Bayleys sells just over half at auction, Waikato auctions particularly slow

Property

Bayleys auction clearance rate just 52% last week, even worse in the Waikato

19th Oct 15, 10:26am by Greg Ninness

It was a quieter week in Bayleys' auction rooms last week, with just over half the properties offered being sold and the rest passed in.

Bayleys marketed 35 properties for sale by auction last week, two of which were withdrawn just before the auction, leaving 33 to go under the hammer.

Of those 17 were sold and 16 were passed in, giving a clearance rate of 52%.

The most expensive sale of the week was a house in Bucklands Beach which went for $1.4 million and the cheapest residential property to sell was a house in Mangere East which sold for $485,000.

Sales were particularly slow in the Waikato, where eight properties were put up for auction but only two were sold and one of those was a 60ha farm block and the other was an equine centre.

All of the residential properties auctioned in the Waikato were passed in.

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30 Comments

by Triple | 19th Oct 15, 12:31pm 1445211064

I received an email from my 'friendly' B&T agent who would fire through the B&T auction stats each week and it said,

"Sorry but the CEO emailed all staff and said they could no longer forward any sales stats unless it was for a particular property the subject person was interested in selling or buying. Therefore I will not be able to forward to you any further results".

Obviously recent sales stats are not very good because B&T had no problem with them being forwarded by staff when the market was going gangbusters.

by Black and White | 19th Oct 15, 1:49pm 1445215767

HERE WHY!!!
Market has stopped on the Northshore international buyers are out.Also stop out west.
Looks like 1 October IRD number and banks account number stop them dead in there tracks.
I wonder how long the real estate companies can keep the spin on before they drowin there own poo.

by muntijaqi | 19th Oct 15, 2:13pm 1445217199

I don't think it was the requirement to have an IRD what stopped overseas "investment" but the capital restrictions in China and the bad news of productive economy unable to keep pace with financial speculation.

The same is happening in Australia.

It simply is a bubble about to burst and smart money is out. An increase in offer means delaying sales and eventually pushing prices downwards..

by Black and White | 19th Oct 15, 2:27pm 1445218052

The dirty money game of the last 3 years is over.

The same as Australia

by buzby | 19th Oct 15, 2:51pm 1445219502

But last week we were being told the market was hotter than ever and the gov needs to take drastic action Anyone else confused?

by BigDaddy | 19th Oct 15, 3:16pm 1445221007

Your are all wrong (again)
The experts say we are in for yet more price rises, so tough luck for those who missed out:

http://www.stuff.co.nz/business/73143578/auckland-house-price-should-ri…

by Clarence68 | 19th Oct 15, 3:35pm 1445222101

'Experts' or agents?

by steven | 20th Oct 15, 1:04pm 1445299480

"The panel of property managers, valuers, agents and brokers was assembled by the Property Institute, which represents valuers, to give a feel for how the market is heading every quarter"

so 100% vested interests predicting continued rises.

by Triple | 19th Oct 15, 7:59pm 1445237993

BigDaddy - aka Newland - you are so full of it.
Sometimes you say, "the market will keep going strong".
And other times you say, "it will all end in tears".
In other words, you have absolutely no idea what will happen so you cover both bases!

by PeakEverything | 20th Oct 15, 7:20pm 1445322011

He's the Ken Ring of property.

by rmnz | 19th Oct 15, 8:06pm 1445238403

"Auckland house prices are expected to keep rising as demand continues to outstrip supply, according to a panel of property experts.

The panel of property managers, valuers, agents and brokers was assembled by the Property Institute"

So a completely unbiased panel with no agenda then eh!!?

by Clarence68 | 19th Oct 15, 3:25pm 1445221542

Property expert also say we should closely watch Sydney as Auckland will follow the same pattern:

http://www.domain.com.au/news/plummeting-auction-clearance-rate-brings-…

by diy-guy | 19th Oct 15, 4:27pm 1445225260

Weird. With all time high rates of immigration (50% + steaming into Auckland) - where are they going to live? On the streets? Nope. They're going to buy Auckland houses.

by muntijaqi | 19th Oct 15, 4:34pm 1445225693

right, because all immigrants are rich and dumb.

by buzby | 19th Oct 15, 4:40pm 1445226015

This article is about auction clearing rates - the actual numbers. So why aren't these immigrants fighting over these properties like they were 2 months ago?

by macbet | 20th Oct 15, 1:43am 1445258626

25,000 of these immigrants are students and the rest are Baristas or something! They are not all cashed up and ready to roll the dice on a leaky in Remmers. http://croakingcassandra.com/2015/09/03/occupations-of-residence-approv…

by fat pat | 19th Oct 15, 8:01pm 1445238116

My humble guess - Not too far into future, perhaps March 2016, the USA will initiate QE4. The Chinese will also match with an equivalent or greater amount of monetary easing. The NZD will strengthen against the USD and Yuan. The pressure on mainland Chinese to get their money out of China will be intense. Interest rates in NZ will be lower that ever - although that depends on eurodollar demand and LIBOR (I think) rather than FOMC determinations. Well, that takes care of Auckland, now as for the provinces - all that matters is this graph.
http://www.interest.co.nz/charts/credit/housing-credit

by gordon | 19th Oct 15, 9:36pm 1445243787

As we get further away from 1 October the news should get more interesting. So many traders do not want the IRD involved. When one avoids paying tax due one needs to watch over your shoulder. IRD are stepping up their presence in the Auckland property market. All they have to do is search LINZ data and money for jam.

by notaneconomist | 20th Oct 15, 9:52am 1445287970

The IRD have been extremely lazy in their approach and have only ever focused on collecting the easy dollars....from existing registered businesses......

I wonder if the IRD has ever conducted an internal investigation on their own staff investments and expenses......and do they ever investigate other public servants?

If the IRD were doing their job then we wouldn't have the current system but they don't ever seem to advise the Minister of alternative tax systems like a cost efficient ATP Tax!

by two otherguys | 20th Oct 15, 11:01am 1445292098

haha .. IRD and FMA and SFO (for starters) are kept on very tight leashes called budgets

by notaneconomist | 20th Oct 15, 2:25pm 1445304305

They have historically spent all of their tight budget on auditing existing registered businesses who are doing all the work for them and have all the expenses.....

The real tax cheats are under the radar.......and the only way they are going to stop this behaviour is to adopt an ATP tax and periodically update the look of the currency.........I find it damn unfair that as a registered business I can get every financial transaction gone over with a fine tooth comb while others are never investigated for ripping the system off!!!

Public Servants and Supersize Me go hand in hand!!

by steven | 20th Oct 15, 5:40pm 1445316054

I think it perfectly reasonable given your stated reluctance to collect and pay GST that you get audited.

Does the IRD have a "gob someone in" line?

by Black and White | 20th Oct 15, 7:10am 1445278226

Yes I hear the IRD are starting to attend Auctions.
Easy money for them to full whole with dairy industry tax take way down.

by sharetrader | 20th Oct 15, 8:03am 1445281416

as usual too little to late, they have let millions slip through with next to no chance of getting payment

by notaneconomist | 20th Oct 15, 10:00am 1445288441

And the WHY question never gets asked........it is like a business doing work and never billing out for the goods or services.......were they just looking for the easy hanging fruit.....or are the staff on the take.......or maybe the staff have been investing in housing?

by sharetrader | 20th Oct 15, 10:55am 1445291723

funny you mention that, russian lady i worked with brought a house in mangere east years ago to do up and sell, when talking to her i said watch out since thats your intent you are liable for tax, she said no her friend that works in IRD told her all ok as she was living in it while they were doing it up and would not be looked at.

by gordon | 20th Oct 15, 12:20pm 1445296813

Still taxable as her intention was to flick.

by sharetrader | 20th Oct 15, 2:30pm 1445304659

too late sold up and left for russia good luck trying to get the tax.
not the only one i know of in the last ten years has been going on for ages

by steven | 20th Oct 15, 5:42pm 1445316131

and I am sure some get caught.

by muntijaqi | 20th Oct 15, 10:46am 1445291209

..and Bay of Plenty clearance rate of 48%

I'll keep an eye on prices in Tauranga. When I start seeing less auctions and more fixed prices I'll be the party is over.