Even CBD shoebox apartments are attracting multiple bids at auction, although vendors will need to be realistic with their price expectations

Even CBD shoebox apartments are attracting multiple bids at auction, although vendors will need to be realistic with their price expectations

Auckland's residential auction activity was running at nearly twice the level of a year ago during the first half of February.

Interest.co.nz monitored 486 Auckland auctions in the first two weeks of February (February 1-14 ), which was up 91% compared to the 254 monitored over the equivalent period of last year (February 3-16, 2020).

The overall sales rate was also higher this year at 71% compared to 61% at the same time last year.

Activity was also up solidly in the Bay of Plenty, where interest.co.nz monitored 62 auctions held by local agencies Eves and Bayleys in the first two weeks of February. This was up 55% compared to a year ago.

The sales rate was also higher this year at 87% compared to 50% a year ago.

One section of the market that has faced some challenges over the last few months has been Auckland's CBD apartment market.

As a general rule of thumb, the larger, more desirable apartments that are more likely to appeal to owner-occupiers continue to sell reasonably well.

However the smaller apartments that have been popular as rentals with students and have been a mainstay of investor activity, have been affected by COVID-related border restrictions which have reduced the number of overseas students studying here.

Although the prices investors are willing to pay for the so-called shoebox apartments have declined over the last few months, there is still an active market for them.

At the apartment auctions attended by interest.co.nz, shoebox apartments have generally still attracted multiple bids.

The buyers are mainly experienced investors who are able to ride out the current uncertainties in the market and take advantage of lower prices and even lower mortgage interest rates.

That is allowing investors who want to exit the market to do so, provided they are realistic in their pricing expectations.

However there has not been a flood of CBD apartments onto the market, suggesting most investors are choosing to sit tight and ride out the storm.

Details of the individual properties offered at the auctions monitored by interest.co.nz including the results achieved, are available on our Residential Auction Results page.

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57 Comments

12
up

Writting is on the wall - Still Jacinda Arden and her team is not able to see and do anything.

All experts and media writting about the ponzi but no one is asking government the hard questions (Major issue that got Jacinda Arden in power) and is allowing Jacinda Arden to get away with supply issue nonsense - How come all politicians ( Be it Labour now or National earlier - all talk same language when in power) despite knowing about speculative demand are silent and only try to hide behind Supply. Supply is one side of economy and other side is demand.

To be honest supply issue will and can never be resolved till demand specially speculative demand is controlled and for that will have to act against so called investors / speculators but does politicans have intent as they too are one of them and greed / self interest overrides them to act.

Jacinda Arden.... Where are you and why are you silent. Even when forced to speak will come with 5 year plan despite house prices rising on a weekly basis.

LVR will not have much impact ( that is one reason reintroducing) now as anyone owning a property has seen 30% to 50% rise in last fewmonths which can be used as equity offsetting any ibtended restriction. Just like mention of low ibterest rate makes house more affordable is a farce as house price has increase by such a pace that any fall on interest rate is offsett by rising house price - infact now have more mortage to repay at the end of the term so it has not helped FHB but politicians who own multiple house.

Housing and infrastructure aren't sexy policies that attract voters on net. Better to have something high profile even if it's low impact, "simulacra" as the post-structuralists would describe the situation.

If you can't beat 'em, join 'em. (And we certainly can't beat 'em.)

Anyway, houses are only one aspect of our lives - and we should never lose sight of that. I can still be happy enough renting - despite it not being ideal.

Enjoy the weekend everyone.

TTP

Now renting for many will not be by choice as no other options.

Many for life will be at the mercy of the landlord. Hard reality but facts. Started by Sir John Key and taken to extreme level by Jacinda Arden supported by Mr Orr.

If you look at mean sale prices the growth started in the Clarke years. REINZ data...the yr on yr change was pretty solid in early 2000s.

Huge population growth began in the early 90s. Since the mid 90s increasing rents and house price inflation has pretty much been out of control. The population growth has been the highest in Akld. House price inflation has been the highest in Akld. Coincidence? I doubt it.

Even when media or so called experts throw idea to controll the speculation, throw extreme ideas just to off track the debate like banning investors, which is not possible so why even suggest but can put restriction on investors.

https://www.stuff.co.nz/business/opinion-analysis/300233796/investor-ban...

Speculators in any market cannot and should not be banned.
But, they should use their own money, and benefit from the risks they take or suffer the consequences in their entirety.

Remove lending for any established residential property beyond one property per taxpayer.
Let those who want to own more than one property do so with their own cash. LVR of 0%, in effect, for any secondary residential property per taxpayer.
If you want to speculate and get a secondary mortgage, then you have to build a new dwelling, and even then, the LVR of 40% looks generous.

Speculators in any market cannot and should not be banned. But, they should use their own money, and benefit from the risks they take or suffer the consequences in their entirety.

Yes. If the central / commercial banks are allowed to destroy the value of labor and debase the money supply through this malarkey, how do you explain that to young people who have to suffer the consequences of and accept the responsibility for it all? They have absolutely no say. The old farts can feign concern but they are the ultimate beneficiaries and will not have to sacrifice their economic lives for this.

I'm an old fart and I'm AM concerned. I wish more of us old farts had our own political party (not Labour or National) who actually had a voice and could influence Govt (not NZ First) I am more worried about what we are leaving our kids. The Govt and the RBNZ don't seem to have any sense of urgency.

The old farts are the problem. They want their systems and assets protected above anything else and are prepared to throw young people under the bus.

Agree, noting there are some exceptions among the old farts!
I think many of them are just oblivious to the problem, rather than consciously abusing it.
There's a lack of empathy in this country.

I think many of them are just oblivious to the problem

Oblivious is the wrong adjective. Ignorant is more apt. The old farts accept the status quo as 'just how it is.' That's why you have the nonsensical reactions about avocado on toast and iPhones. It's also why people like Ashley Church are prominent in the media. They connect with the general level of understanding of the old farts.

This Labour government orchestrated a 20% increase in property prices since the cannabis election. Over the 2 years leading up to the 2020 election "we" were bombarded with cannabis this, cannabis that, cannabis everything. Swarbrick was here, Swarbrick was there, Swarbrick was everywhere energising the young with hocus pocus. You almost got over the line. The younger voters were had and voted for oblivion

The old farts didn't ask for the 20% increase. Doubt they even wanted it.
Now you're blaming them for it
OK, you are so clever what would you have them do, including your ole' man

I am mid 50s and would actually like to see a wealth tax or at least an inheritance tax, both of which would cost me a great deal of money. We do not all want to throw the young people under the bus.

I agree. At this point I care more about my kids and their friends. I hope the market crashes because - it would brng down the crazy house prices and if I ever need to change houses, I would be selling and buying in rhe same market. If there were marches in the street organised by young people feeling shut out of the housing market, I would be there to support them.

Nice Ed.

11
up

alittle.. typical of these types of articles. NINE main points. Immigration settings not even mentioned. So sick. When somebody attempts to explain why the basic, age-old rule of supply and demand does not apply to rents and house prices I will be very interested in hearing it.

Granted but her other points are bang on and should have been implemented yesterday. We need to treat housing as shelter not a speculative investment where an entire generation are negatively affected.

True but why completely ignore one of the main drivers?

No one can speak of that word..

She's busy with more important things like finding the owner of a lost soft toy, making finger food and sewing face masks. And dropping everything to rush to Wgtn to read the teleprompter about covid cases when they crop up. Dumb kiwi sheeple lap that sort of thing up. Also she is a neomaniac with her climatic emergencies. Housing and economics are simply too dull for her short attention span

wonderful slogan. we should start saying and posting this every where on social medi

Jacinda Arden.... Where are you and why are you silent about NZ housing crisis.

Up the Property Ladder

It is said that those on the property ladder are pulling the ladder up after them

My partner and I live in the bush, in a house that we own together. We have 50% each. We dont own any other properties. The rural area we are in has not enjoyed the increases in prices that Auckland and Wellington and Tauranga have enjoyed. Far from it. We would be lucky if our property has increased 5% over the last 5 years

Relative to the metro areas we are being pushed down the ladder fast.

You have to move into a bigger city quickly and decisively. This year may be the last chance. Another 15% increase is expected this year.
Next year might see a bigger increase.

Your situation could have advantages if things really go belly up

Sounds idyllic

I'd like to congratulate the best RE agents in NZ Jacinda, Adrian, Grant and co. Great result guys!

This time last year anyone who considered purchasing was being crucified by certain members of this comment section. Thankfully some of us can still think for ourselves and will continue to reap the rewards.

Ah. A quiet observer. "This time last years" from a poster who has been active for 4 months and 4 weeks (Let's call it 5 months for good measure!).
And you know what? It was people who 'thought for themselves'; those who made whatever decision they did, not just followed the Real Estate Agency Caravan.
(Have you personally ever seen or experienced a property crash? Previously successful Middle-aged men with multiple investment properties in tears; one a Chartered Surveyor running his own firm (property professional in New Zealand; Mike Pero here if you like) wondering how they will ever recover their past lives or pay their debts. It's something to behold if you ever do, and might make you think more than twice before getting into such a situation yourself.)

"This time last year" buyers were making themselves scarce as the noise about the virus was increasing. I had been asked by a friend to quarantine 4 chinese students at my beach house... out of concern for the neighbours I had to say "no thanks"

B727... I went to the casino last night. Went to the roulette wheel and put all my money on black and won. My wife and financial advisor warned me it was risky but I just told them I can think for myself and I will reap the rewards. I won so I must have been right. Am I worthy of your congratulations? Have I now earned the right to feel I can make better financial decisions and predict the future better than you?

Don't knock Jacinda, she has been out finding homes...for stuffed toy bunnies.
https://www.stuff.co.nz/travel/news/300235116/blimmin-exciting-lost-toy-...

Only if Jacinda was so quick to find solution to our real problems like housing or poverty. That would be swell.

They have raised the minimum wage by a huge amount to one of the highest in the world so I think it’s unfair to say they haven’t done anything about poverty. Still more to do obviously but that is a very good start.

Ambulance at the bottom of the cliff stuff...tinkering with minimum wage increases whilst housing unaffordability skyrockets.

She should be the minister for Aroha. Give out money, go on stuffed toy hunts and give press releases on the Easter bunny. She should not be the prime minister.

She could even run a daycare centre although staff and children might get fed up with her goofing off too much and not focusing

I am guessing the people criticising Jacinda and co the most will also be the ones most upset when they do act. I am expecting some big changes to property investment in the coming months.

I'm not. Too many lost soft toys around too keep her busy. Property investors kids wondering where their toys have got to

FHBs should consider what these people do in Taranaki to get on the property ladder.

If that's too hard, buying a ready to move in house will be even harder for you.

https://www.stuff.co.nz/life-style/homed/housing-affordability/124237196...

The article says the property is near "te papakura o taranaki". I have never heard of the place and can't find it on Google maps or any of my maps...is it a new name for somewhere? Edit: googled it..it was egmont national park.

article says Rahotu, 16km North of Opunake on the surf highway 45.

Yes, you're right. Probably they should had kept the English name.

CWBW... living in that home, in the lovely Taranaki, would probably provide a better quality of life than living in a $1.3M home in Mt Roskill.

I went through Mt Roskill today, it's a shithole.

I lived and owned properties in Mt Roskill for 5 years. Some parts are nice, others not so nice but you do need to be OK with feeling like you are in a South Asian city at times. If you are over 40, unless you need to live in Auckland for work or to be near family I do not know why anyone would want to live there. When I returned to NZ I did not even consider it.

Saw two bits of aggro in the street and 2 examples of ridiculous car speeding within 2 hours.
Putting aside the social issues, it's a pretty ugly suburb, a mishmash of incoherent architecture.

Location wise it’s fantastic: close to the CBD, motorways, all the shops you need, etc. but like a lot of the city fringe suburbs like GI, Panmure, otahuhu, Avondale, it is ruined by badly maintained housing NZ houses with tenants who couldn’t give a crap. I find it odd that housing NZ seems to be escaping blame for high house prices when they have so much underdeveloped land. I find it even more odd when people say we need more state owned properties.

I'll do Mt Roskill anytime. I can always pick some pāua and kill some mangō during my weekend excursions instead.

Yup, they moved from Auckland to the Taranaki and he put his name out there for farming work ("no prior dairy experience, looking to enter the industry"). https://nzfarmsource.co.nz/jobs/profile/2022703845

Good on him, obviously very hard working. Hopefully it works out for him, I can imagine the novelty could wear off pretty quickly trying to renovate a whole house around a farming job. I find it hard being motivated to empty the dishwasher, and all I do is sit on a train for 4 hours a day and an office for 9 hours.

Nzdan..
Yeah good luck to them both. I doubt they will regret it. Maybe a 100K mortgage at most. Views look nice. Not sure about mowing the lawn though. My 2000sqm is enough.

I don't work and have been in my new home in Taranaki for a year. I don't know how to turn on the dishwasher, the stove, or the washing machine. Yes, it is hard to be motivated, especially when you have a very motivated (Asian) wife. I do make the effort to drive the kids to and from school though. Couldn't risk letting the wife do that, for obvious reasons. LOL

Money gets debased, scarce things go up in value.
What's new.

Start getting ready to see mum and dad going to auction with their FHB children to secure their next investment.

That is already happening

Also migrant families are being used by foreign investors to funnel their money into the NZ housing market. This weekend saw myself a very well presented guy who was not the agent showing an open home around to a couple with a baby that you could clearly tell it wasn't for them. They left in separate cars, each of them from very different purchasing power levels.