Steady as she goes in Barfoot & Thompson's auction rooms in election week

Property

Activity remains strong in Barfoot & Thompson's auction rooms

21st Oct 20, 10:57am by Greg Ninness

It was business as usual in Barfoot & Thompson's auction rooms in the week of the general election.

The real estate agency auctioned 219 residential properties, almost unchanged from 217 the previous week and achieved sales on 131 of them.

That gave an overall sales rate of 60%, which was also in line with results over the last few weeks, where sales rates have mostly been in the low-to-mid-60% range.

Leaving aside the one property auctioned in Northland (which sold, giving a 100% sales rate), the sales rates within the Auckland region ranged from 56% on the North Shore to 67% in Rodney.

The highest number of auctioned properties was in Central Auckland (within the boundaries of the former Auckland City Council) where 65 properties were auctioned and 40 were sold, giving a sales rate of 62%.

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

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41 Comments

by stuart786786 | 21st Oct 20, 11:00am 1603231253

Activity remains strong in Barfoot & Thompson's auction rooms.....supported by RBNZ and Government.

by tothepoint - d… | 21st Oct 20, 11:16am 1603232213

...... and determined buyers aplenty.

TTP

by stuart786786 | 21st Oct 20, 11:31am 1603233118

If FOMO can create people fighting each other over toilet paper than if the powerfull RBNZ comes out to create FOMO what else do you expect....

Now they have to sustain it, come what may or otherwise FHB who have entered last with high borrowing to ...... may be the first to be crushed by RBNZ generosity as people who are speculating or buying against other property may still survive on Capital Gain earned on other house SO now RBNZ has to do everything to protect housing market as now houses are going 80% to 90% above RV - check 1 Ayr road and is not cherry picking as can see many other going much much above RV.

by refactornz | 21st Oct 20, 11:51am 1603234286

That's pretty much the definition of cherry picking...

by Pusheen | 23rd Oct 20, 12:20am 1603365630

.. and most clever vendors, will cream those wage subsidy (rental freeze off now), sellers already take a note of this Banks deferrals, and plenty background assurances by RBNZ to steadfast the NZ FIRE economic stability (Kill LVR, QEs/LSAP/FLP/OCR). Rich kiwis abroad decided to return, plenty of offshore buyers, buy site unseen. So? priced up, it will be gone by Q1 2021

by iconoclast | 21st Oct 20, 11:38am 1603233517

18A Ashton Road, Mt Eden - passed in - failed to sell
Last week its side-by-side twin sold for $4 million

by iconoclast | 21st Oct 20, 11:47am 1603234043

1 Ayr Road, Pakuranga - sold $2,088,000
Land size 960 square metres
Developers in action - look at the new 3 unit 2-story development next door
Lot of overlook for the properties either side - they will go next
https://www.barfoot.co.nz/property/residential/manukau-city/pakuranga/h…

by Te Kooti | 21st Oct 20, 12:00pm 1603234806

Isn't this exactly what you are crying out for? 4 townhouses on 960 sq/m replacing a single rundown dwelling, say $1.25m each (I'm guessing). There are only so many sections this in AKL and medium density is the only way to solve the housing shortage. Over time the area will become gentrified.

by GV 27 | 21st Oct 20, 12:03pm 1603234998

Depends, are they replacing one $2m house with four $1.5m three bedders and thus pushing up the price of any three bedder with more land under it by default?

by Te Kooti | 21st Oct 20, 12:10pm 1603235456

The $2m value was all land, the house is worthless. There may or may not be second order price impacts but seriously, who gives a flying fig as it's irrelevant. You want more houses, it happens by developers taking some risk, buying land and building townhouses/duplexes/apartments. The market will sort itself out.

by iconoclast | 21st Oct 20, 2:41pm 1603244464

Yes. That's exactly what will happen. It's not what I'm crying out for. It depresses me. Developers are setting the price. With the domino effect, the property on the left of of the new units is now automatically valued at $2 million. That's the way Valuers and RE's work. Recent sales in the area become the benchmark for all land values in the vicinity I'm posting these outrageous sales because they set the land values thereafter of every-thing within a 9 km radius of AKL CBD

by Te Kooti | 21st Oct 20, 2:48pm 1603244935

Not true, it's the way a free market works. How else does residential land transition from low to medium density? The land increased in value because of the zoning change - no other reason, not banks or RBNZ.

by al123 | 21st Oct 20, 3:40pm 1603248046

Free market! In NZ residential property? I just about spat out my tea.

by Te Kooti | 21st Oct 20, 4:01pm 1603249263

If it's not a free market, what is it?

by al123 | 21st Oct 20, 4:30pm 1603251021

A market in which both national and local government have repeatedly intervened in order to pump up asset prices, the result of which is a massive wealth transfer from young to old.

by frazz | 21st Oct 20, 8:35pm 1603265748

No such thing as a free market..myth

by Pusheen | 23rd Oct 20, 12:30am 1603366218

Now, now.. remember be kind - Let me define it for all. Free market=collection of cartel behavior. Collective is the keyword. Collective to demand/set price up, and equally collective demand to ask price down. The up trend tend to be in unison, BUT make no mistake the down trend also can be the same, just not many in unison. Just imagine if in Nationwide unison happening.. those FHBs, Investors cap their max. offer.

by iconoclast | 21st Oct 20, 3:47pm 1603248448

Please yourself, what ever

by Fluffybunny | 27th Oct 20, 9:51am 1603745501

I agree that increasing density is inevitable.

But free market?

Free markets are not subject to massive govt intervention when faced with global recessionory events.

Equally they don't have LVRs imposed in the first place when we develop an unhealthy addiction to credit.

This housing mess is an bunch of intertwined special interests. Most of it driven by greed and FOMO. But 100% allowed & facilitated by credit growth.

This is not a housing shortage/bubble/issue/crises. This is a credit/debt crises.

All humans have a desire to have more than their predecessors. But in recent decades this growth desire has kicked into overdrive.

Some countries drive this growth via govt debt. In NZ we do it via households lending.

by richard1965 | 21st Oct 20, 12:25pm 1603236308

So if cost of each land comes to $565000 to $625000 After consents and other expenses and add another $500000 for construction of 220 to 250 sqmt house will be approx 1.1 million plus interest on money invested plus agents commision of 3% (though low but adds up) so should sell for 1.3 million to 1.4million to make a profit with all the risk.

Slowly unrealized land values are going up very fast so the risk will be higher compare to profit, in future.

by Te Kooti | 21st Oct 20, 12:30pm 1603236648

Precisely. The Unitary Plan in Auckland and Spatial Plan in Wellington will make the re-zoned houses worth a lot more than their utility as a single residence. Few owner occupiers will be able to compete with the development value of that land. This is exactly how it is designed to work and to create greater supply of medium density dwellings. The landowners selling are beneficiaries and that's capitalism sorry, the only way to increase supply is to make it financially worthwhile to sell up.

by J.C. | 21st Oct 20, 12:39pm 1603237152

The landowners selling are beneficiaries and that's capitalism sorry, the only way to increase supply is to make it financially worthwhile to sell up.

You're talking about capitalism as defined by run-of-the-mill NZers who seem to think they've become masters of the economic universe (well at least around the water cooler). But even some of the paragons of NZ capitalism (like Bob Jones and John Key) are making different noises.

by Te Kooti | 21st Oct 20, 12:44pm 1603237457

John Key and Bob Jones? Don't make me laugh.

by J.C. | 21st Oct 20, 1:31pm 1603240270

OK. Brian from the bowling club who's a livewire after a few beers. But anyway, the point remains. Everyone in NZ is an investment genius during asset bubbles. It's the Dunning Krueger effect in action.

by Te Kooti | 21st Oct 20, 2:04pm 1603242264

Who cares, the smart profit and survive and the fools get flushed. Sounds fair to me.

by J.C. | 21st Oct 20, 2:44pm 1603244694

Well yes. Selling into a market like this is a dream for many. But who are the fools? Those SMEs who are struggling?

by mikekirk29 | 21st Oct 20, 4:43pm 1603251788

Of course, ALL who make money deserved it and earned it and ALL those not, well, they were useless and incompetent and did not work hard enough etc.
Straight out of Trump song sheet.
Simplistic rubbish

by J.C. | 21st Oct 20, 5:19pm 1603253996

Of course, ALL who make money deserved it and earned it and ALL those not, well, they were useless and incompetent and did not work hard enough

Glengarry Glen Ross. The leads are weak.

by Te Kooti | 21st Oct 20, 5:25pm 1603254344

No one said that, that's just your resentment, bitterness, jealousy and envy. If I bought Tesla at $100 did I do anything to deserve making money? Investors are not breaking any law, suck it up.

by J.C. | 21st Oct 20, 6:08pm 1603256930

No one said that, that's just your resentment, bitterness, jealousy and envy. If I bought Tesla at $100 did I do anything to deserve making money? Investors are not breaking any law, suck it up.

No need to bait others with trolling tactics

by frazz | 21st Oct 20, 8:38pm 1603265881

That's not quite how a ponzi scheme works Kooti...those that got in first (boomers) are the winners .the ultimate losses 30 and under.

by Pusheen | 23rd Oct 20, 12:42am 1603366937

After laugh? you'll ponder, why those two that always advocating for properties on most of their life time believe.. now, uttering the same non-sense opinion in this Covid era, that is to sit of pile of cash (usually labelled as looser in this site), advocating Not to buy RE right now, what is their agenda? why they're now contradict their past believe? - Let's keep moving, doing what we know & do best.. buying and selling REs. NZ have a clear message of assurances in this area direct from the current govt & it's reserve bank.

by printer8 | 21st Oct 20, 4:24pm 1603250661

J.C. mate
I see you being dismissive of others.
Clearly you need to spend a little time around the “water cooler” as you are keen to rubbish others comments - not only today but previously - as simply water cooler chatter.
I recall a couple of months ago you dismissing auction data as an early indication that the property market was looking very strong - it proved to be more than simply “water cooler” speculation as you asserted.
Not about trying to be “masters of the universe” - rather simply reading signals regarding market direction.
Cheers

by J.C. | 21st Oct 20, 5:18pm 1603253924

I recall a couple of months ago you dismissing auction data as an early indication that the property market was looking very strong

Yep. I dismiss it. For the main reason that "the property market looks very strong" is subjective claptrap. But even as a basic statistical data source, weekly auction data is very limited.

by tothepoint - d… | 22nd Oct 20, 8:11am 1603307470

"But even as a basic statistical data source, weekly auction data is very limited."

Fake statistics?! Is that you, Donald?

TTP

by brisket | 21st Oct 20, 6:14pm 1603257247

I’m not a big fan of property developers as a type, but I agree, it makes total sense for them to be buying up suburban houses on big sections and subdividing. How else would density ever be achieved? The planners want more density, the incentives are in place, isn’t this what we all want? Now: this being NZ, the new dwellings will probably be stapled together out of Gib and bread bags, and the developers will be asking far too much for them, and some people will be desperate or stupid enough to pay too much; but this is a necessary process at the moment. The question isn’t really whether developers should be buying these properties, it’s whether they have accurately assessed the present and future value of the properties...

by b21 | 21st Oct 20, 8:43pm 1603266216

The problem with the current system is that there's effectively no planning, all depends on the will of private initiative which little has to do with the public services that are required by higher density such as more parking, schools, etc. All we are getting is a real mess of poorly developed areas with townhouses mixed with older houses.

by b21 | 21st Oct 20, 4:41pm 1603251711

It's the weakest clearance rate since the week 3-9 August when it was 55% when there were barely half the number of properties offered by auction. Seems more sellers are bringing properties into auction but at unrealistic target prices and confirms the trend of deflating clearance rates since the peak of 71% from 24-30 August.

by mikekirk29 | 21st Oct 20, 4:47pm 1603252033

Auction rates are indeed stable
Listings are not, they are gently falling, in terms of new listings per day.
That is not par for course re Spring.
This is to be expected given that usual parties who would have waited during Winter have in fact bought in winter .
This reinforces that debt is future consumption brought forward.
The demand push from those released from LVR and higher int rates, is beginning to dissipate.
Core lOgic I see in its latest report stated that 2020 sales were on par with 2019
Which is of course v impressive given 2 months in lockdown.
But demand push cannot last without constant goosing and this is beginning to show.

by b21 | 21st Oct 20, 4:51pm 1603252298

The trend is clearly falling, you can see this using the previous 3 weeks rolling average to account for noise.

https://i.postimg.cc/DZyNCx2z/rates.png

by Pusheen | 23rd Oct 20, 12:08am 1603364939

Investors, FHB have been advised get into the housing quickly, the once in a lifetime door of future wealth creation opportunity seems to be closing in. Remember you're in for the long run, visit the Banks with your finance in order, get that loan before it's too late. As long as you & partner got a secure jobs, short term up and down of valuation won't be an issue, it's intrinsic value, peace of mind, raise your future tax payers for NZ. Don't listen to those DGM (some of them like John Key & Robert Jones) were sitting on pile of cash ready to jump in back for more RE production, the following two article news links also biased too much on the cautionary sides;
https://www.stuff.co.nz/business/money/123180852/covid19-why-the-govern…
https://www.stuff.co.nz/business/opinion-analysis/300138418/think-mortg…
Just remember. The new Govt & RBNZ are keen for us to support/sustain our F.I.R.E economic flames, let's do this, let's keep moving - move all your funds into housing, before LVR is back on and OCR turn into negative.