The Level 3 lockdown in Auckland does not appear to have had an adverse impact on Barfoot & Thompson's auction activity, with the number of properties auctioned by the agency and the number sold both up on previous weeks.
In the week from 10-16 August, Barfoots auctioned 136 residential properties, up from 115 the previous week, with sales achieved on 88 of them compared to 63 the previous week.
That took Barfoot's overall sales rate to 65% last week, up from 55% the week before, which suggests the market may actually have strengthened further during the first few days of the lockdown implemented on August 12.
That meant approximately half of Barfoot's auctions last week could only be conducted online, with the auction rooms remaining closed to the public.
However agents marketing properties in Auckland do face other restrictions, such as not being able to meet clients face to face or conduct open homes as well as restrictions on private viewings of properties.
Those restrictions may, however, still have an effect on the market over the next couple of weeks.
But in Barfoot & Thompson's auction rooms last week things remained upbeat.
At the major auctions where at least 10 properties were offered, the highest sales rate was achieved at the online auction on August 14, where most of the properties offered were from west Auckland and the sales rate was 81%. The lowest sales rate of the major auctions was on the online North Shore auction where the sales rate was 50%.
See the table below for the full results.
Details of the individual properties offered are available on our Residential Auction Results page.
The comment stream on this story is now closed.
| Barfoot & Thompson Residential Auction Results | ||||||
| 10-16 August 2020 | ||||||
| Date | Venue | Sold | Sold Prior | Not Sold | Total | % Sold |
| 10-16 August | On-site | 4 | 2 | 2 | 8 | 75% |
| 11 August | Manukau | 17 | 3 | 11 | 31 | 65% |
| 11 August | Shortland St | 5 | 4 | 9 | 56% | |
| 12 August | Shortland St | 8 | 2 | 4 | 14 | 71% |
| 12 August | Whangarei | 2 | 1 | 3 | 67% | |
| 12 August | Online (Central & West) | 8 | 6 | 14 | 57% | |
| 12 August | Online (Pukekohe) | 3 | 1 | 4 | 100% | |
| 13 August | Online (North Shore) | 10 | 3 | 13 | 26 | 50% |
| 13 August | Kerikeri | 1 | 2 | 3 | 33% | |
| 13 August | Online (Central & East) | 4 | 2 | 2 | 8 | 75% |
| 14 August | Online (West) | 12 | 1 | 3 | 16 | 81% |
| Total | All venues | 73 | 15 | 48 | 136 | 65% |
73 Comments
We should broaden the tax to land rent too...
https://mobile.abc.net.au/news/2020-08-18/house-prices-how-we-lost-cont…
Great way to create a nation of tenants, serfs to the landlord government. How is that tax working out for Sydney? Let’s just “tax everything until it is cheap” - good luck with that.
Neo-serfdom.
A more accurate saying would be:
'Lets tax an asset class that has an undue tax advantage which has led to distortions in pricing and rampant speculation at the cost of society and family stability'
How is land taxed less than other assets with the exception of CGT, which is totally different to the tax TOP is proposing? At least a logical argument can be made for CGT. The same cannot be said for TOP’s and the Greens’s insane tax ideas.
Because very little of the income that accrues to land through the efforts of society around it end up being taxed at all. Plenty of logical arguments have been made for LVT.
Unsurprisingly, people prefer property at times like now.
Owning the roof over your head imparts a feeling of security in uncertain times.
The current market boom can be explained as much by simple psychology as by complex economics.
All booms, however, come to an end...... but with property it's typically a soft-landing.
TTP
All booms, however, come to an end...... but with property it's typically a soft-landing.
Incorrect. Housing bubbles are the most destructive. Without a doubt.
Now now, let's not entirely blame the property market for how dangerous it has been allowed to become. Housing bubbles only became extra destructive after certain banking "innovations" and the growth of the globalised shadow banking system since the 90s.
Hi J.C.,
With respect, historical analysis clarifies that NZ housing booms have almost always ended quietly - and without catastrophic economic consequences. (Even the housing boom associated with the GFC displayed that characteristic.)
Notably, mortgagee sales of houses in NZ have never reached widespread levels - even during the 1930s depression.
Note also that the soft-landings, so characteristic of housing booms in NZ, have typically been followed by strong, swift recoveries in the market.
That's a key reason why there's sustained confidence in the our housing market - even in the current uncertain circumstances......
People (with the possible exception of yourself) are well aware of that - and invest accordingly.
TTP
TTP
. . . . and downturns have been relatively short lived to then recover. For most property owners (both homeowners and investors) these have not been of real significance as property is owned for the long term. Have previously posted, I purchased an investment property just prior to GFC - in 2012 the RV went 10% down and below purchase price - but I sold in 2016 for significant capital gain. Any home owner having to sell due to relocation or trading up is buying or selling on same market so state of the market is not an issue.
Whatever the market does - as long as one can service the mortgage - it is same home or same rent. Whether a home owner or an investor, being prudent and paying down the mortgage as much as possible adds another level of security.
Posts by those who claiming doom and gloom about downturns in the market - and such posts have been continuous for the past four years or so - are seemingly from those who don't own property, have watched the market increase significantly resulting in affordability issues for themselves, and really don't comprehend that property - like a KiwiSaver growth fund - is a long term investment and short term market volatility is not significant.
People (with the possible exception of yourself) are well aware of that - and invest accordingly.
I am invested accordingly to my means; my interests; my beliefs; and my attitudes. If the typical NZer wants to splash out on houses, they are free to do as they please.
Still doesn't negate the fact that housing bubbles are the most destructive.
Hi J.C.,
Sorry - but what you state above is patently incorrect.
As in my contribution above, history shows that so-called "housing bubbles" have not been destructive in NZ.
TTP
I am correct and the consequences are happening now.
Sorry, J.C., housing booms in NZ have a long history of soft-landings.
They have not led to catastrophic impacts on the NZ economy.
TTP
Yes and that past is always an accurate prediction of the future (yeah nah).
Ben72
"We should broaden the tax to land rent too..."
Possibly you may be a renter . . . . if so, your landlord will be passing any tax onto you and other tenants just like happens with the already existing "land tax" (rates).
Housing Market is Hot with no signs of slowing down for Now and is not only in NZ but in most developed countries.
Ignoring USA and EU then. ...
Yes. In the U.S, mortgage delinquencies at worst ever recorded
Wouldn’t they be high here too if they were reported in the same way? US report as delinquent straight away.... here and in Aussie there is some significant can kicking with interest only options and mortgage holidays. It wouldn’t be unreasonable for NZ and Aussie delinquencies to be much higher if they used the same classification criteria as the US.
Extend and pretend. Japan was worse at the end of their bubble. All bank and business assets were still valuated at book value by the banks. Took about 10 years to move to mark to market.
Interestingly Sweden is up slightly over the past few months.
And Oz
Strange aye?
You've been in our borders for far too long.
Not to forget stock market which too is near all time High along with Housing Market.
Worst crisis of the century and biggest boom/rally of the decade. WoW.
NZX50 currently up 3.9% this week (it's Tuesday lunch...). We're probably days away from an all time high. Houses are heading that way.
Printers go brr. I'm very fearful for the future, personally.
All time high was approx 12000 and now approx 11850. Is it too far away.
150 points away. It's up 156 points today.
Auckland sales in June and July made up for 42% of lockdown losses cf 2019
Rest of NZ it was 23%
Wellington 27%
So sales in 2020 for NZ excl Auckland are 25% down on 2019
Auckland sales for 2020 are 1.7% up largely due to increased sales last summer
What are listings doing e.g. are there less listings as people remain holed up during the pandemic?
I don't have listings broken out but total stock is pretty low. Well below 2019 and 2018 for this time of year and now almost down to the 2017 level.
I thought I read recently that listing for July in Auckland was up 40% on this time last year.
Yes that’s new listings
Here's what I've been tracking since the first lockdown based on number of listings on realestate.co. Second column is Auckland, 3rd is NZ.
2020-03-26 10622 29856
2020-04-06 10340 29094
2020-04-20 10162 28560
2020-04-28 10177 28540
2020-05-04 10251 28847
2020-05-12 10394 29359
2020-05-20 10349 29626
2020-05-27 10491 29772
2020-06-03 10431 29600
2020-06-11 10661 29794
2020-06-17 10692 29710
2020-06-24 10787 29541
2020-07-01 10677 29137
2020-07-08 10619 28798
2020-07-15 10598 28546
2020-07-22 10676 28219
2020-07-29 10541 27852
2020-08-06 10498 27521
2020-08-13 10527 27296
More poor naive victims of Orr.
FB
For once I agree with you - however, I think we disagree as to who the naive victims are. :)
To me, those potential FHB procrastinating with their hands in their pockets waiting for the bubble burst over recent years have seen property prices typically rise by 20% or more and now facing greater affordability issues and home ownership getting further away are sadly the naive victims. For those in such situations, they just hope and post about bubble bursts.
Just remember that your landlord does love you - keep paying of the mortgage for him/her.
What about the younger generations coming through that have not had the chance to accumulate enough to get in, and will not?
What do you think should be done to address the situation for them? Just transfer their wealth to older generations in greater amounts? What about standing on one's own two feet?
I really don't think the penny has dropped that we are heading down a very very dark hole.
Getting excited about movements in house prices is so far from what matters it is comical.
Depends on the messages sent from Granny Herald and Newstalk ZB. And more importantly, how they're interpreted
This is Australia.. but some say we are duffurent!
https://www.abc.net.au/news/2020-08-18/house-prices-how-we-lost-control…
Chickens coming home to roost
This is Australia.. but some say we are duffurent!I
Yeah different - as only economy in NZ is housing economy = Rockstar economy.
Mass immigration is (was) also a major contributor to the “rock star economy”
When you look at the real house price graph in that article, then the possibility of a 50% fall in prices is a real possibility. Capital values in real terms vs construction costs...which is in the CPI? Construction costs....yet the money supply is flowing into capital asset price appreciation. Its almost comical when you think about it. Wheres the inflation? Can't find it. Must drop interest rates. Oops we still can't create 'inflation' but we've created asset bubbles. Wow...what a surprise....Oh well, negative interest rates will keep us right for another couple of years....(face palm).
Boom Orr Bust !!!!
The Great Senior Short-Sale or Why Policy Inertia Will Short Change Millions of America's Seniors
Technically: A “short sale” is a sale of real estate in which the net proceeds fall short of paying the debts secured by the property.
As applied: Selling one’s home for much less than one hoped, perhaps less than its inflation adjusted purchase price, or not being able to sell at all.
Better to sell now as you don't know how bad it's gonna be in future. There might be third, fourth wave... And for those people who just bought houses, good luck and all the best...
Better to buy now as you don't know how good it's gonna be in future. There might be third, fourth wave... And for those people who just bought or sold houses, good luck and all the best...
There were 3 auctions months ago in Pakuranga Heights where I live. All of them were sold under the hammer. However, I noticed that up to now, the same people occupy those houses. That is based on my observation since the same cars parked outside the house, another one who owns a boat and a dog that barks a lot LOL.
So how does it really work? Why it went for sale if the same people will eventually own it then? That doesn't make sense to me.
Maybe rentals?
It's quite unbelievable, more sales under lockdown… I have to admit not understanding this one
What is happening is the NZ$ is being debased.
If you are Australian based and looking to return, NZ property is now 10% cheaper than it was 4 months ago. So even paying 5% over March/April valuations means you are still well ahead. 2020 is going to be a defining year for personal finances, you are either up with the play or about to get left behind.
Trigger warning https://www.oneroof.co.nz/news/auckland-teens-saving-trick-snares-him-h…
Good on him for buying a likely leaker.
Oh dear....
I am 99% sure it's a leaker. Bad decision.
Terrible article.
God those kind of articles annoy me - because they are never honest about how people managed to do it. In order to save 100,000 for a house deposit by simply spending $1 on lunch, even if we assume that the alternative is to spend $20 on a bought lunch every single day, it adds up to a saving of 7k over a year. So he would have to have been on this regime since the age of 5.
I'm not knocking him - presumably he got a well paying job at a young age and managed to save lots. But why do journalists need to persist with this nonsense about lunches rather than actually explaining properly how someone managed to save?
The question is, what are all the idiots in NZ doing (more than 50% of the adult population) if anyone can get a job at age 16 that pays ~$63k per year?
So this guy has been making at least $50k net per year since he was 16? It just doesn't add up.
Deposit is $102k. Divided by 3, that's $34k per year *saved*.
He says he's been renting, so that's at least $10k per year. Plus eating is at least another $5k (I don't buy the $1 per lunch BS). So $49k per year total, meaning he hasn't done anything but worked and slept and ate very cheap lunches. Does that make sense to anyone?
Edit: Just checked the repayments on his mortgage. $377 per week. He said his mortgage will cost about the same as his rent. So he was paying $350ish rent? That means he made at least $57000 net per year. That's a $73k salary. At age 16-19. Well done mate.
I'm not commenting on the veracity of the article, however it clearly states he is getting two flatmates and taking their rent into account, his net payment will be the same as his rent.
It is likely he had some form of assistance, the point here is that a 19y old had the determination and risk appetite to buy his own place.
Determination, risk appetite and a small loan of a hundred thousand dollars :)
That's why I put the trigger warning there...imagine if he did save it.
I would suggest that these Oneroof articles are immoral.
Very dark indeed.
Done with the clear intent of boosting FOMO.
That website should be burned to the ground.
There is a few missing details
a) never said that he had a 20% deposit, only that he was aiming for that
b) never said that he didn't receive gift money from payments, only that he was aiming not to
c) the last big about rental payment versus mortgage is left open-ended. I read it that he will be paying the same when factoring renting out two rooms. I.e.
'Living with flatmates, he said, would help with his mortgage payments.
"I will be paying about the same as when I was renting,” he said.'
What is happening is the NZ$ is being debased.
I guess that's why gold is looking more attractive - no opportunity cost at near zero to negative real interest rates.
Long Gold, short NZ$.
Auckland Housing: Return to normal (2020) ?
Sydney housing-
Enthusiasm(2012, 2013)
Greed(2014,2015)
Delusion(2016,2017)
New paradigm(2017)
Denial(2018)
Return to normal(2019)
Fear(2020).
Posted yesterday morning briefing that auction data would be telling - at the moment it seems that Auckland property prices are holding up despite this new Covid 0.2 kick in the guts.
Results over the next couple of the weeks will be telling.
Clearly falling OCR and QE - whether one likes it or not for economic stability reasons - is reality and is having a significant influence on all assets - property, shares, precious metals . . . and even bitcoin.
And Orr's comments - whether one likes them or not - is that OCR is likely to go lower and more QE, as well as government providing ongoing business and job/income support.
Sadly Retired Poppy - the great advocate of term deposits over FHB homes - may have been getting his 4.5% that he often posted about, but they will be due to be rolled over and the outlook for that in the near future rates will be far less than 1% (after tax). Meanwhile asset prices - including property - just keep going up (with gains such as for a home being tax free).
'Results over the next couple of the weeks will be telling' - no they won't.
The next 5-10 years perhaps!
House prices plateau -> economy slows -> CPI drops below band -> interest rates go down -> house prices go up -> CPI recovers to within band -> house prices plateau -> economy slows etc.
However now, there is only ~1% further that interest rates can go down. What happens then? Perhaps we'll need to start producing services & goods that people want to buy?
These results in west Auckland were expected from this Auction. West Auckland property market is doing great and I hope trend will remain same after this current lock-down as well.
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