Part of the group with a family factor.
REALTYCITYGROUPRECOGNISECREATEGROW
SEPTEMBER 2022 MarketCentralAucklandReport.
Contents.
Article – Tony Alexander: The riskiest move a first home buyer can make right now. Central Statistics Sales
18. Meet
10. Recent
12.
08. Auckland
16. Marketing
3 04. Market Comment 06.
14.
Article – Ashley Church: Four questions for nervous first home buyers. Why choose us? your property the team
Ray
Market Comment. AucklandWhiteCentral.
CoreLogic’s Buyer Classification data shows that the share of First Home Buyers across Auckland has increased from 25% in the first quarter of this year to 27% in the second quarter. However these buyers still face challenges in purchasing, with ability to get finance being key.
Meanwhile the city apartment rental market continues its upwards correction as we head into Spring. The average days rentals are on the market is sitting at approximately three weeks for Auckland, Waitakere and Manukau Cities, according to latest Trade Me Supply and Demand Reports.
These investors are motivated by expectations of significantly increasing demand for city apartment rentals, with the expectation that the number of international students will rise markedly.
DANIEL HORROBIN
Pre-covid, Auckland attracted about 52,000 international students a year but Covid and travel restrictions has seen that drop to about 12,000 international students this year.
In terms of city apartments in the $500,000plus category there is also an increased level of interest, bringing in all categories of buyers including First Home Buyers.
Director of City Realty Group, Daniel Horrobin, says: “The sub-$500,000 category is performing extremely well and there has been active bidding on every single property we’ve auctioned in this category.
“This is Ray White Auckland Central’s fourth consecutive month of strong auction clearance results. Over the last three months our auction clearance rates have averaged 78.4% and year-to-date, from January to the end of August, they are sitting at 75.57%.”
“So our auctions continue to drive strong results.”
The number of Trade Me rental searches Auckland-wide is up 6% from the previous month.
This pick-up in the rental market has not yet driven a significant increase to rental prices but there is anticipation that rents will increase further as we advance towards the end of the year.
Ray White Auckland Central’s strong auction clearance driven by the under $500,000 category.
Daniel says: “We are expecting a large increase in their numbers in the first term of 2023, opening up a significant opportunity in Auckland’s city apartment market.”
Ray White Auckland Central had another strong month for auction clearance rates in August, underlined by solid interest in the under-$500,000 apartment category.
This interest in city apartments selling for less than $500,000 continues to be driven by investors. Around 57% of city apartment listings fall into the sub-$500,000 category, making it a key driver of the market.
5 City Realty Group Director 021 595 976 daniel.horrobin@raywhite.com
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ANALYSIS: On average each year in New Zealand about 80,000 houses are bought and sold around the country. This is about 4.4% of the total housing stock and means that for the vast majority of people the sometimes large ups and downs of house prices are irrelevant. So why do we pay so much attention to what is happening in the housing market?
too far from our workplace, perhaps with some outside space for playing, gardening, and hanging the washing.
This is a problem for current first home buyers right this moment because of the stage which our housing cycle has just reached. Currently there is a dominant focus on how much further prices have to fall after already declining 10.4% from their nationwide peak last November. Auckland prices are down 16%. The common expectation is that prices will decline maybe another 5%. After that it seems the prevalent view is things will sit flat for an extended period of time. Actually, I expect rises of 5% - 10% in 2023.
Tony Alexander: The riskiest move a first home buyer can make right now.
When we talked about getting a foot on the property ladder it was in the context of starting small, then later upgrading to account for more children and a higher income further up the work ladder. These days it seems more to refer to outright building of a financial wealth portfolio and avoiding missing out on wealth accumulation being enjoyed by others.
Mainly it is because we consider more wealth to be better than less. If house prices are rising, we feel richer, potentially more clever and pleased with ourselves, happier about our ability to fund our retirement by downsizing if necessary, and perhaps we like a reason to justify spending up large on a holiday or new furniture.
But for those of us who made our first purchase before governments told us we needed to build wealth for retirement because national superannuation might not be affordable one day, lifetime wealth accumulation was not really the motivation. Our focus was on securing a home in which to raise a family. We wanted something not
Should you try and be clever and hold out for the final 5% of price declines? Consider this. Have you ever heard your parents or grandparents bemoan the fact they bought their first house for $65,000 but had they waited three months could have got it for So,$61,750?arefirst
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If you are a first home buyer and your focus is on wealth growth, then you think you are incentivised to hold off until prices have bottomed. This is a dangerous strategy easily challenged in two ways.
You can pick up a property for as much as 15% - 20% less in Auckland than you would have paid late last year. In Auckland you have 80% more houses to choose from than a year ago, outside of Auckland almost 130% more. Vendors have likely reached
home buyers in fact starting to focus on the new opportunity to secure a home? Maybe. My latest survey of real estate agents shows that for the first time since September last year more agents are seeing increased numbers of first home buyers than decreased numbers. Last month a net 36% were seeing fewer. Things may be changing very quickly amongst first home buyers and if you have a misplaced focus on getting your first housing asset at the bottom of the price cycle rather than your first owned home, then the clock is ticking against you.
My survey with REINZ shows that worries about high interest rates, access to finance, and even falling prices, are all abating. It also shows numbers attending open homes rising for the first time since February 2021. The housing cycle has now entered the preparatory phase for turning back upward.
- Tony Alexander is an independent economics commentator. Additional commentary from him can be found www.tonyalexander.nzat
That is, you sell when markets are exceptionally frothy and there is no trouble finding a buyer who sets no conditions for the lesser quality asset you might want to sell. You buy when there are a high number of sellers, you can use each as a bargaining chip against the others, and you can pick and choose the best quality assets with greatest long-term or yield growth potential.
My monthly survey of real estate agents undertaken alongside REINZ has just shown that 45% of investors looking to make a purchase are motivated by hopes of finding a bargain, up from 30% in February. The smallest net proportion of agents are seeing investors standing back from the market since September last year.
Second, if your focus is where it should be on securing a home rather than the first housing asset for your portfolio, then where the market sits right now, potentially even this month, is as good as it is going to get for a very long time.
their point of capitulation to market reality, with a recent ASB survey showing a net 31% of people expect prices to fall further (28% in Auckland). This survey is not a good predictor of what will happen, but it does in this instance allow us to say vendors have almost certainly lost faith in any belief that waiting will yield a better price.
First, as a newbie in the investment field you won’t yet have learnt a key lesson the experienced investors have. Don’t try to pick the tops and the bottoms. You’ll feel far worse waiting too long and missing either than taking advantage of the large number of people on the other side of the transaction giving you the ability to pick and choose.
Auckland Central.
TotalSalesTotal Sales Value Median Sales PriceMedian Days On Market Market Statistics.
There was a 67% decrease in the total sales volume year on year.
There was a 56% decrease in the total number of sales year on year.
9 $27,810,55061 $455,910.6671$86,448,388141 $781,357.4279
August 2022August 2022 August 2022
Source: REINZ
August 2022
August 2021
August 2021August 2021 August 2021
There was a 10% decrease in the total median days on market year on year.
There was a 41% decrease in the total median sale price year on year.
BEDROOMS SALE PRICE SALE DATE
1B/99CUSTOMS STREET WEST 2 $240,000 30-AUG-22 106/27UNION STREET 2 $648,000 29-AUG-22
1F/132VINCENT STREET 2 $670,000 23-AUG-22 1309/30BEACH ROAD 1 $82,000 23-AUG-22
130/4DOCKSIDE LANE 1 $105,000 18-AUG-22 1702/138ANZAC AVENUE 1 $80,000 18-AUG-22 314/35ALBERT STREET 1 $469,000 17-AUG-22 3702/10COMMERCE STREET 1 $1,120,000 17-AUG-22
118/57MAHUHU CRESCENT 2 $195,000 31-AUG-22
CARPARK 23/430QUEEN STREET 1 $77,100 18-AUG-22 1202/1PARLIAMENT STREET 1 $378,000 18-AUG-22
12A/66EMILY PLACE 1 $621,000 19-AUG-22 117/72NELSON STREET 2 $277,000 18-AUG-22 404/125CUSTOMS STREET WEST 2 $530,000 18-AUG-22 1209/430QUEEN STREET 2 $293,100 18-AUG-22 1204/430QUEEN STREET 2 $297,600 18-AUG-22
10B/4ST PAUL STREET 1 $320,000 29-AUG-22
Recent Sales.
1407/47BEACH ROAD 2 $1,650,000 25-AUG-22
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ADDRESS
509/22NELSON STREET 1 $377,000 26-AUG-22
4202/10COMMERCE STREET 1 $1,200,000 26-AUG-22
835/72NELSON STREET 2 $470,000 25-AUG-22 GD/16MARKET PLACE 2 $479,000 25-AUG-22
1809/11LIVERPOOL STREET 1 $185,000 25-AUG-22
4D/23EMILY PLACE 0 $280,000 26-AUG-22
1711/11LIVERPOOL STREET 1 $180,000 24-AUG-22
AUCKLAND CENTRAL
20PAKENHAM STREET EAST 1 $115,000 22-AUG-22 307/32SWANSON STREET 1 $420,000 20-AUG-22
5C/22BERESFORD SQUARE 1 $560,000 15-AUG-22 604/72NELSON STREET 2 $270,600 15-AUG-22 15H/76ALBERT STREET 1 $120,000 15-AUG-22
326/8DOCKSIDE LANE 2 $140,000 24-AUG-22
2203/1COURTHOUSE LANE 2 $900,000 24-AUG-22
502/47HOBSON STREET 1 $430,000 3-AUG-22
205/22FISHER-POINT DRIVE 2 $822,000 9-AUG-22
413/421QUEEN STREET 3 $460,000 10-AUG-22
6A/14WATERLOO QUADRANT 1 $205,000 15-AUG-22 1202/30BEACH ROAD 1 $50,000 12-AUG-22
4M/147HOBSON STREET 2 $299,000 9-AUG-22
13/23GRAHAM STREET 2 $1,200,000 5-AUG-22
4E/205HOBSON STREET 2 $710,000 4-AUG-22
3B/89VICTORIA STREET WEST 1 $481,000 10-AUG-22
216/76ALBERT STREET 0 $100,000 15-AUG-22
2G/205HOBSON STREET 3 $915,000 4-AUG-22
13B/4ST PAUL STREET 1 $318,000 3-AUG-22 505/70PITT STREET 2 $605,000 2-AUG-22
402/2DOCKSIDE LANE 2 $142,250 4-AUG-22 120/57MAHUHU CRESCENT 2 $180,000 4-AUG-22 113/77HALSEY STREET 1 $140,000 3-AUG-22
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10C/2WHITE STREET 1 $85,000 3-AUG-22
BEDROOMS SALE PRICE SALE DATE
Sales data is from REINZ and covers the entire Central Auckland property market.
1408/53COOK STREET 2 $420,500 10-AUG-22
ADDRESS
Recent Sales.
47A/147QUAY STREET 0 $170,000 11-AUG-22
5B/100ANZAC AVENUE 1 $285,000 6-AUG-22 104/145NELSON STREET 2 $530,000 5-AUG-22
1B/34LIVERPOOL STREET 1 $70,000 3-AUG-22
519/133BEACH ROAD 1 $41,400 1-AUG-22
402/155BEAUMONT STREET 2 $1,970,000 10-AUG-22 505/83HALSEY STREET 2 $748,000 10-AUG-22
114/32SWANSON STREET 2 $668,000 9-AUG-22
L5/363QUEEN STREET 1 $185,000 9-AUG-22
908/1PARLIAMENT STREET 2 $860,000 9-AUG-22
1905/10COMMERCE STREET 1 $971,000 1-AUG-22
AUCKLAND CENTRAL
In fact, New Zealand house prices almost exactly doubled in value, on average, in every decade between 1980 and 2010 –and doubled again in the 12 years between
Ashley Church: Four questions for nervous first home buyers.
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2010 and 2022 – with that growth in house values giving us the freedom to travel, invest in businesses, assets and ideas, improve our lives and prepare for our retirement. It’s primarily for this reason that I strongly believe that there’s no ‘bad’ time to buy and that the right time to get into the market is as soon as you’re in a position to do so.
These thoughts are neither unreasonable, nor new – in fact every generation of firsthome buyers that went before you have grappled with the same issues – so here are some questions that might help you to decide whether waiting is really the right choice for you:
COMMENT: I’ve had the very real privilege of mentoring many people in their property journey over the years – but by far the most satisfying of these relationships are those which have involved helping people get into their first home. There are few things as fulfilling as knowing that you’ve played a part in helping to get someone onto the property ladder and, as I’ve stated many times before, if I had my way, first-home ownership would be one of the primary policy aspirations of any government.
Why? Because home-ownership transforms our relationship with society. It enhances our sense of civic responsibility, amplifies our contribution to the economy, gives meaning to our participation in social democracy and, over time, increases our wealth.
If you’re a potential first-home buyer and have read this far you probably already know all of this – but you may also be holding back from acting based on uncertainty about house prices or interest rates, or in the belief that you might be able to snap up a bargain by waiting a bit longer.
Ashley Church: “Home-ownership transforms our relationship with society ... and, over time, increases our wealth.”
I already know your answer to this question – it’s ‘no’. Of course you expect your income to increase over time – and the same is true of pretty much every other aspect of your life. Life is about change and challenges – some will be good, some may be not so good – but most of us come through the tough times stronger for the experience. Nothing in life is certain –but owning your own home will give you a degree of independence and stability which will make it that bit easier to face the challenges that might come upon you.
3. Are you hoping to get a bargain?
importance of keeping the bigger picture in mind.
2. Once you’ve bought a home, is it your intention to own one for the rest of your life?
If the answer to this question is yes – if your plan is to remain a homeowner in either your first or subsequent homes –then the time to buy is now. Why? Because the medium to long-term trajectory of house prices is up which means that whatever you pay today will be eclipsed by what your house is worth in 10, 15 or 20 years. I once haggled over the last $5000 in a house purchase where I eventually paid $371,500. Eighteen years later that house is now worth around $1.8 million. The rate of growth may not be at quite that pace going forward, but it illustrates the
Buying now doesn’t mean you can’t make a great purchase. One of the advantages of a flat market is that everything is up for negotiation. If you have the luxury of time, test the market to see whether that place you love really is out of your price range. If you’re ready to buy, the headlines are irrelevant. It’s all about what goes on between you and the vendor.
1. Did you predict that the property market would peak in November of last year?
4. Do you expect to be earning what you’re earning now in 20 years?
If you didn’t see the sudden turn in the market coming last year, you’re in good company. No one did. For all of the headlines, commentary and hyperbole –not one economist or commentator saw the peak coming and they were all caught off guard. My point? The same is true with picking the bottom of the market. Everyone thinks they can do it, but no one really can – and when it turns, it can turn quickly.
Best of luck, whatever you choose to do.
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Ray AucklandWhiteCentral.
Our office achieved the No.4 Ray White office in the world for 2018 and the No. 2 Ray White office in New Zealand for 2018 and we do the highest volume of sales across all agencies in New Zealand.
Based in the heart of Auckland City, Ray White Auckland Central is an award-winning agency in Auckland City that specialise in apartment sales for investment, luxury waterfront and lifestyle.
We’re on Up-and-up.the in the ApartmentAuckland& market.
Residential
0800 002 420 www.rwaucklandcentral.co.nz 20-21 Leaders
Our 183+ dedicated professionals who understand this unique market, are all top performers who have contributed to our phenomenal results. As the Auckland central market continues to experience unprecedented growth, our Lorne Street & Wynyard Quarter offices are well positioned to maintain its leadership in the market.
Why choose us?
City Realty has a strategic partnership with LoanMarket, to provide clients with the best mortgage advice and rates with brokers throughout our offices that provide Home Loans, First Home Buyers Loans, Construction Loans, Refinance, Selfemployed Loans and Vehicle Finance – whatever the loan, LoanMarket can help.
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City Realty Limited (Licensed REAA 2008)
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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.
Marketing your home.
Our marketing strategy comprises of 3 key components; property portals, social and multi-channel digital strategy and print media.
A PASSIVETOMARKETINGCOMPREHENSIVESTRATEGYREACHACTIVE&BUYERS.
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.
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
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
Property Portals.
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.
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
ACTIVE & PASSIVE BUYERS
Digital Marketing.
PRIMARILY PASSIVE & SOME ACTIVE BUYERS
PRIMARILY ACTIVE & SOME PASSIVE BUYERS
Print Media.
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There are 3 key portals, TradeMe Property, Realestate.co.nz and PropertyOneroof.co.nz.Portals
18 SPECIALISTSSALESOUR
Director AML OfficerManagerGeneral Sales AucklandManagerCentral Auction Manager Sales WynyardManagerQuarter HorrobinDaniel VermaVikas CameronBrain BridgmanPauline RichardsMike HensonBelinda Operations Manager Jane Martin HuangAdy AileenWu GuilfordChris CaseyChen CairnsChris WarburtonCraig DavidLee WorthingtonDom ValentaDusan GibsonGillian UrrahmanHabeeb HindanKhan JeanOoi JeongLee JohnMin SALES TEAM - AUCKLAND CENTRAL OFFICE Head of Recruitment BurkeAdam
Meet the team.
YurakJudi
ThomasWarren Our strongest team yet Selling right across Auckland Central & City fringe BoddeAndre DamianPiggin GalateanuGabriela BeliakMax SALES TEAM - WYNYARD QUARTER OFFICE SPECIALISTSSALESOUR AndreaManni
SteveKirk
ZhangLisa StephensLouise MarcoSahar MarkLi MayMa
SeanMa SimingZhou SteveKing VictorLiu
Justin Choi Keisha Gutierrez SamuelKrister ZhuLeo
MichelleYurak ArmstrongNick OrielLynn BridgmanRyan HuangSam
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Grow.Recognise.Create. The group with the family factor. www.rwaucklandcentral.co.nz
