Bayleys sold 85% of their Auckland auction properties in the week before Easter

Property

Bayleys had a smaller than usual auction offering last week but there wasn't much left for sale afterwards

29th Mar 16, 11:22am by Greg Ninness

Bayleys had a small selection but a high success rate with Auckland auction properties in the week before Easter.

Bayleys sold 22 of their 26 Auckland auction properties last week, giving an 85% sales rate.

And in Napier and Havelock North, three quarters of the auction properties were sold.

It was a quieter week in Bayleys' Hamilton auction room with just one property offered for sale.

In Auckland two homes cracked the $3 million mark and several others sold for more than $2 million.

See below for the results of Bayleys auctions last week, with details and photos of all properties including those that didn't sell.:

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32 Comments

by Groen_mamba | 29th Mar 16, 12:50pm 1459209001

Ex agent,
what's your sources saying about the 72% of houses sold above the $1mil mark?

by ex agent | 29th Mar 16, 1:23pm 1459210992

Overseas buyers are still not in the market like they were last year. Some auctions being cancelled as no interest. It is getting tougher to sell generally unless the location and house is exceptional. Market is doing what all markets do. Moving backwards after a strong run. Time to be out of the market buying wise.

by Crazy Horse | 29th Mar 16, 2:54pm 1459216488

ex agent ......totally agree with your comments, that is just what was happening at the Auckland auctions last week.

by Cowpat | 29th Mar 16, 3:28pm 1459218515

No hard facts only speculation to support the offshore buyer numbers. The vast majority of Auckland homes are purchased by locals. Speculation can be driven by many factors.

by Groen_mamba | 29th Mar 16, 1:28pm 1459211289

So who's buying at these levels? Certainly not you're average Kiwi earning a local wage?

by kemistry | 29th Mar 16, 1:44pm 1459212252

I'm not sure who is currently buying, but the market around my way (onehunga) is certinaly back in full flow, just from casual observation. Around my street, prices are a lot closer to the $1m mark than they were this time last year.

by Clarence68 | 29th Mar 16, 1:48pm 1459212527

Have heard that currently top end houses shifting more slowly than last year but mid level still selling very quickly

by Groen_mamba | 29th Mar 16, 2:12pm 1459213965

ANZ have declined to extend my pre-approval stating they are getting close to the RBNZ low LVR limit. Someone else experiencing similar bank tightening activity?

by Clarence68 | 29th Mar 16, 2:20pm 1459214430

Do you mind me asking what your LVR is?

by MortgageBelt | 29th Mar 16, 2:33pm 1459215206

Prices rising in Hawkes bay, hence most properties for tender, auction, or unpriced. Vendors concerned at discovering a higher price could have been achieved.
This is after a 6+ years period of no price movement.

by Groen_mamba | 29th Mar 16, 2:48pm 1459216118

I asked for 90%, but bank said they won't do more than 80% now, so anything in between won't make a difference

by dictator | 29th Mar 16, 2:55pm 1459216538

If the bank has had a large number of 90% mortgages approved and very few 80% they will tighten up so they don't breach the regulations.

Go to another bank or get a mortgage broker.

by Groen_mamba | 29th Mar 16, 3:02pm 1459216972

That's what I'm thinking as well. So this last group that was effectively sidelined by the last 2 year's feeding frenzy, have finally managed to stump up 10% of $700-$800k mortgage. They are buying these "shacks" from people who paid $300-$400k 5-8 years ago. They now in turn are running around the market "trading up" into the $1mil + houses with their tax free profits.

This is the last bit of fuel in the market, and once exhausted there will be no more kindling to stoke this fire IMHO.

by dictator | 29th Mar 16, 3:15pm 1459217749

One of the things I observed in 2014 when I was buying my house is that 10% was impossible to get as there were too many approvals out there. The bank bend over backwards for me as I had 20%. The banks are allowed something like 10% of their mortgage book as sub-20% deposits. The statistics show they are floating around 5% of that.

A few of the banks have been tightening up with some of my clients and other commercial property owners I've caught up with at the pub. Although it's hard to say what has put the banks in their current position. It could be that there are a lot of marginal mortgages, it could be the regular ebb and flow, or they may have lost a lot of high equity mortgages due to competition over interest rates.

We're not at housing market melt-down stage yet. For that there needs to be panic and I don't see any.

by Independent_Observer | 29th Mar 16, 3:40pm 1459219219

There will be further interest rate drops to fuel the fire...

by Crazy Horse | 29th Mar 16, 2:50pm 1459216252

SOLD SOLD SOLD !!! ....last week, so now out of the Auckland central market .... just a total relief :) ... now I will either watch from the sidelines or buy elsewhere .....it's a real "circus" out there.

Yes... I am renting in Auckland central ....and yes, it is way cheaper than owning.

And for all those who say "you'll never get back into the market" .....who cares, I don't want to or need to.

I am actually disappointed for the majority it has come to this ..... John Key et al is selling this country down the river... for a short term gain ....and long term loss ... but the sad fact is by then their ilk will be long gone....

by SpaceX | 29th Mar 16, 2:58pm 1459216733

Yay let's keep celebrating the fact that first house buyers keep getting locked out further of the market"!!

by starfish1 | 29th Mar 16, 3:40pm 1459219217

Our house went up for Auction and did not meet the reserve which was based on the lower end of the estimate given by the estate agent. Very disappointing only 1 bidder who was well short looking for a buy on the cheap. Then after auction flood of offers and bids with the highest offer. We gave the bid to the highest offer but the Chinese buyer who won the bid pulled out with finance clause. We then had building company with a good offer that we accepted but they put in a 10 day due diligence clause. We accepted the offer. Then on the 9th day I tried to find out whether they were going ahead. They said yes they will go ahead and go unconditional if you drop the price by another 25K. We said obviously said no. The company did no due diligence but were trying to get lucky by dragging out for 10 days in the hope that you are desperate to sell. We also had another one who again were interested to buy but subject to finance and ask for extension but then we grew in patient when they had not even got a solicitor and were going through an Indian loan company. Again stalling tack ticks. To some it up we have not had one genuine buyer. All have been dodgy buyers who have no intention but to screw you on price or have been working in conjunction with agents on a commission bases through these what I call unlaw operating practices. These property acquisition company's are no better than loan sharks or local drug cartel. Surely if you put offer in they should concede cash deposits like other developed countries.

by Austin Fisher | 29th Mar 16, 3:58pm 1459220323

Thanks for posting starfish1 - this is the most informative and genuine comment I have seen over what is actually happening out there.

by buzby | 29th Mar 16, 4:16pm 1459221392

Where do you live, Starfish? In my inexpert mind it feels more like a market governed by local market forces compared with what was happening last year. It's still buoyant but no longer purely a sellers market with hoards of cashed up buyers queuing up to buy.

by dictator | 29th Mar 16, 4:59pm 1459223981

There are always people putting in low offers. There's no point them buying at a rate where they can't make enough profit, they might as well put the money in another investment.

House prices are a complete rip off in New Zealand. Most of the houses are in a poor state of repair or have design/construction defects that mean they are in need of emergency work.

When looking for my first house I was travelling by foot to look at a number of houses. I walked past one house that I wasn't even going to look at and the real estate agent outside it said the owner was desperate to sell. So I put in an offer $125k below the value that I estimated it was worth if I wanted to flip it. There was an attempt to negotiate with me but when your own real estate agent says you are desperate to sell that sets an expectation.

I'd say be wary of what may be said on your behalf. Also there are people out there who will only buy if they can get a good price, and they aren't desperate to buy.

by Smalltown | 29th Mar 16, 4:32pm 1459222343

Dear ol Fran did a puff piece for National recently celebrating the fact that Key is happy to turn us into a Sth Pacific Switzerland "a beautiful and wealthy bolthole for high net-worthers seeking to escape from an unstable world."
http://m.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11611…
Switzerland indeed is a country we should be discussing, more for the fact that as the US pressurizes the secret bank accounts, NZ property is most likely taking up some of the slack for the wide boys hot money.
Did Gareth's sign ever get put up at the airport?
http://www.interest.co.nz/opinion/78051/gareth-vaughan-wonders-whether-…

by Kakapo | 29th Mar 16, 5:45pm 1459226759

Looks like it's time to sharpen the pitchforks and make New Zealand a lot less safe for war criminals and money launderers looking for a bolthole. I mean, if the corrupt government won't stop screwing over honest citizens, then what's left but direct action?

by two otherguys | 29th Mar 16, 6:42pm 1459230176

South Pacific Cargo Cult Thinking
Michael Reddel AKA Croaking Cassandra did an unflattering critique of O'Sullivan's article
http://croakingcassandra.com/2016/03/29/switzerland-of-the-south-pacifi…

Chinese investors are relatively open that they are seeking to de-risk their own exposure to the China market, get capital out and buy residential property in a pollution free environment

They are not coming to NZ to invest in businesses create jobs

by Kakapo | 29th Mar 16, 6:58pm 1459231086

Cargo cult is right. We're due another one, now that Endless Milk Bonanza has footrot. Lazy, self-deluding, get-rich-without-working thinking.

Although, it occurs to me that there will be rich opportunities for our young people in the lucrative field of carjackings and kidnapping. Maybe there is an upside.

by rastus1 | 29th Mar 16, 10:06pm 1459242409

..did you notice how quickly the Herald pulled the comments section from that article.

by Groen_mamba | 30th Mar 16, 7:15am 1459275356

Comments still there

by dictator | 29th Mar 16, 5:24pm 1459225488

Don't worry everything's good in Auckland. Well except for middle class poverty in Auckland. Let the good times roll.

http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=11612898

by Zachary Smith | 30th Mar 16, 6:34am 1459272897

That Herald article is just silly. In my opinion those teachers should all be arrested for contributing to the severe obesity problem we have. Who here thinks we don't have an obesity problem? When I was a kid I probably ate lunch at school about three times. Teachers seem to think kids need feeding every two hours.

by Kakapo | 30th Mar 16, 7:32am 1459276361

Yes, Marie Antoinette.

by Zachary Smith | 30th Mar 16, 7:22am 1459275736

Comparing the sales price with the CV of the Auckland houses reveals an average of 33.51% increase according to my calculations.

by Carlos67 | 30th Mar 16, 11:27am 1459290432

Ouch thats going to hurt in the next rates review. Still I'm now living in the most expensive part of New Zealand, the North Shore so we should all be happy our houses are worth a million, right ?