Several sales above $3m at Bayleys' Auckland auctions, lifestyle block at Cambridge goes for $340,000

One of the two houses on a 1ha section at Tirau that sold for $575,000.

Bayleys Real Estate sold 57% of their Auckland auction properties over the past week.

The agency marketed 30 Auckland homes for sale by auction in the week to 17 February, selling 17 of them.

Three properties were withdrawn from sale just prior to auction, and the remaining 10 were left for sale by negotiation.

South of the Bombays in Bayleys' Hamilton auction rooms, four of the eight properties on offer were sold.

Highlights of the Auckland auctions included an Epsom bungalow on a 1012 square metre section zoned for mixed use, a commercial/residential development that went for $4.155 million, a five bedroom house with a one bedroom flat on a 1702 square metre section in Remuera that fetched $3.9 million, and a house on 1133 square metres on Riddell Road in Glendowie ,which had spectacular views over the Hauraki Gulf, and sold for $3.217 million.

At the other end of the price spectrum a modern three bedroom brick and tile house in Papakura sold for $736,000.

At the Hamilton auction the sales included a 6730 square metre section at Cambridge that went for $340,000 and a one hectare property at Tirau with two, two bedroom houses on it that went for $575,000.

The results from both auctions, with photos of all properties and the prices achieved on all of those that sold, are available on our Auction Results page.

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139 Comments

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Still very low volume sold and the number of Auckland listings are still piling up on TradeMe. Now at 10819 property listings.

I hope you are plotting the results on a graph.
That will give a great insight, graphically of the coming collapse and trigger points.

Hey Davos, Yes I am keeping track of the Auckland TradeMe over all property listing week by week. And yes there has been a very significant spike in the number of listings in the last few months as Auckland's property sales started to slump.

But I thought we had a lack of supply?

maybe just lack of supply speculation?

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CJ I recall that only a few weeks ago it was about 9000 and Zac/DGZ was crowing that the listings were dropping. Funny how it has turned around and gone back up and in large numbers. I still believe that some of it has to do with fear. Fear of rising interest rates, lower sales numbers, lower numbers of people looking to buy including overseas buyers and fear of losing out in some of the capital gain they have achieved. What about the FHBer and investors who bought in the beginning to middle of last year. I wonder how they are feeling today. As more listings hit the Auckland market and interest rates continue to creep up some potential buyers will also be fearful of buying at the wrong time and seeing their equity sliding backwards. Very interesting times.

You're quite right Gordon, And yes I'm really worried for FTB's and hope they realize that the current low sale volume from the auction results is a strong indicator that the market is starting to fall. As for new Investors well it just goes to show that you really need to research a market before venturing in to it.

Well put Gordon. FHB and investors will who bought at the peak, will no doubt suffer. Which is unfortunate, let's ask ourselves if and how we can avoid prices deviating from fundamentals in the future. As it it damaging to our economy, and damaging to society, look at the inter-generational blame game going on now.

Investors losing money is not unfortunate in my view. If that happens it sends a reminder to others that property is a risky investment after all. Nz needs to move away from this fixation on putting all the eggs into this basket and think about creating real wealth.

Maybe in this situation, but in general avoidable boom and bust cycles, or asset bubbles are something that we would avoid in the first place to have the most productive wealth creating economy. Problem with a recession is the resulting loss of capacity in the economy.

Yip I agree we want to avoid bubbles. One way to do that is for people and governments to learn lessons from the past. If some careless investors get burnt and it teaches the rest of us a lesson about proactively to avoid bubbles, then that's no bad thing.

We don't learn lessons. Just swap the word railroad with house..."Financial viability of railroad lines was not a requirement for Parliament’s approval and most Bills were approved due to the fact that many Members of Parliament were heavily invested in railroad companies – a blatant conflict of interest (The Science Museum, 2004).

As railroad company shares continued to rise, investors became increasingly wrapped up in the speculative fervor and many middle class families invested all of their savings into them. Many famous figures became involved in railroad stock speculation including Charles Darwin, Charles Babbage, John Stuart Mill, the Brontë sisters and Benjamin Disraeli (Odlyzko, 2010). The large amounts of capital that were now available to railroad companies were soon deployed in highly-audacious, impractical and often fraudulent railroad development plans."

http://www.thebubblebubble.com/railway-mania/

Zach/doubleZ think ponzi housing is answer

These two guys and the majority of readers on this website... just you guys shout louder, houses are cheap in New Zealand compared to overseas

Oh, I know, how about we all shout, wages in NZ are really crap compared to the rest of the world.

Not true, kiwis are paid very well in NZ compared to many execs in London and USA...

Ah, so that's why you want to displace Kiwis from the market and replace them with foreign buyers instead then?

As in, "F the next generations!"

Wow...let's take a moment to remember the sacrifice of the ANZACs, who fought for the benefit of others...and realise that too many investors here are the complete opposite of the ANZACs, absolutely willing to sacrifice the next generations for their own pure greed for a few more dollars.

Bit of a stretch your comment...comparing a free housing market chit chat with world war and and two soldiers, really just shows that nonsense creates just more nonsense!

You've missed the comparison.

The comparison is of attitudes to others vs one's own selfish interest.

But on a practical level, it works. ANZACs sacrificed themselves for the benefit of others and upcoming generations. Today's specuvestors are actively sacrificing upcoming generations for their own selfish gain.

And how is this a free market when all of society can't participate? This is like a man sitting on a porch in his rocking chair telling the cotton pickers in the field how wonderful the world is. And then having the hypocrisy to say 'chin up'. Just work harder and you can come sit in the chair - yeah right!

We need a complete paradigm shift as a country - it seems good to many now - but long term this policy isn't sustainable or good for our future.

Any motivated individual can achieve home ownership, many commentators on this website won't however

Harder with no inflation

Home ownership rates in Auckland are plummeting. It's entirely unrealistic to suggest that everyone in Auckland can achieve home ownership in Auckland just through being motivated enough. Auckland's housing is now among the most unaffordable in the entire world.

Platitudes just aint enough for most folk.

Add fear of the new govt and the new laws they will bring in.

Read this in the Herald this morning: http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=1182... "

Patronage at Auckland Airport's premium lounge has grown 10-fold in the past four years.

Flight Centre's general manager of product, Sean Berenson, said that throughout 2016, the number of Kiwis booking business class had increased 120 per cent.

''That's extraordinary - it's not like we're talking about 10 seats here, 10 seats there - it's thousands upon thousands, which is extraordinary for a country of this size."

Think this is kiwis who are experiencing the wealth effect from the property market - or do we just have that many more wealthy foreigners visiting the country?

The price of business class has come down and the Kiwi consumer is indulging in a pleasure that they previously never had considered before (if paying on their own dime). Of course, psychologically it helps if you think the value of your home has appreciated more in value than you might possibly not have in a position to afford.

This is a reason why govts are not necessarily against property bubbles. They can bask in the glow of all the wealth effect for a short period and deal with the consequences later.

An unintended consequence of house prices rising so high is that divorced couples are unlikely to ever own a property of the same value that they once had unless they hook up with somebody in the same position.
I can tell you this because a couple of mates have seperated,sold their 750k/800k properties and after paying of mortgages have found that properties that they can afford don't exsist in their previous area.
Lots of spitting of tacks going on thats for sure.

An unintended consequence of house prices rising so high is that divorced couples are unlikely to ever own a property of the same value that they once had unless they hook up with somebody in the same position.
I can tell you this because a couple of mates have seperated,sold their 750k/800k properties and after paying of mortgages have found that properties that they can afford don't exsist in their previous area.
Lots of spitting of tacks going on thats for sure.

Fact is that financial stress is behind a lot of seperations.....mortaged to eyeballs for business etc. works both ways, I know some who have stuck it out only because they could not afford to seperate. But, as time went on and stress left their lives, they worked things out....lived happily ever after. So works both ways I guess.

No comment

Similar to the unintended social outcomes of student loan implimentation. Nowadays can't afford to split up with your job either so labour force flexibility suffers. This may also explain NZ low productivity. People stuck in jobs they don't like but can't afford to leave because of housing costs.

An unintended consequence of house prices rising so high is that divorced couples are unlikely to ever own a property of the same value that they once had unless they hook up with somebody in the same position.
I can tell you this because a couple of mates have seperated,sold their 750k/800k properties and after paying of mortgages have found that properties that they can afford don't exsist in their previous area.
Lots of spitting of tacks going on thats for sure.

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Well...I mean...I hate to state the obvious, but owning a home has never been easy, and if they just work hard and cut out the fat whites and Sky telly - god forbid, smashed avocado - there's no reason these divorcees can't​ buy again in the same area.

You should highlight this advice to them.

Really Rick? Going by Greg's Big Mac index thread recently - 1995 inner Auckland suburbs $220,000/$2.95 = 75,000 Macs. Say today $1.1 million/$6.00 = 185,000 Macs. Thus one has to not consume 110,000 Macs before they can even level peg with 1995 Auckland punter. Telling someone to cut sky tv and flat whites for the rest of their life won't make a difference in this market. Lot less vested interests in latte.

How many cancelled Sky subs to flatten this chart?
https://mobile.twitter.com/TheEconomist/status/840203767647744000/photo/1

www.landlords.co.nz/housing-statistics/
www.bigmacindex.org

Nah, mate - I was being facetious in order to highlight how absolutely bloody absurd people who blither this mantra toward the young Kiwis are being.

But I guess where older divorcees are concerned, the above commenter has highlighted that they'll be affected by costs just as harshly as young Kiwis are, and it'll be pure irony if people are telling them the same stupid things.

Bank manager says: Don't divorce - too expensive.

Geez, isn't it exciting continuing to check how many listings now on TradeMe in Auckland!
Well it is so worthwhile, I am getting so turned on thinking that people who purchased a house in the last couple of years might lose some of their previous equity!
Warped sense of humour, I would say

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.....or maybe just pointing out an inconvenient truth.

Parts of Auckland might get in the sorry state that Christchurch finds itself in. Dropping house prices and rent prices as people leave.

I would imagine the first to leave will be the ones who have the ability to go somewhere where the work/life equation is better for them. Professionals, well-qualified folk, maybe those wishing to start families.

Geez Gordon, where are all,these people that are leaving Christchurch going???
Give us some evidence that people are leaving the so called sinking ship!
The reality is that yes the market is over done with houses as there has been so many new houses built which is more than adequate for the numbers that live here, unlike Auckland.
Rather have the quality of life in Chch than have the problems that Auckland have already got and will,get worse into the future.
How on earth do they think that Auckland can cope with the transport problems etc. it would drive me crazy!

Would still live there and many ex Cantabs have gone there after the quakes. No smog, much warmer, the sailing, heaps of jobs, growing economy, less quakes and small ones if they occur, no areas that you cannot live in etc etc. I do not live in Auckland and I admit it has problems but I would live there over Christchurch just for the weather alone. Hence most immigrants go there and its house prices exceed yours. Your economy is going backwards as shown by recent statistics and Auckland is powering ahead.

The chch vs auckland quality of life debate is really about personal preference isn't it? Some people like sailing whereas others might like hiking in the southern alps or kayaking down the waimak or watching the mighty crusaders. I like chch because it's big enough where there are events going on and my kids can get a great education but small enough too not be too busy and still have a nice community feel. That's just my preference and I don't have any issue with people preferring auckland for their own reasons. Chch economy will continue to thrive with all the great farming land we have down in canterbury and the ease of expansion of manufacturing.

You can go sailing in Christchurch. Banks Island has lots of bays to explore - sail north , sail south.

Agreed. Spent a lot of time around there but dont think it is up to the standard of hauraki gulf. And if it was would we want to tell the aucklanders ;-)

Gee Gordon, thats surely one hell of a joke comment - lived in both cites, like Akld, love Chch, and right now given the choice between the two, I'd be living in what is being rebuilt as a dynamic young city. The population has recovered, and house prices and rentals are falling because supply has finally caught up, Akld would be so lucky

I'm not here to argue with anyone if I am the same person as Zachary as I have explained myself before. Just come in here quickly to report on a sale that I have observed today at 42 Ranui Rd, Remuera (DGZ). Drove past the property this afternoon and saw the sold sign which was not there a few days ago. I am guessing it went for around $2.6m which is the CV. This is because this was a suspected leaky home and had a reclad done to it recently. Someone has got a bargain!!! http://uprealestate.co.nz/UPR14108

thanks Zach that is really informative for everyone on this site. Keep it up.

I have just walked around the block and seen a new sold sign on a place I would have described as more difficult than most to sell. Would have sold for almost twice the CV as wasn't on the market long and had an asking price.
We have you surrounded gordon. By the way did your daughter ever sell that property on the North Shore?

Zach I have also noticed recently that the hard-to-sell properties (most were left over from last year) are actually selling right now! What a convenient co-incidence ;-)

I'd be interested to know how you get a half bathroom.

Thanks for the question. In Auckland, half a bathroom normally means a water closet with a small washbasin but without a shower/bath.

Again thanks Zach. You have so much knowledge in real estate. We are lucky to have you around.

That's a dunny and a handbasin to the rest of us.

As DGZ 'happened' to be driving around the block- he accidently ran over Zach who just 'happened' to be walking around the block. Both were distracted by the rows of difficult to sell properties that had 'sold' stickers on them. S..t happens.

Totally personal preference when it comes to Auckland vs. Christchurch vs. Wellington. When I return from overseas I intend to live in Christchurch. As far as quakes go all the soil is mapped and classified for foundation design. Many of the previous risks have been mitigated. No risk free areas to live in NZ unfortunately!

Gordon, I thought everyone was leaving Christchurch, and yet we have some people,who,actually like Christchurch and some from overseas that are wanting to,live in Christchurch.
Seriously, take your blinkers off Gordon, Christchurch may have had too,many quakes, but we are a hardy bunch down here, and far better lifestyle.
Have you still got those figures that show that Christchurch population is diminishing please????

Just means more leaving than arriving The Boy. Some of those who arrive will experience a few shakes and move on. That is if your winter does not get to them first. Mind you I can see why some people come your way. Your houses are cheaper than provincial capitals and dropping. Does Auckland have any" as is where is houses" ?

Gordon, please supply these figures that show Chch population is dropping, it is quite the opposite.
Nothing wrong with the Chch winters, sure beats being stuck in traffic for hours!
Does Auckland have any "as is where is" houses.?
The truth is Gordon, that most of the Chch As is houses will be a damn sight nicer to live in, than the crappy,old Auckland villas, and provide a far better rental return for their owners.

The Boy just met another couple this morning who have left your city. Over the shakes and barren landscape. Their daughter and family now in Wellington. Another professional heads north.

interest.co.nz better than any TV programme.

It has intrigue (who is Zach really?), danger (the occasional ban for bad behaviour), tension (but wait, what will happen to Christchurch's population) and humour ( who has the most butthurt over the property market).

Good times on interest.co.nz always good times

Hahaha, brilliant. You forgot inter-generational blood feuds (The Man vs. Gordon) and suspense (will interest rates climb higher?).

All we need is the romance.

For that we have Zach and Double-GZ

Just realised I was in the news yesterday! I'm pleased to report that exclusive Auckland suburbs had seen phenomenal growth at a time other suburbs had slowed. So if you own properties in these suburbs you DO NOT have to worry!

"Proximity to the city centre, good schools zones and the coast are all draw cards for these suburbs. Rush also said there had been more than a dozen confirmed sales above $6m in Remuera since October last year with a number of properties selling for nearly double their July 1, 2014 rating valuations."

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=1181...

Zach tell that to my nephew who cannot sell his villa in Herne Bay. Two months and no serious interest.

Gordon, can we check it out? TradeMe link perhaps? How long has he owned it? Is there a price? Did it go to auction and did it attract bids? Your family always seems to have a bit of difficulty selling it seems. No matter the market it still needs to be the right price. I have never had any trouble selling because I will meet the market.

DGZ went to auction and no bids. Have bought a bigger home in the same area and now having to bridge. Ouch! In the past have informed me you cannot lose in Central Auckland. Time will tell.

Gordon, your nephew's listing would fall into the category Zach and I have been talking about - the hard-to-sell properties! Your nephew's house is not selling and will have at least half of the following defects/factors:
1) The villa is worn and torn and needs updating.
2) The house is on a very busy street / busy corner.
3) The house is overlooked by the neighbours i.e. no privacy.
4) Your nephew has not spent enough money in sprucing up the house for sale and failed to invest in home staging.
5) Your nephew thinks he can save a lot of money by not using a RE agant and tries to sell the house himself while he has no clients in his database.
6) He is using the wrong RE agent (the cheapies).
7) The villa is located right next to a roll of sausage flats.
8) The list goes on...

Zach see my comment above.

Crikey what do they charge for bridging finance? I did what your nephew did once but got lucky although it was super stressful at the time. It needn't have been so stressful as I should have just kept both properties and rented one out and eventually made hundreds of thousands. I guess your nephew doesn't have that option?

is this you?
Local real estate agent Michael Boulgaris

Isn't he the one who is subject of completely unconfirmed scurrilous rumours that he had a steamy affair with Mike Hoskings back when Hoskings had the mother of all mid-life crises?

No I am not Michael, you have picked the wrong bit. This bit is me: "The double grammar zone suburb of Remuera was the clear stand-out..." Yes I am bigger than just Michael. I represent the DGZ suburb of Remuera! Michael is a boomer but I am a Gen-X, also I am NOT a RE agent.

Turangi could be the next hot property spot. A lot of Kiwis think of themselves as being upper middle class going by the exponential growth of business class travellers. Turangi is a great spot for access to the mountains for skiing and the lake for water sports and fishing. Only four hours drive away. Still cheap!

Auckland too dear? Head off to the lake

Goodie On Maria

*Edit: Apparently that Turangi property above is tenanted at $190 a week. The interest on 130K is only $113 a week. Interesting..

A fascinating read Zach, I wouldn't mind scrolling through some of the TradeMe properties in Turangi now - some are quite adorable really. Thank you for sharing ;-)

Also, further great news from across the ditch in Sydney yesterday - no doubt this will be Auckland within the next year or so - have a read!
https://www.domain.com.au/news/alexandria-terrace-sells-for-201-million-...

Where Sydney goes Auckland will follow. I followed another link on that page to the affordable suburbs for FHBs in Sydney and they are all 45km away from the CBD. The world is changing and there is no turning back I am afraid. All of the attractive cities for middle-class migrants will see their affluent suburbs spread further and become more expensive. Cheap air travel and the allure of Western freedom, style and education is to blame. Might as well take advantage of it. Don't fight it, seek out the opportunities waiting.

From 51 suburbs in 2000 to four in 2016: The last areas Sydney first-home buyers can afford

FHBs are almost priced completely out of Sydney and you think this is a good thing? Immigrants and foreigners are buying up Sydney real estate and condemning young Aussies to a lifetime of renting in their own country and that's fine with you? You think they should just accept it and meekly roll over? What a selfish, selfcentred and ignorant thing to say.

It is, the incredible selfish entitlement mentality that infects the older generation of investor-voters. It's right there above, the attitude of absolute willingness to sell out the next generations of the country for a quick buck.

Vancouver's Stamp Duty is the only sort of recourse young voters can look for in the face of such blatant money-grubbing selfishness. Perhaps a 20% foreign purchase stamp duty is what's needed for New Zealand.

Wildcard and RickStrauss where in my comment did I say it was a good thing? I have to be careful what I write but my suggestion is to eek out a living amongst the ruins of Empire as best one can. It's never going to happen again where a bin man, with a family to raise, is going to be able to buy his own home in West Auckland. Those days are gone and actually only existed for a very, very short time. However there are great opportunities out there. Opportunities to travel and make a fortune in a much more inter-connected world.

ZS - I think you may have become so absorbed in the recent culture of greed and selfishness that you fail to see how wrong the whole thing is....But that's just an observation based on the tone of your comments.

I don't think NZ used to be like that, but I am perhaps a little younger than you. The fact that you 'want to take advantage of the situation' and 'make the most of the great opportunities' - which often means taking from others or exploiting others isn't really that desirable. It's a real shame that this is the direction that the country is heading - more of a shame that we don't have real leaders in our society who are willing to do the right thing - instead of just pleasing those who want to make a quick buck and sacrifice the quality of life that this country should be offering to future generations of kiwis.

Don't agree with this statement at all. Obviously you are entitled to your own opinion but please do not represent the majority of people. You have your voting right and your choice of which leader you'd vote for but please don't come back and complain when the outcome is based on majority voters and not the minority.

I don't agree also. I don't believe we have a culture of greed and selfishness. It is almost the opposite really. Taking advantage of opportunities is fundamentally a good thing and practically a core value. I have spoken with immigrants who are amazed that locals don't bother to try hard to succeed, don't even try at all really. An anecdotal example was in an early childhood centre where the migrants worked hard to get teaching degrees and increase their pay level while Kiwi born employees didn't . The migrants couldn't understand why people with perfect English skills didn't do this when it was much easier for them. I questioned the wisdom of flinging doors open but also noticed that locals rejected their ancestral values too as if they wanted their cake and eat it too. Things aren't perfect but we have to play the cards we have been dealt. The almost total rejection of Trumpism led me to my position as well. If you are going to reject a leader who says, hey let us work hard and make things great again, I really cannot help you.

Good try team - probably the weakest responses I've read from you on this site. The septic tank must be starting to run dry.

Not sure what you are expecting from us. The simple answer is, we are not socialists.

I agree with you! But we need capitalism coupled with common sense and perhaps a touch of compassion. That balance isn't there right now in NZ.

"I don't believe we have a culture of greed and selfishness. It is almost the opposite really." Increasing rents, no capital gains tax, rampant immigration, housing speculation, assets sales, wage stagnation, housing debt far outstripping savings... And yet none of this is due to greed? What a joke.

"The almost total rejection of Trumpism led me to my position as well." How is Trumpism' being rejected? Right wing parties in Europe are gaining traction. People don't like rampant immigration, or importing millions of Muslims into Europe. The EU is fracturing due to the stupidity of the left. If anything, 'Trumpism' is gaining traction. Maybe you want an Asianised and Islamic New Zealand and globe, but millions of others don't.

Do you think young New Zealanders in general support Trump or reject him? My observation has been the latter. This surprised me as he is in many ways a revolutionary and should be very attractive to young people wishing to overthrow the status quo. Unfortunately his billionaire white male credentials are like a red rag to a bull for many. I wonder if he was a common man whether he would get more support? However to be President you generally have to be well heeled or have powerful sponsors. Only a billionaire with an outrageous personality that touched a chord with the common working/middle class folk could have a shot at bloodlessly changing the system for the American people.

My experience has been that the young are quite explicit about their rejection of Trump. Mostly they seem to consider him a joke and tend to refer to him in terms referencing his child-like behaviour and tantrums. I'm not sure any president has had so many degrading nicknames in all of history... "Manfant" "Man-baby", "trucculent toddler""Little Donnie Diaper Pants", "Truthophobic Trump" to name a few that i've heard. I've not met a single person under 40 in NZ who has any respect for Trump.

Give it time.

Young people don't like Trump because he's ludicrous, an out of touch older fella who seems to hold a strange appeal for a surprising number of commenters on NBR.co.nz.

However, if politicians continue to completely disregard and abandon young Kiwis, I would not be surprised to see populism rise here too...perhaps genuine racism and extremism from a disaffected population who have nothing much accessible to many of them otherwise.

We are lucky here in that we have Mr Morgan offfering to fill that void. I reckon he is gaining tracking and this extends to the younger voter. Too many have written him off too early - he will pick votes off disaffected National members and reluctant green voters.

Perhaps NZers are more able to see what a complete and utter idiot Trump is. An idiot with extreme and very dangerous personality disorders that could well see him lead the world into bloody war, there is nothing "bloodless" about Trump. Perhaps you should have a proper look at the man.

ZS - on the Trump issue. I'm a young(ish) person and I don't dislike Trump. With some refinement I think he's going to be a pretty good president.

I think generally we've become too PC. To the point that guys like John Key can exploit that fact - for example there was to be no discussion on foreign ownership when he was in charge because we didn't want to be seen to be racist - what rubbish! That's just PC BS that he used to his personal gain to avoid an issue that he knew would dent his profile. We should be able to have free and open discussions about these issues without that nonsense. So as a result we've ended up with the JK's of the world being able to manipulate people and policy because they know that people want to be seen as to be inclusive and very PC.

But long term that isn't going to work - you actually have to tackle issues head on and move beyond them. That's where I think Trump shows promise. He's going to offend a number of people initially - but long term I think it will be beneficial...within reason. So in NZ - we need a Trump to actually do something about home ownership/housing affordability/water quality/clean green image/superannuation - rather than play games and avoid the issues and pass the burden onto someone else down track. That's not leadership - it's cowardice - which is a word I'd closely associate to JK's reign.

The same tactics were used to silence discussion in Vancouver until it was too late. Detached houses there are now at the $2 million mark and locals have next to zero chance of owning in the city in which they were born and raised. As here, it's the greed of vested interests that look to silence discussion.

http://vancouversun.com/opinion/columnists/douglas-todd-canadas-public-g...

Can't imagine Auckland could get to $2 million for a house...? I'm sure no one in Vancouver imagined it could get that bad either.

Zachary,

If you really really believe that Trump values inclusiveness,then I can't help you. I find it hard to imagine anyone more divisive and unsuited for the role he has.
I think I have some understanding of the forces that pushed Americans to vote for him in large enough numbers to see him elected,but I am absolutely baffled as to why anyone here would support a narcissistic,misogynistic,compulsive liar. In psychological terms,I think you must be suffering from cognitive dissonance.

linklater01 - I spent a few years living and working in the States under the Obama administration. In the middle class there was a real sense of dissatisfaction brewing away when I was there. Obama could make wonderful speeches, come across as being the cool guy (drop the microphone etc) - but wasn't actually able to effect change.

I sense the same thing is starting to happen here now - we have a government often in denial on key issues, or that have selective memory and 'can't recall' things that matter. The tide could well turn here against the status quo. Most issues get put in the 'too hard basket' - long term that isn't going to work for us.

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You didn't say it, but it's obvious from the comments you write that you think stupidly high property prices are a good thing. You never express concern or empathy or any sort of compassion for young Kiwis and FHB locked out of the market. You don't care that Kiwis are fast becoming renters in their own land. You go on about the DMZ as if it was the Holy Grail, yet forget that almost all Kiwis can't buy there.

All you care about is adding some more properties to your portfolio, and gaining a couple of thousand more in capital gains you did nothing to earn. You're selfish, narcissistic, self centred and greedy, and people like you have ruined New Zealand.

At every opportunity you're expressing the desire to drive prices higher through greater foreign investment, selling houses out from under the next generations of Kiwis. You're actively celebrating the lot of these folk getting worse. That sounds like you believe it's a good thing.

Or do we have it wrong? Are you eager instead for a political party to put in place a Stamp Duty on foreign purchases, rebalance tax treatment of investment property etc. - real measures that will have an effect on prices, as they're starting to in Vancouver since a few people started to give a rat's posterior about the next generations?

The problem is, whenever we hear from you it's the former. It's never about making houses about home ownership as previous generations and their governments did for you "my own two feet"-ers, faux capitalists who are often coincidentally the first to squeal in indignation at the suggestion of means testing their pension.

Gordon, where are your figures that state that Chch population is diminishing???
You continually know people who do this and do that but nothing to back up your claims.
Gordon, earthquakes in Chch are a thing of the past and if anyone was sick of quakes they would,have left years ago!

Anyone who lives out of Christchurch meets people who have fled and regularly.

If Christchurch's population is increasing then why are rents and house prices decreasing?

Auckland residential real estate market is in the doldrums - very flat (and falling) compared with 12 months ago.

Lots of good properties in good locations aren't selling in the current market. It's clear for all to see and some good real estate agents that I know are actually being quite up-front about it. One agent said to me last week that the Auckland market "has dropped off considerably this year and vendors have to reduce their expectations accordingly". She went on to say that a "vendor conditioning process is now going on".

That level of frankness from a real estate agent is a virtue - and to be commended. (But, tiresomely, there are others still trying to run the line that the market is as active as 2016, etc.)

My take on the situation is that sales volumes and prices could drop further through winter - and perhaps for months (or even years) beyond that. But I reckon listings will increase for some time yet - with TradeMe a reasonable barometer.

Interestingly, there's an emerging view (both here and internationally) that interest rates could rise much faster (and higher) over the next year or two than is commonly suggested.

Buyers, bide your time. Definitely, a cautious, measured approach is sensible right now.

I find this laughable but it is only my humble opinion. Just got back from 2x open homes in my neck of wood this sunny DGZ afternoon and blimey, I am well and truly blown away! I have never experienced such buzz attending open homes...each has at least 50 to 100 groups and both were like a mini market inside!! I had to squeeze my way out when leaving and had problem finding my shoes from the hundreds to choose from...goodness me ;-)

http://www.uprealestate.co.nz/UPR14173
https://www.bayleys.co.nz/Listing/Auckland/Auckland/Remuera/1751084
Note - very very happy with what I saw and witnessed though....it's like the RE market has just waken up all of a sudden ;-))

Can't comment on the DGZ area, but I went to an open home in Mt Albert today (CV late 700s) and was the only person there for the fifteen minutes that I was strolling through...

I also can't comment on areas outside of DGZ but what I have observed today is true. I can only speak for what I have observed, physically and spiritually. You are more than welcome to ring up the respective RE agents and confirm the open home markets in the above mentioned listings today. I couldn't believe what I have witnessed...one of the listings above in my opinion will go for over $6m and the other one over $3m...I was just shock by the number of viewers, and I understand not all the people there were serious buyers, including myself.

Funny, walking around the heart of DGZ lately on weekend afternoons, I've walked past probably 3-4 open homes in the last week or two. Agents standing in the door, flags out, all standing around with their hands on their hips looking bored with absolutely nobody looking.

The Emperor is naked.

Your story and Double-GZ's are anecdotal. We have to go by sales results. I'm not sure about the Emperor having no clothes though. A lot of people around the world want their children growing up in a Western environment, especially an English speaking one. At the same time we are seeing record immigration. I think these are indisputable facts. I also think immigrants are more focused on buying in the best areas possible than are locals.

It's good it's gotten to the point investors are openly acknowledging that foreign buyers are displacing Kiwis from their city of birth.

At the end of the day it depends on the type of property i.e. leaky plaster home? brick and tile? unit title? flat etc etc; then if it's located on a quiet street or busy corner etc. The report on DGZ house prices going up that's what I'll go with.
The Emperor is Naked but very Sexy.

As I chainsawed down a tree in the garden that my wife no longer wanted I had a think about this site. I have no doubt Zach and DGZ are one and the same person. He probably only owns an average property somewhere at the most and engages on this site to wind up those who because of their birth date or other circumstances are only just trying to get on the property ladder. Anyone who lives in the DGZ zone would realize how lucky they are and would be comfortable with their lot. They would not brag about their circumstances and be cruel and mean as Zach/ DGZ constantly is in his comments. He shows no empathy or sympathy for those less fortunate than he is. A person comfortable in his own skin does not deliberately wind up those less fortunate than him. Instead he helps them. The Boy is not much better. He constantly tells everyone how wonderful and successful he is and that everyone can do the same if they get off their ass. Again a cruel uncaring person who shows no empathy for those who are just hitting the market. Both DGZ/Zach and the Boy have to be frauds. if they were in fact both successful they would be comfortable in their skin and would have no need to be so cruel, bullying and uncaring as they both are.

Perhaps status anxiety that drove them in the first place coming out in their online persona too.

I think you are wrong. I have met many successful sociopaths. Their problem is that there is always someone more successful than them to envy or someone less successful but happier

Gloating and shouting about how great though art is hardly a sign of success. More like' I still haven't found what I'm looking for'.

DoubleGZ and I really just like to comment on the auction results pages. Looking at the figures and pointing out what is interesting there. Making suggestions about what is good to buy, what the general trends are looking like and so on. Noting articles in other publications. Calling out what we believe to be wishful thinking rather than facts. Quite a bit of reporting from the ground from our respective areas. If things start looking grim we will mention that too.
Unfortunately this results in a bit of argy-bargy back and forth discussion. We are probably both a bit autistic rather than downright unempathetic. Sometimes it feels rude not to respond to a comment that directly addresses us and so it goes on and escalates. I will endeavour to let others have the last word.

FFS Zach and I are just excited with the property market in our respective areas, and we're just as happy to report what's happening from our respective observations. If the market is doom and gloom like most people here are saying then so be it, we will only say the truth after doing our own research!

Also, my belief is that Zach speaks the truth. I must say that his post displays exactly the same sentiments that I was thinking. I could not have said it any better, I agree to the fullest with what Zach has said. Were his post above a golf hole that would be a whole in one, I whole heartedly agree ;-)

A lot of people on interest.co.nz are desperate because they can't afford a house, or they have kids who can't afford a house. And for a long time, it has looked like they would never be able to afford a house. They come to interest.co.nz because the housing crisis is beyond fathom, the government aren't doing anything, in fact they are making it worse, the very existence of the problem has been denied for years and interest.co.nz occasionally has some remotely impartial journalism on the topic.

I don't find any reason to mock these people who are desperately hoping that one day the market will turn in their favour. There is literally NOTHING ELSE THEY CAN DO. At the moment, there are signs that the market might be turning. Can anyone really blame people for getting excited about that?

Some people in these comments allege to own many houses. This translates as potentially millions in equity. And because they have that equity, they can create more and more wealth. While, other commentators on here, will never be able to accrue that equity no matter what they do. The only hope they have of home ownership is for the bubble to burst. Not investment equity, just a home to call their own.

Now, i'm not convinced the market is turning. I just simply don't have enough insight or information to educate that guess. But if half of the "housing bubble rumours" are true, then I don't think it will be a bull housing market forever. House prices might have an overall upwards trajectory, and because inflation eats away at mortgage debt, then sure, housing will probably always be a safe investment over the LONG term. But something will change at some point, it always does. If you are a long term investor, you will ride it out, you will lose equity on paper, temporarily. Investors who have been silly will suffer sure, but DGZ/Zach don't sound to be those kind of investors, so i'm sure over the long term, they'll survive a downturn just fine. But because they have so little to lose, I think it's fair to ask them to be a little more compassionate to those who have nothing but hope.

Hang in there ginger ninja. I do not know about the rest of NZ but things are changing in Auckland and Christchurch and it is all there on the REINZ site. Listings are increasing and there are less buyers on the ground even in Herne Bay. Interest rates are increasing and LVR's are working. One of several financial mistakes I made in life is investing in a reasonably large retail shop in a provincial capital. It is currently bloody hard however the reps who visit us say retail in Auckland is even worse. People are getting concerned about their finances as interest rates rise. Such rises do make some people rather nervous. The upcoming election is also making some people a tad nervous. If National lose it , measures to control property inflation are certainly on the table. This is a good time to sit on the fence and wait for things to happen.

Yeah, I think retail in Auckland will suffer, and suffer worse as housing prices escalate...People have no reason to spend and every reason not to.

Sorry I believe either of you - primarily because there are other forums dedicated to discussing property investment with like minded people.You seem to come here for the some sort of "entertainment value". The discussions you are having are mostly irrelevant (to this website) swapping of opinions about the value or otherwise of particular properties and some sort of attempt to justify the current market based on flawed and unprovable opinions based on what I describe as rear vision mirror syndrome / thinking. As I have said before things change and things are changing now.

TA's rant a week to two ago was nothing more than an attempt to 'tell it like it is" in a changing environment - something which I think he is unconformable with for what ever reason. It is also very rear vision mirror thinking - instead of providing solutions he provides excuses and condescending advice to maintain the status quo.

So when you say things change and things are changing now, Zach and I have to bow down to you and accept everything you say? Are we not entitled to our own opinions and market research? We are here to share and stimulate discussion. We are allowed to share market statistics. The title of this article "Several sales above $3m at Bayleys' Auckland auctions" so sharing on relevant sales figures and similar market listings are highly relevant to this very subject. We don't have to agree with everything you say. We are not robots, let alone bad robots!

If you have to resort to insults you have already lost the argument. I'm saying is that things change no matter how much people like to think they are in control. And I think your statement proves my point.

Edit - why did you change your reply.

Again, I disagree. This is YOUR opinion.

You are the one seeking to justify YOUR opinion.

Edit - argue the point not the person. I'm just making an observation.

OK DGZ, what is "wrong" with this property? http://www.trademe.co.nz/Browse/Listing.aspx?id=1266357130

842sqm in DGZ... Was previously advertised at the bargain published reserve of $2,250,000. Didn't sell at auction. Vendors now after $2,050,000... Why is this taking so long to sell? Ticks nearly all of your boxes> Reading the marketing material the vendors seem very desperate, flyer i was given stated "vendors are keen for a pre auction offer" (obviously didn't work), no one keen at auction... what will they get once the panic takes hold? Probably bridging or something similar they need to avoid. Will be interested in your thoughts!!!

JJS, first of all the 2nd half of Portland Rd is not really a desirable area to live in according to Remuera standards (personal opinion). There are lots of sausage flats there and a known flood zone (mainly around Portland Reserve) but if you check the LIM you'll be able to see if it is within the flood zone. The road next to it (Shera Rd) is also very low lying which could be a concern.

Apart from that, obviously the kitchen and bathrooms need upgrading as they are very old but the biggest downside for me is that this villa is too steep down below the road and you have to ask how much effort and how many steps would you take to get DOWN to your backyard?? Note - Contour: Steep fall (ouch!) When you stand on Portland Rd you're almost standing on the roof top level (check google street view), hence not child friendly and not old people friendly. I can tolerate slight elevation but a STEEP FALL?? Ummm....

However, it is still prime real estate within the heart of Remuera and in DGZ, so I think the asking price of around $2m is fair (still 55% over CV of $1.36m). It was last sold in 2010 for $1m exactly.

I can offer some observations too. This property has some factors that will limit its ability to get a top price. Firstly the number 54 could be less than ideal for Chinese buyers. I know they should be more grown up than this but the number four always seems problematic. However they are not the only buyers! Next it is on a steep part of the street and cars might be quite noisy as they tear up there at night. The section is very steep away from the street as well. It is like double steep. It's kind of bad feng shui, I don't know but I imagine it would be. The lower floor of the house has a back wall that is completely underground and is likely to be dark and damp. It will be quite a high maintenance house and expensive to paint. The original price was almost a quarter of a million over the homes.co.nz high estimate. This is the sort of price you get for immaculate and perfect homes in the zone. Even now the asking price now is at the high end of their estimate. The land alone is worth something but it would be a challenging place to build a couple of new houses.
I don't think they can expect a top price and probably somewhere below the homes.co.nz middle estimate is more likely. That would still be a great profit for the seller.

>"Firstly the number 54 could be less than ideal for Chinese buyers."

This shouldn't have any effect. National stooges have again come out today to remind everyone that capital flowing out of China is absolutely not a factor in the Auckland housing market, and everyone should just pipe down and accept their displacement.

Even in today's Herald you read about houses built on 'at-risk' location. Don't forget Auckland region has 52,000 properties sitting in a flood plain, and Portland Rd is a known flood zone. Ask anyone who lives in Remuera for at least 5-10 years. http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=11820355

Wildcard, rents have dropped in Chch not because population has dropped, but because there has been thousands of extra houses built in new subdivisions and most of the damaged houses have been repaired or rented not repaired.

Gordon, where is the link to your NEPHEWS unsold Herne Bay property that no one wants to buy.
You really do have a lot of mates and family that have no luck being able to sell property, they must be very poor,at buying in the first place!!!!!
They are obviously greedy and want too much for their properties therefore forcing up prices!

Just my niece who eventually sold her Mangere Bridge home to someone for over $2 mill mid last year and my nephew who is struggling to sell in Herne Bay for what he bought it for. Things are changing up there .More listings less buyers just like down your way.

Gordon, loving the Chch market at the moment as the opportunities are becoming available again.
Returns still very good and prices are not dropping but people are having trouble getting money from the Banks as they have got tight.
Spoken to several senior Bank staff who say it is ridiculous with the new policies.
Interesting this morning on TV3 Breakfast program where Hamish MacKay who is now a REal Estate agent, reckons that there is about to be another influx of Chinese money about to come into NZ.
Maybe the money will be coming to Chch Gordon?

Yes I heard it on Radio Live during an interview by Duncan Garner too. A new wave of Chinese investment is on its way. Auckland awaits!

Can you elaborate please? Reasons for this, or better a link?

Is it this? http://www.newshub.co.nz/home/politics/2017/03/concern-new-china-deal-wo...

I don't see how you can make that assumption out of this?

Try radio live on demand.

Hopefully for your sake they will come your way to replace the locals giving up on your poor city and its problems.

Yes gordon please just leave it to us and we'll get it sorted. Enjoy your day in sunny rural retreat :-)

thanks Zach. Lovely day here for a 2 hour bike ride.

Yes, hooray, let's celebrate displacing young Kiwis from their city of birth and upbringing.

Make way, make way, for the new owners!

If the young Kiwis wanted to stay in their city of birth they should have followed the example of others and worked harder to be born in the right decade!