available properties than demand tenants may move to find a better deal. In a renter's market, they may be able to secure a larger property, a more convenient location, or better amenities for the same or even a lower price than they are currently paying.
5.Changing personal circumstances
Major life events such as marriage, divorce, or separation often lead to changes in housing needs. Tenants may require a property of a different size, or they may simply need a fresh start. Such changes are often unavoidable and can prompt tenants to move on.
Key ways to encourage tenancy agreement renewals for fixed-term tenancies
1.Incentivise tenancy agreement renewal
If you have tenants who look after the property, pay rent on time, and are respectful, keeping them should be a top priority. Consider offering incentives for renewing the fixed-term tenancy agreement, such as holding off on a rent increase. This can be particularly appealing if market rents have risen in the area. By maintaining competitive rent, you’re giving tenants fewer reasons to start searching elsewhere.
2.Build a trusting relationship
A good relationship can go a long way in retaining tenants. Aim to establish a friendly and trusting relationship by promptly responding to tenant enquiries, handling repairs efficiently, and being approachable. A regular property maintenance schedule, including routine checks like smoke alarm testing and inspecting for leaks, shows tenants that you’re proactive in ensuring the property remains in good condition.
Working closely with your property manager to ensure regular property inspections by tradespeople also builds trust, reinforcing the idea that tenant concerns are taken seriously and promptly addressed.
3.Make tenants proud of their home
Everyone wants to live in a well-maintained property. For houses, invest in landscaping and garden maintenance to enhance street appeal. This not only improves the property’s value but also makes tenants feel proud to live there. For apartment units, ensure that common areas and entryways are clean and welcoming. A well-presented property is one that tenants will be more likely to call home for the long term.
4.Be flexible with rent payments
Life happens, and sometimes tenants may need a bit of leeway with rent payments. Offering a grace period such as allowing rent to be paid by the 5th of the month rather than strictly on the 1st can show tenants that you are understanding and fair. However, it's important to communicate clear boundaries so that payments aren’t delayed for extended periods.
5.Address complaints promptly
Aim to resolve tenant complaints within a reasonable time frame, such as a week. Addressing issues promptly not only shows that you value their comfort and wellbeing but also sets the standard for how tenants expect to be treated. When it comes time for a tenancy agreement renewal, tenants will likely remember how responsive you were in addressing their concerns.
What happens when a fixed-term tenancy ends?
When a fixed-term tenancy ends, it can either be renewed for another fixed term, or if no new agreement is signed, it will automatically roll over into a periodic tenancy. In a periodic tenancy, the agreement continues on an ongoing basis until either the tenant or landlord provides the appropriate notice to end it.
Periodic tenancies offer more flexibility to both parties, as they don’t have a set end date. However, if you prefer to maintain the stability of a fixed-term tenancy, it's important to discuss renewal options with your tenants well in advance of the fixed-term expiry.
Talking to tenants about renewing their fixed-term tenancy agreement
Around 90 days before the fixed-term tenancy expires, it’s time to discuss renewal. If you’ve been attentive and supportive as a landlord, a tenancy renewal should be an easy conversation. Rather than focusing on convincing tenants to stay, the discussion should be an open conversation about their needs and yours. This transparency builds goodwill and helps create a positive outcome for both parties.
By understanding the reasons tenants move and taking proactive steps to meet their needs, you can significantly reduce turnover and keep quality tenants longer whether through renewing their fixed-term tenancy or ensuring the conditions of a periodic tenancy suit everyone involved.
Invest, Rent
Town&Country
Reports, Surveys& Commentaries
Some optimism returns to New Zealand’s property market
The Real Estate Institute of New Zealand (REINZ) September 2024 figures show additional signs of stability as spring began and confidence increased among both vendors and buyers.
According to REINZ Chief Executive Jen Baird, while the market remains subdued, there is a noticeable rise in positivity and confidence that things will continue to improve as we approach the end of the year. Despite lingering challenges such as the cost of living, many believe that the downward trend of interest rates will lead to a gradual recovery as we move into 2025.
“ After the Reserve Bank reduced the OCR rate by 50 basis points to 4.75%, the market is expected to see more activity from those who are ready to buy, reinforcing the optimism in the market, and this will likely be reflected in the coming months’ property reports,
adds Baird.
The national median price decreased 2.3% year-on-year, from $799,000 to $781,000, and increased 2.1% month-onmonth from $765,000. For New Zealand, excluding Auckland, the median price decreased slightly by 0.7% year-on-year (only $5,000), from $700,000 to $695,000. The median price increased by 2.2% compared to August 2024, up from $680,000.
“The signs across the country are largely of stability with slight decreases year-on-year, and the median price increase of 2.1% compared to August a slight improvement. Even though we are seeing another year-on-year decrease, this is in line with what we expect this time of year so the market is doing what we would expect, another sign of stability,” said Baird.
In the past year, eight of the sixteen regions experienced a median price increase. Gisborne had the highest increase at 10.1% to $605,500, followed by the West Coast at 9.9% to $390,000. Additionally, median prices increased in twelve regions month-on-month, with significant changes in Southland (14.1% to $487,000) and Marlborough (9.7% to $680,000).
The total number of properties sold nationally decreased by 1.1% compared to September 2023, down from 5,881 to 5,816. Compared to August 2024, sales counts decreased by 3.3%, from 6,015 to 5,816.
However, sales in New Zealand, excluding Auckland, increased by 4.5% year-on-year. Seven regions saw sales rise year-onyear in September 2024. The most significant increases were in Hawke’s Bay (+26.3%) and Gisborne (+22.6%). Five regions saw an increase month-on-month.
In the regions, twelve of the fifteen have seen a rise in new listings compared to September 2023, with the most notable increases recorded in Gisborne (+50.0%), Wellington (+36.1%) and Otago (+34.1%). New Zealand, excluding Auckland, there was a 20.4% increase in listings year-on-year.
New Zealand’s national inventory level rose 27.4% year-onyear and 1.5% month-on-month, reaching 30,028. Excluding Auckland, inventory increased by 27.8% year-on-year and 1.8% month-on-month, totalling 18,772. Baird notes that the continuous rise in inventory and listings gives buyers ample choice and time to find suitable properties.
“Local salespeople around the country have noted an increase in buyers attending open homes, more so than the usual spring lift we see each year. With some regions now seeing an uplift in sales (7 out of 16 regions), buyer engagement is improving, with listings receiving more enquiries. These trends could lead to a more robust market in the coming months, particularly if expected improvements in market activity and reductions in interest rates eventuate,” added Baird.
In September, there were 737 auctions nationally (12.7% of all sales), down from 911 (15.5%) in September 2023. Auckland had 398 auctions (21.2% of sales), compared to 579 (27.4%) a year ago.
The national median days to sell increased by nine days to 49, and excluding Auckland, it rose to 50 days. Notably, the West Coast saw a significant decrease in median days to sell, dropping by 28 days to 31.
The HPI for New Zealand stood at 3,600, a 0.4% decrease year-on-year and an increase of 1.0% month-on-month. The average annual growth in the New Zealand HPI over the past five years has been 4.9% per annum, and it is currently 15.8% below the market peak reached in 2021. Southland remains the top-ranked region in September, with a 3.7% increase year-on-year.
The Real Estate Institute of New Zealand (REINZ) has the latest and most accurate real estate data in New Zealand.
For more information and data on national and regional activity visit the REINZ’s website
Media contact: Laura Wilmot
Head of Communications and Engagement, REINZ Mobile: 021 953 308 communications@reinz.co.nz
Jen Baird CEO, REINZ
REALESTATE.CO.NZ –
PUBLICATION 2 Oct 24
The economic environment is shifting towards buyers, driven by declining interest rates easing inflation and August's OCR cut, which boosted buyer activity. Now, the latest data from realestate.co.nz signals that market conditions might also be ripe for property seekers.
Stock levels remained high during September, providing potential buyers with plenty of options for finding their perfect property. Average asking prices also remained flat, marking the longest stretch of price stability since records began 17 years ago.
“For almost two years, our national average asking price has hovered between $860,000 and $890,000. We’ve never seen prices remain flat for this long,” says Vanessa Williams, spokesperson for realestate.co.nz.
However, growing interest suggests buyers may be eager to act before the market changes, especially with another OCR review on the horizon.
Total active users on realestate.co.nz were at an all-time high during September, up 28% on this time last year. Additionally, the site experienced the largest international audience in more than 12 months, with searches from Australia up 35%, the United States up 16%, and the UK up 25% year-on-year. Residential sale enquiries were also up by 9.6% year-on-year.
Williams notes that while high stock levels will take time to clear, market shifts are inevitable.: “Although we won’t see the market change overnight, it is cyclical, and eventually, we will see movement. For those waiting for the perfect time to enter the market, this could be the window of opportunity they’ve been hoping for."
Unprecedented price stability offers certainty for both buyers and sellers
In September, the national average asking price remained static, increasing just 0.2% year-on-year and 2.7% month-on-month. This marks 20 months of flat asking prices, the longest stretch of stability on record.
“Property market prices started flattening out in January 2023, when the national average asking price was $879,53. Almost two years later, we are sitting at $870,110.”
“This gives buyers and sellers a rare degree of market predictability Buyers can confidently enter the market, knowing prices have remained steady, while sellers can adjust their expectations based on these consistent trends,” explains Williams.
The only regions to achieve double-digit growth year-on-year were Central Otago/Lakes District and Marlborough, with modest gains of 10.4% and 10.0%, respectively. This highlights the continued appeal of lifestyle regions.
Williams adds, “We’re seeing sustained interest in lifestyle regions like Central Otago/Lakes District and Marlborough, which offer not only space but an enviable lifestyle that continues to attract people, even with stock levels rising."
Supply shortages did not drive these price increases; both regions saw stock levels rise by more than 30% year-on-year
Spring stock levels at the highest they’ve been in a decade
Stock levels nationally remained elevated in September, with the total number of properties for sale surpassing 30,000 after a slight dip in August. This is the first time stock levels have exceeded 30,000 during the month of September since 2014.
Nearly 6,500 more properties were available for sale last month compared to September 2023. Most regions experienced double-digit growth last month, except for Nelson and Bays (up 8.3%) and the West Coast (up 9.7%).
“With so many properties on the market, buyers have plenty of options as we head into the warmer months. If confidence continues to grow, we may start seeing stock levels decline as more buyers take advantage of current opportunities,” says Williams
Sellers gain confidence with the highest September listings since 2020
New listings surged in September, rising 18.7% year-on-year and 15.3% month-on-month nationally. This marks the highest level of September new listings in three years, highlighting renewed seller confidence. Regions with the most significant year-on-year increases include Gisborne (50.0%), Coromandel (40.2%), Central Otago/Lakes District (40.9%), Wellington (36.1%), Otago (34.1%), and Central North Island (32.5%).
“We typically see an increase in listings as warmer weather encourages sellers to put their homes on the market,” explains Williams. “However, since 2021, spring has had a slower start, with more subdued listing levels during September. This year, we’re seeing a return to more typical spring activity, approaching 10,000 new listings compared to an average of around 7,000 in previous years.”
The increase in new listings suggests the potential for a busier spring season ahead for both buyers and sellers.
Town&Country
Finance & Lending
Input to your Strategy for Adapting to Challenges
Feel free to pass on to friends and clients wanting independent economic commentary
10 October 2024
ISSN: 2703-2825
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Consumer pessimism eases again
This week I have conducted my monthly Spending Plans Survey, and the results suggest retailers should continue to have downbeat expectations for summer, but the trend of change is in the right direction.
Anet5%of666respondentsthismonthhavesaid that they intend cutting spending on stuff generally in the next 3-6 months. This is an improvement from 13% last month and the near equal record low of a net 42% negative in June.
At -5% the key measure from this survey is the least weak since December 2021 as things were turning to custard following the imposition of a credit crunch (debt availability matters in a country like NZ with an aversion to saving). The biggest area of planned spending increase is groceries, and this has been the case for a long time.
For the second month in a row a good proportion of people have said that they plan spending more on home renovations. This is a very important result for the many small businesses involved in this large lumpy area of spending for people. Outside of buying a house or a car this is probably the third (or second) biggest amount of one off spending most people will undertake in one go in their lives.
Plans for spending on international travel are showing no interesting change, but things are marginally better for domestic travel. The parts of our economy devoted to servicing people travelling around the country to look at stuff can reasonably anticipate recent levels of spending to continue with the usual seasonal pattern.
But it would be optimistic to count on an upturn and for the inward tourist market no optimism would seem justified until the Chinese economy and Chinese householders in particular are in better shape. It is unclear when that will happen and even with recent efforts made by the Beijing government to stimulate the economy the effects will be minor unless consumers are willing to take on more debt.
Also, it pays to note that concerns about people learning about the outside world have led the central government to require people working in key sectors such as education to hand in their passports so that their offshore travel can be better controlled.
But for garden centres things are looking up with a net 7% of people now saying they will spend more compared with a net 14% in June saying they would spend less. There is a seasonal element to this lift, but the gain does appear bigger than usual.
Things basically remain bad for people’s plans to spend on motor vehicles – and why not? The ads for vehicles these days mainly concentrate around electric vehicles which are excessively expensive and increasingly out of favour. The industry has a price/image problem.
For furniture and appliance retailers prospects remain quite poor.
Forspendingon clothingand footwearit lookslike most of us see no real point in the near future. We’ll just keep wearing what we’ve already got.
And remember the days when technology was something exciting? Now, only the deepest of gamers could get excited over expanded RAMs and other sheep-relevant computer measures. For 99% of us the technology reached the stage ofbeingmore than goodenough for what wewant to achieve a long time ago. We’ve even said “meh” to virtual reality after doing the same for 3D TVs.
For sports retailers maybe more will be closing down soon.
Prospects for the hospitality sector are looking less bad. But they are still poor with a net 16% of people still saying they plan cutting spending in this area.
I reckon this next indicator is a general overall good measure of how we feel about spending –are we watching our pennies or relaxing and not thinking about budgeting too much?
A net 13% of us plan cutting spending on online services. This is better than a net 20% planning cutbacks inJunebutnotethestructuralshiftatthe start of 2022 which has yet to disappear. We are probably still ditching a few things we know we don’t really need.
I make the same penny pinching focus comment with regard to spending on our wellness.
With regard to the housing market we are becoming less pessimistic. But consistent with results from my real estate-focussed surveys, we still don’t feel the need to jump much into another house purchase or a first one in the near future.
This comment applies to both a house to live in ourselves shown in the graph above, and a rental property shown in the graph below. But the trends are very clear and are consistent with the housing cycle having turned upward.
Finally, with regard to buying shares some positivity has appeared. But I wouldn’t call it a trend.
If I were a borrower, what would I do?
The highlight of the economics world for New Zealand this week was yesterday’s review of the official cash rate by the Reserve Bank. As has become their habit they have undertaken the review just a few days before the quarterly inflation data are released which seems somewhat sub-optimal but not necessarily bad as markets can always price rates lower should a surprisingly weak number appear.
Or the other way round which is what we saw for instance in October 2022 when the inflation numbercame in 0.6%higherthan expectedwhich is rare – and wholesale interest rates shot upward in anticipation of the Reserve Bank’s subsequent 0.75% rate increase late in November.
The RB have accelerated the pace of policy easing now that they have become more certain that the data are showing a weak economy with easing pricing pressures. They cut the rate 0.5% to 4.75% and we can anticipate another 0.5% cut on November 27 before they go on holiday for three months.
The rate cut was largely expected in the financial markets but was still greeted positively. However, wholesale interest rates faced some upward pressure earlier this week after the US jobs growth report was stronger than expected and markets scaled back their predictions for the speed of policy easing over there.
The one year swap rate in NZ which forms the base for bank calculations of their one year fixed mortgage ratehas finished about where it waslast week just below 4%. But all rates further out have risen about 0.1% because of the US situation.
Banks have responded to confirmation of the expected 0.5% cut by cutting fixed mortgage rates very slightly. That is, by about 0.1%. Floating rates have dropped from commonly around 8.35% to about 7.89%.
These three graphs show levels of the one, three, and five year fixed mortgage rates over the past few years excluding the 2019-21 period when rates were absurdly low because of worries about deflation and then the effects of the pandemic.
This graph shows howcurrent rates compare with averages from 2009-19.
If I were borrowing at the moment, I would be fixing for either 6, 12, or 18 months looking to eventually fix for 3-5 years perhaps in 2026, perhaps 2027. It is impossible to say at this stage.
Nothing I write here or anywhere else in this publication is intended to be personal advice. You should discuss your financing options with a professional.
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SMART TOWNHOUSE - Stunning complex
Located on Fathom Place in TeAtatu Peninsula, this Townhouse is in an area spoilt for choice of Res...
For Sale $685,700
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Anu Jay 022 3577 554 anu.jay@ljhooker.co.nz
[ 8 to 13 ]/216 Rosebank Road, Avondale South
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TOWNHOUSES - Modern & Affordable
Located on Rosebank Road, these Townhouses are within walking distance to Eastdale Reserve, Rosebank...
Unit C/23 Awaroa Road, Sunnyvale
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Stunning Functional Townhouse
Perfectly positioned for access to trains, buses and motorway connections this Townhouse, at an affo...
For Sale $649,700 View By Appointment
Anu Jay 022 3577 554 anu.jay@ljhooker.co.nz
For Sale $745,700
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Anu Jay 022 3577 554 anu.jay@ljhooker.co.nz
Unit D/200 Carrington Road, Mt Albert §2 b2 �-
Modern Livingin Premium Suburb
In the Premium suburb of MountAlbert this development features two and three bedroom townhouses.
4/200 Carrington Road, Mount Albert §2 b2 �1
Experience Timeless Elegance at Carrington Road
Discover the epitome of modern living at Unit X, 11/200 Carrington Road, where a vibrant community ...
This 200m (mol) 4 bedroom, low maintenance family home with 2 bathrooms and 2 living areas is nestled on a 646m (mol) section in a quite cul-desac.
The double internal garage and loads of off street parking complete the package and will no doubt provide the perfect opportunity to settle into a safe and secure lifestyle.
Best in location, loads of potential and real value for money.
Town&Country
Our People
Town&Country
STEVE REILLY
SteveReilly
LicenseeSalesperson
021 930 352
steve.reilly@ljhooker.co.nz
Steve commenced Real Estate in 2001 and since then has continually been in the upper echelon of Real Estate performers. There are many reasons why people approach Steve to work for them.
Not only his experience (and in the Real Estate world we now live in, this is a significant benefit to the client), but more-so his integrity. The fact that Steve's business is built around repeat clients (as well as a significant referral network) is testimony to the fact that Steve really understands and appreciates what Real Estate is all about. That is, building relationships with integrity, expertise and of course hard work to achieve premium results. This no doubt creates clients for life.
Steve's commitment is also demonstrated by his wife Suzie, who has been along side him for some 45 years. A great sporting family, with four children and now doting grandparents.
Being life-long South Auckland residents, Steve enjoys contributing to the local community and sporting associations, further endorsing his strong belief in the families and community.
Steve and the team will work hard obtaining the very best result for you too with 100% confidence.
JohnnyBright
AUCTIONEER
Johnny is proud to be a part of the team at Apollo Auctions NZ. Entering real estate in 2014, he has developed and honed his craft of auctioneering and negotiating skills to a level that now sees him as an industry leader. Johnny has worked and collaborated with some of the most notable agents, business owners and auctioneers across New Zealand.
With the fusion of his knowledge and skill together with his personable approach, Johnny creates the ultimate auction experience . He implements drive and dedication to each and every property that he calls - regardless of value, location or personal circumstances. Johnny’s performance style and welcoming nature allows him to capture the audience and motivate buyers. He will guide you through the process and create a solid platform to achieve the best possible outcome for your auction.
Johnny also has a passion for acting. With a Bachelor of Performing and Screen Arts, he has appeared in several TV commercials and films, his most widely recognized being ‘Falling Inn Love’, an American Netflix production which was filmed in New Zealand. He has also worked with the Auckland Theatre Company on a number of occasions.
He currently resides in Beachlands with his wife and two young children.
It’s rare in life that we get something for nothing with no strings attached, especially if it genuinely adds value. Nevertheless, that’s precisely I will give you. Expert home loan advice which has reliably proven to offer significant long-term financial advantage. I keep strict tabs on the country’s largest network of banks plus numerous smaller and second-tier lenders, so you don’t have to. What’s more, this comes at no cost to you because your chosen bank pays for the privilege. You have nothing to lose, yet have a higher chance of securing better terms. Rest assured - if there’s a superior deal out there for you, I’ll find it.
In the typically stoical world of finance, I offer a point of difference. Not only will you receive excellent independent and impartial advice, but you’ll have fun doing it. Even after 15 years in the mortgage arena, my enthusiasm for objectives and commitment to clients shines through at every turn. Endorsement comes from countless glowing testimonials and in my own words: “I’m at my happiest helping people navigate through difficult situations, giving hope and concrete opportunity where they previously had none.”
Prior experience as sales manager in the fields of telecommunications and pharmaceuticals, then later, a small business owner and private property investor, provided me with considerable business acumen across many industries. My customer-focused approach and personable demeanor also reflect a lifetime of experience in client relations. I credit travel to distant locations for creating an enduring interest in different cultures and honing my ability to relate well to the needs of the broader population. In particular, I soundly empathise with people relocating from other countries to make New Zealand their home.
To continue giving my professional best, I maintain balance by travelling and participating in seasonal sports such as paddle boarding and skiing. I enjoy indulging in my creative side; with landscaping, painting watercolours or improving my guitar playing prowess. Additionally, I actively support my community through Christians Against Poverty (CAPNZ), but above all, my wife and our five shared children always take centre stage.
There's little that I haven't seen in my time in the industry, priding myself on an ability to deal with the trickiest of scenarios, never turning anyone away. My philosophy of treating people how I'd like to be treated results in a 360-degree perspective which sets myself apart.
Get in touch if you need any expert guidance. Regards
With daylight saving time bringing extra light in the evenings, it certainly feels like summer isn't too far away! For the construction team, last month was a period of minor 'wrap up' construction activities now that the additional third lanes are open in both directions.
This month we are beginning the last phase of asphalt paving on both sides of the motorway. This is the final wearing course surfacing - the 'icing on the cake'. The plan is to start this paving north of Papakura Interchange and work southwards on the southbound side of the motorway, and then shift over to the northbound side and work our way back northwards.
Further south, east of the Drury Interchange, earthworks have begun in preparation for building a large retaining wall on Flanagan Road. Investigations to locate and identify underground services are also underway for the next stage of the project, Stage 1B.
Construction update SH1 Papakura to Drury
Mason Templeton and Luke Tennent are members of our large team who have worked a lot of nights to get the motorway lanes paved under road closures, and have more work ahead.
The icing on the cake | Te pani reka ki te keke
With the main construction works completed, last month was quieter on the Stage 1A site. The crew worked days and nights to finish the last few tasks, ensuring everything was top-notch before final pavement works begin. We've been carrying out final quality checks and inspections to ensure that what has been built so far meets the required standard or better.
This month, the crew will lay the final 40mm layer of asphalt on both sides of the motorway. The southbound side of the motorway will be paved first, from north of Papakura Interchange down to the BP motorway service centre, a distance of about 3.5 km. The crew will then switch over to the northbound side of the motorway and pave 2.5 km from opposite the BP motorway service centre northwards. The difference is because the length of works done north of Papakura Interchange was greater in the southbound direction, as we needed to move the long Papakura southbound off-ramp closer to the noise wall to allow room for the third new lane to continue through the interchange.
We expect to use 7,858 tonnes of asphalt to complete these works, which will also include laying new asphalt on Beach Road between the Chichester Drive / Elliot Street intersection and the motorway over-bridge. The Beach Road works will be the last pavement laid to complete Stage 1A of the project.
This aerial of the new bridges over the railway at Drury illustrate where the motorway will ultimately be moved across to. The end of Flanagan Road runs parallel to SH1 below the wide middle bridge in this picture.
Retaining wall | Taiapa pupuri whenua
As part of preparations for the next stage (Stage 1B) of the project around Drury Interchange, works have begun at the western end of Flanagan Road – which needs to be moved out of the way as the motorway will move over onto where the end of Flanagan Road currently sits. A section of a large arterial watermain (the Waikato Pipeline) along Flanagan Road also needs to be moved during the next stage of the project.
On this site, we have been installing controls to contain sediment and protect against erosion during our works to come, clearing vegetation and digging holes to confirm the location of existing underground services. Earthworks are well underway and digging out the site of a new retaining wall beside Hingaia Stream will begin soon.
The protected Runciman Oak and a surrounding grove of oaks are well fenced and supported by a rock retaining wall. They will not be removed.
Vegetation removal | Te ketutanga ā ngā taru
For road widening projects like this one, vegetation often needs to be removed – as it was between Papakura Interchange and Park Estate Road back in July 2021. This can make a very noticeable change to the look of the motorway for motorists driving past.
While extra land was often set aside for future widening when motorways were originally built, the amount was not always enough to allow for future growth - which is the case here. Healthy trees and shrubs are only removed when it is not possible or practical to leave them in place. Common reasons for removal include providing the necessary space to build new motorway lanes and stormwater treatment areas, replacing overbridges, upgrading underground utilities and for safety reasons during construction.
In the coming weeks we will begin removing trees along the motorway corridor from north of Bremner Road overbridge down to Drury Interchange, on both sides of the motorway. There will also be some tree removal on Bremner Road west of the motorway overbridge, beside SH22 and on Victoria Street.
Be reassured, our crews will remain well clear of the protected Runciman Oak and the small, surrounding grove of oak trees beside the northbound on-ramp at Drury Interchange. It's now also nesting season so an ecologist will check every tree for nests prior to removal.
Looking ahead | E haere ake nei
During the coming months, our project works include:
• Final Stage 1A asphalt surfacing work on both sides of the motorway between the north side of Papakura Interchange and the BP motorway service centre
• Underground service investigations around Drury Interchange on Flanagan Road, Great South Road, SH22, Bremner Road, Victoria Street and Mercer Street
• Installing sediment and erosion controls on Flanagan Road and SH22 sites to protect the Hingaia and Ngaakooroa Streams
• Earthworks in preparation for building a retaining wall to realign Flanagan Road
• Removing vegetation along both sides of the motorway around and north of Drury Interchange (noting that the fenced Runciman Oak and a small grove of oaks surrounding it will not be removed)
• Demolishing two houses on Bremner Road to the west of the motorway overbridge
• Demolishing the old police weigh station beside the Victoria Street/SH22 intersection.
