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The sales rates at Barfoot & Thompson's auctions ranged from 48% on the North Shore to 83% in Franklin last week

The sales rates at Barfoot & Thompson's auctions ranged from 48% on the North Shore to 83% in Franklin last week

It was a week of ups and downs in Barfoot & Thompson's auction rooms last week, with an increase in the number of properties being auctioned and a decrease in the sales rate.

The agency handled 305 residential auction properties in the week of March 13-19, well up from 226 the previous week and the highest number in a single week since late February.

However the sales rate slipped back to 61% from 72% the previous week.

Around the districts the sales rate was lowest for North Shore properties at 48%, and highest for Franklin properties at 83% (see table below).

Auckland's central suburbs had the highest number of properties auctioned at 83, and the sales rate was bang on the company wide average of 61%.

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

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26 Comments

I am going to take a dip, see you in a while.

And so it begins......

Yep - the cooler weather is setting in.

TTP

Why do you fail to acknowledge what has become so obvious for everyone? It is truly adorable to see some still pretending they don't understand what's about to happen.

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If the current mania for property is truly a mania then I wouldn't be surprised if prices continue to go up.

Labour's changes to tax and bright line may be analogous to the police tazering a madman. That is no effect at all!

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b21, you continually fail to recognize that other people have other opinions, you very often make statements like "what has become so obvious for everyone". That's your opinion, not everyone's and by the way, so far, your opinion has been wrong.

To the contrary I do respect all opinions, I just doubt that was an actual one but more an interested sales pitch.

Nobody knows whats going to happen, all logic went out the window with Covid so anything is possible. The big question is how much longer can this debt bubble go on for ? I simply don't see the house prices crashing now until the whole monetary system falls over on a global scale. For now house prices will continue to increase, they have to for the system to carry on working.

I agree. I have some respect for the govt finally piling in and trying a few things, and I think they will continue, but I still think on balance it's hopeless to expect inequality to roll back significantly until we have a finance system meltdown.
So I don't watch the NZ cork much, I watch the international ocean.
Latest vid from George Gammon here interviewing Nic Carter, who is awesome:
https://www.youtube.com/watch?v=1UTdRrEPPuI

George makes a good point around 50:00 about the patterns that lead up to sustained inflation, starting with full employment and the rate of inflation being behind the rate of money supply growth, which makes everyone feel great and that its all working well, until it REALLY doesn't work out well. Nic then follows him and explained what Weimar looked like before it crashed (eg. stock market boom, rampant speculation). George describes that switch from consumer spending to rampant asset speculation as the turning point to the collapse of the ponzi.

NSC is (or was) the epicentre for the mania of increased prices and sales.
Fact that BT sales rate there is dipping consistently, is at least indicative especially when it is late March.
march, May and November are peak months.
No one really knows, but it is likely that sales and prices (in terms of increase RATE of prices) have peaked.
Both are likely to flatten from here.
On Hibiscus Coast the peak of sales appears to have been about mid December, since when there has been a marked slowing of sales and listing, as compared to the 3 months up to Xmas.

I'd like to know who is buying Central Auckland full sections, some only 700sqm, for more than 4M. Are they paying cash or raising large mortgages? Are they really worth that much?

Zach..well I can definitely answer your last question.

me too, a section (or house or anything) is worth what someone is prepared to pay for it, so yes if someone has paid $4 Mill for a section, that's what it's worth

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It's a lot of money to have sitting around though. Banks wouldn't be too keen to lend the money if there is not much income covering it up to the stress level. To develop the section the buyer would need a few million more as well. I'm just wondering who they are and where the money is coming from.

Once you have Citizenship you dont need to pay tax on money you bring here. Hong Kong is evacuating money. I would too vs remaning in the approaching police state called the CCP.

Correct. I've heard of wealthy Americans buying large land holdings in Queenstown (pre FBB) who can't believe that you can drop $2 million on to a property in NZ and not pay a cent of tax. Yep, not a cent.

Worth every penny.

I think 'investors' are making wildly optimistic projections about development potential.
Large suburban sections are being fought over on the assumption they'll have the house bowled and townhouses/apartments built.
When you factor in building costs, and how much those units can actually be sold for, it probably doesn't add up. But I think most purchasers are flippers at this point anyway, they don't intend to do the hard work of actually building the housing.

I’ve noticed there are a few upscale apartment blocks in Remuera being built on what I think were the site of a single house. I’m sure the construction on the one in Orakei Rd started quite soon after the house sold so are the council being more amenable?

Will be fascinating to see next months numbers.

Income tax offset takes a hit and ...

Suspect more crappy/run down/poorly renovated X rentals to hit the market which will drag down auction sale rates. Any propery that is decent is still selling for a massive premium however.

We are waiting to see if that is the case. This week's auction results should give an indication.

A quick check of Barfoot's auction results for the central auction rooms yesterday would appear to indicate a 36% sales rate. 15 out of 42 sold. So far today not looking too bad though.

There's still room for an upward valuation.

Clearance rates are dropping