Residential auction activity remains strong with 73% sales rate in the first two weeks of September

Residential auction activity remains strong with 73% sales rate in the first two weeks of September

The strong level of residential auction activity that was evident at the end of August has continued in the first two weeks of September. monitored 205 residential auctions around the country in the first week of spring (August 31 - September 6), with sales achieved on 153 of those, giving an overall sales rate of 75%.

While the number of properties being offered was slightly down on the 224 properties auctioned the previous week (24-30 August), the sales rate was exactly the same at 75%.

In the second week of September (7-13 September) the number of properties auctioned lifted to 222 and the sales rate dipped slightly to 72%.

That meant that over the first two weeks of September the total number of properties offered at auctions monitored by was 427, compared to 299 in the comparable two week period (2-15 September) of last year.

The overall sales rate for the first two weeks of September this year was 73%, compared with 53% for the comparable two weeks of last year.

So there is significantly more auction activity this year and more properties are being sold, both in total and as a percentage of what is being offered.

Prices also appear generally firmer.

Where was able to match up selling prices with a property's rating valuation, 86% of the selling prices in the first two weeks of this year were above their rating valuations, while over the comparable two weeks of last year just half (52%) of selling prices were above their rating valuations.

Considering we are now just one month from a General Election and economic uncertainties abound, the latest auction figures suggest the residential property market remains remarkably resilient.

You can check out the details of the individual properties offered and the results achieved at the auctions monitored by on our Residential Auction Results page.

The comment stream on this story is now closed.

You can receive all of our property articles automatically by subscribing to our free email Property Newsletter. This will deliver all of our property-related articles, including auction results and interest rate updates, directly to your in-box 3-5 times a week. We don't share your details with third parties and you can unsubscribe at any time. To subscribe just click on this link, scroll down to "Property email newsletter" and enter your email address.

We welcome your comments below. If you are not already registered, please register to comment.

Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.


Indeed, remarkably resilient

The housing market always surges forward under Labour governments......

So what's happening to house prices isn't too surprising.

Plus, NZers increasingly like the status gleaned from property ownership. The larger one's portfolio of rentals, the more impressive. (-:

Goodness me......



Prices didn't do too badly under National either TTP. If I recall correctly, the last big boom in Auckland finished in late 2016, at the tail end of the last National Government's tenure...

Correct Greg - the last big boom ended around Oct/Nov 2016.

But, historically, Labour governments have been associated with upward movement in house prices, because they've been very accomplished at pumping money into the economy - more so than National governments.......

The current Labour government seems to be no exception: government expenditure hasn't been too modest under Jacinda and Grant......

Cheers for the weekend.


Between August 2011 and August 2014 (under National) Auckland's median house price increased by 36%. Between August 2014 and August 2017, also under National, it increased by 48%. Between August 2017 and August 2020 (Labour) it increased by 13%. However there is a lag between what happened in Auckland and what happened in the rest of the country, with the strong lift in prices that occurred in Auckland in 2014 to 2017, occurring in 2017 - 2020 outside of Auckland. That shows up in the national median price, which increased by 18% between 2011 and 2014., 21% 2014 and 2017 and 27% in 2017 - 2020. So while you could argue that house price growth has been greater under Labour than National, I'd be cautious about making sweeping statements to that effect.


In both the Kirk/Rowling Labour Government (1972-1975) and the Lange/Palmer/Moore Labour Government (1984-1990), house price increases were particularly marked.

During the Second Labour Government (1957-1960) it appears that increases were more muted.

I'd be comfortable enough with saying house prices typically move up significantly under Labour governments.


I'd ask you for the figures but I don't see what relevence it has to the current market.

Agree, Greg - it's of more relevance to economic historians.

But I take your earlier point: caution is recommended with comparisons over time (not least because of the mix/complexity of factors involved).

The dept of property management/valuation at Massey's business school used to look at this stuff. Not sure if it still does??


It ended because Chinese money flows juddered to halt for 6 months

TTP - Here's an interesting article that clearly supports your statement that house prices increase more under Labour Governments !

The current bubble was created by the National government, do not forget that. What Labour just did was nothing, at all.

You are spouting a load of garbage.

The same clown at Westpac predicted Brisbane will have 20% increase.. Well I am going to be rich(er)

Speaking of clowns, Chairman Motor Moa, how about your prediction earlier this year that the housing market was about to take a dive?

Or, are you now going to deny what you said here just a few months ago?


Time To Pee
still got 3 months of 2020.. talking of which, you posted same prediction of house price going to be flat and even a slight dip!
Dementia kicked in a bit early for you?

In fact, Chairman Motor Moa, I stated here several times earlier this year that readers (most notably the DGM) would be surprised by the strength and speed of the recovery. (I know of nobody else who made any similar comment.)

And that's exactly what has transpired. Nowhere did I suggest that house prices would show a major fall. (It's you that said that, although you now refuse to admit it - zero accountability as usual.)

Nonetheless, I continue to believe that house prices could go"flat" and perhaps show a "slight dip" - as you put it. To be specific, as I've said here several times before, I think it's possible that prices could fall by somewhere around 10 per cent over the next 2-3 years. Anyway, we will see.

With all due respect, Chairman Motor Moa, if you're going to enter the discussion here, please get your facts straight. (Just yesterday, you said fines were a component of GDP and you had to be corrected on that alarming error.)



'With all due respect, Chairman Motor Moa"... you had me at "Motor"..
Respect, my ar$e, what a hypocrite!

It has been just postponed by the RBNZ with their kick-the-can-even-further policies but do not hesitate this is where we are headed to.

Thanks for the wealth redistribution, Reserve Bank of NZ! Great to have a centrally supported industry!

This COVID period has taught me that the only way for property in NZ is up! If a few 100 people lose their job then they are pakaru. If a few 1000 lose their jobs then the RBNZ and govt will bail them out. Any sign of a fall in house prices as treasury predicts the govt will engage in massive stimulus- first home buyer grants, continuation of deferrals, potential to take over non performing bank loans to avoid mortgagee sales. It’s changed my thinking from
Being conservative and holding off buying another IP to leveraging up large!

Exactly Tillers. Three main drivers: 1) Historically low interest rates; 2) Tax free gains on property; 3) Lack of supply of housing. The government largely controls 2 & 3. Lets be honest they also pressure RBNZ so can control 1 too. Previous govt's controlled by both parties and the current one won't do what's necessary in relating to these three things because they don't have the balls politically. So leverage up, stuff those who can't, and hope you can get out before the bubble bursts.


I'm more and more convinced that it's again overseas money causing the current price increases.

Anecdotal of course but a recent (as in a few days ago) lifestyle property tender in Wellington - RV $1.6m - received 15 offers above that - 3 above $2m and sold for $2.3m and change. My man in the know tells me it was purchased by a trust and the new owners are overseas.

Reading between the lines from her comments earlier in the week I believe Heather du Plessis-Allan was in the running and expressed disbelief at the eventual price.

Firmly believe that there's a massive amount of money coming in from foreign buyers buying either via trust or companies setup expressly for the purpose to bypass the foreign buyer's ban.

Certainly there's an uplift in first home buyers and investors domestically too - but at the upper end - it's foreign money looking for somewhere to live, not actual people.

Hi Polygonalvector, your comment on overseas buyers is interesting. But you should be aware that restrictions on overseas buyers apply to companies and trusts as well as to individuals. It's just that sales to companies or trusts aren't included in Stats NZ's reporting of overseas sales.

I'm no lawyer (so if there is one reading this please chip in with your knowledge!), but I'd expect that it doesn't need 100% of the trustees, or Company directors/owners to be NZ resident or an NZ citizen to purchase property. So a single resident or citizen can set up a trust including overseas citizens and simply purchase through that trust - which I expect is exactly what is happening.

Hell, some enterprising estate agents may well be offering such as a service...

Post purchase, that person is simply removed as a trustee... very much doubt that there's anyone looking after the fact. And when/if it comes to resale - I don't think there's any restriction on that.

So yeah, the restrictions may well apply, but I'd suggest they are far less stringent - and are certainly more difficult to manage.

No, if beneficiary of the trust is foreign, then they cannot purchase property.

How easy or hard is it for overseas individuals to funnel money through to family or friends here in NZ to buy property on their behalf? With ownership under the local person's name, but some side arrangement or contract protecting the overseas party's interests.

Hi Fritz, recent history would suggest money flowing out of China in particular had a major impact on our housing market prior to October 2016. As you suggest, this was often chanelled through friends, family or business contacts in this country. However it would appear that controls the Chinese government put in place on capital outflows had a more dramatic impact on this trade than NZ's foreign buyer restrictions, although the Chinese government had several cracks at it before they got it to really bite.

Thanks Greg. To what extent can China prevent money coming out of Hong Kong?

They don't have to. It is difficult to get your money from mainland bank to HK bank. Plenty of documentation and running around to prove it is legit is needed. It is possible though.

I meant direct from people in HK to NZ. With no transfer from China to HK.

That is not a problem, yet. But a much smaller pool of people.

Greg Ninness... foreign buyer restrictions preventing you buying. No worries. Just get one of those NZ residency things. I mean we do give away about 100 000 of them every single year. Go grab one then buy up large .Ezy peezy.

But agents are anticipating an upswing in interest from Chinese buyers as the new lunar year begins, with many buying property through family members living in New Zealand.

"Many have family here in New Zealand and they often buy property through them. The hardest part is not in fact the legislation, but getting their money out of China." - Peter Thompson, Barfoot & Thompson.


An Ohope beachfront sale for $3.65m - that's all you need to know.

An Ohope beachfront sale for $3.65m - that's all you need to know.

Sounds like something picked from the daily round-up over at Granny Herald. The media has doubled down on the new 'property boom', which is understandable considering they rely on the revenue from the property sector. Without it, sources like Granny would unliklely be a going concern.

It doesn't matter where it's from if it's true. All surrounding houses will get bench-marked to that sale.

Sounds like a bit of the ol' "we's rich" approach to valuation.

Probably a new mongrel mob gang house. They have to wash that money somehow.

Quite a bit of P money needs cleaning. What would we do without the meth trade? Hugely underestimated economy I suspect. P money can go into houses through delegated professionals and a few mouths get a bite of the cherry.

Meth is a huge problem, quite lucrative by all accounts though.

Indeed, the joys of substance "P" are very short-lived.......


Nz has a massive P (p for property) addiction

Withdrawl is going to be harsh for some.

Apex and CJ
You really are desperate or have a love of conspiracy theories.
The same legislation that is directed at FB is also intended to curb money laundering. The provisions of the Act has multi-layered requirements on banks, REA and lawyers regarding source of funds and ownership under threat of severe consequences of substantial fines and/or loss of licence.
Drug money laundering will more than likely create a red flag by one of these. The recent increase in raids and seizing of property and goods is related to this legislation rather than police initiatives.
I challenge you to name a respected commentator who includes drug money as a current driver of the house market.

Some idiot made a very poor decision, so what?

I took note of comments like yours and it cost me 200k. No one knows the future.I have always been wrong about the imminent demise of house prices when I have called it.

Housing market is getting too hot. Houses in Pakuranga going 40% above CV is crazy but happening.

Many FHB are stretching beyond because of FOMO. Should realise that low interest rate has been offset by high house prise but FOMO emotion too is running high now.

Indeed. The sad reality for some of those FHBs is that they probably can't wait until this overvalued property market corrects and so reluctantly leverage up to pay over odds for a lower quartile property. The real question is why are they having to bid up so much? Other FHBs driving the price up? Looking at the bank lending data one would suggest it's 'Ma and Pa' and the Elderly buying an investment property to secure passive/retirement income given low deposit rates. Can't blame the Elderly and for 'Ma and Pa' it all comes back to the tax incentives of property speculation. The fix requires a NZ government to do something about it which Labour has just proven is too much for NZ voting public to handle. It's all sad really.

No one asks if it’s sustainable and when it will drop away. apparently NZ QE as a % of GDP highest in world

mikekirk29.... highest by a long shot

Among the 86% selling above July 2017 Valuation (Last week was 2018 now back at 2017)
Most were moderate
Some were just above 2017 RV
There are some standouts

A trawl through the sales reveals a number were sold below July 2017 valuation

Glad I bought last November, especially with low and falling interest rates.
But as a recent Fhb, I really empathize with Fhbs. It's a debacle.

Same here, I almost pulled the plug on it as well with Covid approaching. Glad I didn’t though, potentially looking at quite healthy capital gains in my first year as a home owner now.
Not that it makes much difference as if I sold this house I would also need to buy another at inflated prices, but it gives us a nice boost to our LVR and the bank is happy.

Wow, I just heard a landlord from ChCh on Radio NZ having a right old whinge around tenancy laws. I nearly cried.
I thought it might have been The Man, but the guy moaned about how there hadn't been any capital gain in the last 10 years to offset greater costs. The Man was always talking up the capital gain in ChCh, so couldn't have been him!!

Greater costs like the 5 percent DROP in mortgage interest rates over the last 10 years?

Anyone know of any landlord that has passed on interest cost reductions by way of rent reductions

Good point. Dome landlords with mortgages will have large reductions in mortgage payments

Exactly - which is why it always annoys me when landlords continually claim they'll have to increase rent because of extra costs. If they don't also decrease rent when costs decrease, its clear that rent is a function not of what their actual costs are, but what they think they can charge and still have tenants. At least they could be honest about that.

The clown on Radio NZ was a shocker. It was quite funny

Question. Is the method of sale partially to blame for the increase in house prices over the past decade? Twenty years ago few properties were sold by auction and house prices were somewhat reasonable. Nowadays auctions are commonplace providing greater competition between prospective buyers. If auctions were removed as a method of sale, leaving houses to be sold by deadline / negotiation / tender, would that go some way to slowing the increase in house prices?

Well attended the Tauranga Auctions yesterday and although good quality homes were selling at the right price, I would not say the market is "Strong". Strong to me would be everything at least attracted some form of interest but this is not the case. The property market is still being pumped but if it doesn't start going down before the mortgage holiday ends then its not going down. Expect the holiday to be extended. While the free money continues to flow the party will continue.

I have the same feeling to, all these news propagated by the media are just choosing a side of the story, auctions are a small proportion of the market anyway yet seems it is all that matters these days since they are "buoyant" and make the market "resilient", what a joke!

Right now, not just the Auckland property market, but New Zealand's reminds me of the words of this old song ......."Fly me to the moon, Let me play among the stars. Let me see what spring is like, On a, Jupiter and Mars" .....that's how high the prices seem to be going anyway, but how will it all "play" out - that is the real question ?

The only way out for recent buyers is rampant inflation or "inflate the debt away" .....but I can't see that as being a great thing for any economy anyway eventually everything else will go up as well....except for, you guessed it - wages and salaries.

As a central Auckland agent our experience is activity from buyers is UP! money is looking for a home, however it seems vendors are keen to sit on the fence, my advise is not to wait to enter the market.....the buyers aren't!

Imagine if there were about, let's just say 80K, fewer people living in God zone every year. Might solve one or two issues, especially those related to the property market.