Property auction numbers took a dip in the last week of February

Property / news

Slightly fewer properties offered at auction last week and the sales rate was also lower

1st Mar 22, 9:56am by Greg Ninness

There was a slight drop in the number of properties being auctioned and in the overall auction sales rate in the last week of February.

Interest.co.nz monitored 375 residential property auctions from around the country last week, (February 19-25), which was down very slightly from 386 the previous week.

Of the 375 properties auctioned, sales were achieved on 139, giving an overall sales rate of 37%, down from 41% the previous week.

However the slight drop in auction numbers and sales was not significant.

We are now firmly into the peak selling season for the year, so a little but of volatility in the numbers from week to week is to be expected.

However if the decline continues over the next couple of weeks, even at the modest rate of the last week, that could be a signal of further cooling in the market.

Around the main centres of auction activity Canterbury remains the most buoyant with an overall sales rate of two thirds, while Waitakere in west Auckland had the lowest sales rate at 24% (see the table below for the district summary).

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, register here (it's free) and when approved you can select any of our free email newsletters.

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.

74 Comments

by Mr Frank | 1st Mar 22, 10:08am 1646082533

Don't worry, cashed up overseas Kiwis to the rescue!

by company of heroes | 1st Mar 22, 10:28am 1646083739

Lol, enough cash for over million dollar houses? You must be dreaming.

by Mr Frank | 1st Mar 22, 10:35am 1646084130

What's a million when you can sell a small London apartment for 1 million pounds? What about a 10 million NZD tiny apartment in Beijing?

Goodness you must live in a cave.

by Notgreedykiwi | 1st Mar 22, 10:41am 1646084501

And NZ is bigger than a cave as compared to the whole wide world? A different perspective for sure.

by swapacrate | 1st Mar 22, 11:25am 1646087113

I just sold up in Surrey, not sure you have been there recently, but not going to have enough money at NZ house prices, its why I am starting a business. Leave the UK to come to a good life at the beach in my jandals learning to wing foil. Build up the business and get out of the rat race away from the city. Who wants to get into debt do all the hard work in the city and get back into debt in NZ and back in the rat race, sitting around talking about boring stuff in meetings. Better ways to spend your cash and have a better life.

I think your talking about 0.0001% of the people returning. Most with that cash and assets are never coming back.

by Befuddled | 1st Mar 22, 12:33pm 1646091235

Jafaland is one of the best places to wingfoil... and kite... and windsurf... and develop a business. It has so much to offer, provided you have some disposable income and time to spare

by swapacrate | 1st Mar 22, 3:38pm 1646102338

Exactly. Thats why I looked for something suitable, cashed up house and investing in my business which I explained below is ecommerce business. Wanted to live at the beach barefoot.

Got a caravan in Whitianga for the kids, just bought a wing and mountainboard to practice before I get the foil which I will get next summer. Business is taking a bit of cash at the moment so just consolidating to get things going. Hopefully middle this year or next year things pick up. But its great to do stuff when you want to, like foiling, can't wait to actually get going.

by linklater01 | 1st Mar 22, 1:06pm 1646093162

swapacrate,

I wish you well. I left the rat race when i was 57, then was lucky enough to move here from the UK almost 20 years ago when house prices there were higher than here and the NZ$ was 3 to the pound.

My younger son lives in Auckland in a nice but unremarkable house in Meadowbank, currently 'worth' some $3m!! It's crazy. Even $2m would be overpriced. Why would many professionals choose NZ with these absurd prices? It might be the sun, but certainly not the salary.

by Fluffybunny | 1st Mar 22, 1:28pm 1646094532

It's crazy. We've been living with this bubble so long, people have lost perspective on how we stack Up globally. I think some of that narrative is now changing though.

UK/EU was always good to me and my family when we were there. Glad we not in UK schools though. One thing nz does better than most.

by swapacrate | 1st Mar 22, 3:34pm 1646102082

Cheers linklater01, its definitely not the salary, I searched for a business before coming home, found ecommerce business which I can do from anywhere, didn't want to come back and get stuck in traffic, and pay overinflated prices, so moved to Waiuku where I'm from originally, I was an IT contractor in UK. DTI was 3 to 1 which was doable in UK on contractors wage, but 7 to 1 or whatever over here is nuts.

Pity your younger sons and the next generations. But there are some businesses out there that may be doable, like the one I found, takes some ground work can do while working, definitely not get rich quick, but once you lay foundations, its a great way to live life. Work from anywhere, do your own hours. No corporate meetings and best of all you can travel.

Hope things get better for other people.

by Brock Landers | 1st Mar 22, 11:36am 1646087816

A million pounds would be a high end luxury apartment in London.

Houses in London where the normal people live are cheaper than in Auckland.

Your narrative has not survived contact with reality. Delusional.

by Kjeldorian | 1st Mar 22, 11:35am 1646087748

Would it though?

https://www.knightfrank.co.uk/apartments-for-sale/london?utm_source=goo…

by Brock Landers | 1st Mar 22, 11:44am 1646088252

Meanwhile, back on Planet Earth...

The average property value in London hit a record £521,146 in December 2021

My former two bedroom maisonette with large garden on the Zone 1/2 border is currently valued at just over £650k.

by Nzdan | 1st Mar 22, 12:15pm 1646090159

Plenty of very central London apartments on there. One for $2.7m NZD, another one for $1.5m NZD, both roughly 5km from London Central.

I guess people might want to sell up their central London properties and buy in little old New Zealand. Also a big assumption that those property owners do not have mortgages that would need to be discharged on sale.

by Brock Landers | 1st Mar 22, 1:10pm 1646093422

Indeed. There are pockets of ultra-wealthy London. But it's not hoards of "cashed up kiwis" living there.

Most of London is much more normal. My aforementioned former flat was only a 3km walk from the London Eye.

by DDDDebt | 1st Mar 22, 7:16pm 1646115379

Err... Mr Frank... I think it maybe you that lives in a cave if you not seen or heard what is happening in the China/Beijing market?

by DDDDebt | 1st Mar 22, 7:16pm 1646115414

Vendors that purchased in the last few years may soon stop going to auction and try to sell 'off-market'...

by tothepoint | 1st Mar 22, 11:01am 1646085682

Where is the plummeting of house prices that so many here have been promising for so long?

TTP

by Toye | 1st Mar 22, 10:25am 1646083507

Don't worry, the Feb figures will be out soon.

And March, and April and May...

by tothepoint | 1st Mar 22, 10:30am 1646083842

“And March, and April and May…”

Which year?

TTP

by Averageman | 1st Mar 22, 10:53am 1646085193

It could happen. Last year was abnormal, business and wage subsidy, no overseas travel, and speculator life support OCR levels all protecting leveraged debt and businesses that should have shut down. All three have changed. A lot. Sure cashed up overseas people are returning, but they are a small part of the market and only interested in the higher end.

by Brock Landers | 1st Mar 22, 10:28am 1646083685

Dropped -4.6% in December and January right?

That means they are plummeting at an annualized rate of -27.6%.

by tothepoint | 1st Mar 22, 10:32am 1646083947

“- 27.6%.”

Shonky.

TTP

by Retired-Poppy | 1st Mar 22, 12:41pm 1646091682

Is it only shonky because we're on the ride down?

Tim, it sounds like you're a primo DGM to me...

Opportunities abound everywhere soon enough. That's what you should be saying right?

by the way | 1st Mar 22, 11:38am 1646087901

House prices have not dropped. House Price growth has eased.

Using your "logic" Auckland prices would still achieve 15.6% growth this year and Northland would achieve 31.6%.

New Zealand Herald: Northland housing prices crack $900k after strongest quarterly growth across NZ.

https://www.nzherald.co.nz/northern-advocate/news/oneroof-northland-ave…

by ACB | 1st Mar 22, 11:42am 1646088139

Whether prices have dropped or risen depends on what time frame you are measuring over.

by the way | 1st Mar 22, 11:55am 1646088916

So far, you are still referring to price growth not "prices"

by ACB | 1st Mar 22, 3:07pm 1646100444

If price growth has been negative, which it has been in certain areas in the past month, then prices have fallen but if measured over a longer period, say 12 months, then prices have risen.

by the way | 1st Mar 22, 8:05pm 1646118352

Actual house prices have not yet declined. The rate of price growth has.

by Macrology | 1st Mar 22, 9:35pm 1646123712

Actual house prices *have* fallen at a national level for two consecutive months (Dec and Jan), based on the REINZ figures which are the best timely measure.

by the way | 1st Mar 22, 10:35pm 1646127305

The nationwide average property value rose 4% to $1.101 million in the three months to the end of February.

Yes, the reinz data when it comes out will be more current and will likely show a further fall in the rate of growth.

by Brock Landers | 1st Mar 22, 12:00pm 1646089253

I can imagine "The Way" angrily shaking his fist as an empty auction room that prices aren't dropping. Growth has merely eased!

by the way | 1st Mar 22, 12:01pm 1646089260

I'm not advocating for higher house prices. I'm just stating the fact.

I have never bought at auction and don't imagine I ever will. So yeah, won't be finding me there.

by Brock Landers | 1st Mar 22, 12:09pm 1646089742

Prices are now falling in the parts of New Zealand that matter. That a fact.

OneRoof is a fact free zone. It does not bolster credibility to post links to there.

by the way | 1st Mar 22, 12:18pm 1646090293

The growth rate has fallen.

That is a fact.

by DDDDebt | 1st Mar 22, 7:17pm 1646115459

Look at the growth rate for the last 3 months only... while too short to predict a trend it gives the most accurate 'current state' of the market

Looking back at the last 12 months means nothing if a market has turned.

by the way | 1st Mar 22, 8:24pm 1646119450

You'd have to look a lot shorter.

In the 3 months to the end of Feb (ie; yesterday) the nationwide average property value rose +4%.

https://www.1news.co.nz/2022/02/10/house-prices-continue-to-increase-sl…

by Brock Landers | 1st Mar 22, 9:31pm 1646123480

You posted an article from the start of February.

QV is a lagging index based on settlement dates.

by Macrology | 1st Mar 22, 9:39pm 1646123990

Yes please only use REINZ data. QV is so lagged.

by the way | 1st Mar 22, 10:13pm 1646126028

The data is current to end of Feb (ie; yesterday) reinz data will be along soon.

by the way | 1st Mar 22, 11:27pm 1646130435

Yes, and the article shows 6.1% growth to start of Feb. Now at the end of Feb the growth rate is 4%. Showing a decline in growth.

by DDDDebt | 1st Mar 22, 7:14pm 1646115280

To The Point of sounding like a broken record...

by tothepoint | 1st Mar 22, 11:20am 1646086818

“It’s always sticky on the way down……”

Then why do the DGM keep promising a crash? 💥

I’d like to purchase a small Ponsonby villa for a song…… But it ain’t going to happen. ☹️

TTP

by Crazy Horse | 1st Mar 22, 11:53am 1646088831

Why not ttp ? .....that is not the sentiment of our resident property bull ? as you are always saying "get in there- never a bad time to buy" !

That recently tastefully renovated 3 bdm character villa is just waiting for you in those leafy Ponsonby Streets and why not, as you yourself know, it's a fantastic investment !

In fact, a man of your standing should be looking at St Mary's/Herne Bay - not little old Ponsonby

So to say ".....but it ain’t going to happen" is a little bit DGM to me .....I am now confused, as you are edging towards being a DGM

C'mon man ! Keep the property market burning hot ! ...Lead by example and purchase that beautiful villa - it's waiting there for you now so BE QUICK !

by tothepoint | 1st Mar 22, 1:13pm 1646093632

Hi Crazy Horse and Crash Crusader (and others),

Clearly, neither of you have read my contributions here over the past several months.

If you’d read them, you’d know I’m predicting a soft-landing.

I derive little pleasure from corresponding with ignoramuses……. Suggest you get up with the play.

TTP

by Crazy Horse | 1st Mar 22, 1:39pm 1646095146

TTP ......."I derive little pleasure from corresponding with ignoramuses....." ...well mate, this "ignoramus" has plenty of 'dry powder' immediately available and left the NZ market 5 years ago ....ever heard the expression the "smart money" has left the market.

Yes, I have read your posts over the last few months and yes, we may be in for a "soft landing", but in my view there are too many variables at play outside the NZ market/economy for it to be a soft landing - but we are each entitled to our own particular viewpoint.

While I suggest you refrain from childish name calling - play the ball, not the man.

by DDDDebt | 1st Mar 22, 7:14pm 1646115256

We are nothing if not emotional creatures.... so the sky is falling in if you're a real estate franchise owner or agent... as there is nothing but doom and gloom in the sales caravan on a Monday morning after a weekend of empty open homes and no interest... with the prospect of further empty auction rooms in the coming weeks and months

by HouseMouse | 1st Mar 22, 2:31pm 1646098274

Can't really picture a meat and three veges bloke from the regions in Ponsonby...

by Nifty1 | 1st Mar 22, 11:07am 1646086067

Compared to January, February’s average asking prices decreased by 1.3 per cent in Auckland, 2.7 per cent in Waikato, 3.1 per cent in Hawke’s Bay, 3.8 per cent in Nelson & Bays, 2 per cent in Coromandel, 2.3 per cent in Wairarapa, and 6.2 per cent in Central North Island.

https://i.stuff.co.nz/business/127913166/asking-prices-for-homes-fell-i…

by HouseMouse | 1st Mar 22, 12:59pm 1646092755

Keep up the trolling mate!

What an inane comment to make.

The decline will play out over months, not just one month.

by lekkerbydiesee | 1st Mar 22, 3:37pm 1646102222

i thought average prices have fallen Dec 21, Jan 22 and probably Feb 22. Well that is what has been reported anyway.

by lekkerbydiesee | 1st Mar 22, 3:40pm 1646102440

in fact we are down $100k since Nov 30th. Not sure many can save $100k in 3 months. See link below

https://www.interest.co.nz/charts/real-estate/median-price-reinz

by Brock Landers | 1st Mar 22, 10:25am 1646083538

The sale of that property in 2017 was entirely above board. Nothing to see here. Move along.

by ACB | 1st Mar 22, 10:52am 1646085153

yeah from the very PM who claimed there was no evidence of Chinese money pushing up the NZ property market - and who does he sell his mansion to?

by Brock Landers | 1st Mar 22, 11:27am 1646087260

It was sold for a way above market price then left empty for years. Squeaky clean.

by ACB | 1st Mar 22, 11:50am 1646088641

To be fair, who knows what the true market value of such a property is, it's not exactly a liquid (or rational) market at the top end of town.

Generally though, I do wonder how effective PRC capital restriction measures have worked when it comes to their diaspora. Whilst it wouldn't necessarily be considered dirty money from an NZ perspective, I understand PRC capital flows are restricted to US$50k per annum per person.

by lekkerbydiesee | 1st Mar 22, 4:29pm 1646105357

while none of are allowed to say there was hot money coming in from PRC, we all know it was happening. The question now is, will it still be there in 6 months time in light of the PRC property bubble bursting as we speak. As they say "when you in trouble, you sell what you can, not what you want" Is it possible that much of NZ property falls into the "sell what you can" category for Chinese investors (who apparently had nothing to do with inflating our bubble - nudge nudge wink wink)

by VTHO | 1st Mar 22, 12:58pm 1646092688

Payment for services rendered.

A birdie has told me he resigned because he was forced too. He was caught doing something he shouldn't but was not charged. Others involved were charged. Apparently there is reporting on the matter when it was in its early stages and court documents relating to it all.

Unfortunately said person won't tell me more for obvious reasons. Might have to get him drunk..

by El Torso | 1st Mar 22, 2:18pm 1646097524

LOL, you probably buy into all the current rumours about the PM's man too......

by Brock Landers | 2nd Mar 22, 12:10am 1646133018

There's something fishy about him.

by Zen20 | 2nd Mar 22, 8:20am 1646162442

Dirk is that you?

by Toye | 1st Mar 22, 10:27am 1646083649

"Peak" season.

More like "peak" market.

by Nzdan | 1st Mar 22, 11:57am 1646089076

From a FHB Facebook page (ironically)

Hi Everyone,

I've been trying to sell my house for almost 8 weeks now. No one can understand why it hasn't sold yet. Homes.co has it valued at $920k and we've dropped our house to an asking price of $769k and still, nothing. We'd love for it to go to a first home buyer.

My question is, when looking for a property do you ignore the older listings? We put our house on the market just after Christmas and we are worried people will just assume there is something wrong with it? Or is it just the effects of the lending restrictions? Thanks

by Brock Landers | 1st Mar 22, 12:03pm 1646089434

Homes.co has it valued at.....

🤣🤣🤣🤣🤣

by Nzdan | 1st Mar 22, 12:18pm 1646090321

I imagine them every night after dinner firing up the laptop to check their homes.co value.

"Babe! Babe! Come quick, look at the value!"

by JJS | 1st Mar 22, 12:35pm 1646091343

Homes.co values can be updated by simply sending them an appraisal from a RE Agent. The whole thing is a farce. I got several emails from Ray White during the last lockdown offering this free "service"

by DDDDebt | 1st Mar 22, 7:15pm 1646115312

Yep - not many people seem to know that RE agents can set the homes.co valuation if they pay the $99 per month premium subscription fee

by Averageman | 1st Mar 22, 1:30pm 1646094659

Homes.co is a marketing farce. I stopped paying attention when the started restricting access to the actual selling data. Perhaps they should start listing the highest bid at failed auctions, but pigs might fly and Mr Orr would start doing his actual job of controlling inflation...tui.

by Yvil | 1st Mar 22, 1:32pm 1646094760

Only Canterbury still going strong

by HouseMouse | 1st Mar 22, 1:51pm 1646095907

Go The Man (2)!!!!

by Yvil | 1st Mar 22, 4:59pm 1646107169

I'm sure he would have done really well for himself over the last few years

by streetwise | 1st Mar 22, 4:21pm 1646104904

One of the main reasons why auctions have fallen away is that vendors have wisened up to the rort that auctions have now become. Say you're auctioning your property and it doesn't reach the reserve; the agents will then take you into a little room, surround you, sit on top of the surrounding desks facing you while you are sitting lower in a chair in the middle; then the spiel comes thick and fast from the agents browbeating you all the while to lower the reserve. Confused and fatigued you eventually give in and the agents quickly move to the highest bidder and say the vendor has accepted your bid, ( this actually happened to a friend late last year).

One of the main failings of the current real estate industry is the compressed time scale they lead every vendor to sell their property within. This situation ensures a sale, which is the best outcome for the agent irrespective of whether the price meets the vendors expectations which have probably been determined by an online valuation site such as Trademe or Homes.co.

by Nifty1 | 1st Mar 22, 10:08pm 1646125683

Yeah seen that exact strategy play out at auction, it's straight intimidation & manipulation... no idea how it's legal for RE agent to act in such a manner.

by Averageman | 2nd Mar 22, 7:50am 1646160626

Misrepresentation high to get the listing. Then push seller to take the actual bids. Agency 101.

Sellers may need to realise that their house may actually not be worth what agents and homes.co say it is. Debt based funding that actually factors in reality like your income and spending puts a ceiling on most people's ability to support the peak bubble.