Super b. ManagementPropertySuperCity 2022September .
2 SEPTEMBER 2022 Market commentary. Currently we are seeing a positive shift in the market. Since the Covid-19 pandemic, the Auckland rental market continues to improve with TradeMe’s latest Supply and Demand Report showing an increase of 2.6% in number of searches over the last four weeks compared to the previous with a total number of searches of 2.61 million. The report also states a decrease in days on market on the site by 3.7%. We’re Super-excited to introduce our first ever SuperCity Property E-Magazine.Management This monthly edition is designed to be Super informative and loaded with market updates from SuperCity Property Management, sales commentary from our Sales Super stars and Super ior information from our LoanMarkets Experts. Sit back, grab a coffee and enjoy! Gina and the Team at SuperCity Rental Market Update.
AsInvestors.wecome into Spring, we hope to see these trends continue and the market to strengthen.
We are also seeing this trend in our own portfolio with a 2% decrease in our vacancy rate from June 2022 and July 2022. We believe this shift is due to the borders opening with a report from RNZ that more than 3599 people applied for Visas on the opening day and that immigration numbers show a 73% increase on preCovid figures.
Our team is also noticing an increase in inquiry from potential tenants looking to migrate to Auckland. Many of these inquiries have either secured jobs in Auckland whilst still overseas, and are looking to secure a rental property before landing in Auckland, or wanting to secure a place before starting their job search.
Typically, Winter months are known to be a lull period for the Auckland rental market, however, with the increased activity with incoming migrants, this has proved to be beneficial to Auckland
Rental Market Comparisons. We’ve put together a comprehensive list of rental market comparisons. Simply find the area you are interested in and click the link for further information. Do you want to know the going rental rate in your neighbourhood? Thirsty for more market knowledge? Get in touch today. Delanie Horrobin 021 973 927
Takapuna, Milford, Devonport, Birkenhead, Northcote, Glenfield, Sunnynook, Birkdale, East Coast Bays, Browns Bay, Torbay, Albany, Orewa, Silverdale, Wellsford
HereClickHereClickHereClickHereClick
5 Central Auckland & City Fringe Auckland Central, Parnell, Grafton, Newton, Ponsonby, St Marys Bay, Herne Bay, Grey Lynn, Westmere, Mt Albert, Pt Chev, Sandringham, Three Kings, Hillsbourough, Mt Roskill, Owairaka, Lynfield, Mt Eden, Kingsland, Balmoral, Epsom, Newmarket, Royal Oak, One Tree Hill, Ellerslie Eastern Suburbs Mission Bay, Kohimarama, St Heliers, Meadowbank, Remuera, Glendowie, Glen Innes, Panmure, Mt Wellington West Glendene,AucklandGlenEden,Massey, Te Atatu, Westgate, West Harbour, Waterview, Avondale, Titirangi North Shore & North Auckland
6 SEPTEMBER 2022 Tips & Tricks. In a competitive market, it is crucial that your property stands out from the rest to ensure a shorter vacancy period and good long term tenancies. First and foremost, make sure that your property is compliant. As legislation and compliance continue to have greater influence on a landlord’s obligations it’s crucial to ensure that the right boxes are ticked before a tenancy is even in place. For example, ensuring that your property is Healthy Homes compliant: has adequate heating, smoke alarms and ventilation. To get more information regarding this refer to our informative Landlord Guide below. Maximising your Property’s Appeal. At this present time approximately a third of New Zealanders live in rental dwellings and this number is predicted to rise. Download the Landlord Guide Here.
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04. 05. 07.09.03.
Professional Cleaning: Have your priorprofessionallypropertycleanedtoanyviewingsif the property is vacant and/ or prior to the start of the tenancy to set a high standard and expectation moving forward. 02. Here are outpropertyensureeffectiveexamplessomeofcostwaystothatyourstandsfromtherest:
01.
Professional Photography and Staging: Invest in photographyprofessionalandstaging to ensure that your property is presented well on advertising platforms. If your property is unfurnished, we recommend investing in virtual staging.
Furniture: Make sure that you choose furniture that suits your property eg: furnishings that work in a large house won’t necessarily work in a smaller apartment.
Property Pack: Provide a property pack with guides to looking after the property, appliance handbooks, cleaning aids eg: glass wiper for the shower door, ceramic element cleaner.
Additional Security: Where possible make your property more secure. Install additional locks, window restrictors.
Decor: Ensure that your property has an appealing decor. A simple change in paint colour can make a big difference also choosing a darker coloured carpet can help avoid obvious stains and marks. Is your property pet friendly? Install a dog washing station outside. Ensure that there are adequate gates and fences. Install picture hooks: This not only saves the tenants the hassle of having to do this but can also minimise wear and tear to the walls.
Additional Storage Options: Add in alternative storage options where possible. Install shelving, hooks on backs of doors, purchase furniture with built in storage options,install a garden shed. 06. 08.
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Low maintenance gardening. Look at your yard, is it easy to maintain? Having a low maintenance garden will ensure that your property looks clean and tidy and well kept.
8 SEPTEMBER 2022 Ray White Parnell. City Realty Limited Licensed (REAA 2008) Gabriela Galateanu 020 4141 3853 $1,550,000 Ray White Wynyard Quarter. City Realty Limited Licensed (REAA 2008) 2 1 1 Wynyard Quarter. 405/155 Beaumont Street Tanya Kwasza 021 59 39 39 $1,800,000 2 2 1 Danika Ansley 021 0226 1217 Enquires Over Wynyard Quarter. 610/70 Daldy Street
9 Dusan Valenta 022 086 0577 $359,000 Ray White Auckland Central. City Realty Limited Licensed (REAA 2008) 1 1 0 Lisa Stone 021 504 674 Auction Ray White Auckland Central. City Realty Limited Licensed (REAA 2008) 3 2 2 Steve Stone 021 966 499 Parnell. 24A St Georges Bay Road Auckland Central. 3C/6 Victoria Street East
10 SEPTEMBER 2022 Ray White Auckland Central. City Realty Limited Licensed (REAA 2008) By Negotiation 2 1 1 Ady Huang 021 107 86 49 $189,000 Ray White Auckland Central. City Realty Limited Licensed (REAA 2008) 2 2 1 Dominic Worthington 021 735 278 Jevin Chao 021 199 4918 Matthew Haines 022 544 7149 Auckland Central. 909/8 Ronayne Street Albany. 307/2A Munroe Lane
11 Ray White Sandringham. City Realty Limited Licensed (REAA 2008) Ray White Sandringham. City Realty Limited Licensed (REAA 2008) Josh Lowe 021 188 8991 Bryce Taylor 021 273 3990 $899,000 2 1 0 Adam Humphris 021 063 7043 Set Date Of Sale 3 1 1 Mike Butler 027 707 4321 Glen Eden. 20 Savoy Road Te Atatu Peninsula. 4 Mana Place
Daniel says: “There’s definitely an expectation that the CBD will benefit from this influx of people and while it may not happen overnight it will happen over the coming months. Auckland’s CBD is a natural and convenient place for international students and for migrants to first ‘land’ and assess the lay of the land.”
Auckland Centrals’ third consecutive month of strong auction clearance.
Activity is being driven primarily by investors, predominantly those seeking apartments priced towards the lower end of the market. They express confidence that New Zealand’s re-opening to all international students and migrants from July 31 2022 will progressively drive increased demand for rental apartments in the city. (This is the first time New Zealand’s borders have been fully open to everyone, including those from non-visa waiver countries such as China and India, since they were shut to keep Covid-19 out in March 2020).
Sales commentary.
12 SEPTEMBER 2022
Director of City Realty Group, Daniel Horrobin, says: “These continuing strong auction clearance results provide definite confirmation that Auckland’s city apartment market is bucking the trend experienced by other markets.
Another strong month in July in terms of auction clearance rates has been the third in a row achieved by Ray White Auckland Central.
“July’s strong results mean we have achieved an 80% auction clearance rate over the last three months combined. And Ray White Auckland Central’ year-todate auction clearance rate equates to a pleasing 75% over the first seven months of this year.”
DanielDirectorHorrobin
The Auckland Central’ team have robust, targeted structures and processes in place around their auctions, resulting in packed auction rooms week after week and a sense of urgency and competitiveness amongst buyers.
“the increase in inquiries, positive auction clearance rates and rise in new listings are all indicators of positive energy in the market.”
Meanwhile some buyers who previously struggled to get mortgages are reportedly starting to reapply for them, hopeful after the tightenedin2021enactedandCCFAsomeafterofrequirementsloosenedGovernmentsomewhatlendingfromJuly7thisyear.Thishappeneditwasjudgedthatofthewordingofthe(CreditContractsConsumerFinanceAct)onDecember1,hadinitiallyresultedcreditconditionsbeingtoomuch.
After remaining relatively level for several months, new listings in the city apartment market increased by 20% in July 2022 compared to the previous month, buoyed by evidence of positive sales results. Ray White’s agents in the CBD have noticed an increased level of inquiry about apartments, with a lift in the last fortnight in particular. There has been a 2% decrease in the vacancy rate across their portfolio from June to July 2022. This is corroborated by Trade Me’s latest Supply and Demand Report on the Auckland rental market, showing an increase of 2.6% in the number of searches over the last four weeks compared to the previous period. This report also states a 3.7% decrease in rentals’ days on market on the Danielsite.says:
60.66% AUCTION SUCCESS Auction Stats. $209,229,351 TOTAL SALES VALUE 8222366 82132 Auctions Held TotalSold PriorSold SoldHammerUnder Sold After JANUARY 2022 - JULY 2022 Source: Ray White City Realty Group
The total value of the property sold by Auction as of the end of July 2022 is just over $209,000,000, with a large portion being a result of the return of investors.
The remainder of the 2022 market outlook is very encouraging with Auction Booking numbers strong for the coming months with the Spring market about to launch.
It has been an interesting year to date with both buyers and sellers competing to find common ground.Myadvice to those looking to sell prior to Christmas 2022 is to start the process early.
Our Auckland Central Auction Rooms which focuses on the Auckland Apartment market, as well as the surrounding City Fringe suburbs, has a weekly Auction Session at 12:30 pm every Thursday and has seen vigorous bidding on multiple properties from investors keen again to invest in the apartment market.
Our company (Ray White City Realty Group) which has offices in Auckland Central, Wynyard Quarter, Eden Terrace, Sandringham & Parnell have conducted 366 Auctions at the end of July 2022 with an Auction Clearance rate of 60.66% Although our Clearance rate is down from this time last year, it is still well above similar stats released from our competitors in this changing market phase.
The Number of properties being Auctioned has come back compared to this time last year, but these numbers are in alignment with the number of new listings that have come to the market in the January to July 2022 period throughout Auckland.
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Ray White Auckland Central, Eden Terrace & Wynyard Quarter Ray White Sandringham, Ray White Parnell
Cameron Brain Auction Manager
Auction chat.
Steve King Off plan & New Build Sales Specialist 021 942 steve.king@raywhite.com456 upgrade your property?investment Do you interestwant deductibility? Do you want a 5 bright-line…year not 10 years? Do you want higher incomerentallower outgoings? Do you want 80% Bank LVR not 60%? Have thoughtyouabout a new build? Purchase with initial deposit and balance on completion Options for non resident Healthy homes compliant* Is it time to... *Some may require heater installation City Realty Limited Licensed (REAA 2008) Tracey Warner Mortgage Adviser 0210 253 tracey.warner@loanmarket.co.nz9465
The government, concerned about the pace of price growth in the housing market, has introduced legislation aimed at slowing the rate at which investors purchase existing property, and have also incentivised purchase of off-plan property.
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As noted by many commentators including Tony Alexander at our recent seminars the Government changes to tax treatment for investment property has incentivised the purchase of off the plan residential property. Steve King
This objective has the intent of encouraging and supporting new construction and taking investor focus off existing property which in turn allows first home buyers greater opportunity to purchase.
New build rental opportunities.
For those interested we have included links to more information about five developments in different locations and different price ranges that could be of interest. We have also included links to more information on the Government policy. (See link below)
18 SEPTEMBER 2022 Gone are the good ole days... or are they?
If you purchased an established residential investment property from the start date of this change (27th March 2021) no interest was tax-deductible from day one. The definition of an established property was that the Code of Compliance for it was issued more than six months ago. The impact to existing Investors however, was a little less brutal. The removal of interest deductibility on your investment lending that was previously 100% tax deductible was no longer so.
The landscape of Property Investment and its financial benefits has changed dramatically over the last seven years.
For those who don’t remember, the Brightline Test was introduced in New Zealand on 1st October 2015 for a reasonable two years. On 29th March 2018, it was extended to five years, and then on 27th March 2021 the real game changer was introduced. Not only was the Brightline Test being extended again, this time to 10 years, but the Government decided that it was a bright idea to remove Interest Deductibility from Residential Property WhatInvestors.does that mean?
> Tracey Warner 0210 253 9465 CON ME:
It is a lot to take in but game changing in terms of the financial benefits of owning established investment property versus new. To get a better handle on how this will impact your own personal situation give our team at Loan Market a call and review your own personal situation. Happy investing….
And this is the bit we all love, tax deductibility can be passed from one owner to another, making the said property a very desirable asset upon resale.
To encourage the development of new property in New Zealand, any property after the above start date that had the code of compliance issued six months or longer after, received 100% tax deductibility of interest on any finance for the next 20 years of ownership.
If you owned property at the implementation date of this new tax law the deductibility was to be progressively reduced over the next four Yearyears:1 - 75%, Year 2 - 50%, Year 3 - 25% and in Year 4 thereafter - Nil Now, here is the bright light at the end of the tunnel - the reason why we believe there are remnants of the good ole days.
20 SEPTEMBER 2022 Download the Investment Information Guide or Landlord Information Guide here. Team values. The value and costs of a Property Manager 10 Reasons why you can’t afford not to have one... evidencephotographicbackedinitialComprehensiveinspectionswith Access to the best systems for application vetting / credit checking / reference checking Educated advice for tenants creating better quality outcomes 24/7 Contact with an emergency number, no matter what time of day/ night it may be Ongoing education of legislation updates and requirements Minimised vacancy periods through fast online tenant viewing and booking systems Meth informationprocedures,testingand best practice Access to the best tenancy law advice and support Compliant otherAgreementsTenancyanddocumentation Personalised service offerings to best suit your individual needs and ambitionsinvestment 01. 02. 03. 04. 05. 06. 07. 08. 09. 10. Landlord GuideInvestment Guide
21 SuperValue. Professional property marketing and advertising across our six CRG Group Rayplatforms:White SuperCity Property Management Ray White Auckland Central Ray White Parnell Ray White Sandringham Ray White Eden Terrace Ray White Wynyard Quarter • Delivering your property to more customers to create interest and demand. • Honest and transparent advice. • Increased annual returns. • Minimised vacancy periods. • Valuable skills surrounding tenant selection and vetting processes. • Detailed Covid-19 resources and support tools. • Legislative peace of mind. • Daily rent payment receipting and strict arrears management. • Plus more... SuperFees. Ray White SuperCity Property Management is superfocused on the performance and protection of people’s personal assets. We offer twomanagementcompetitivefeesintierstructures to suit your requirements: Management Fee: Silver - 8% or Gold - 12% all inclusive Plus • Listing/Advertising • Inspections • Healthy Homes • Professional Photographs • Methamphetamine Testing • Smoke Alarm Service So whether you’re buying your first investment property or your thirty-first, we have the experience to ensure properties are managed to save money, time and heartache. Contact our DevelopmentBusinessspecialists for more information. Delanie Horrobin 021 973 927 Silvia Hu 021 911 153
SuperOurstar.
Meet Chirag, the only boy in the SuperCity team at the moment. Chirag was recently awarded our Rising Star award as he is always happy to rise to any challenge, help his colleagues and always with a big, beaming smile. How long have you been in Property Management for? 8 years, 2 months and counting. I’ve been working with the great team at SuperCity for just over a year now. Why did you decide to get into Management?Property Property management is actually fun - I like the fact that you are not sitting at your desk from 8.30am5.00pm every day, dealing with lots of different types of situations and people every day keeps you on your toes. What do you love about your job? I love the challenges that it brings everyday, and the culture of my team. We have a lot of laughs which is what makes it a fun place to work. What do you like to do in your spare time? I’m a big fan of travelling but also like to chill out and watch movies. What is your favourite TV show? Anything “Bollywood” What is your favourite food? I’m a foodie so anything that tastes and looks good becomes a new favourite.
22 SEPTEMBER 2022
23 Anne Misa ManagerProperty Daniel Horrobin Director of City Realty Group Anja Cheesman LettingAgent Gina Colcord Head of ManagementProperty Delanie Horrobin NewManagerBusiness Silvia Hu 胡天欣 BusinessManagerDevelopment Chirag Mistry ManagerProperty Lisa Hui 许丽沙 ManagerProperty SuperOurGroup. We’re super focused on relationships.propertiesmaintainingAND One party needs a return on investment and the other needs a great home to return to each day. Ray White SuperCity Property Management understands every aspect of property management and we’re always looking for the right balance of what’s best for owners AND tenants so everyone wins. We’re the superglue in the relationship. PROPERTY MANAGED PROPERLY. MEET OUR TEAM
www. super citypropertymanagement.co.nz GROUPREALTYCITY GROWRECOGNISECREATE Part of the group with a family factor. PROPERTY MANAGED PROPERLY. +64 9 308 5500 2 Lorne Street, Auckland Central SuperCity Property Management Limited Licensed (REAA 2008)
