Massive week in Barfoot & Thompson's auction rooms

Property

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

29th Sep 20, 12:55pm by Greg Ninness

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

by J.C. | 29th Sep 20, 1:14pm 1601338480

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

by Mrs The Point | 29th Sep 20, 1:20pm 1601338809

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

by Apex Andy | 29th Sep 20, 8:17pm 1601363879

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.

by Justa comment | 29th Sep 20, 8:27pm 1601364452

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

by Flying high | 29th Sep 20, 11:12pm 1601374323

Change to TBL - Tough Bl**dy Luck

by WellingtonInvestor | 1st Oct 20, 1:36am 1601469407

Isn't there someone regulating that sort of thing?

by Zachary Smith | 30th Sep 20, 5:31pm 1601440279

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

by printer8 | 29th Sep 20, 1:24pm 1601339061

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

by blobbles | 29th Sep 20, 1:26pm 1601339179

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.

by stuart786786 | 29th Sep 20, 1:27pm 1601339237

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.

by J.C. | 29th Sep 20, 2:19pm 1601342387

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.

by youngdumbandbroke | 29th Sep 20, 2:39pm 1601343554

It's best to panic first, though

by Chairman Moa | 29th Sep 20, 1:37pm 1601339826

Sheeps to the slaughter house...

by Tillers | 29th Sep 20, 1:39pm 1601339988

Up up and away!!!

by Justa comment | 29th Sep 20, 8:15pm 1601363719

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

by Luke83 | 29th Sep 20, 1:52pm 1601340748

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

by Colmolo | 29th Sep 20, 2:12pm 1601341922

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.

by Ngrrk | 29th Sep 20, 2:19pm 1601342375

"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?

by Crazy Horse | 29th Sep 20, 3:02pm 1601344922

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...

by redcows1 | 29th Sep 20, 3:18pm 1601345922

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

by iconoclast | 29th Sep 20, 3:52pm 1601347934

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

by Ngrrk | 29th Sep 20, 4:16pm 1601349402

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.

by Independent_Observer | 29th Sep 20, 4:39pm 1601350776

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'.

by WellingtonInvestor | 1st Oct 20, 1:38am 1601469503

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

by Crazy Horse | 29th Sep 20, 2:14pm 1601342098

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-…?

by Chairman Moa | 29th Sep 20, 3:03pm 1601345021

$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)

by Poppyc | 29th Sep 20, 3:43pm 1601347392

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)

by Crazy Horse | 29th Sep 20, 5:12pm 1601352737

@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

by Poppyc | 29th Sep 20, 6:13pm 1601356412

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.

by Crazy Horse | 29th Sep 20, 6:45pm 1601358314

......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.

by Chairman Moa | 29th Sep 20, 6:48pm 1601358534

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

by Poppyc | 30th Sep 20, 8:20am 1601407204

that's a good point - and noted

by Crazy Horse | 29th Sep 20, 2:25pm 1601342755

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.

by Zack Brando | 29th Sep 20, 7:20pm 1601360443

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

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

by iconoclast | 29th Sep 20, 4:58pm 1601351930

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

by Averageman | 29th Sep 20, 4:28pm 1601350112

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.

by iconoclast | 29th Sep 20, 4:43pm 1601350988

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

by Poppyc | 29th Sep 20, 4:33pm 1601350419

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

by Crazy Horse | 29th Sep 20, 6:36pm 1601357771

by Poppyc | 29th Sep 20, 6:18pm 1601356710

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.

by Crazy Horse | 29th Sep 20, 6:39pm 1601357991

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.

by Pusheen | 30th Sep 20, 12:55am 1601380508

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

by amittuteja | 30th Sep 20, 4:56pm 1601438208

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.