Auction activity picked up at the end of April but the sales rate was stuck at just over 50%

Property

The sales rate at property auctions has declined from about three quarters to just over half over the last three months

8th May 21, 8:10am by Greg Ninness

There was a jump in residential auction activity at the end of April but the sales rate remained unchanged at just over 50%.

At the auctions monitored by interest.co.nz in the week of April 24-30, 338 properties were offered for sale, up from 267 the previous week but still below the 369 offered the week before that.

Of the 338 properties offered, sales were achieved on 183, giving an overall sales rate of 54% for the week, almost unchanged from 55% the previous week.

The sales rate at auction has been steadily falling since February.

Over the four weeks from February 6 to March 5, 1367 properties were offered at the auctions monitored by interest.co.nz and sales were achieved on 971, giving on overall sales rate of 71%.

Over the following four weeks, from March 6 to April 2, 1538 properties were offered and sales were achieved on 977, giving an overall sales rate of 64%.

Then over the four weeks from April 3 to April 30, 1281 properties were offered and sales were achieved on 685, giving an overall sales rate of 53%.

So in broad terms, the auction sales rate has gone from almost three quarters to almost two thirds to just over half over the last three months.

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

The comment stream on this story is now closed.

You can have articles like this delivered directly to your inbox via our free Property Newsletter. We send it out 3-5 times a week with all of our property-related news, including auction results, interest rate movements and market commentary and analysis. To start receiving them, go to our email sign up page, scroll down to option 6 to select the Property Newsletter, enter your email address and hit the Sign Me Up button.

We welcome your comments below. If you are not already registered, please register to comment

Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.

38 Comments

by Passerby | 8th May 21, 8:59am 1620421160

The more I look at this, it more seems like a seasonal lull with a small shock to the system. Nothing has changed much. Asking price is at a all time high, way off anything remotely reasonable. A sponsored post popped up in my Facebook for an agency that just sold a home in excess of $1.6+ million over CV. Beautiful video, happy agents with the owners drinking champagne. Called another agent yesterday about a property that was listed on Trade Me, old school, tidy home that needs some TLC and renovation and the agent says not looking at anything under 600k over CV. End of this May, they better terminate IO loans. RBNZ should put its money where its mouth is and also increase LVR to 50%.

When there is such inequality in the property market, how are investors able to get a leg up on others just with equity? Look at the DTI figures for investors, it’s monsterous. I don’t have a problem when we have abundant housing, reasonable price, reasonable debt levels etc but not levelling the field when there is homelessness, severe debt, housing crisis and insane amount of money spent on public housing (HNZ waitlist, accomodation supplement and emergency housing) this is beyond absurd.

What more do the government and RBNZ want? Waiting to see our mental health to be completely shredded? I know this is going to sound bad but peoples (including ours) mental health is severely affected from this housing mess. I have seen the relationship of someone close break down directly because of housing unafforability in Auckland. The kind and caring government is running away from the chaos it has created. There is no more waiting and seeing. You have been witnessing this mess for a year now. Rome is burning in front of your eyes.

by Brock Landers | 8th May 21, 9:19am 1620422345

Newsflash. The government doesn't care.

They are not going to lift a finger to do anything that might allow prices to drop.

Everything that they and the clowns at the reserve bank do, is designed to "moderate" the rate of increase. But never, ever for them to fall.

by Albert2020 | 8th May 21, 9:28am 1620422884

You are correct, this government doesn’t care and have lost all compassion.

I’ve attached another example of their glaring failures in the Misuse of Drugs (Medicinal cannabis) Amendment Act. I’m the father of Eddy and to deny a child their life saving medication due to a woefully inept law is plain sick.

https://www.newshub.co.nz/home/politics/2021/05/new-zealand-woman-fears…

by Passerby | 8th May 21, 10:08am 1620425295

Albert, I read the story earlier this week and my heart went out to you guys. It’s heartbreaking to see a child suffer needlessly when there are safe and natural alternatives that help better quality of life for Eddy. I cannot imagine the toll this takes on you guys. Sending positive thoughts that you are able to source the CBD oil to help Eddy through his epilepsy. While the government takes its own sweet time with everything essential, they can take their special seats up at the gallery and watch our mental health torn to tatters and then as an up yours they will cut funding for mental health initiatives.

by Albert2020 | 8th May 21, 1:59pm 1620439173

Thanks, man, that means a lot. The outpouring of support has been amazing from everyday kiwis to previous AlllBlacks. This isn't the last you will hear of this issue. The media are very keen to hear our (and the thousands of other kiwis in the same position) story and how Andrew Little in particular has just turned a blind eye to a broken law that reduces accessibility and increases patient harm.

by Te Kooti | 8th May 21, 9:12pm 1620465157

For what it's worth, I hope it get's resolved asap. Totally unacceptable you are placed in this position, it makes me so pi%%3d off. I heard A Little is a total a55 hat as well, from someone who had to deal with him. All the best.

by Trude | 8th May 21, 8:25pm 1620462308

Albert, so sorry to hear about Eddy's suffering. It must be very hard on you and your wife just trying to protect your child. You think the lesson would have been learnt after Pharmac's stuff up with changing the meds of people suffering from epilepsy. Specially with a little person like Eddy you want to be sure of the dosage and need a professional produced product. My thoughts are with you and your family. Do you have a petition, I can sign?

by stuart786786 | 8th May 21, 9:39am 1620423569

Neither Robertson nor Orr has any indication to target Speculative Demand and both as per their drafted script are playing with time as have no intent to control the ponzi.

Agree this fall in number of sale could be seasonal - as normally are in winter as the prices are still very very high and even if auction fails are sold immediately after under condition.

As have commented earlier also that every day data / information / news coming out suggest that the ponzi is alive and kicking, What is it that Mr Orr is waiting / evaluation / processing .....how long can get away by been sick....

How proactive Mr Orr was last year with their now famous attitude of "least regret" and at that time, it was not that market had fallen but had fear (ASSUMPTION) that market may stop rising compare to today when it is not a fear that house prices are rising but are actually rising (REALITY) and in double digit on a monthly basis and still Mr Orr's is going after Wait n Watch approach as is known to all that government and RBNZ follows wait n Watch, when have no intent to act but as under pressure have to posture that are concerned and thinking though reality is otherwise.

Mr Orr went on sick leave instead of facing the media, may be time for him to go on a long leave for his well being and also that of NZ.

by Shoreman | 8th May 21, 9:41am 1620423669

Passerby - While this Government front's as caring, whether by ignorance or a socialist plan they are destroying our country . The beat up on Landlords just makes renting harder and more expensive, Farmers the backbone of our Economy are made out to be bad guys. The lastest offerings about employment collectives being forced on Industries at the same time a wage freeze on public servants ??
It seems just madness to me.
Example- to change investor behavior the interest deduction on rentals could have been bought in from March 23 on all new purchases, but no it is on all current rentals as well, which is driving rents higher and shrinking the rental pool !
Why ?? They don't care it's just another tax grab !
They are nutters and out of their depth !

by stuart786786 | 8th May 21, 9:57am 1620424645

Shoreman, no one is against landlords and investors and also not a great fan of dole and spoon feeding by Labour but at the same time will like to see level playing field for all and that to happen RBNZ should remove Interest Only Loan to investor that gives them an edge over FHB as it multiply their purchasing power.

Even if interest only loan is removed, Investors will still have an edge as can use equity as deposit so should atleast remove the advantage that speculators have, which can be removed and that is Interest Only Loan.

By targeting Interest Only loan, RBNZ will be targeting most speculators and is it not what Jacinda Arden wanted and also Mr Orr worried about. So why not use a bullet nearest to silver bullet to target speculators instead of coming out with bullshit excuses.

by Passerby | 8th May 21, 10:26am 1620426377

Shoreman, I don’t know if you are a landlord and if you are, you might not like what I’m going to say. There is a level of care and understanding humans can expect from fellow humans. Landlords have so far acted very selfishly and unethically in my opinion. When there is a housing crisis go and use the equity on their existing properties, have no down payment, secure a property on IO, get rent more than the interest payment to pay off other debts while the first home buyers stretch to severe debt, homelessness going rife, 1 billion spent by the government every quarter in accomodation supplements and emergency housing from tax payer dollars when investors don’t pay tax, surely you can see why no one has empathy for the investors.

by al123 | 8th May 21, 11:45am 1620431123

Yes, I don't object to landlords making money - just like I don't object to chemists making money. But going out and buying more rentals, and endlessly raising rent on the properties already owned to me seems morally equivalent to charging triple the usual price for face masks during the pandemic. It's profiteering rather than profiting.
Of course not all landlords are like this - but lots are. On my view if you bought a rental property after about September when it became clear that prices were shooting through the roof, you did something immoral.

by Flying high | 8th May 21, 12:08pm 1620432531

Like the Hosk who has been hoovering up houses however I think in his and Katies case its for the kids. You know he is always talking about vacuuming the studio, perhaps he is also thinking about the next house auction and the FHB suckers

by RickStrauss | 10th May 21, 1:59pm 1620611944

And here they are complaining about contributing a small share of the taxes they should be, while for years they've been taxpayer subsidies and propped up with seemingly boundless monetary policy support. The best thing we could do would be to introduce land tax and lower income tax significantly: reward hard work, not the mere holding of land.

That would be quite the turnabout from our present welfare for property investors model.

by stuart786786 | 8th May 21, 9:55am 1620424533

Passerby, 100% Agree.

And

'What more do the government and RBNZ want? Waiting to see our mental health to be completely shredded?'

If their is a choice between Mental Health of Mr Orr been effected or that of average Kiwi and FHB, my vote will be be Mr Orr and earlier the better.

by ex agent | 8th May 21, 11:00am 1620428427

In all my years of investing I have never seen the level of greed that we have experienced in New Zealand since May last year. Stuff first home buyers. I want as many houses as I can buy. Animals treat their like better than we humans do. Me me me.

by al123 | 8th May 21, 11:48am 1620431283

I reckon prospective property investors should spend three months shadowing a first home buyer before they buy a property - see if they still fancy buying another 'investment' once they have witnessed the stress and heartbreak they are contributing to first hand.

by Ngrrk | 8th May 21, 12:06pm 1620432370

They wouldn't care, that's the problem: a complete lack of empathy.

by printer8 | 8th May 21, 6:21pm 1620454892

Ngrrk
Yes there is a housing affordability issue - but there are a multitude of other issues including housing supply, dependency on long term emergency motel accommodation, high rents, poverty, poor wages and working conditions.
You call for empathy - yesterday the same people such as yourself showed an overwhelming and extreme lack of empathy when it came to Gvt announcement on employment reforms to improve conditions for those disadvantaged low skilled workers struggling on minimal wage and poor employment conditions . . . . and I see no empathy on this site for those in long term emergency motel housing or the homeless. I see no empathy for those older retirees relying on returns on TD to fund the basics of their retirement to see rates fall well under 1%. I see no empathy for the issue of poverty affecting considerable number of families and children. I see no acknowledgement that RBNZ actions is likely to have protected their jobs and their employers’ businesses over the past year.
To be blunt, Ngrrk you and many are sounding as though you have a very narrow, self-centred and entitled vision lacking in empathy for others in situations which can be considered more pressing - you presumably at least have warm and dry accommodation of your choosing albeit rented.
In the past year 60,000 FHB have. got into homes with last November and December numbers being historic monthly highs over the past seven years.
If you are a potential FHB and want a bit of empathy - well, then ask yourself what you can do to join those 60,000 as continually crying out for empathy doesn’t achieve anything.

by RickStrauss | 10th May 21, 2:00pm 1620612054

So many of these are caused by the fact we penalise hard work relative to the mere holding of land, which we subsidise and protect at all costs.

by Lord Dowding | 8th May 21, 2:49pm 1620442189

What are you taking about.

Some of you really need to get out of your parochial bubbles and see the world. No one owes you anything.

by ex agent | 8th May 21, 3:48pm 1620445717

That would work if there was no greed. Currently there is incredible greed so life gets harder for those just starting and those at the bottom of the heap.Oh and you are part of the problem.

by Yvil | 8th May 21, 4:31pm 1620448303

Greed is the reason why we don't live in caves anymore, because greed makes us strive for more and better. "Greedy" people get off their butts, take risks and try their best to get better things. Others ride on these "greedy" people's coattails and then have the audacity to complain that these people are too greedy! Unbelievable

by ex agent | 8th May 21, 4:42pm 1620448975

Greed makes us strive for more than we need to live comfortably. At least you acknowledge that people are greedy Yvil. You certainly sound like you are part of the problem.

by youngdumbandbroke | 8th May 21, 6:33pm 1620455602

Yvil is right. Humans are inherently greedy. And often those who put their own interests above all are successful. However this comes with risk. Throughout history, the greedy few at the top have had their day of reckoning. So it pays to not be openly greedy at the expense of others as the majority will resent you for it.

by dago | 8th May 21, 8:07pm 1620461271

You clearly can't even read let alone get out of your little bubble. Here I'll help you https://www.bloomberg.com/news/features/2021-04-06/new-zealand-is-among…

by Passerby | 8th May 21, 12:54pm 1620435257

Stuart, one of the reasons I have backed away from my constant criticism of Orr was because of a comment made here in Interest. I wanted to dig more into it and can’t remember what it was and can no longer locate it. It’s about Robertson changing the remit to RBNZ, something to do with unemployment and that’s the reason Orr slashed the OCR and removed LVR as he had no other choice, he was backed into it by Robertson. If someone knew what it was about, I would really appreciate the refresher. I still don’t understand how this impacts the removal of IO loans, I think this just has to happen. As for DTI, sounds like RBNZ is waiting on that tool from Robertson. I am wondering if I am directing my criticism incorrectly at Orr and if the buck stops with Robertson. I need to get better educated on this first.

by Flying high | 9th May 21, 10:21am 1620512476

Here is background info

https://www.rbnz.govt.nz/news/2018/03/new-pta-requires-reserve-bank-to-…

"Finance Minister Grant Robertson and incoming Reserve Bank Governor Adrian Orr today signed a new Policy Targets Agreement (PTA) setting out specific targets for maintaining price stability and a requirement for employment outcomes to be considered in the conduct of monetary policy.

The new PTA takes effect from 27 March 2018, when Adrian Orr starts his five-year term as Governor.

....

The new PTA now also requires monetary policy to be conducted so that it contributes to supporting maximum levels of sustainable employment within the economy."

by dago | 8th May 21, 1:26pm 1620437177

Have been thinking of late, since Bascands interview with Jennee that since some attempt has been made by Labour to do something.. and seeing how that is not having much effect, the strategy is now to move the goalposts and pretend there is no defined problem, and that the jury is still out on the question of whether housing is affordable. Gaslighting the public

by alittle | 8th May 21, 12:32pm 1620433924

Reserve bank has no intent to act and the same was conveyed by deputy governor on 5th May announcement so why even the discussion as come what may RBNZ is not acting and if under pressure are forced instead of saying that will mot act, they will go for wait and watch approach to delay and avoid.

Agree, now is the time for new perspective and for any reset old f@#ts should go. Time for change.

by AJ123 | 8th May 21, 1:58pm 1620439137

It's clear Govt. is saying in your face f-off, they don't care. Let the property go to the moon, It's not there responsibility after winning the election.
If you can't buy shelter for your family than it's your incompetence/failure, when other can afford multiple properties. Write comments, dislike, like, have opinions but we don't give a s*@1, IO will not be changed, interest will not be raised, DTI check will not be in-place until all investors make huge profits and happy after robbing FHB's.
Shout from your roof top we cant hear, and you cannot do anything more than shouting for next 2 years wink wink..

by dago | 8th May 21, 3:43pm 1620445392

If love to partake in an Overthrow Labour protest.. I'd be there with bells on

by paashaas | 8th May 21, 5:53pm 1620453235

we have less that 2.5 years to wait.

by dago | 8th May 21, 8:02pm 1620460920

2.5 years the mind boggles. Wonder how much more carnage they can and will get away with as the face of Labour smiles away inanely, and who will be next in line to be stomped/left for dead. my imagination is running wild. Maybe they will get daring and start on pensioners. Anything is possible as NZ is taking this all lying down

by Carlos67 | 9th May 21, 9:18am 1620508732

NZ is not taking it lying down, NZ is going Yippie because way more then half of you out there voted for this lot. You couldn't see how bad they were first term and yet you voted for them again. No sympathy coming from me, I have never voted for the current crop.

by RickStrauss | 10th May 21, 2:03pm 1620612182

I didn't vote for them, but I'm realistic enough to acknowledge that National does not provide a viable option for younger generations of New Zealanders. They need to look to the smaller parties for any change. National is merely a leap out of the frying pan into the fire.

by Rob Reid | 9th May 21, 12:34pm 1620520457

The NZ Govt is barely worth any attention except on immigration policy.
Interest rates will overwhelming be determined by what happens in the US, and the tentative signs (although the Fed still denies this) are Up.

by lekkerbydiesee | 11th May 21, 2:36pm 1620700588

I'm not a landlord, but i don't see the point of landlord bashing. In all honesty - we need them.
They are simply a scapegoat for the government to deflect to. Imagine for a minute that New Zealand had councils that we helpfull and proactive (you'd think they would be ,since they get extra rates from new dwellings) Imagine the consenting process was clear, easy and affordable. Imagine it didn't cost 15k for a water connection in Auckland. Imagine the government kept better tabs on hot money coming in from Asia and overseas investors. Imagine the government didn't use immigration to goose poor productivity & GDP. Imagine banks practised responsible lending. Do you really think we'd still be shutting our kids out of property? Yes landlords are greedy, but what do you expect. Manufacturing was been offshored decades ago, now its services turn - its the only game in town. The free market would have sorted the supply issue a long time ago, if it were allowed to function.