Superb - October Edition

Cover photo by: PixaSquare.

Market commentary.

We are also seeing an increase in demand from people living overseas seeking to secure accommodation prior to arriving in Auckland.

To support this, TradeMe has reported an 11% percent increase in demand and a decrease in the number of listings of approximately 5.5% for Auckland comparing October 2021 and October 2022.

With our own portfolio, we have reduced the number of available listings to a third of what they were at the start of 2022.

We are also pleased to announce that another Superstar has joined our SuperCity team - Jacque O’Connor, our new letting manager.

She has many years in the property management field and works like an absolute machine when getting properties rented for our landlords.

Jacque has reported an influx of working professionals currently looking for rental properties in the CBD as opposed to students and things are definitely moving along. In saying that, the market is still a competitive one so it is imperative that the properties are presented in a good condition and in line with the market.

Rental Market Update.

We are pleased to report that the inquiry continues to increase with many properties renting after the first few viewings...

For more information about the rental market and how to get your property looking Superior to the competition, get in touch with one of our Supercity Superstars!

Rental Market Comparisons.

Do you want to know the going rental rate in your neighbourhood?

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.

Thirsty for more market knowledge? Get in touch today.

Delanie Horrobin 021 973 927

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 Auckland Suburbs

Glendene, Glen Eden, Massey, Te Atatu, Westgate, West Harbour, Waterview, Avondale, Titirangi

South Auckland Suburbs

Mangere, Otahuhu, Otara, Papatoetoe, Manukau, Manurewa, Papakura, Pukekohe

North Shore & North Auckland

Takapuna, Milford, Devonport, Birkenhead, Northcote, Glenfield, Sunnynook, Birkdale, East Coast Bays, Browns Bay, Torbay, Albany, Orewa, Silverdale, Wellsford

3 Common misconceptions

3 Common misconceptions on why investors think they don’t need Landlord Insurance:

1. The tenants bond will cover any damages or loss of rent

2. There are no chattels in my property so why would I need insurance?

3. The body corporate insurance should cover costs.

Many investors choose not to get Landlord Insurance as they think the cost outweighs the return or they simply believe they have adequate cover under their current property insurance policy.

What they don’t realise is that there is a difference between “Landlord Rental Insurance” and “Property Insurance”.

Every Landlord Rental Insurance policy will likely contain unique requirements and it’s crucial you are aware of what these are, e.g. in a damage claim you’ll likely be required to show evidence of the regular inspections you have carried out at set intervals.

> For more tips,

to our

Guide. [Click

It’s important to ensure you have the right cover against all possible outcomes and often a simple extension to your existing policy may be all that is required. Through the use of a Ray White property manager, landlords can access specific and robust insurance policies that are only available to those who use an accredited property manager.

These can cover specific tenancy-related issues such as loss of rent due to arrears, tenancy abandonment, intentional malicious damage, chattel insurance, as well as other benefits such as lower or less frequent excess costs than can be found in many generic landlord insurance policies.

Investors who utilise a Ray White property manager can rest assured they have access to the best possible cover for any unfortunate situation. It’s just one of the many benefits that come with having your property professionally managed.

To find out more about insuring your property contact one of our SuperCity SuperStars to find out what we can do for you to avoid any unnecessary costs.

Ray

Ray

Ray White Auckland Central. City Realty Limited Licensed (REAA 2008)

Ray White Wynyard Quarter.

Realty

Licensed (REAA 2008)

Ray White Wynyard

Sales commentary.

The median price for residential property across New Zealand increased slightly in September compared to the previous month and also increased annually, according to the Real Estate Institiute of New Zealand (REINZ).

The country’s median price for residential property increased by 1.4% from $800,000 in August 2022 to $811,000 in the subsequent month of September. This resulted in a 2.0% increase in median price annually, from $795,000 to $811,000.

The fact that Auckland was in Level 4 lockdown for three weeks of September 2021 should be noted, seeing that affects comparisons and figures overall.

Auckland’s sales volume was up 15.8% on September last year from 1,410 to 1,633, with sales volumes also up 7.6% on August 2022.

One factor influencing annual median prices is the larger number of sub-$1 million properties being sold, especially in our largest regions containing big cities. Eleven of the country’s 16 regions are showing an increase in the sale of properties in this price bracket.

Auckland and Wellington reflected this trend strongly, with an additional 8.6% and 8.9% sales in the bracket respectively, in September 2022 compared to September 2021.

This move towards sales of under-$1 million properties helped influence Auckland’s median price decrease of 8.3% compared to September last year, down from $1,140,000 to $1,045,000. In September 2022 Auckland recorded a 5% month-on-month decrease in median price when compared to August 2022.

Agents in some areas report there are more first home buyers in the market, enticed by easing prices and less competition. Overall, there’s been less investor activity as a result of policy changes such as the axing interest cost deductibility.

Spring lift evident in September, if relatively subdued

There is also significantly more stock for first home buyers and other home seekers to choose from compared to last year. Back then, demand exceeded supply creating a sense of urgency and increased competition.

Stock levels nationally were up 93.2% compared to September last year and in Auckland were up 73.4% compared to September last year.

It’s not surprising then that nationally, the median number of days to sell (DTS) a property in September was 47, whereas it was a median of 37 days in September 2021. Drilling down on Auckland, the median days to sell in September 2022 at 45 days was up nine days compared to September 2021 and up three days compared to last month.

Properties which are marketed well are selling faster, able to stand out from other stock. Auctions continue to drive stronger results with lower days on market as compared to other methods of sale. They continue to attract serious buyers, with those buyers who can only buy conditionally now being successful in the days post-auction.

At the Ray White City Realty Group, we have seen a strong auction clearance rate of 64.76% Year to Date from January - September 2022. Furthermore, Ray White nationally has seen an increasing level of success with the auction clearance rate reaching 58.3% last week and properties sold through the auction process achieving a 9.19% higher sale price than the previous highest offer.

As we move into the warmer months, agents report seeing an increase in open home and auction attendance. They are confident activity will pick up as people move to complete their plans to buy or sell ahead of the summer holidays.

For vendors motivated to sell, they should seriously consider advice from one of our team of professionals who have in depth knowledge of demand by area and understand market sentiment.

Daniel Horrobin Director

Auction chat.

As we head into the last quarter of 2022 we have seen a positive change in our Auction Market. First Home Buyers are now a common addition to our registered buyer list, competing with the investor market.

Our Auction clearance rate of 64.7% is still one of the highest throughout the Auckland market and something we are still very proud of.

To date, the CRG (City Realty Group) has sold over $276,000,000 worth of real estate by Auction with an average sale price of $977,171.38.

Our auction Numbers have increased and we are expecting a very busy last quarter for 2022, and a quick and busy start of 2023 with Auction Bookings already in for February 2023.

Cameron Brain Auctioneer & Auction Manager 027 424 1782 | cameron.brain@raywhite.com

If you want to know more about our Auctions please feel free to contact me anytime.

Ray White Auckland Central, Ray White Wynyard Quarter Ray White Sandringham & Ray White Parnell

Cameron Brain Auction Manager

Elegantly Simplified Living.

Welcome To ‘Windsor One’ New Windsor

Thoughtfully appointed and surprisingly spacious turn-key apartments priced from $699,000

Modern affordable housing constructed to the latest engineering, building, healthy homes, and green building standards. Enjoy the future of living, today.

This could be the perfect investment option as they will meet all the current rental standards, exempt from the changes to interest deductibility rules, exempt from LVR restrictions and have a decreased bright-line period of just five years.

Information pack is available upon request. Ensure you make those investment dreams possible, contact Adam today!

Adam Humphris 021 063 7043

To find out more, please contact > Ray White Sandringham. City Realty Limited Licensed (REAA 2008)

The rental property market is a tricky place to navigate these days...

From bright line tests, healthy homes, finding the right property & rent price to name a few! Residential investment lending has never been a harder market to crack however that does not mean that getting a rental property is impossible.

There are many options out there from 80% funding on rental properties with non-bank funders to converting your family home into your first rental property. Having the right financial advice on who to speak to from managing your property, guidance on tax & who is the right lender is to suit your needs is essential to get ahead.

I am not just talking about new purchases either. Managing your existing portfolio can benefit from finding the right rates & ensuring that if you are interested in moving your portfolio around to different entities that you’re not subject to the new tax rules. There are also benefits to finding newer properties to add to your portfolio as some buildings built after 27th March 2020 are subject to the use of more income therefore giving to better affordability with your lending choices.

So, whether it’s a top up to assist with getting your property up to rental standards, concerns about rates or a new purchase its always worth chatting to a financial adviser before you proceed.

I’m here to help. I hold relationships with accountants, lawyers & rental property managers that can assist you on the journey. Along with my 10 years of prior banking experience in business banking & managing property portfolios of

5 or more rental properties. I hold an in-depth knowledge on reading and understanding financial accounts and I can truly say I’m here to help.

If your interested in a home loan heath check to ensure your home loan is the right fit, purchasing a new property or even upgrading your existing property lets chat.

Team values.

The value and costs of

Reasons why you

Property

to have one...

Comprehensive initial inspections

with

evidence

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

Meth testing procedures, information and best practice

Access to the best tenancy law advice and support

Download the Investment Information Guide or Landlord Information Guide here.

Tenancy

SuperValue.

Professional property marketing and advertising across our five CRG Group platforms:

Ray White SuperCity Property Management

Ray White Auckland Central

Ray White Parnell

Ray White Sandringham

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 competitive management fees in two tier structures 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 Business Development specialists for more information.

021

Our Superstar.

Meet Jacque, Well known in the industry as a true professional who is dedicated to meeting her clients expectations Jacque’s experience spans over 14 years as a letting agent.

Flexibility is key in the letting world and working 7 days a week does not faze Jacque. Her high work ethic and customer service skills ensure our clients are happy from viewing the property, to the application process and tenancy signing. Achieving high recognition for being in the top ranks of her profession, she has received many awards and recognition certificates.

Jacque firmly believes that treating every individual with a high level of respect is one of the keys to her success. Clients appreciate her bubbly personality and passion for delivering exceptional service.

Feel free to contact Jacque should you have an enquiry about one of our properties.

How long have you been in Property Management for? 14 years.

Why did you decide to get into Property Management?

I used to manage 5 cafes. After I left that job, I knew I wanted to work in a field that is very customer focused, so property management seemed like a good choice.

What do you love about your job?

I love being able to meet new people everyday. Also, being able to help both landlords find great tenants, and to help tenants find great homes to live in.

What are your biggest achievements in your career?

I have worked very hard and am very proud to say that I have been presented with many awards for my leasing accomplishments through the Raywhite group through the years,

What do you like to do in your spare time?

I love the sun. During Summer, you can almost always find me at the local beach.

What is your favourite TV show?

I don’t really watch too much tv, but my guilty pleasure would have to be Home and Away.

What is your favourite food?

I love Asian fusion.

Tell us something we don’t know about you.

Not only am I great at letting, I am also a fantastic baker.

Our SuperGroup.

We’re super focused on maintaining properties AND relationships.

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.

Daniel Horrobin Director of City Realty Group

Ava Leung Administration Support

Gina Colcord Head of Property Management

Delanie Horrobin New Business Manager/ Property Manager

Silvia Hu 胡天欣 Business Development Manager/Property Manager

Lisa Hui 许丽沙 Property Manager

Jacque O’Connor Letting Manager

Annaleice McLeod Property Manager

CITY