Overall residential auction sales rate improved very slightly to 30% in the first week of winter

Property / news

The latest auction sales rates improved slightly in Canterbury and Bay of Plenty and were unchanged in Auckland

8th Jun 22, 9:49am by Greg Ninness

The overall sales rate at the auctions monitored by interest.co.nz improved very slightly to 30% last week (28 May - 3 June), up from 27% the previous week.

The main movers were Canterbury where the sales rate rose to 55% from 39% the previous week and Bay of Plenty which increased to 28% from 22%.

The sales rate over the total Auckland region dipped slightly to 23% from 25% the previous week.

There remain big variations in the sales rates within the Auckland region, with the market very sluggish for Manukau and Waitakere properties, which had sales rates of 11% and 17% respectively, while things were a bit perkier on the North Shore where exactly half of the properties offered were sold under the hammer.

The table below gives the full district-by-district sales breakdown, while details of the individual properties offered at all of the auctions monitored by interest.co.nz, and the results achieved including selling prices, are available on our Residential Auction Results page.

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51 Comments

by IT GUY | 8th Jun 22, 9:54am 1654638848

Not a good time to want to offload a Manurewa $1 million dollar shitebox then.......

by mja | 8th Jun 22, 10:05am 1654639511

Though paradoxically, it may be the best time for the next 5 years.

by Pa1nter | 8th Jun 22, 12:41pm 1654648898

5 years?

Man, this end of the world thing is taking like, forever.

by Pragmatist | 8th Jun 22, 12:54pm 1654649691

you need to think in geological timescales mate.

by IT GUY | 8th Jun 22, 12:59pm 1654649946

Eons even, remember when you could not give them away for $280k....

by HW2 | 8th Jun 22, 1:45pm 1654652720

I remember they were 90k. As my advisor in the 90s said, one day an Auckland house will cost one million. Gee how right he was, nobody could see it of course

by Waikatohome | 8th Jun 22, 11:25am 1654644344

https://www.barfoot.co.nz/property/residential/manukau-city/mangere/house/832347

Some lucky vendor offloaded this Mangere beauty for $950K today.

by company of heroes | 8th Jun 22, 11:44am 1654645476

Haha, what a "lucky" buyer, he probably thinks with 634 square meters land, he can build 6 terrace houses and sells them for 6 millions. What a "bargain"!

by Mrs The Point | 8th Jun 22, 11:46am 1654645561

Bet they were disappointed given the Homes estimate of $1.4mil. Time to rejig the algorithm...

by DTRH | 8th Jun 22, 1:02pm 1654650153

Crazy price

by IT GUY | 8th Jun 22, 2:07pm 1654654041

I went to that house about 5 years ago to pickup a trademe trade, young guy was holding it as an investment, would have got out ok even at 900ks would have done better last Nov....

Property Speculation is a tough game, just imagine all the people over NZ who be a bit better off with extra 600k in hand, going to impact peoples retirements etc etc and economy BIG TIME, massive mental change to make.

by capture1 | 8th Jun 22, 3:01pm 1654657260

When I think of a million dollar house this doesn't come to mind..

by RickStrauss | 8th Jun 22, 4:41pm 1654663317

My relatives living in San Fran and LA find New Zealand house prices and value for money absolutely bonkers. That's saying something.

by Pa1nter | 8th Jun 22, 6:30pm 1654669834

Having been to both San Fransisco and LA, that's probably more to do with an assumption they believe they're in the greatest country on earth, and everywhere else is third world.

Prices there, even for shit boxes, make NZ look tame.

by Crazy Horse | 8th Jun 22, 6:44pm 1654670662

Pa1nter ....see my comment below....of course there are expensive properties in every major city on earth.

But for a run of the mill, say 4 bdm, 2 bths properties in a good area I know well ( very close to Washington DC) for the equivalent price of a cold, damp, south facing Mt Roskill sh*tbox ......have a look ...... https://www.zillow.com/homedetails/7604-Urbanik-Dr-Hanover-MD-21076/627…;

by Pa1nter | 9th Jun 22, 7:26am 1654716418

America has a lot more cities to choose from, of wildly varying costs.

At the moment, you can buy a nice near new 3 bedroom with a pool in a number of better climates for under a hundred grand. But you wouldn't want to be a local there.

by Carlos67 | 8th Jun 22, 7:39pm 1654673989

Yeah full of great housing I loved all the bars over the windows.

by Crazy Horse | 8th Jun 22, 8:30pm 1654677053

Where ?

by RickStrauss | 8th Jun 22, 9:32pm 1654680739

Papakura?

by RickStrauss | 8th Jun 22, 9:29pm 1654680596

Having been to SF and LA myself multiple times, I can't agree. Even having a look around on Zillow makes for some pretty sobering consideration of Auckland prices (and Auckland apartments). Yes, their highest high is far higher than Auckland, but that's just the very most expensive stuff.

by Crazy Horse | 8th Jun 22, 6:36pm 1654670200

Haha RS .....don't let the facts get in the way of a good story ! ..... had rental property in MD, 10 miles from The Whitehouse from 2012 to 2020 ....was getting 14.5% gross return on one property and 12.5% on the other. Wouldn't touch property in Auckland with a barge pole !

The greed here with residential property investing just spins me out ! .....the sheeple are all sucked in by those "great BBQ stories" of years previously, the media, banks etc etc

Time for some reality here in this NZ market .......finally.

by RickStrauss | 8th Jun 22, 9:31pm 1654680681

Yeah, true... The thing that weirded them out most was the million dollar small townhouses out in the far reaches of Auckland. That really didn't compare well to CA.

by Pa1nter | 9th Jun 22, 7:29am 1654716588

Depends what part of CA. CAs version of Otara is kinda affordable, but their versions of Sandringham or Mt Albert are up there. Then their Herne Bay and Mission Bay is to the moon.

by RickStrauss | 10th Jun 22, 11:17am 1654816621

Yes, true - however you should a Californian a 2 bedroom townhouse in paddocks 35 km from Auckland city going for $1 million (e.g. Milldale) and they find that sobering. Because there are very decent suburbs within smaller distances of downtown SF or LA where people get far more for their money. The top end is obviously going to be far higher, because of the money there.

by Carlos67 | 8th Jun 22, 10:11am 1654639880

Possible V shape recovery ? It's working for TD rates 🤣

by Small Kev | 8th Jun 22, 2:06pm 1654653994

You just never know, we are living a funny world.

Who would’ve thought before March 2020? Now they’ve decide to live with covid as infinite lockdowns were costing livelihoods, they might decide to live with high inflation because high interest rate will also causing too much pain and not going to stop inflation.

by CourtJester | 8th Jun 22, 2:16pm 1654654599

Do you purposefully ignore the VERY different covid situation today vs March 2020?

90+% of pop being vaccinated and a much less lethal variant being the dominant one now has nothing to with it, I'm sure...

by Carlos67 | 8th Jun 22, 2:36pm 1654655819

That's exactly how I think it's going to pan out. Rates will rise to a point that is "sustainable" and then stop. Everyone will then just have to suck up inflation from there on.

by AdamJay1990 | 8th Jun 22, 10:22am 1654640545

Are agents starting to rain in Vendors sky-high expectations, or could this be a result of more houses listing as PBN? (or a bit of both?!)

by realterms | 8th Jun 22, 10:28am 1654640935

Yes and yes. And 'rein'.

by Waikatohome | 8th Jun 22, 11:19am 1654643994

https://www.barfoot.co.nz/property/residential/north-shore-city/glenfield/house/830139

https://www.barfoot.co.nz/auctions-live/sessions

This was passed in at $920K this morning. Looks good money to me. Vendors are obviously not lowering their expectations. I wouldn't pay that kind of money for this property.

by Poppyc | 8th Jun 22, 12:24pm 1654647848

insane, who would pay that much. you can get better, in a better location around there. equally why wouldn't the vendor take it - looks like they paid ~700k 3 years ago for the place and they still expect more than the rv

edit: it's listed at $989k now, so they want $950k. Is the risk of not getting it at $920k worth it?

by realterms | 8th Jun 22, 11:53am 1654646025

85 m2 "3 br" house on 364 m2 section in a "hmm" part of town. Definitely worth a million bucks, no?

by Eschaton | 8th Jun 22, 12:07pm 1654646856

Nowdays no one actually plans to pay off their mortgage.

by Pa1nter | 8th Jun 22, 12:43pm 1654649009

The opposite really. Interest only was easy peasy for decades, could see the banks really clamping down on that 5 years or so ago.

by gnx | 8th Jun 22, 1:22pm 1654651328

And we wonder why people are planning to leave

by Brock Landers | 8th Jun 22, 1:49pm 1654652980

Homes.co.nz had it at 1.1M in October.

Now has fallen back down to "only" a lousy $960k.

Still could be quite a way to fall though now that people are waking up to much of Auckland actually being quite undesirable.

Here's what you can still get for the same amount of money across the ditch as an upgrade from Glenfield.

https://www.realestate.com.au/buy/property-house-between-900000-950000-…

by Waikatohome | 8th Jun 22, 1:44pm 1654652657

I cant believe it was worth $700k three years ago. Property like that should be $600K especially now that Auckland is no longer a desirable place to live.

by Averageman | 8th Jun 22, 11:52am 1654645974

Why do the agents opt to hide its sale price from 2019...?

by IT GUY | 8th Jun 22, 4:48pm 1654663691

Coz thats what its now worth.......

by Averageman | 8th Jun 22, 10:24am 1654640648

If the specu crowd had to choose, would they perfer a land/capital gains tax, or for asset prices to drop significantly under the burden of debt.

by J.C. | 8th Jun 22, 11:44am 1654645498

'Degen' is short for degenerate and is used in the crypto space to describe those taking risks using leverage on assets with questionable value.

Now that Tony Alexander has described the behavior in the NZ property market as similar to the crypto markets, I guess that auctions are where the degens gather.

by Averageman | 8th Jun 22, 2:39pm 1654655974

Yes he finally stated that prices were speculative, and had little to do with income. He added that the herd (the great unwashed) mentality had turned away from free capital gains and that talk was now of capital losses. The herd was bolting for the exit in fright and could not be turned easily.

Popcorn...

by taimaiakka0 | 8th Jun 22, 11:53am 1654646015

Vendor who are dropping their expectation are sensible as they too know that dropping 10% or even 15% today is better than a fall that can be in future.

Same thing hapened in Stock market, those few who offloaded with minimum fall are lucky as those holding are facing heavy losss and may now have to hold for feeeewwww years and that too to minimze loss.

by Kjeldorian | 8th Jun 22, 12:52pm 1654649560

"Same thing hapened in Stock market, those few who offloaded with minimum fall are lucky as those holding are facing heavy losss and may now have to hold for feeeewwww years and that too to minimze loss."

Nope. Not lucky at all, if they did that they are morons who don't know how to invest properly.

by taimaiakka0 | 8th Jun 22, 3:05pm 1654657546

Lucky or not ..stupid or not .do not know but as of now avoided much bigger loss.

by Kjeldorian | 9th Jun 22, 7:44am 1654717451

Avoided a paper loss by banking a real loss.

by kpnuts | 8th Jun 22, 12:17pm 1654647448

more prop the RE ponzi up headlines -- auction sales rate slightly up .....hmmmm only 62 sales in a week total - where is teh May 2021 figures for total sales at auction - which from memory was running close to 500 a week ? Better headline might have been total sales at auction TANK

by Toye | 8th Jun 22, 12:23pm 1654647832

30% of nothing is still nothing.

by Eschaton | 8th Jun 22, 12:59pm 1654649982

Greg When is interest.co.nz getting an app?

by ACB | 8th Jun 22, 1:06pm 1654650374

I know the CV is based on some sort of formula and therefore subject to 'error' but I seem to discern that most that sell at auction at the moment do so above their 2022 CV. You'd think, given when the CV was calculated, that those who sell would be below CV. It could be that people only choose to sell above CV "anchoring effect" and therefore the bias.