There was a huge jump in the number of properties auctioned by Barfoot & Thompson last week, with the sales rate holding steady at two thirds

There was a huge jump in the number of properties auctioned by Barfoot & Thompson last week, with the sales rate holding steady at two thirds

It was a massive week in Barfoot & Thompson's auction rooms last week with a big jump in the number of properties handled and the sales rate holding firm.

Barfoot's processed 220 residential properties in their auction rooms last week (21-27 September), which was a huge jump from the 134 offered the previous week and more than double the 98 offered the week before that.

And a couple of the auctions were huge by any standard, with 67 properties on offer at the Manukau auction and 49 at the North Shore auction.

Sales were achieved on 146 of the properties offered last week giving an overall sales rate of 66%.

The sales rate has remained remarkably consistent over the last several weeks, coming in at 66% in the week of 14-20 September and 68% the week before that.

The highest sales rate last week was at the on-site auctions, which had a sales rate of 80%.

Excluding the Pukekohe auction where just two properties were offered and none was sold, the lowest sales rate was 58% at the Shortland St auction on September 25, where most of the properties offered were in western or central-west suburbs (see the chart below for the full breakdown).

Details of the individual properties offered and the results achieved are available on our Residential Auction Results page.

The comment stream on this story is now closed.

Barfoot & Thompson Residential Auction Results
21-27 September 2020
  Date Venue Sold Sold Prior Sold Post Not Sold Total % Sold
  22 September Manukau 42 4 2 19 67 72%
  22 September Shortland St 13     8 21 62%
  23 September Shortland St 18 8   14 40 65%
  23 September Pukekohe       2 2 0
  24 September North Shore 23 9   17 49 65%
  24 September Shortland St 7 1   4 12 67%
  25 September Shortland St 10 1   8 19 58%
  21-27 September On-site 8     2 10 80%
  Total All venues 121 23 2 74 220 66%

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43 Comments

144 sales. Not a lot of moolah being circulated. Eerie.

That will get some worked up, wait for it...

Its hillarious, the markets are floundering but they are trying to spruik it. Look at the number of reduced and mortgagee listings on trademe. List is growing every day. Plus agents are taking an eternity registering prices that sell below CV. Smoke and mirrors.

Yeah the agents leave TBC on the sales below what they said they would accept. I have seen TBCs left on for over 1 year lol

Change to TBL - Tough Bl**dy Luck

Isn't there someone regulating that sort of thing?

There aren't many mortgagee sales with only 9 in Auckland and 23 for the whole country on TradeMe.

J.C.
What do you mean????

According to the stats website here tracking property: https://www.stats.govt.nz/topics/property

2019 to July 77,841 properties transferred.
2020 to July 66,750 properties transferred.

Only down about 14% from last year, not too much different.

Good opportunity for people to offload,if their financial situation has been impacted by panademic. Normally in such a situation of have distress sale will lose money but now getting premium as market is real hot.

Housing market is sitting at Mt Everest Peak for now so one should take advantage.

Good opportunity for people to offload

Wrong. If everyone wanted to 'offload', it would be chaos. In fact, if only 10% wanted to offload, there would be some kind of chaos.

It's best to panic first, though

Sheeps to the slaughter house...

Up up and away!!!

Yes some aggressive buying at the moment, mainly on properties with land. I think apartments, especially small hotel apartments unwanted by banks though.

It will never fail, this market will never drop........ Himmm

It won't. It doesn't. I pray that it does. But this is a sick little economy and rising house prices are a symptom.

"it wont. It doesn't"...until it does, and it will be a bloody massacre. I was angry, now I'm actually sad. What have we created?

Ngrrk.......I just hope when all this "implodes" that the people who have been diligent with the borrowing of funds over the years and have manageable, minimal debt or no mortgage and not relying on rental income, are not penalized in ANY way ....that is how much I trust this "crooked" playing field.

As at the end of the day, a residential property market that is so big, in a very small economy, does not bode well for the future...

What do you mean by "we". That sounds all inclusive and is simply not true.

Collective responsibility ....
In a democracy, voters elect a government that acts on behalf of the entire populace,
ie "the collective" ...
Successive governments have created a property-banking-debt colossus that is Too-Big-To-Fail

We, as a society, have created an explosion of debt and rapidly rising inequality. In the long term it is not good for anyone. How high do you want your fences to be? Look around the world and see what happens when you create a deeply unequal society. That's why I'm sad.

That requires a utilitarian view, one that goes beyond self interest. Might be pushing brown stuff up hill trying to convince home owners and investors that falling property prices is a good thing for the long term prosperity of NZ/ers'.

What happens when they stop the money printing? From history, share markets will crash.

As I have said for years ......."Free Market, my A**" .......who is truly benefitting ??? ...THE BANKS have had one of their best mortgage "sales" this month ever, converting more of the "sheeple", blindly lead by His Highness of the spruikers Ashley Church, granny herald, MSM, RE industry et al into mortgage slaves for life !!

Meanwhile for USD 779,000 ........
https://www.zillow.com/homedetails/6855-Vanscoy-Ave-North-Hollywood-CA-9...?

$799 USD that's about 1.2mil.. same amount of dollars one can buy a 2bdr crappy old house in Greylynn on 250sqm site.
I know which house I would take (yeah yeah living in America blah blah blah)

60% increase on lift price versus what it sold for 4 years ago and 100% in the last 7 years (so 10% compounded per year). Doesn't sound any better than Auckland from an incremental price? (ignoring base)

@Poppyc .... you have missed the point - compare this property in LA with what you would get in Auckland now, today for NZD1.2 mil ? ....you get "more for your dollar" whether in NZD or USD

Sure, in some respects. But don't forget the $10k in property tax a year that you have to pay. Comparatively that would be around $3k in Auckland.

Not saying nz prices aren't stupid (they are). But correlation wise the upward trend in price is similar.

......with all due respects, you are talking to someone who has owned and rented out property in the USA since 2012 to now, so I am very familiar with the "ins and outs" of residential property in the USA. So first hand I have observed and experienced both markets. While I would much rather be a FHB in the States.

@Poppyc
Don't forget the interest on mortgage payments in the US is tax deductible up to 1 million moolahs..

that's a good point - and noted

To the people of New Zealand ...... with inbound tourism gone for now and international students residing here down to a trickle, I now crown the economy of New Zealand, the first economy in the world to be based on its residential property market.

Amazing hearing people complain about house prices then seeing TOP polling at 1%.

I'll be casting my vote on Saturday - two ticks TOP.

While you were sleeping
Some time after the 1980's suitable land for building homes within a 30 kilometre radius of Auckland CBD became scarce. As a result in-fill housing became the solution. Properties of 1000 square metres with the existing house suitably positioned became the target. There is a lot of in-fill housing in Auckland. You could buy a house that met that criteria, subdivide and either sell the resultant land, or build and then sell. There is a lot of that old-and-new in existence if thats you cup-of-tea. Surprisingly, within a radius of 10 kms of the CBD, those in-fill houses and the legacy houses on 400 sqm of land, are selling for $1 million each. More in some cases. A product of the 1960's was the side-by-side brick and tile 2 bedroom home-units. They are selling for $1 million in desirable locations.

But now, trawling through the B&T sales

Old villa's on land of 1,000 sqm inside a 10 km radius are being snapped up between $2.5 million and $3.9 million for land value only. Properties next door with 2 in-fill houses are selling for $1 million each equal to $2 million for the lot. Quite a discount.

What will happen next will be for owners of the 2 in-fill houses to collaborate and sell together as a development opportunity. Little point in hunkering down in one of the in-fills while 6 units go up around you. The premium will only go to the entrepreneur who can aggregate the 2 together .

Example
18 Arthur Street Ellerslie sold for $3.9 million
30 Arthur Street Ellerslie in-fill sold for $1 million

Agree that developement land should be worth a premium. Hopefully the developer has factored in the water and poop infrastructure that the council will make them pay.

You are a sharp entrepreneur. You buy an in-fill for $1 million or less. It is worth $1 million to go next door and "persuade" the other owner to sell to you for $1 million. Then flog it all off for $3 million. If the other owner refuses your offer plus inducement, you simply sell and move on

There is a bit of that playing out. Not they are working in tandem
https://www.trademe.co.nz/property/residential-property-for-sale/auction...

.

Which one? The former pilot? Tbh, no. I didn't go that far. But I presume thr other agent probably wouldn't mind it and has excelled at it.

Hi Poppyc ...sorry I just deleted my comment, as on second thoughts I thought it was irrelevant, however this is what happens when the property market just gets too big, in a very small economy, as per my comment above.

Wow, congratulations - to the RE winners that are offloading at market peak to retire and enjoy the well deserved sunset retirement with plenty of debasing cash value to use at thy pleasure. And also to the next RE purchasers which earned govt & RBNZ confidence of support in FIRE economy, to borrow against for furthering credit value purchase. Your hard earned with prudent decision, was justified by OZ banks shall be rewarded with guarantee free of CGT and potential reduce of bright line test to sell in the future. Very rosy FIRE in NZ

This week is not a great week like the last 2 weeks. I hope the success rate will not fall for west auckland. Will keep an eye on Friday Auctions.