Auction rooms just had their third busiest week in more than a year

Property / news

Plenty of properties on offer at the auctions but still only a third selling under the hammer

25th Mar 24, 11:31am by Greg Ninness

Auction activity perked up again last week after a couple of weeks of decline.

Interest.co.nz monitored the auctions of 568 residential properties last week (16-22 March), which was the third highest number in a single week in more than a year.

Of those, 127 were sold under the hammer giving an overall sales rate of 31%, while 42% of the properties that sold achieved prices equal to above their rating valuations.

The high number of properties auctioned is not a surprise because March is usually the busiest month of the year for residential property sales, and the sales rate has remained within a per cent or two of 33% for the last five weeks. So a third of properties selling under the hammer appears to be the overall norm for the time being.

This week also looks like it will be a lively one in the auction rooms, although the early Easter break this year could mark the end of peak summer season selling as the market starts winding down to autumn.

The table below shows the latest results by district, while details of the individual properties offered at all of the auctions monitored by interest.co.nz, including the prices achieved for those that sold, are available on our Residential Auction Results page.

The comment stream on this article 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.

53 Comments

by Averageman | 25th Mar 24, 11:40am 1711320042

The Shakeperian play continues to unfold. Much to do about nothing, aka low volume sales.

Some seasonal peak.

by Flying high | 25th Mar 24, 12:07pm 1711321635

How's your own property buying spree going

by Averageman | 25th Mar 24, 2:34pm 1711330480

Something I needed - commercial, has been secured at a healthy markdown. Other things I want...still waiting as prices continue to drop further....can wait and more stock arriving every day.

by Flying high | 25th Mar 24, 5:04pm 1711339448

I am glad for you as long as you know what you're getting into .. AND now you will only talk down resi property. Am I right?

by Averageman | 25th Mar 24, 6:21pm 1711344083

Not at all. Just anti the specuvest unsupported by income model.

by Flying high | 25th Mar 24, 7:23pm 1711347787

How do you class bitcoin, and precious metals "investors"

by tothepoint | 25th Mar 24, 1:04pm 1711325063

The road to recovery is not running in a straight line on this occasion: up last week; down next week.

Nonetheless, recovery is now underway.

TTP

by Toye | 25th Mar 24, 1:08pm 1711325290

The road to recovery may have a Coromandel State Highway 25a Hurricane Gabrielle sized 'pothole' ahead.

by Rumpole | 25th Mar 24, 3:55pm 1711335318

I was thinking the road ended at the Grand Canyon and the brakes failed.

by IT GUY | 25th Mar 24, 2:34pm 1711330452

You are confusing "The Journey" and "The Destination"......

The Journey will have lots of twists and turns, we are living this day to day, auction by auction

The Destination will be more affordable housing, as its impossible to run a stable society where so much disposable income is going into housing/rent, it seems that 6.99-7.25% interest rates are doing the trick.

by Rumpole | 25th Mar 24, 3:56pm 1711335404

Yes high rates are doing the trick of reducing house prices and demand but the damage to the overall economy and confidence will be huge.

by RickStrauss | 25th Mar 24, 5:00pm 1711339256

That damage was caused by pandering to Entitlement Mentality to free wealth from houses, causing the piper to eventually have to be paid.

by Speedmax | 25th Mar 24, 9:47pm 1711356435

The damage was done not by the corrective action but by pumping up the bubble in the first place

by Smudge02 | 25th Mar 24, 1:48pm 1711327708

You often speak of "recovery". Could you explain what the prefered end result of this recovery would look like in your opinion?

by tothepoint | 25th Mar 24, 2:10pm 1711329014

People here know exactly what I'm talking about - whether they like it or not.

TTP

by Retired-Poppy | 25th Mar 24, 2:36pm 1711330591

Which two people?

by agnostium | 25th Mar 24, 2:38pm 1711330713

A situation where he doesn't lose several million in fines for price-fixing?

by CN - new | 25th Mar 24, 3:36pm 1711334183

Lets all remember one essential point. That person is motivated by their vested financial selfish interest, which has resulted in them choosing to break the law.

They chose profits from benefiting at the expense of their clients over maintaining a reputation for being an honest, trustworthy and law abiding citizen.

by IT GUY | 25th Mar 24, 3:52pm 1711335167

Trust me, even with 2% mortgages.... banks cannot be fooled twice. Credit is expensive and will be rationed going forward.

hell with residential lending at 70% what could possibly go wrong.... lets see if we can get it to 90% is not the correct answer.

by Smudge02 | 25th Mar 24, 7:55pm 1711349738

Thanks TTP, not answering my question did in fact answer it.

by starrider | 25th Mar 24, 6:06pm 1711343177

The road to recovery (i.e affordable homes) has only just begun and the recovery (stagnant prices) will continue for many moons to come.

by Crazy Horse | 25th Mar 24, 11:52am 1711320756

So for Auckland, only 9.5% of properties sold above CV from 408 in total ......meanwhile in Sydney a 70% clearance rate .... the "trend is your friend" ...make of it, what you will.

by dumbthoughts | 25th Mar 24, 12:29pm 1711322972

Sydney is crazy. Spending some time there both for business and pleasure (owing to so many friends moving across the ditch) it seems that everybody buying property there has either limitless cash or a limitless desire to go into eye-watering levels of debt.

Friends bought a place for about $2.8 million and they are both complaining of how much the mortgage is, but also at the same time saying it was a great deal.

by 1689 Baptist | 25th Mar 24, 12:48pm 1711324091

It's insane. The median house value in Sydney is now 1.75m NZD. I know wages are a bit higher than here but surely not double?

by dumbthoughts | 25th Mar 24, 1:23pm 1711326204

I think there are definitely more opportunities to earn 'mega bucks' in Australia (like $500k plus) which would change the arithmetic, but I tend to agree that as far as Sydney goes it does seem most - if not all - of the extra earnings will be eaten up on housing if you want to buy, and the rental market is more stuffed than any NZ city.

For example, if I look at my wife and I we could probably increase our HHI by one third overnight by moving to Australia but it would be at least $1.5 mil to buy a house comparable to the one we have in Chch that is worth $750k.

Where it makes sense IMO is pursuing either those huge $ value job opportunities with larger organisations (e.g. one friend moved over there and got into tech sales working up to management, she would clear $300k a year in her role) or when you're in your 20s and happy to flat/share house and earn more and enjoy a more dynamic lifestyle etc.

Food a bit cheaper (but I've noticed on more recent visits that a lot of stuff isn't too dissimilar, except for fruit which is miles cheaper there) petrol less, but for my family's circumstances there's no way moving to Sydney would work for us once factoring in housing.

NZ is getting more this way, but I've also noticed Australians - or at least Sydney's inhabitants - typically seem a lot more about 'flashing the cash' in terms of the type of car they drive, the brand of watch, which airline frequent flyer platinum status you've got. The friends mentioned above are having nightmares with their used Range Rover. I suggested a new Mazda CX-5 for a similar value (actually more luxurious than a 2016 RR anyway, at least in good spec) but they thought a used Porsche Macan would be a better fit for their 'lifestyle' - in other words you can't be seen dead at the Lane Cove shops in a crummy Mazda.

by K.W. | 25th Mar 24, 1:50pm 1711327843

Sydney people are very shallow and judge you on material things. I have friends who live there, and they say that there are three questions that people ask them when they first meet. What do you do? Where do you live? What car do you drive? I remember being in the Balmain pub one day, when my friend was introduced to another friend of his immediate neighbour. The first thing she said to my friend was "so, do you rent or own?"

Not only would you not be seen dead at the shops in a Mazda, but nobody would be seen dead to be friends with anyone who owns a Mazda.

by interesting1234 | 25th Mar 24, 4:28pm 1711337310

Sounds like it is better to stay in NZ and have genuine friends by that measure.

by DitchSkipper | 26th Mar 24, 2:12pm 1711415533

People who ask those 3 questions have an inferiority complex.

by Mystery | 25th Mar 24, 1:59pm 1711328367

I personally would much rather have a small salary and a small mortgage in some regional NZ town, than a huge salary and a huge mortgage in Sydney (and throw away over 100k of hard earned savings in stamp duty tax at purchase time). In fact, better to put that 100k+ stamp duty tax that you'd have to throw away in Aus towards a deposit on property in NZ.

by Speedmax | 25th Mar 24, 9:59pm 1711357175

Lived in Sydney for a long time, and there’s a lot of truth in this. Depends on which parts of town you’re in, but north, east and inner suburbs def match your Lane Cove example. I’m happy not to be there now

by 1689 Baptist | 25th Mar 24, 12:48pm 1711324137

And don't forget you need to pay stamp duty in aussie too.

by huttman | 25th Mar 24, 12:55pm 1711324512

Other centers in Australia is not exactly better than Sydney. their house price is truely out of control.

by 1689 Baptist | 25th Mar 24, 4:08pm 1711336118

Those who think affordability has put a ceiling on house prices in NZ that can't be broken need to look to Australia as a warning. They have DTIs, LVRs, stamp duty, and CGT and yet it can't stop the train. The crazy prices in Queenstown are a ripple effect from Australia that could spread.many of us on this forum laughed last week when John key said house prices could be double in ten years. Including yours truly. Looking at the insanity in Australia makes me now think he could be right.

by prasnz | 25th Mar 24, 5:52pm 1711342320

Yes, and it should be noted that Australia (especially Sydney) also has so much foreign and black market cash slushing around the economy. And with very little AML enforcement going on, measures such as DTIs, LVRs or CGT will have little to no bearing on their purchases.

Tend to agree with the ripple effects from markets like Queenstown.

by IT GUY | 25th Mar 24, 6:19pm 1711343952

The average house according to stats pays 49% of disposable income on rent/mortgage, if house prices double and yields stay the same then household incomes have to double.... hard to see that meeting the RBNZ inflation targeting, if yields dropped in half then sure....... would you invest with a 1.5-2.5% yield?

Some are really finding it hard to adjust to the new high interest rate world.

by Rumpole | 25th Mar 24, 3:58pm 1711335520

Perhaps the great deal was for the seller.

by Toye | 25th Mar 24, 12:21pm 1711322461

This is the best we can do in peak selling season?

Mega Glut of properties coming this winter. It's going to be a cold one brrrrrrrr.

by IT GUY | 25th Mar 24, 2:37pm 1711330654

Good, Whakapapa and Turoa need a good year....

by Flying high | 25th Mar 24, 12:37pm 1711323442

Seymour talking about Hipkins on CGT "I'm glad labour havent learnt because it makes it easier for us." Sounded better coming from Seymour

Ben Picton from rabobank forecasting rate cuts from August, total 1.75 percent over 12 to 18 months.

by ChrisOfNoFame | 25th Mar 24, 12:59pm 1711324755

Next CPI release April 10th. If it has continued downwards (it may not given it covers the silly season) then I expect it to be before August.

NZ is, after all, in a Recession and Recessions kill inflation real fast.

by Rumpole | 25th Mar 24, 4:01pm 1711335673

Recessions kill more than inflation, I intend to be alive to tell the tale!

by the Joneses | 25th Mar 24, 4:12pm 1711336360

Seymour being arrogant and condescending? Surely not. It reminds me of when he said he was sorry Robertson was leaving, as he was incompetent competition.

Kinda sad that Seymour believes NZ to be so polarized that we would, as a whole, support our politicians taking empty cheap shots wherever possible.

by RickStrauss | 25th Mar 24, 5:52pm 1711342332

I'm still impressed that Seymour had the lack of self-awareness to earnestly accuse someone else of being a case of ideology colliding with reality. Coming from a pretend libertarian and Epsom NIMBY.

by Dgm | 25th Mar 24, 1:11pm 1711325489

So the sales rate has started declining already, wait till winter is here.. Will be in the 20's

by stefanblaise | 25th Mar 24, 1:12pm 1711325575

I'm so excited I'm going to kiss the third ugliest girl in the room.

by IT GUY | 25th Mar 24, 2:38pm 1711330737

So many things could go wrong with this plan...

What is a woman?

by Pragmatist | 25th Mar 24, 3:00pm 1711332002

I know one when i see one.. Or at least I used to... these days there are a few that call themselves women that can grow a better goatee than I can.

by ChrisOfNoFame | 25th Mar 24, 3:22pm 1711333369

Wow! What rest home are you in?

by Dgm | 25th Mar 24, 3:43pm 1711334613

Rest home is a mild reference..

by interesting1234 | 25th Mar 24, 4:30pm 1711337407

Final Rest home?

by Yankiwi | 25th Mar 24, 8:46pm 1711352809

With age comes wisdom...

by agnostium | 26th Mar 24, 8:01am 1711393284

Rebuttal your Honour: Winston Peters

by Escander | 28th Mar 24, 5:03pm 1711598631

Interesting article in The Guardian, seems they have had the same issue a few times in history and each time it's ended badly.

https://www.theguardian.com/lifeandstyle/2024/mar/19/end-of-landlords-s…;