Residential Market Report.
NOVEMBER 2024
04. Market CommentOCR Driving Activity
08. Mount Roskill Sales Statistics October 2024
06. Sandringham Sales Statistics October 2024
14.
Article – Tony Alexander: Where Kiwis plan to splash the cash now rates are falling
12. Caset Study & Auction Update with Cameron Brain
16. Our month in Review Top Stories & Events from the City Realty Group
22.
Article – Ed McKnight: The Kiwi economist who’s putting his money where his mouth is on house prices
28.
LoanMarket Update Rates Fall, Demand Rises
32. Why choose us?
24. Property Management Update
30. Marketing your home
34. Ray White Sandringham & Mount Roskill team
OCR Driving Activity.
Director of City Realty Group, Daniel Horrobin: “The October 9 cut in the OCR by a further 50 basis points has driven a further surge in market activity across the country.”
“Our Ray White Corporate office reports the number of sales completed across the group was 30.2% higher than the same month last year and 18.4% higher than in September.”
“More confidence can already be felt across the auction market, with Ray White New Zealand reporting the number of properties to go under the hammer in a single week mid-October, was up 41.8 per cent when compared to the same period last year. “
Our very own Loan Market partner Jamie Maclennan reports “The latest survey of mortgage advisers by mortgages.co.nz found that a net 34% of respondents said banks had become more willing to lend, while a net 27% said more people were inquiring about refinancing. By mid-October there was a 44% increase in applications in the past month.”
A NZ Herald headline on 25 October stated: “Low interest rates bring property investors out of hibernation, as they borrow more than they have in three years.”
Daniel adds: “With inflation falling in the September quarter to its lowest rate in more than three years, we remain optimistic there may be a further OCR cut on 27 November. That would certainly consolidate the new-found confidence in the market and provide an ideal springboard into 2025.”
Seller sentiment is similarly positive with website interest.co.nz reporting: “A flood of new listings onto an already swamped housing market in October pushed the total stock of properties for sale up to a 10-year high. Property sales website Realestate.co.nz received 11,572 new listings in October, up 21.4% compared to October last year. That pushed the total stock of properties for sale on the website up to 32,339 at the end of October, the highest level it has been at that time of year since October 2014.”
“In our Central City market,” says Daniel, “the number of properties available for sale on Trade Me has consolidated (after finally showing signs of increased activity last month) with a solid 5% increase since the beginning of October.”
“With sales activity in our Central City office remaining steady compared to last month” adds Daniel, “we were delighted to close out the month on the auction floor on 31 October with four from four sold under the hammer, with our group result being five from seven for the day. We are currently building our November auction pipeline to match and maybe surpass our October count. This shows robust seller confidence in the auction process backed by undeniable statistics showing open home visitors to auction properties far surpass those to properties sold by other methods.”
“Our October open home visitor numbers in the Central City, following a significant jump in numbers in the September month, rose 10% again in October. The number of central city properties having open homes and the number of open homes conducted also improved on the previous month.”
In the tenancy space, it’s a continuation of last month with good tenants still hard to find.
“As we look forward with optimism to the next OCR announcement later this month,” says Daniel, “there is a definite sense that end of year is fast approaching and the resulting dilemma of acting now (or in the new year) arises for many.”
“If it’s any help,” adds Daniel, “our central city market historically runs on full power right to the end of the year. Whether buying or selling, have confidence, we don’t slow down until we have to.”
Sandringham Market Statistics.
Total Sales
October 2024
18
October 2023
17
There was a 5% increase in the total number of sales year on year.
Total Sales Value
October 2024
$27,826,000
October 2023
October 2024
$1,555,000
October 2023
$20,220,000 $1,070,000
There was a 37% increase in the total sales value year on year.
Source: REINZ
There was a 45% increase in the total median sale price year on year.
Median Sales Price Median Days On Market
October 2024
40
October 2023
33
There was a 21% increase in the total median DOM year on year.
Sandringham Recent Sales.
Mount Roskill Market Statistics.
Total Sales
October 2024
22
October 2023
41
There was a -46% decrease in the total number of sales year on year.
Total Sales Value
October 2024
$22,333,500
October 2023
$46,411,426
There was a -51% decrease in the total sales value year on year.
Source: REINZ
Median Sales Price
October 2024
October 2023
$1,060,000
There was a -12% decrease in the total median sale price year on year.
Median Days On Market
October 2024
$923,000 41.5
October 2023
30
There was a 38% increase in the total median DOM year on year.
Mount Roskill Recent Sales.
City Realty Group Auction Report.
As 2025 draws near, the real estate market is bustling with activity, and we at Ray White City Realty Group are seeing the momentum build across our auction platform. The push to secure decisions before Christmas has led to a noticeable rise in auction volumes, a growing number of pre-auction offers, and auctions being brought forward.
Adding to the excitement, the average number of bidders has also increased, showcasing the depth of buyer interest in the market. One standout auction over recent weeks was the sale of 312 Sandringham Road, Sandringham. Expertly marketed by Tracey Potter from our CRG Sandringham office, this property attracted 58 groups during the campaign, resulting in 16 registered bidders—13 of whom actively participated. After 50 thrilling bids, the property sold for $1,700,000, a remarkable 11.7% above the reserve price.
This success story is indicative of the new momentum in the market, which we anticipate will carry through well into the first quarter of 2025. To help homeowners capitalize on this strong buyer activity and “beat the market,” Ray White City Realty Group is thrilled to announce two dedicated auction events in late January:
Residential Properties: Wednesday, 29th January 2025, at Ray White Sandringham Apartments: Thursday, 30th January 2025, at Ray White Auckland Central Both events are filling up fast, reflecting the significant demand from buyers and sellers alike. If you’re considering selling and want to take advantage of this vibrant market, now is the time to act. These events offer a prime opportunity to reach hundreds of motivated buyers before the February and March rush kicks in.
For more information about how you can secure your spot or to discuss the selling process, reach out to one of our dedicated Ray White City Realty Group teams—Auckland Central, Sandringham, Wynyard Quarter, or Mt Roskill.
Don’t miss your chance to “beat the market” and make your next real estate move with confidence. We’re here to help you achieve outstanding results! Auctioneer & Auction Manager 027 424 1782 cameron.brain@raywhite.com
Tony Alexander: Where Kiwis plan to splash the cash now rates are falling
Results of spending survey point to growing confidence in the economy.
ANALYSIS: Each month I conduct five surveys which deliver up-to-the-minute insights into what is happening in the economy overall and in the housing market in particular. One of those surveys focusses on people’s general plans for buying more or less “stuff” in the coming 3-6 months. The insights can be useful for retailers, home-renovation firms etc. They’re especially relevant at the moment because the people running such businesses are waiting for the impact of falling interest rates to begin feeding through.
Five months ago, a record net 42% of my near-700 respondents said that they planned on buying fewer things over the remainder of the year. Since then things have improved and my latest survey shows
that as many people now plan spending more as plan spending less – so the result is a net 0%.
This is the best reading since December 2021 and there are two areas in particular which stick out. First, a net 13% of people have just reported that they plan spending more on home renovations. This is above the average reading for this measure of 9% and well away from the net 11% in June who said they planned spending less.
The result is an important one because as anyone who has undertaken the exercise knows, renovating is an expensive business and there’s a high risk of things going wrong. People tend only to contemplate getting the job done when they are feeling
House prices are unlikely to surge but falling interest rates may lead to more home renovations. Photo / Fiona Goodall
secure in their employment and perhaps have some back-up cash ready if costs should blowout.
I read this result as saying there is solidity to the improvement in consumer sentiment and buying plans which my survey is picking up.
The second significant result is the easing to just a net 11% of people planning to cut back (yes, still reduce) spending on eating out compared with a net 44% in May. The change is large, and the chances are good that this reading will soon turn positive. But the fact that it remains negative suggests we should expect to see additional closures of eating and drinking establishments as we start heading through summer.
Other results include a net 10% of people still planning to cut their purchasing of new vehicles. Back in May this reading was -16% so unlike eating out and renovating one’s home the improvement is minimal. For car yards, prospects still don’t look good.
For international travel, a net 10% of people plan doing more compared with a mid-year low of around a net 3% planning not to go offshore. For domestic travel the improvement is a much greater one to net 9% positive intentions compared with a net
17% of people planning less local travel in the middle of the year.
This bespeaks of good demand for places in camping grounds and holiday town motels this summer.
I gather a couple of readings relevant to the housing market to which I assign less significance than the numbers I get from my surveys of mortgage brokers and especially real estate agents. But for what they are worth they back up the comment I’ve made recently that although buyer demand has lifted and continues to grow, there is no semblance of a frenzy in play – especially as vendor growth is also good.
A net 7% of people say they don’t contemplate buying an investment property compared with a net 19% in June. Things are less negative but only just exactly equal to the average reading for this particular measure.
Finally, a net 4% of people plan cutting potential purchasing of a house to live in compared with 10% in June. There is improvement but the average is -2% so again we cannot say that the rise in demand clearly evident in a wide range of data is anything approaching a boom. The housing upturn remains contained.
- Tony Alexander is an independent economics commentator. Additional commentary from him can be found at www.tonyalexander.nz
@raywhiteaucklandcentral
@raywhitewynyardquarter
@raywhitesandringham
@raywhite.mtroskill
Supporting local at the Sandringham Street festival.
It was awesome to meet so many lovely people in our community. Big thanks to everyone who stopped by! A huge shout-out to Belinda Henson, Daniel Horrobin, and all the amazing Ray White team who helped out at the tent.
The Little Ray of Giving is back!
This year, we are proud to support Women’s Refuge. We invite you to drop by our office at Level 3, 246 Queen Street and donate to this incredible cause!
Thank you for supporting this vital cause!
Celebrating Success!
Our offices recently celebrated the dedication and hard work of our team during our Quarterly Awards.
From recognizing top performers to applauding everyone’s dedication, it was a night to remember.
A massive congratulations to all our winners — your passion and commitment are what make us shine. Here’s to even more success and shared wins in the months to come!
Packed House!
At the morning’s sales meeting— celebrating our team and last month’s birthdays!
Ed McKnight:
The Kiwi economist who’s putting his money where his mouth is on house prices
Six reasons why Ed McKnight has pulled forward his plans to buy.
ANALYSIS: One of the biggest questions buyers worldwide persistently ask is: “Is now the right time to buy a property?” The trouble with us economists is that we don’t often publicly put our money where our mouths are.
I was planning to buy a house in mid-2025. But after analysing recent sales and interest rate data, I’ve decided to pull forward that decision to now. Here are the six reasons why.
1. Interest rates
The one-year mortgage rate has tumbled from 7.4% at the start of the year to 5.99% now (and banks are discounting this to 5.79% behind the scenes).
This means that people can borrow more and still keep their mortgage payments the same. A $500,000 mortgage would cost $800 a week when interest rates were 7.4%. At current interest rates, that same $800 a week, can stretch to $590,000
worth of borrowing - $90,000 more.
Also worth considering is that I won’t be the only one noticing this. Lower rates will likely lead to more competition at auctions and elsewhere. The fact that prices have hit the bottom and will likely rise in 2025 means if I delay buying until next year, I might have to spend more to get the same type of house.
2. Banks are loosening their lending criteria
When you apply for a mortgage, you might pay a 6% interest rate, but the bank will actually test your application to see if you can afford to repay your debt at around 8%. That’s called the servicing test rate; the higher that is, the less you can borrow.
But, like interest rates, servicing test rates are falling. At the start of the year, Westpac would test your mortgage at 9.1%. That’s fallen by almost 1%. So if you could afford to borrow $500,000 this time last year, you
could borrow around $45,000 more today.
In short, lower interest rates will motivate buyers to bid one last time at auction, but the lower servicing test rate will provide them with the means to do so.
3. House prices are low (as far as house prices go)
Houses are still expensive in New Zealand, but they are generally selling for 15.8% less than they were at the peak of the market, in late 2021 (and in Auckland, prices are 21% below their peak).
The house-price-to-income ratio is lower now than it was just before Covid struck, with current house prices up 23% on 2019 prices, and the average income up 27% over the same period.
It’s not an exact comparison because interest rates are higher today, but I want to buy a house, and I either do it today or I wait. These numbers make me feel like today is a better time to buy than in 6–12 months’ time.
4. House prices feel like they are near the bottom of the market
House prices bottomed out in May 2023 and then increased over the following nine months before falling again. But the pace of this year’s fall has slowed in recent months.
From March to May, property prices fell an average of 0.9% a month. From June to August, property prices dropped an average
of 0.3% a month.
They then rose 1% in September. One sunny day doesn’t make a hot summer, but we are heading into the warmer months and property prices tend to increase faster in spring and summer.
So, I don’t have months and months of data showing that property prices are increasing. But if I wait for that data to come through, I will have missed buying at or close to the bottom of the market.
5. There are lots of properties available for sale
There are more than 40,000 residential properties for sale on OneRoof - 24% more than this time last year. New listings for October were up 24% on new listings the month the before. We haven’t seen listings volumes this high since 2015.
6. Properties still take time to sell - that means more time to negotiate
During the Covid property boom, Auckland properties took around 32 days to sell.
Now properties are taking an extra two weeks to sell. And that means that buyers have more time to look at properties and negotiate a good deal.
Less than half of properties going to auction are selling, so even if I turn up to auction and the sale doesn’t go through, there is more room for negotiation than there usually is.
Here’s what SuperCity Property Management has for Rent this month.
Please see below our latest, available properties for rent. If you have any friends or family looking for accommodation please pass this list on to them!
$850 per week
L2/308-318 Parnell Road, Parnell 2 Beds / 2 Bath / 2 Cars
$495 per week 70 Pitt Street, Auckland Central 1 Bed / 1 Bath
$550 per week
1b/16 Viewland Avenue, Onehunga 1 Bed / 1 Bath
$520 per week
306/57 Mahuhu Cres, Auckland City 1 Bed / 1 Bath / 1 Car
$450 per week
L19/10 Waterloo Quad, Auckland 1 Bed / 1 Bath
$700 per week
1/70 Randolph Street, Eden Terrace 2 Bed / 1 Bath
Carpark17/17 Vogel Lane, Auckland 1 Car FOR RENT FOR RENT FOR RENT FOR RENT FOR RENT FOR RENT
$70 per week
$400 per week
L5/72 Nelson Street, Auckland Central 2 Bed / 2 Bath
$995 per week
4F Marston Street, Parnell 3 Bed / 2 Bath / 2 Car
$495 per week
L9/207 Federal Street, Auckland Central 2 Beds / 1 Baths
To view a full list of available properties for rent follow this link or scan the QR Code on this page.
The standout offer is the ability to secure a 1-year fixed rate at 5.59% for our clients. With the recent drop in rates, there’s been a surge in applications, and many clients are seeking new rates. As a result, bank processing times are currently between 5 to 12 working days.
The next OCR announcement is on November 27th, and we anticipate another decrease between 0.25% and 0.75%.
For clients whose rates are expiring in November, we’re discussing the option of going onto a floating rate and refixing after the announcement.
If your rates are coming up for refix, feel free to get in touch.
There may also be an opportunity to secure a large cash-back offer through refinancing, which could assist with cash flow!
To discuss the competitive investment loan options available speak to Jamie today.
Marketing your home.
A COMPREHENSIVE MARKETING STRATEGY TO REACH ACTIVE & PASSIVE BUYERS.
The marketing strategy is designed to reach the breadth of the active and passive buyer pool in the most effective manner, based on their Media consumption.
Our marketing strategy comprises of 3 key components; property portals, social and multi-channel digital strategy and print media.
Property Portals.
PRIMARILY ACTIVE & SOME PASSIVE BUYERS
There are 3 key portals, TradeMe Property, Realestate.co.nz and Oneroof.co.nz.
Property Portals generally attract active byers in the market, OneRoof has a unique position as it reaches both active and passive property buyers due to the diversity of information it has on the platform including property
Digital Marketing.
ACTIVE & PASSIVE BUYERS
The Ray White City Realty Group has introduced a state-of-the-art digital solution that is powered by artificial intelligence to reach the breadth of the active and passive buyer pool across social media and multiple digital channels, including news and other high traffic websites. The programme is fully automated in the back end, it creates an audience
Print Media.
listings, estimated property values, market news and commentary. It is important to run campaigns across all 3 to effectively cover the breadth of the active buyer pool and a part of the massive buyer market. None of the property portals have complete market coverage and each of these portals have a set of unique audiences.
segment of active buyers specific to the property as well as reaching the passive buyer pool. The campaign is structured to deliver quality leads for the property, and it auto optimises spend across social media and multiple digital channels, skewing the spend towards channels that are performing the best.
PRIMARILY PASSIVE & SOME ACTIVE BUYERS
Print continues to play an important role to cover the breadth of the market reaching quality and highly engaged audiences. It takes criteriabased search out of the equation with respect to the active market and is the most effective medium to reach the all important passive buyer
market. This is clearly evidenced by the fact that the New Zealand herald has seen a massive 48% increase in its print readership over the last 18 months and average time spent reading the paper is over 50 minutes. The value of print is also well supported by agent feedback.
Why choose us?
City Realty Group is the largest Ray White franchise in New Zealand with offices throughout Auckland. It is the group with the ‘family factor’ - we’re family owned and we treat people like family. We’re all about open doors and open minds. We encourage a unifying atmosphere where opportunities are created, individuals are recognized and everyone grows - from our team to vendors, investors and tenants.
Our experienced and established team service the market Auckland wide -from Residential, Luxury Apartments, waterfront properties and rentals. With a dedicated property management team and marine brokerage teams. City Realty Group has a strategic partnership with Loan Market to provide clients with the best mortgage advice and rates through brokers.
+64 (9) 281 4707
www.rwsandringham.co.nz
+64 (9) 308 5551
www.rwmtroskill.co.nz
Leaders in the Auckland Residential market.
Ray White Sandringham
Ray White Mount Roskill
Meet the team.
SALES TEAM - SANDRINGHAM OFFICE
Pauline Bridgman
Amy Tsai
Kate Jiang
Diane Goer
Emily Hu
Ivan Koulin
Hugh Free
Daniel Chen
Lauren Indrisie
Alastair Hubbard
Ash Anandani
Jay Nair
Tania Greer
Susan Woods -Markwick
Rosa Solano
Agnew
Tracey Potter
Tim Cai
Yuhei Umezaki
Sammy Agnew
Claire Firmin
SALES TEAM - MOUNT ROSKILL OFFICE
OUR LOANMARKET MORTGAGE ADVISORS
WE CAN NEGOTIATE A LOWER RATE. WORK WITH A QUALIFIED AND COMPETENT MORTGAGE ADVISER
LoanMarket Mortgage Adviser
Mortgage Adviser
Damon Pooley Ethan Li
Jon Clark
Lisa Hui
Mark Li
Nana Li
May Ma
Eva Yin
Benjamin Liu
Pantea Wilson
Sara Wang
Tony Liu
Grant Harvey
Shubhrta Khanna
Ross Harvey
Maggie Liu
Anna Dong
LoanMarket
Jo Price
Davy Chen
Evie Gao
Jamie Maclennan
Ibrahim Khazi
