Fewer properties coming to auction but Bayleys sells a third at their Auckland auctions. All passed in at Matamata

It's been a quiet week in the auction rooms  with Bayleys having a modest offering of just 15 properties at their Auckland auctions last week.

Of the 15, sales were achieved on five, one was postponed asnd ten rest were passed in for sale by negotiation.

Prices on the properties that sold ranged from $755,000 for a three bedroom house with manukau Harbour views in Titirangi, to $3.36 million for a five bedroom house beside a waterfront reserve in the eastern suburbs.

Down the line Bayleys auctioned three homes in Matamata but all were passed in.

The full results with photos of all the properties offered and the prices of those that sold are available on our Residential Auction Results page.

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49 Comments

Stands to reason that if people taking money out of Auckland into the regions and pushing up prices that when the Auckland money dries up, then nothing surer is that will also affect the regions. Been waiting for it start happening, not surprised it is so quick, was never going to take long for that money to dry up, there will have been a limited number of people cashed up from Auckland still in the market to buy in the regions. It's not like it hasn't happened before, the only difference is/was the extent.
Could get very untidy.

When the tide went out in 2008 in the regions it happened very quickly and the results were stark. Auckland fundamentals are very strong - there may be a correction but there is always going to be a strong undercurrent of demand for Auckland property. You can't say that about Rotorua! Those people who took advice to rent in Auckland and buy an "investment" property in the regions will regret it.

Toronto House Prices Crash 192k since April.
.https://www.youtube.com/watch?v=hGL0ysImPCo

Auckland Albany House Prices Dive 13.5%
https://www.stuff.co.nz/business/property/94154549/house-prices-dive-in-...

The Crash is Coming.

Provincial cities selling for higher prices - e.g. Hawkes Bay, Hamilton etc 30 - 50% above old RVs.
Maybe the next tempting downsizing will be from inflated provincial citiy houses to cheaper small town homes, banking a few hundred 1000.

Can someone confirm this is correct?
332 Titirangi Road sold at auction for 755k which is the 2014 RV and 200k lower than the lowest estimate from trademe.
https://www.trademe.co.nz/property/insights/address/Auckland/Titirangi/T...

Moneyphobe, I notice that the advert for the property doesn't mention the section's actual size. Homes.co says it is 1181sqm as of 2014 which is big. It is possible that it has been subdivided. Streetview doesn't show any work going on however my money is on this possibility. Maybe someone nearby can walk past and see if there has been any changes made. I've seen this a few times before with properties that are unusually low in price.

Yup, same as 20 sylvan cres Auckland... been subdivided over a year

with an estimate of 970k...

I'm not yet totally convinced. The Tiger web site seems to be just gathering data from somewhere. The sales agent on that page is the Bayleys one. The big question for me is why didn't Bayleys mention the large section size explicitly when such a feature is a major selling point currently? Mind you agents can be a bit hopeless and the owners had lived there 50 years so could be vulnerable. There should be an investigation!

"This three bedroom home sits proudly on the ridge surrounded by lush gardens." Maybe you cant fit a house in there?

No investigation needed the owner took what the market was paying. Looks like the RV price is the price point any house buyers should look for in this market.

Could be bargains out there. Keep the examples coming.

Auckland Council Geo Maps data still has it at 1181sqm. I assume the Council has the most up to date information given they'd be the ones approving any subdivision.

@moneyphobe: Yes you are correct; 332 Titirangi Road sold at auction for 755k, sold much lower than any of the price estimates. If you take a look at homes.co.nz, they estimated it's lowest prices to be $1,040,000 and a highest estimate of $1,200,000.

So it only sold for $5k above it's July 2014 RV values of $750.

Also of the four other properties that sold only one achieved a price above the homes.co.nz highest estimate and that was the 91 Fisher Parade, Sunnyhills; sold for $3,360,000 a little bit above the Homes estimate of $3,170,000.

All the others sold below their Homes estimates:-

* 40 Arapuni Avenue, Onehunga Sold for $876,000
Homes estimate; Low: $910,000 and High: $1,070,000

* 7 Buccaneer Street, Mt Roskill Sold for $832,000
Homes estimate; Low: $850,000 and High: $980,000

* 8 Hereford Street, Freemans Bay Sold for: $1,225,000
That's a two bed two bath apartment (2 parking). So I found an equivalent on Homes estimated at $1,550,000
1307/8 Hereford Street, Freemans Bay

So there you have it, prices are indeed falling and what more is that properties that didn't sell at auction are all in the expensive areas of Auckland. Such as; St Heliers, Epsom, Remuera etc...

Arapuni - 34% above CV
Buccaneer - 36% above CV
Not bad. You would think we would have better things to do on a rare sunny Saturday?

Huh did somebody call.. :-)

So have you given up on the Homes estimates now Zachary and gone back to judging by CV value?

Actually CJ099 while I have often referenced Homes.co a relentless theme in my observations has been the percentage above CV. You may recall that more than once I noted that Central hadn't generally gone up as much as the outer suburbs in this regard and that I felt 100% above CV in Manurewa was probably too much.

I do recall Zachary but got the general impression that you seemed generally disheartened by Homes.co.nz due to the Auckland market not living up to their property price estimates algorithm since the market appears to be falling far faster than they can keep up.

Not surprising when you consider how quickly that top end buyer tap was turned off this January. Had quite an impact didn't it. :)

The social disaster that high property prices have caused is only just beginning to sink in to heads that should have known better. What we are entering is a period where society at large has all its eggs in one basket - property- and nothing else left to live from ( wages and future wages have been consumed by The House). Once the CG party ends, and it will ( the sooner the better if anyone of sense wished to limit the catastrophe that's coming) all that most people will have left to face their future with will be.......what? Well not much, if anything at all, and the prospect of working to the grave. Well done politicians of all colours and nationalities....

The rental generation set to bust super, pension systems....

http://www.afr.com/real-estate/residential/the-rental-generation-set-to-...

Plenty of people can still financially afford to get a mortgage but the trend or rather "lifestyle choice" means people are just choosing to spend it on new cars, travel, entertainment and new toys like a new phone every year instead. Those of us that made a different choice are not going to feel sorry for the lifetime renters when they turn 65 or even 70 and discover they have to keep working.

I'm one of those who can afford a mortgage, I just don't see value in the house prices at the moment, with all due respect to some of the areas of Auckland I'm not paying $1m+ to live in GI for instance. I drive an old car, haven't been on holiday for ages, I have a new phone as I need to for work. My kids never go without, and I do like to spend a bit of excess cash here and there -

I'm quietly waiting, I've made a lot of investments in start ups, both here and abroad, hopefully some of those will pay off. I've taken positions in UK companies as the £ is so shockingly low at the moment, if it picks up it's money for jam, irrespective of if my start up picks are runaway successes. I'm also mucking about with shares (in USD, again NZD is historically strong, so I'm not concerned too much there), I've got my money in there that I'm prepared to lose, my share picks are up 10% for this month, shame that on the same hand I've been burnt a bit by crypto-currencies, curse you Ethereum!

Actually $1m+ to live in GI is equivalent to $3m+ to live in Remuera. Which one do you prefer?

Remuera is overrated.

Perhaps, but so are the other suburbs.

and undertaxed?

yep, over rated full of cashed up westies men in their 50 with thick gold chain around their neck

Remuera is now simply a high-priced ethnoscape entry into DGZ
http://www.asianz.org.nz/reports/report/asian-auckland-the-multiple-mean...

So colourful and multi-cultural. Love it!

You are right at home - how many hangi's have you enjoyed

Would be cheaper to buy nearby suburbs and pay the school fees to the likes of Auckland International College or ACG. Auck International College is teaching the IB curriculum instead of NCEA (not so good)

http://www.trademe.co.nz/property/residential-property-for-sale/auction-...
RV 2014 640k
asking 699k
low estimate 680
Another place going for around RV
Is this the new normal?

to be fair.... it is a leaker... vendors probably bought it for 400k two years ago...

Sold for 350k in 2003 this sounds like a fair price and the vendor would still be up if he offloads it in the 600s

How do you know it's a leaker? Do you know that for an absolute fact?

sigh.

"The benefit of buying a plaster home is that you get so much more house for your money, the trick is to find one that has been well maintained and is supported by a favourable report as is the case here. (We encourage all buyers to commission their own reports and offer up this report to give you the confidence to do just that"

Hmmmm!

And will cost you NZ$800 a week in mortgage payments... if you've got the 140k deposit...

you'd have to be earning 150k if this was your first home,,,,

affordability is "in the eye of the beholder"

755k for 332 tirirangi is still fair price for vendor imo when you look at the difficult road access with single vehicle park and no street parking. Would have affected the valuation. Dated 3 bedroom needing to be brought to 21st century and one bath. Nearby sale at 327 in March would probably justify this

I can understand how house sales outside Auckland can now start slowing with Auckland house sales slowing, but WHY is Auckland having sales drop so much and fast, isn't there a large housing shortage and interest rates are very low, we have 2 main changes over all of nz, LVR, s and overseas investors, LVR,s which started just after the middle of last year for all of nz and wasn't Auckland already at 30% (I'm not sure) and the rest of nz doubled from 20 to 40%, but why did Aucklands sales start dropping if the LVR coursed it but the rest of nz didn't have a drop in sales to now, shouldn't investors have slowed from the rest of nz earlier or the same time as Auckland, ok then the rest of nz in slowing because of Auckland, so back to Auckland if the rest of nz was worried that much about the LVR,s why would Auckland with plenty of money and low interest rates, twice the overseas investors were stopped, second half of last year and early this year both time making a big difference to Auckland only, but didn't the government say that the overseas investors were tiny, now immigration was roughly the same all the way threw these periods, back to these overseas investors , the thousands of comments over the last few years are- the auction rooms are full of Asians , family members from china buy 5 and 10 houses at a time , Chinese brokerage company starting up to help with the massive demand, Chinese buying half my street time after time, all over Auckland comments about houses empty, the same thing happens in many other city's around the world with massive amounts of overseas investors being stopped from china, what worries me is ok LVR,s can be tuned, but if this overseas investors thing is as big as it looks and it looks reaaaaaaally big and its over and never to be back ?????????thats the excess sales just there by far, plus that's held up a lot of houses that could have families in

No you can't blame the Chinese for everything. Just because they can be easily singled out from the crowd doesn't mean they are the majority. So many buyers from Australia, the UK, Americans, SA etc and you don't single them out? #Unfair

Uh oh ... The China Syndrome?

Double-GZ , if all these countries have the same booms going on with the same chatter about overseas investors, I don't see it as pointing the finger at the Chinese like you just did, governments can open its rules around overseas investors at any time it likes, and officiously they have, I blame governments for there stupidity letting this go far to far, and time will tell just how large this problem really is, thank god china stopped, please try not to use the China hate card, it's about a country's balances and sense of doing the right thing for ALL New Zealander and immigrants and investors,

There is no housing shortage. It's a total political and media beat up.
Logic dictates that if there was a shortage rents would be rising much faster than they are and house prices would still be rising at 15 percent a year everywhere.
The fact they are not, indeed just the opposite, means the market is well stocked with houses and rentals.
I am aware of many good quality and reasonably priced flats with no takers even with hefty inducements on offer, likewise every third house in the so called affordable areas remain unsold.
We are being fed with BS and I predict that many builders will go broke who swallow the line that affordable houses are needed urgently. I foresee street after street of empty houses and apartments all unsold in the not too distant future.
The poor and those living in bad housing have always been with us and now is no different from earlier times.
Don't be fooled by political pressure as the various parties try desperately to find issues to fight over.