Less than a quarter of the residential properties being brought to auction are selling under the hammer

Property / news

Auction sales rate 20% in Auckland, 21% in Bay of Plenty, 41% in Canterbury

3rd May 22, 9:35am by Greg Ninness

The number of properties brought to auction last week rose slightly, but the number of properties selling under the hammer continued to slide.

Interest.co.nz monitored the auctions for 230 residential properties around New Zealand last week (23-29 April), up from 206 the previous week.

Of those, sales were achieved on just 53 properties, giving an overall sales rate of 23% last week. That was down from 29% the previous week.

Sales remain particularly weak in Auckland at 20% and the Bay of Plenty at 21%, while the sales rate was double that in Canterbury at 41%.

However overall auction activity in Canterbury is well down on where it was a few weeks ago.

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

The comment stream on this story is now closed.

Residential Auction Results
at auctions monitored by interest.co.nz
23-29 April 2022
District	Sold	Total	% Sold
Northland	0	6	0
Rodney	3	15	20%
North Shore	13	33	30%
Waitakere	1	12	8%
Auckland Central suburbs	9	56	16%
Manukau	2	29	7%
Papakura	0	0	0
Franklin	2	7	28%
Waiheke Island	1	1	100%
Total Auckland Region	31	153	20%
Waikato	4	13	31%
Coromandel	0	2	0
Bay of Plenty	4	19	21%
Taupo	2	2	100%
Manawatu/Whanganui	0	3	0
Canterbury	11	27	41%
Central Otago/Lakes	1	1	100%
All of Aotearoa	53	230	23%

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28 Comments

by DTRH | 3rd May 22, 9:54am 1651528445

How many houses will become rentals as people realise prices are on way down and just hold off selling for a few years.

by malamah | 3rd May 22, 10:03am 1651529027

Many. The Upper Hutt update that one commenter puts up suggests that failed sales moving into the rental market is already happening there. What's considered good yield again?

by CourtJester | 3rd May 22, 10:14am 1651529641

What's considered good yield again?

In a general crash, any yield that's positive is considered very good.

by Miguel | 3rd May 22, 10:26am 1651530381

This theory ignores the fact that the cost of servicing the debt on rental properties is going up very quickly and Interest rate deductibility is being phased out.

A high proportion of investors use interest only terms that are very sensitive to interest rate changes.

add to that the removal of LVRs saw an explosion of high leverage purchases by investors.

its not a question of choosing to “hold on”, the question is can they cover the outgoings so they can hold the property

by DTRH | 3rd May 22, 10:40am 1651531243

Getting some money for rent is better than nothing, or just sell at loss before rates raising puts them into default. This is just more evidence housing prices will topple quickly maybe back to 2016 prices.

by RickStrauss | 3rd May 22, 1:03pm 1651539796

It's perhaps likely that Sky TV shares and cafes will suffer as property investors cut the Sky tele, flat whites and smashed avocado in order to top up rents. Nothing terribly out of the ordinary about this, it's never been cheap to buy in such a global city.

by IT GUY | 3rd May 22, 9:16pm 1651569365

I would not consider Lower Hutt a global city....

by Mr Ed | 3rd May 22, 10:04pm 1651572249

😂😂

by company of heroes | 3rd May 22, 10:27am 1651530479

The tricky part when price is going down is that you might want to hold off selling as the price isn't meeting your expectation, but others who bought houses three years ago might not think this way. For them, yes the price might come down from peak like 5%-10%, but their gains were 40%-50%, even if they sell a bit cheaper now, they still can get 30% solid gain. So if they sold their ones at cheaper price, you will get FOMO on capital gain if you wait for couple of years. FOMO works on owning a home but also works on capital gains.

by kiwiana02 | 3rd May 22, 3:47pm 1651549633

Lots of rentals on the market at the moment - likely to see drops in rental prices as the market becomes over saturated. Putting more pressure on landlords.

by PitU | 3rd May 22, 9:57am 1651528658

The summer sentiment suppose to launch us into winter, however, it didn't. Its like a tracking bird travelling from one continent to another that forgets to eat before taking off.

by CourtJester | 3rd May 22, 10:12am 1651529541

20% clearance rate, yet still my weekly realestate.co.nz watchlist summary shows 8 out of 11 properties going to auction. Agents misleading vendors?

by Miguel | 3rd May 22, 10:27am 1651530473

Agents are intentionally using auctions to show vendors how little interest there is in their property. Quickest, easiest way to force the vendor to lower their expectations

by Yesyesyes | 3rd May 22, 10:41am 1651531288

Every house listed Remuera is still going to auction first (including if they relist with a new agent after not selling with the original one) and I imagine it’s for exactly that reason.

by Carlos67 | 3rd May 22, 10:53am 1651531988

Spot on. Then when there is no sale it on by negotiation for about 1 week then its on for a price. I'm down to 15 on my watchlist now and they are all stuck going nowhere at prices people are not prepared to pay in the current market.

by DDH | 3rd May 22, 4:26pm 1651552013

It's also still being demanded by the vendor. Agents aren't going to argue with the customer even if they know it's not the best way to sell anymore.

At this point putting a price on seems to be the best way to sell but you can see that now it could the vendors that have FOMO on any extra profit they might get if there are multiple bidders.

Vendors often can't see that their property is flawed or has a bit of a broken wing.

I'm not an agent but this is all just human nature and greed rather than rationality and cutting your cloth to the conditions

by Carlos67 | 3rd May 22, 10:48am 1651531736

The whole idea of an auction is a fast sale. Marketing can be as short as 3 weeks and its now clear that people are in a panic to sell. Houses would still be selling at auction but the vendor expectations are to high. What it does when it doesn't sell is lower the vendors expectations as well as make the RE money anyway, its a win win for RE's and thats why they are still pushing auctions. The market it truly dead, I mean its not even on life support for those trying to sell.

by Mr Ed | 3rd May 22, 10:00pm 1651572002

In any up market, as we had for the previous 6 years , the marketing period will be no more than 3 weeks whether sale by tender, which has clear advantages in such an enviroment , or by auction

by DTRH | 3rd May 22, 10:31am 1651530696

Manukau 2 out of 29 these people would be better to just drop price quickly as it will be years till prices get anywhere near highs of last year and could collapse back to 2016 prices.

by RickStrauss | 3rd May 22, 1:07pm 1651540027

Been seeing some interesting price notifications on Auckland listings:

1. Price reduced $109k to $390k (apartment)

2. Price reduced $100k to $1,189k (house).

Have seen a couple of houses around that level and reduction now, and a couple that have had multiple reductions. FONGO?

by tulips | 3rd May 22, 3:04pm 1651547078

What building is the apartment in? Sounds too good to be true.

by RickStrauss | 4th May 22, 9:12am 1651612379

Heritage Nelson Street

by Gummy Bear Hero | 3rd May 22, 10:36am 1651530989

... obvious solution for Orc Landers ... take your house down to Christchurch & auction it off there ...

And , with impeccable logic like that , I really ought to be Minister for Housing ...

by Crazy Horse | 3rd May 22, 10:42am 1651531379

Everyone out there, you all need to relax and listen to the calming words of a Mr Ashley Church and his sidekick TTP (always "on point") from the Manawatu District, representing the more provincial urban areas in Aotearoa.

A reduction in auction sales is nothing to be concerned with, as most properties will sell with a post auction offer, pleasing both vendor and buyer alike.

These price reductions everyone is talking about, are properties that haven't yet been developed in any way, so the potential is great with quality improvements and renovations, if required. There will always be buyers for properties, that are pleasant to the eye and all the hard mahi has been do for you, ready for you to move in to your forever home.

New Zealand punches well above it's weight with so many positives - clean green air, beautiful scenery, an unhurried pace of life, the outdoors is just "out the door", so much so, many have and many will make New Zealand their choice of countries to live, work, study and do business in.

So for the astute, discerning buyer, both local and overseas, New Zealand residential real estate is worth every penny. So for all you potential buyers out there, do stop in to those open homes in areas that you may wish to buy, have a chat with the friendly real estate agent and get a taste of what might be, with your upgrade or first home purchase and secure you future in this wonderful place we call home.

by malamah | 3rd May 22, 11:09am 1651532955

It's like a religion.

by Mr Ed | 3rd May 22, 10:03pm 1651572200

Bishop Crazy Horse

by youngdumbandfullofit | 3rd May 22, 5:22pm 1651555336

Single storey villa in Mt Eden with pool I've been watching was passed in at auction. They've sat for 3 weeks with an asking of 4.28mill and as of today it's just gone to 4.1mill. Truly do wonder where the buyer will meet the vendor...

by IT GUY | 3rd May 22, 9:22pm 1651569727

Some people did get out in November.... Back then most where complaining about a lockdown?