Parnell Living April

CONTENTS

39 BELL ROAD, REMUERA

Feature Listing.

A Keshaw McArthur architectural masterpiece that underwent a total renovation in 2019. Blending ultra-modern features with the original villa’s timeless elegance, this property exudes an LA chic vibe in the coveted suburb of Remuera. Adored by our current owner who has had a change in circumstance, here is an opportunity to create memories in style.

Property Features;

• Fee simple 925sqm (more or less) land holding

• The new revised extension is born out of a framework that uses the large bay window overlooking the pool terrace as the focus, with all other zones hinging from this point.

• The architects realised the idea of a free-flowing kitchen by using Fisher & Paykel’s premium integrated appliances alongside those with a minimalist, all-black design, and distributing them between the kitchen and pantry to enhance function

• DCS Grill sheltered by an overhead canopy extends the home’s cooking capacity to the outdoors, regardless of the season

• Cerulean blue Beverly Hills style heated swimming pool & spa

• Indoor/outdoor Nuvo sound system, Irrigation system, central heating & cooling (zoned), Louvretec system, European tapware throughout, Elite alarm system accessible via phone app, SCE Stone & Design - ‘Oriental light’ marble tiles in bathrooms & American Natural Oak Voca stained floors

• Virtually self-contained below - perfect for teenagers & entertaining - think moody media room, sleepovers and parties.

Timeless & Elegant

LOOK BOOK

39 BELL ROAD, REMUERA

rwparnell.co.nz/2860201/

Top: Restaurant

Above: Sushimi

Right: Platter

CHEF AKIRA KUGUE

Akira is a trained sushi chef from Kyoto, Japan. He is passionate about delivering the optimum flavour of fresh sashimi and sushi.

In 1996, Akira moved to New Zealand and ran Seamart sushi bar and Auckland Fish Market in Viaduct as well as teaching sushi & tempura cooking class at the Seafood Market. In 2006, he opened Gion Japanese Restaurant.

Akira describes his food as simple, heart-warming and traditional.

His goal is to bring the original taste and visual experience of Kyoto to his customers.

The restaurant is named after an ancient district in Kyoto, Gion Japanese Restaurant gives an ambience of the old Japan. Served by kimona clad ladies, customers are welcomed with a serving of green tea.

The restaurant’s interior is decorated with touches of traditional Japanese elements creating a relaxing and warm environment.

Upscale Japanese place offering a wide range of classic fare in a polished, traditional atmosphere.

Gion Japanese Restaurant blends in unique elements of Kyoto in Japan which creates a unique dining environment, unveiling the relationship between food and nature.

Upcoming Auctions

Tues 04 April

Wed 05 April

Wed 12 April

5B/21 George Street, Newmarket

Auction: 10:30am, 4 April (unless sold prior) In rooms, 272 Parnell Rd

Sun 16 April

401/8 Mount Street, Auckland Central

Auction: 12:30am, 5 April (unless sold prior) In rooms, 272 Parnell Rd

6 Church Street,

Auction: 11:30am, 12 April (unless sold prior) In rooms, 272 Parnell Rd

6 Cox Street, Ponsonby

Auction: 11:30am, 12 April (unless sold prior) In rooms, 272 Parnell Rd

Thu 20 April

6/51 Court Crescent, Panmure

Auction: 11:30am, 12 April (unless sold prior) In rooms, 272 Parnell Rd

6B Vialou Lane, Stonefields

5/22B

6B

Auction: 1:00pm, 16 April (unless sold prior) On Site

Auction: 2:30pm, 16 April (unless sold prior) On Site

Auction: 4:00pm, 16 April (unless sold prior) On Site

Auction: 11:00am, 20 April (unless sold prior) In rooms, 272 Parnell Rd

Auction: 11:00am, 20 April (unless sold prior) In rooms, 272 Parnell Rd

Thu 20 April

Sat 22 April

8E/117 Victoria Street West, CBD

Auction: 11:00am, 20 April (unless sold prior) In rooms, 272 Parnell Rd

11C Hamilton Road, Herne Bay

Auction: 1:30pm, 22 April (unless sold prior) On Site

Sun 23 April 424 Scenic Drive, Waiatarua

Auction: 1:30pm, 23 April (unless sold prior) On Site

36 Briody Terrace, Stonefields

Auction: 4:00pm, 23 April (unless sold prior) On Site

Otahuhu

32 Sierra Street, Glendowie

264 Mount Albert Road, Sandringham

Arabi Street, Sandringham

Buisson Glade, West Harbour

Recipe

Easter Hot Cross Buns

INGREDIENTS METHOD

• 200 ml semi-skimmed milk

• 55 g unsalted butter

• 2 x 7 g sachets of dried yeast

• 455 g strong bread flour , plus extra for dusting

• 1 teaspoon mixed spice

• 1 teaspoon cinnamon

• 1 whole nutmeg , for grating

• 55 g caster sugar

• 2 balls of stem ginger

• 1 large free-range egg

• 2 tablespoons plain flour

• 55 g sultanas or raisins

• 30 g dried cranberries

• 2 tablespoons mixed peel

• runny honey

1. Add the milk and 50ml water to a small pan and place over a low heat for a few minutes, or until slightly warm – you should be able to dip your finger in without scalding it.

2. Add the butter to a separate pan and place over a low heat for a few minutes, or until melted, then set aside.

3. Transfer the warmed milk mixture to a medium bowl and stir in the yeast.

4. Sift the flour into a large bowl, then add 1 teaspoon of sea salt, the spices, a few good scrapings of nutmeg and the sugar. Finely chop the stem ginger and stir it into the mix.

5. Make a well in the centre and pour in the melted butter, followed by the yeast mixture. In a separate bowl, beat the egg and add it to the bowl.

6. Using a fork, mix well until you have a rough dough, then transfer to a clean flour dusted work surface and knead for around 10 minutes, or until soft and springy.

7. Return the dough to a flour-dusted bowl, cover with a damp tea towel and leave to prove in a warm place for at least an hour, or until doubled in size.

8. Transfer the dough to a clean flour dusted work surface. Knock the air out by bashing it with your fist, then sprinkle over the dried fruit and mixed peel and knead into the dough for 1 to 2 minutes.

9. Preheat the oven to 190ºC/375ºF/Gas 5. Grease and line a large baking tray.

10. Divide the dough into 12 equal pieces and roll each into a ball, evenly spacing them out on the tray as you go.

11. Cover with the tea towel and leave in a warm place for a further 30 minutes, or until doubled in size.

12. Place the plain flour and 2 tablespoons water into a small bowl and mix to a thick paste.

13. Gently pat down the risen buns then use the batter to carefully trace a cross over the top with a piping bag or spoon.

14. Place the buns into the preheated oven for 15 to 20 minutes, or until golden brown.

15. Transfer to a wire cooling rack, brush over a little honey to glaze, then leave to cool.

16. Slice open the sticky hot cross buns, spread with a little butter and serve – delicious

Makes 12 Cooks in 2hrs 30mins www.jamieoliver.com

Latest Listings to Love

PARNELL

23 Judges Bay Road, Parnell

A supreme study in organic materials and superlative style that has been finished to the nth degree, this north facing, contemporary three-bedroom in premium Parnell is city fringe living at its best.

3 3 2

Price by Negotiation

Open Homes

See online for viewing times

Cheryl Paine 021 667 778

rwparnell.co.nz/2769300/

3/29A Birdwood Crescent, Parnell

The Muse on Birdwood offers the perfect blend of convenience and a work life dynamic to suit the most astute and savvy, making this the perfect lifestyle choice, well suited to professionals, downsizers, smaller families, plus investors seeking an easy low maintenance property, with complete peace of mind.

Birdwood

The Muse on Birdwood offers the perfect blend of convenience and a work life dynamic to suit the most astute and savvy, making this the perfect lifestyle choice, well suited to professionals, downsizers, smaller families, plus investors seeking an easy low maintenance property, with complete peace of mind.

Viewing by appointment

6/29A

Crescent, Parnell

REMUERA

Imagine waking up every morning to beautiful ever changing sea views from this north-facing apartment in the popular, sought-after “Kingsview” block.

Asking Price $3,900,000

Open Homes View online for details rwparnell.co.nz/2862449/

Remuera

Remuera

This stunning near-new home has so much to offer. It is set on an elevated 1171m2 (approx) north-west facing site with expansive and panoramic views from Mt Hobson through to Sky Tower and Devonport. It is also of course on the desirable northern slopes of Remuera.

Price by Negotiation

Viewing by appointment

6/164 Remuera Road, Remuera

Asking Price $2,000,000

Open

Janet Lambert 027 473 6023

rwparnell.co.nz/2722939/

You will just love the spectacular sweep of the wide harbour and city scape views from this beautiful, north facing apartment, at 422B Remuera Road, across the road from the library.

422B Remuera Road, Remuera 4 2 Janet Lambert 027 473 6023

THE BAYS

72 Melanesia Road, St Heliers

Luxury meets elegance inside this beautifully renovated turn century villa, such a rare find in the sought after Bays’ location. Standing out from other properties with its beautifully crafted design, natural materials and lavish finishes, this is a property that will suit the discerning buyer.

This stunning family home is everything you want and probably more! Set up a private driveway you’ll love the peace, quiet and views that it offers and you’ll love the quality that is on show throughout.

Unit 2,3,5,6,7,8/64 Atkin Avenue, Mission Bay

Embrace this opportunity to own a brand-new luxurious home in one of the Bay’s most desirable locations. The elevated north-facing position of these freehold properties on the Atkin Ave ridgeline provides superb city views with the sparkling waters of the harbor and the comforting presence of Rangitoto.

Kristine Liu 021 530 521

Price by Negotiation

Viewing by appointment

32 Sierra Street, Glendowie

Built in the 1960s, a time when family and entertainment were paramount. You can imagine this recently renovated family home that has rooms galore, filled with people playing cards, Monopoly, sitting around a large family table for dinner or sipping martinis on the deck or in the private courtyard.

Auction (unless sold prior) 1:00pm, 16 May

Open Homes Saturday & Sunday 1:00pm - 1:30pm

rwparnell.co.nz/2871953/

3 Lalanga Lane, Wai O Taiki Bay

ORAKEI & MEADOWBANK

Our owners are northward bound from Auckland so their family home is seriously for sale. Enjoy the convenience and lock up and leave aspects of this solid freestanding townhouse. Drive down off the road to a California style well proportioned home.

Price

Open Homes

See online for viewing times rwparnell.co.nz/2854172/

AUCKLAND CENTRAL

The Unicentre represents an outstanding opportunity for the investor looking to purchase an investment similar to a small commercial property with a core tenant (AUT) who provide a 21 years guaranteed net rental until 2025 with a right of renewal of renewal for a further 9 years until 2034.

Auction (unless sold prior) 12:30pm, 5 April

Open Homes View online for details rwparnell.co.nz/2868504/

For over 100 years this ravishing solid timber villa at the end of a city cul de sac has borne witness as the neighbourhood flourished and expanded. Now nestled close to the heart of all essential amenities, the nostalgic weatherboard classic has been fully contemporised to provide the best of both worlds.

Price by Negotiations

Open Homes

See online for viewing times rwparnell.co.nz/2860050/

28 Seafield View Road, Grafton

PONSONBY & HERNE BAY

6 Cox Street, Ponsonby

Six Cox Street is the archetypal Ponsonby villa that people cherish. Beautiful history that can’t be replicated. Purchase this home and take it back to its former glory and exceed it.

Auction (unless sold prior) 11:30am, 12 April

Open Homes Saturday & Sunday 11:00am - 11:30am rwparnell.co.nz/2871916/

11C Hamilton Road, Herne Bay

It’s time for the big reveal showcasing the significant refurbishment just completed on this enduring 1980s built brick and cedar freestanding townhouse. Cutting edge 21st Century chic is evident in every room of this stunningly curated and spatially generous home set back on an exclusive enclave in Herne Bay’s upmarket heartland.

John Q 021 0278 2708

Auction (unless sold prior) 1:30pm, 22 April

Open Homes

See online for viewing times rwparnell.co.nz/2875026/

GREENLANE ONE TREE HILL & ONEHUNGA

66 Pleasant Street, Onehunga

With space to expand, renovate or build new, the opportunities are endless. The local schools are within 5 minutes walk (Onehunga HIgh and Royal Oak Intermediate) and local shops and cafes are all within walking distance.

Asking Price $1,399,000

Open Homes

See online for viewing times

Onehunga

Here is a fantastic development opportunity on offer. A nearlevel sunny 490sqm site in a very handy location of Onehunga. Zoned for Mixed Housing Urban and within walking distance to supermarket, bus, train station, and Dressmart with easy access to Motorway.

25 Wheturangi Road, Greenlane

A timeless single-level double bay bungalow located 300m from Cornwall Park on a tree-lined premium Greenlane street. On a freehold title, the home is set back from the road, where you will enjoy privacy and security - along with a relaxing and quiet green outlook.

3 1

Asking Price

$1,599,000

Open Homes

See online for viewing times

Dean Tuffley 021 311 993

rwparnell.co.nz/2848013/

ELLERSLIE

170A Ladies Mile, Ellerslie

Displaying all the conventional charm of the 1930s era, this immaculately maintained weatherboard home is elevated above the road for an outlook of urban leafy views across the neighbourhood. The charming four bedroom bungalow will appeal to families who will be immediately captivated by the abundant living and entertaining spaces indoors and out.

4 2 2

Price by Negotiation

Open Homes

See online for viewing times

Selling for $100,000 below CV and well below what they paid for it several years ago. Their loss, your gain! Here’s an opportunity to buy for the lowest price ever on record in this complex! The price is way lower than 2017 prices.

ST JOHNS

This elevated premium site with road frontage in a quiet cul de sac. Freehold full section of 839 sqm land with Mixed Housing Suburban zoning. Fabulous opportunities are at the tip of your fingers - the choice to renovate or develop this unique site

3

1

Price by negotiation

Open Homes

8 Ronald Algie Place, St Johns

EPSOM & NEWMARKET

61 Gillies Avenue, Epsom

What a magnificent opportunity to live here and plan your future palace! Move in, follow the sun, sort out any trees you want removed and dream big! The site is over 4000m² and is fringed with dense lush bush and within walking distance to the Grammar Schools.

5B/21 George Street, Newmarket

Perched upon on the crest of George St, this prized penthouse with stunning views directly over the Auckland domain. For sale for the first time in 23 years, it lays testament to this perfect lock up and leave lifestyler.

3

Auction (unless sold prior) 10:30am, 4 April

Open Homes

Price

Open

STONEFIELDS

6B Vialou Lane, Stonefields

The vendor wants this sold at the auction and has prepared for the market, viewing by open home only but do not miss this and make your offer.

Auction (unless sold prior) 4:00pm, 16 April

Open Homes

See online for viewing times

36 Briody Terrace, Stonefields

This Fletcher-built home from 2010 features brick and Linea weatherboard cladding, and a tile roof. It has been well looked after since it was brand new.Enjoy the timeless quality of the fruit trees, gardens, and lawns. This low-maintenance property is perfect for downsizers or families.

Auction (unless sold prior) 4:00pm, 23 April

Open Homes Sat & Sun 11:30am - 12:00pm

16 Garin Way, Stonefields

This stunning terrace end home is a distinctive designer take on a classic Stonefields terrace end villa. Well screened from the quiet street by mature manicured hedging, the 262 sqm (approx.) freehold site is configured to optimise north facing sun benefitting the elegant two storey 2009 built brick home within.

Price by Negotiation

Open Homes Sunday 12:30pm - 1:00pm

17B Fynes Avenue, Stonefields

16 Charles Heaphy Lane, Stonefields

Nestled at the peak of Stonefields, this 2017 Fletcher-built terrace home allows for privacy in a quiet location that has no development site in the surroundings. Its neutral decor, and modern and quality design make this home enjoyable all year round.

See online for viewing details

AUCKLAND EVENTS

COMING UP IN APRIL

TOUCH BASS 2023

Spark Arena 06 April

ROD STEWART

Spark Arena

09 April

THE 1975 Spark Arena

10 April

PAINT & CHILL - VAN GOGH STARRY NIGHT!

Auckland City Hotel

15 April

VECTOR LIGHTS FOR ANZAC DAY

Auckland Harbour Bridge

21 April

THE TEN TENORS

Kiri Te Kanawa Theatre 28 April

THE EXPONENTS

Great Hall, Auckland Town Hall 28 April

MOUNT EDEN

602/1 Enfield Street, Mount Eden

Experience the ultimate in luxury living with this brand-new penthouse apartment at 602/1 Enfield Street, Mount Eden. Boasting two bedrooms, two bathrooms, and two secure carparks, this stunning apartment is the perfect place to call home.

Price by Negotiation

Viewing by appointment

NEW WINDSOR & NEW LYNN

6 Bannister Place, New Windsor

It provides four decent sized bedrooms with brand new bathroom, open plan dining & kitchen connect to the decking area with stunning views, which creates great indoor and outdoor flow and perfect entertainment area for the families and friends to enjoy the life.

See online for viewing times

16C Gollan Road, Mt Wellington

Don’t miss out on the opportunity to own this stunning, brandnew weatherboard home located on a rear section off a quiet cul de sac, with passcode protected gated property for added security. But hurry, this property won’t be available for long!

53A Boakes Road, Mt Wellington

On offer for the first time in 18 years this 1960,s style block of 4x 2 bedroom units is ripe for the picking. Take advantage of a slower market to lock in an excellent buying opportunity.

POINT ENGLAND

102/7D Hinaki Street, Point England

WEST AUCKLAND

6B Buisson Glade, West Harbour

A new build double storey terrace house, consisting of 4 bedrooms and 2 bathrooms on the top floor, and one internal garage, kitchen, open plan living & dining on the ground floor which flow out to your own North-West facing garden.

Auction (unless sold prior) 11:00am, 20 April Open Homes Saturday 1:00pm - 2:00pm

12F

Fully tiled bathroom, Bosch appliances, marble bench-top, and led lights plus extras. This family-owned development is designed to reflect the history that this fantastic property holds. These quality homes are to be built with discerning style and comfortable family living in mind.

Asking Price

$880,000

Open Homes

Saturday & Sunday 2:30pm - 3:00pm

Shamrock Lane, Te Atatu Peninsula,

Superbly positioned at the very northern end of Cellarmans Street, this north-facing, sun soaked, Peter Horne designed (purpose built for himself) home is in the heart of the coveted Harbourview Estate.

NORTH SHORE

Lot 2/72 Sunnynook Road, Sunnynook

In total we have 6 homes for sale, each with their own car park close to the house. Two are free-standing homes and four are duplexes and all come with a Luxury Package which includes a fully tiled bathroom, Bosch appliances, marble bench-top and led lights.

34 & 36 William Souter Street, Forrest Hill

A huge opportunity awaits - perfectly situated in a familyfriendly Double Westlake zoned location close to everything from shops, public transport and leisure centers to some of the city’s most sought-after schools, this double site, 1808m2 (more or less) parcel of freehold bliss, zoned Mixed Housing urban, it’s everything you’ve been searching for!

Price by negotiation

Open Homes

Viewing by appointment

32 Regency Place, Sunnynook

Potential abounds at this superbly scaled (approx.) 613 m2 site that sits within the desirable dual Westlake school zone in Sunnynook. Offering something for everybody, the property is also zoned Mixed Housing Suburban, ensuring there are ample possibilities for development opportunities.

Very rarely do two properties side by side become available. With a combined land holding of 1583m2 and very good street frontage, there are lots of possibilities to explore.

Price

22 & 24 Madison Place, Forrest Hill

88 Matipo Road, Mairangi Bay

Zoned Residential Mixed Housing Suburban, this north facing 809m2 freehold site has easy contour and sea views. Currently, there is a three-bedroom home on the site, however, the real focus here is the land. This is an enticing opportunity for developers who want to maximise their investment with quality homes in this high demand location.

Price by negotiation

Open Homes

See online for vewing times

71 College Road, Northcote

1. Purchase and enjoy the long term investment, or

2. Investigate the approved resource consent for another 2 brand new dwellings keeping the existing 4 units, or

3. A new concept plan to build 14 houses.

4 1

Price by negotiation

Open Homes

See online for vewing times rwparnell.co.nz/2860291/

27 St Peters Street, Northcote

This sundrenched home is set over two levels.The first level has lovely sea & bush views and nicely consists of 4 bedrooms. The living area runs out to a deck and from the dining area you have a lovely outlook where you have different birds sing to you in the morning.

Open Homes

See online for vewing times

Lot 1/94 Mahoenui Valley Road, Coatesville

An incredible opportunity to build a substantial family home on over 10,000 sqm of prime Coatesville land. Set amongst a stunning green rural outlook whilst being protected from the natural environment - you will enjoy living in one of New Zealand’s most prestigious lifestyle addresses.

Asking Price

$1,900,000

Open Homes

Contact dean for viewing

Dean Tuffley 021 311 993

rwparnell.co.nz/2828210/

5 Merton Avenue, Glenfield

Built

Price

Open Homes

See online for viewing times

32 Mita Road, Silverdale

This brand new, freehold, standalone property has a 269sqm (more or less) section, a floor area of 206sqm (more or less) and it boasts 5 spacious bedrooms and 3.5 bathrooms.

Price by Negotiation

Open Homes

Saturday & Sunday 11:30am - 12:00pm

rwparnell.co.nz/2846766/

SOUTH AUCKLAND

6 Church Street, Otahuhu

Fabulous weatherboard home on a flat, freehold section. 3 double bedrooms, double garage with a loft and off street parking. Situated at the quiet, cul de sac end of Church street handy to school, Otahuhu shopping and Mt Wellington. Healthy homes compliant with great tenants. Current owner is retiring from being a landlord.

3 1 2

Auction (unless sold prior) 11:30am, 12 April

Open Homes

Saturday & Sunday 10:00am - 10:45am

Blair Stanaway 021 486 792

rwparnell.co.nz/2873048/

35 Longford Park Drive, Takanini

This urban oasis boasts a floor area of 230m2, filled with light and warmth, creating the perfect environment for family and leisure. Situated on 740m2 and beautifully maintained, on a fully fenced section is just what you’re looking for, you will know as soon as you enter that this home has been lovingly cared for by its one owner.

4 2 2

Enquiries Over $1,150,000

Viewing by appointment

Kelly Sinclair 021 0599 489

27 Opawa Crescent, Favona

This home is designed to maximize comfort and relaxation. With three bedrooms, you’ll have plenty of space to spread out and enjoy some peace and quiet. The master bedroom features an ensuite bathroom, providing extra privacy and convenience.

3 2 2

Price be Negotiation

Open Homes Sunday 10:30am - 11:00am

rwparnell.co.nz/2860049/

21 Bei Road, Papakura

Brand new, this two double-storey stand-alone four-bedroom home is a cut above the rest. With an impressive combined 3.5 bathrooms, including the sought-after master ensuite, you’ll enjoy the flexibility of this superb home.

Price by Negotiation

Viewing by appointment

4 3 1 rwparnell.co.nz/2738963/

17 Tau Drive, Flat Bush

This 2804m² premium section is located in the prestigious Flat Bush countryside, nestled amongst other luxurious homes in the neighbourhood. This opportunity offers the perfect chance for you to use your own imagination to design your dream home and lifestyle. Just minutes drive to highly regarded schools, the Ormiston Town centre, reserves, and public transport.

Price by Negotiation

Open Homes:

See online for viewing times rwparnell.co.nz/2672744/

This truly is an opportunity of a lifetime. Looking for a family home on the water’s edge or you’re dreamy seaside bach, bring the family and start creating your own memories.

Enquries Over $895,000 Viewing

RAY WHITE PARNELL WHY

CHOOSE US?

THE RAY WHITE PARNELL OFFICE SERVICES OUR OLDEST SUBURBS ON THE EDGE OF THE CITY AND THE WATER

Ray White Parnell is based at the heart of our communities who form Auckland’s historic boutique suburbs. We are a team of dedicated professionals who understand this unique market and are experienced in all property types - whether it’s for a family home, landmark property, city lifestyle or investing. As the surrounding suburbs remain a destination of choice for lovers of art, history and proximity to city life we are in the right location and the right frame-of-mind to provide market leading advice with a focus on people.

We encourage a unifying atmosphere where opportunities are created, individuals are recognised and everyone grows - from our team to vendors, buyers, investors, property owners and tenants. Our experienced and established team service many aspects of the Auckland City market - from rental apartments to luxury penthouse sales and from the classic family home to an epic waterfront estate. Also on offer are dedicated property management and marine brokerage teams.

We are all about open doors and open minds.

Tony Alexander: Will the US banking crisis spark a faster housing market revival?

ANALYSIS: What are the housing market implications of the run on some banks in the United States and Europe? First, none of us know how long depositor concern about banks will last and whether any more bailouts will need to be arranged. If there are a few more banks which go under, then the world’s economic outlook will get worrying enough for central banks to actively think about cutting interest rates and shelving their fight against inflation for another day. Given that the European Central Bank just raised their cash rate by half a percentage point we are well away from that scenario and it’s best to assume it does not happen.

The worries about what depositors might do will encourage banks in the United States and perhaps some other countries to pull back on their lending in order to reduce their need for liquidity. Reduced lending will curtail the pace of economic growth, strength in labour markets, business confidence etc. This will tend to depress inflation.

Weakness in share prices (it is very unclear how sustained recent falls will be) and discussion about financial instability hits household sectors around the world is now easily triggered by such things after three years of a pandemic and worrying about one’s health, finances etc. The outlook for consumer spending offshore and here is now weaker – but by how much is impossible to know.

Suffice to say some newly scared consumers will again tend to depress inflation as businesses look to discount prices to reduce inventories and shelve price-rise plans for fear that consumer response to such rises will be big spending reductions.

All we can say as we wait to see exactly what happens in the US banking sector is this: the outlook for world growth and therefore our growth is slightly worse. The outlook for inflation offshore and here is slightly better. Because the US banking shock is having the same effect as an extra tightening of monetary policy the need for interest rates to go as high as previously thought has declined.

That means that whereas two to three weeks ago the common pick was the cash rate here would peak at 5.5%, now a peak of 5.25% or 5.0% from the current 4.75% is highly likely. In response to the downward shift in New Zealand policy tightening expectations, wholesale interest rates have fallen and that has improved bank margins on fixed rate home loans.

Does this mean rate cuts to 1-5 year fixed rates are imminent?

We cannot rule out some canny discounting of some rates as banks look to hold on to their customers as about half of all fixed rates come up for renewal in the coming 12 months. But fixed rate lending margins have only gone back roughly to where they were after the last general round of cuts early in February.

But what matters when it comes to borrowing is not just where

rates are now but where they are going and in that regard more and more people will now realise that rates have almost certainly peaked and declines will come even if we really have no idea at what pace.

This then becomes a positive factor for the housing market on top of the recent news of a strong lift in net migration flows into the country. But then there is the negative factor.

Greater worries about world growth are going to make people more cautious about committing to new debt even if they have reduced fears about interest rates.

These are still early days in the banking sector depositor runs in the United States and we cannot

possibly know by how much the outlook for world growth and local interest rates has changed. Because of that the best thing I find myself able to do for now is stick with my existing view on the housing market. We are approaching the cyclical lows in house prices and sales but are not there as yet. Young buyers remain incentivised to more actively peruse properties given the continuing absence of investors, high number of listings, good job security, falls in prices since late-2021, and increasing bank willingness to lend and discount rates behind closed doors.

- Tony Alexander is an independent economics commentator. Additional commentary from him can be found at www.tonyalexander.nz

Independent economist Tony Alexander: “The outlook for world growth and therefore our growth is slightly worse.” Photo / Fiona Goodall

Loan Market: NZ banks have “sound liquidity and funding positions”

With Silicon Valley Bank collapsing in America and Credit Suisse coming close in Switzerland, you might be wondering about the resilience of New Zealand banks.

The good news is that all of the main banks are currently operating above the minimum regulatory requirements, according to the Reserve Bank of New Zealand (RBNZ).

“We are aware of the current financial stability issues with a small number of banks internationally. We are monitoring the situation closely, and are in regular contact with other regional regulators and regulated entities,” RBNZ said in a tweet.

“We are confident that the banks we are responsible for supervising have sound liquidity and funding positions. In New Zealand all registered banks are required to have systems in place to monitor and control their material risks, and this includes interest rate risks.”

“Our banks operate different business models that mean that they are not as exposed to the risks that have led to recent events. Our rigorous stress testing has shown that they are well-placed to deal with far more adverse situations than what we are currently experiencing.”

Minister for Finance Grant Robertson also said Kiwis could have confidence in the resilience of the financial system.

“New Zealand banks are required to meet the capital ratios required by the Reserve Bank. Banks currently hold significant buffers of excess capital and liquidity over regulatory minimums, and the banking sector is in good health,” reported newsroom.co.nz.

The RBNZ has planned for this scenario

Despite the strength of New Zealand’s banking system, it’s impossible to guarantee that a bank could never collapse.

That’s why the RBNZ has a tool for responding to bank failure called Open Bank Resolution (OBR).

“OBR enables authorities to re-open the failed bank the next day under statutory management and avoid the adverse consequences wherein the bank’s critical functions are abruptly disrupted. The basic idea is to provide customers access to their accounts as swiftly as possible so they can carry on making and receiving payments,” according to the RBNZ.

“In the absence of an OBR policy, the options for responding to a bank failure are limited to liquidation, government bail-out or take over by a competitor. If a private sector solution is not available, the government must therefore choose between allowing the bank to enter the liquidation process or providing public support.”

What would happen if a bank did collapse?

If you had a mortgage with a failed bank, you would be in the stronger position – after all, you would owe the bank money, rather than the other way round.

That said, your debt wouldn’t disappear. You would have to repay your loan to:

The failed bank – if it found a way to keep trading. The liquidator – if the bank collapsed. The government – if it bailed out the bank. A competitor – if it took over the bank.

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The resilience of the New Zealand housing market has never been more evident. Most New Zealanders would be surprised at the level of activity and prices achieved, even though it has operated under restrictive operating conditions.

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