Auction results: Low volumes but good results at Bayleys' auctions

Property

Bayleys sold three quarters of their Auckland auction properties and two thirds in Hamilton

2nd Apr 16, 5:02am by Greg Ninness

It was a quieter week in Bayleys' auction rooms following the Easter break with just 11 homes put on the block by the company' s Auckland offices, but eight of those were sold, giving a sales rate of 73%.

At Bayleys' Hamilton auction room two of the three properties offered were sold.

Highlights of the Auckland auctions included a renovated one bedroom apartment in a character building in the CBD that sold for $697,000, and a four bedroom home at Stonefields that sold for $1.296 million.

See below for the full results, with photos and details of all properties, including those that didn't sell:

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53 Comments

by Zachary Smith | 2nd Apr 16, 9:42am 1459543334

Eight properties sold in Auckland averaging 33.16% over CV.
Disclaimer: My only involvement in the Real Estate industry is annoying agents at open homes and taking up space on auction room floors. My 'analysis' could be incorrect, I just go through GIS viewer and add up all the CV values and compare to sale price.

by SpaceX | 2nd Apr 16, 9:56am 1459544198

I'm sorry but can someone (who doesn't have a financial interest in pumping up the housing market) please explain to me why this is a "good result"?

by Zachary Smith | 2nd Apr 16, 11:14am 1459548878

Sorry SpaceX but I can see nowhere on this page anything described as a "good result" except in your comment.
Now I know your question is most likely rhetorical and I have a dog in this race but I imagine for RE agents it is the number of sales that determine a good result. Differences in price would make little difference to their commission but high numbers of successful sales would indicate that they are doing their jobs right.
Personally I am happy to see stagnant to slight increases with a high percentage of successful auction sales. This could be the worst scenario for you as it would suggest stability meaning that prices are not dropping. I think double digit annual price rises continuing would be a cause for concern. Only slight increases may cool property investor interest and encourage them to seek investments in other areas. A dropping price may encourage them to just hang tight. Price stability with wage increases would be best for everyone on average.

by SpaceX | 2nd Apr 16, 1:57pm 1459558671

"Low volumes but good results at Bayleys' auctions" how about the title of the article?

"Doing their job right"...what the hell is involved in being a real estate agent? It's the easiest job in the planet in a rising/hot market. Do a couple open homes, list it on trade me and pass it onto the auctioneer.

by doublegz | 2nd Apr 16, 2:31pm 1459560666

Your comment is an insult to all RE Agents. They work so hard doing what they do and all you can say is this stoopid insulting comment??

by Zachary Smith | 2nd Apr 16, 4:13pm 1459566823

..how about the title of the article?

Oh yeah silly me. I hate how the title changes like that. I've been confused by the change on other articles too.

by Zachary Smith | 2nd Apr 16, 4:28pm 1459567700

what the hell is involved in being a real estate agent?

It does sound pretty cruisey. I was talking to agents at an open home this morning about how they can make a body corp fee look attractive to a buyer. They said I should get into real estate. I'm tempted, maybe one day.
Disclosure: I have recently become a BC committee member.

by KH | 3rd Apr 16, 7:58am 1459627111

Don't be an agent Zach. Nobody on this site believes a word you say. So why do you think that house buyers might.

by ngakonui gold | 2nd Apr 16, 10:30am 1459546204

Story on front page of Waikato Times Fridays tells of a young couple competing with investors for houses in HAMILTON.
The house they finally purchased cost $395k.It was listed at $349k.
The buyer says that """Hamilton's going to be just filled with rentals soon and nobody will be able to own their own house"".She is 100% correct in what she says.Rents are climbing all the time and the Govt has to take some responsibility for it with their subsidies and wff tax credits allowing people to be able to pay the rents.

by Clarence68 | 2nd Apr 16, 11:03am 1459548237

That is so messed up. Even property investors can't rejoice at that non sustainable situation. I can't believe how much this current government has screwed our young folk. A complete travesty.

by SpaceX | 2nd Apr 16, 4:17pm 1459567065

John Key and Mike Hosking said it's a reason to celebrate and that immigration being so high is a barge of honour. Too bad I cannot live under a badge

by O.Farr-Kinnell | 2nd Apr 16, 4:33pm 1459568033

Not dissing the typo, but "a barge on you" sums up our immigration policy perfectly. :)

by Kakapo | 2nd Apr 16, 4:35pm 1459568100

Sometimes typos make things better.

by bigblue | 2nd Apr 16, 11:35am 1459550113

Ray White CEO reports for March

The Ray White Group results for March 2016 saw a significant increase in comparison to the sales value 12 months ago. Sales numbers showed an increase as well as the median sales price increasing by 3% to $618,736. Overall the sales numbers resulted in 1,392 residential property sales, which gave a total net released turnover of just under $800 million. The total number of listings secured increased to 1,847. The difference between the sales numbers and the listing numbers will show the total group portfolio increased for the fourth month running. In comparison to March 2015 sales, the volume increase for sales value was 19.7%.

Carey Smith, Chief Executive of Ray White New Zealand, said ‘The march results showed a significant increase through the Auckland region. This was matched by continuing high volumes through the regional areas. The record result would indicate that while the Group’s continuing increased market share was a factor, so was the built up demand from buyers and sellers. The investor market has gained momentum, with a further decrease in the OCR rate during March. This will assist investors coming back into the market, particularly when coupled with strong rental demand.”

The top three businesses in New Zealand were Ray White Remuera, who completed a record sales month of $85 million; Ray White City Apartments who sold 91 properties during March; and Ray White Ponsonby, who also completed a highly successful trading month.

The results for March saw 11 offices achieve personal best turnover from across the country and they included Ray White Tutukaka, Ray White Raglan, Ray White St Heliers, Ray White Mt Maunganui, Ray White Lincoln, Ray White Arrowtown, Ray White Full Circle, Ray White Epsom, Ray White Glenfield, Ray White Metro and Ray White Remuera.

by Tui12 | 2nd Apr 16, 5:11pm 1459570280

I have said it before and I will say it again. If you are a young couple looking at raising a family and saving trying to get into the market forget it. Leave AKL. The place has zero future for a young family and has no QOL anymore. We left many years ago and every time I come back to AKL I am reminded why. Low salaries, high cost of living and low grade, yet unattainable housing. Not to mention the sht weather, pss poor infrastructure. The place is littered with cars its just a Dogs breakfast. Unless you can move elsewhere in NZ which is still beautiful, without sabotaging your career you are far better off moving to an Australian city than AKL. Watch how quickly things will happen for you in Australia in comparison. It is and has for a long time been a far better place to live.

by SpaceX | 3rd Apr 16, 7:45am 1459626358

Yep, when I leave, I will just get replaced by 3 new immigrants. Water of their back.

by KH | 2nd Apr 16, 5:44pm 1459572248

by Justice | 2nd Apr 16, 8:35pm 1459582556

When ever anyone tries to do anything constructive or become independent of the status quo in NZ......this is what happens:

https://nz.news.yahoo.com/top-stories/a/31229659/outrage-at-solar-power…

And our government will let it slide cause they get nothing from solar tax revenue

My point is this for all those advocating a 'green' world (myself included Steven!) . They WILL NOT let us have it, either at all, or without taking something from us in return to keep things the same on the wealth pyramid.

Human progress (even minor) will always be stalled by vested interests who want a piece of the pie when anything becomes even slightly popular.

by Noncents | 2nd Apr 16, 9:25pm 1459585540

Saw that on TV3 the other night. It really is a joke. The CEO pretty much said we are losing money so this will make us some more. It really does show that no matter what you do to save money, someone will find away to squeeze it out of you. From my analysis over the life of the system Solar is cost neutral at best. This would take it off the table completely.

Personally I don't think solar is the way forward for us. NZ as a whole is pretty good for renewable energy generation. Even more so since Otahuhu and Southdown have been scrapped. The inability to store the energy efficiently (both cost wise and physically) is a major limitation. Plus given the rare earth elements required for photo-voltaic's aiming for the "green" angle is not really achieving much.

If the intention is to be self sufficient that is all good, but you would require more than just solar in most parts of NZ. A combination of Wind, Solar, and micro hydro would be my preference. But the effort involved is quite substantial, factoring in maintenance, batteries, etc... I can't see much of a benefit in the foreseeable future.

by fat pat | 2nd Apr 16, 10:19pm 1459588759

I keep thinking of buying a solar array for my mum but the economics don’t stack up. She lives in a north facing block of three units. A large chunk of her bill are “lines fees” which would remain in place unless she went off grid. A tesla 100 Kw.h battery could take her “off grid”. Alternatively she could go off grid by purchasing electricity from her neighbours. Oh well, it’s in the too hard basket for now.

by steven | 2nd Apr 16, 10:28pm 1459589324

what I'd like to see is crowd funding a decent sized plant, ie you and say 100 ppl each buy 5kw's worth of PV on one site.

by fat pat | 2nd Apr 16, 10:47pm 1459590466

I think there are a lot of like-minded people but I'm not sure how that would work logistically.

by fat pat | 2nd Apr 16, 11:17pm 1459592272

You just need some way to get around the lines charge. WRT to the adjoined units, instead of all units paying individual lines charges it might be possible to have only one connection to the grid and pay one lines-charge. The economic savings from the electricity from the solar would have to be somehow fairly distributed among the investors. It could be set up as a trust or business where were the investors were beneficiaries or owners. The infrastructure costs will be divided, and the maintenance costs will be tax deductible. I think that way solar in NZ could be profitable, at least in principle.

by Justice | 3rd Apr 16, 12:18am 1459595927

I will let you in on a little secret. Plug & Play (its critical you note the words "plug and play" ) micro grid tied inverters became illegal to buy,import,and use here in NZ in April of 2012 by a prohibition.
They are still sold and in use outside of NZ and have proven a very good 'entry level' PV system for anyone wanting to start generating their own electricity. Please note that these MGTI's differ from the solid state ones that plug into the actual panel themselves which are not banned.

Now, the reason for the prohibition was because someone decided to try and sell one on TM, (OIA request was made for this info) Someone reported it to the Energy Safety Dept of the MED. The reason they applied the TOTAL prohibition was because they claimed they were dangerous due to having a male plug connection that could go 'live' potentially. But they also state that they "never" tested for this.
The other reason is they 'believe' that the reverse current through the RCD would not make it trip out as required thus staying 'live' so anyone being shocked on that circuit would remain being electrocuted. Again, never tested in any Lab in NZ.

Now these are some facts regarding MGTI's of this type:

1: They 'need' a grid connection to even function. They don't without it unlike a basic 'pure' sine wave inverter.
2: They have what is called 'island' protection built in ( meaning they don't stay live if the grid goes down or is under repair.
3: They have DC fusing built in

Now they still sell these units in Asia, the UK, and some States in the US for around about $100 USD for a 600-1000Watt inverter. Bigger ones are available now.

You add to that say just a 400Watt ray of PV's + connectors $500-$600 NZ), and you have the potential to generate around 2kW's a day. Like I said, it's all plug and play. The MGTI plugs into a basic electricity outlet of your chosing in your home. Say .....one in the garage.

So, for about $800-$1000 you will be generating around 2kW's a day, the average household (conservative) uses around 6kW's a day

One third of your electricity usage in solar right then and there.

Such technology would make Solar affordable to anyone. The southern lakes would stay full due to the energy conservation they would create on mass, thus the lakes become more the night time storage energy reserve.

My point is, it's not the cost of Solar stopping the average joe buying in. It's bureacracy and self interest by our own government which has banned this technology here.

p.s. Smart meters can detect them so....another reason not to have a SM

by KH | 3rd Apr 16, 8:11am 1459627891

So why not just use the solid state ones ?

by Justice | 3rd Apr 16, 9:38am 1459633081

Not sure you're getting it. That technology will involve you using a solar installation company who must then get their work signed off by the local network provider.......etc etc, thus the fees and costs of set up go up significantly. The plug and play GTIs I'm highlighting here are so simple to install that anyone could potentially do it and very cheaply. Plus as I made clear you need not spend more than $1000 to get a third saving in electricity use alone. They were banned without any testing being conducted to back up the claims being made. It's the access and price that make solar here so expensive, when that need not be the case. BTW, these are still solid state but have cooling fans built in. You link your panels, wire in to back of inverter, and them plug the inverter lead into a socket. That's about it. These are low wattage inverters meaning you can not stick 2kW of pv on say a 1000 watt inverter. You can only load up to the max, so in that example it would be 1kW. (1000W). They are "stackable" however

example for you: http://www.aliexpress.com/item/DC-10-8-28V-to-AC-100V-110V-120V-220V-23…

by KH | 3rd Apr 16, 10:42am 1459636953

I do indeed get it. Simple choice between cowboy risky installation and proper job but more expensive.

by Justice | 3rd Apr 16, 11:14am 1459638848

No...you don't but hey there's always one who doesn't. It's plug and play and not rocket science. It's also 'micro' generation. Your toaster is far more dangerous

by rastus1 | 3rd Apr 16, 5:32pm 1459661565

That's interesting justice. I think it has been mentioned on here before. Do you have any links you can post to learn more about this system....preferably wit a NZ focus? Thanks

by Alter Ego | 2nd Apr 16, 10:14pm 1459588453

http://www.marketwatch.com/story/sunedison-falls-more-than-50-after-rep…

Nuff said.

by fat pat | 2nd Apr 16, 10:45pm 1459590307

holy crap - $0.46! That used to be over $70 per share. I wonder if it will survive?

by buzby | 3rd Apr 16, 2:45pm 1459651538

Anyone at open homes this weekend? Eerily quiet round us today.

by Zachary Smith | 3rd Apr 16, 3:28pm 1459654113

I went to an open home on Saturday. Entry level in Auckland DGZ and we were the only ones there, a point I actually spoke to my wife about.

by doublegz | 3rd Apr 16, 4:05pm 1459656301

I can't wait for the release of the March statistics for Auckland and see it explode! Fasten your seat belt :-)

P.s. Hey Zach do you know that 15 Arney just sold after a couple of days in the market for around $10m? It's DGZ also...
http://www.nzherald.co.nz/property/news/article.cfm?c_id=8&objectid=116…

by Zachary Smith | 3rd Apr 16, 4:39pm 1459658375

Wow, that is impressive!
I will go to the auction of the property I viewed yesterday and see how it goes. It was quiet yesterday but I predict it will sell for 30% plus above CV.

by Clarence68 | 3rd Apr 16, 6:02pm 1459663365

I think March will be high but I believe it is going to flatten over 2016 as predicted by many

by doublegz | 3rd Apr 16, 6:08pm 1459663733

Yes I think so too but there's a difference between flattening & tumbling backwards like some ppl claim.

by ex agent | 3rd Apr 16, 3:59pm 1459655945

The feed back from RE sources is that the Auckland market is tumbling backwards. Too late if you want to sell anywhere near the top.

by buzby | 3rd Apr 16, 4:04pm 1459656289

I hear there is big demand $1.5-2m but above that places round us are not shifting. What you buy for $2.2m seems significantly better value than $1.8m.

by Zachary Smith | 3rd Apr 16, 4:48pm 1459658888

2.0 million must be the next psychological hurdle. I remember when it was 1.0 million not so long ago. There is a new development of upmarket terraced houses with three floors marketed at 2.0 million plus near me that don't seem to be selling. I think standalone houses will remain the most desirable and best things to buy. This seems to be the case in Vancouver and Sydney.

by Andrewj | 3rd Apr 16, 5:25pm 1459661118

thats sounds about right, next is 4 mill, then 8 mill, an exponential function
https://www.youtube.com/watch?v=F-QA2rkpBSY

by doublegz | 3rd Apr 16, 8:04pm 1459670640

Went to a few Northern Slope open homes over the weekend. Price range between $2m & $3m...not very crowded but still busy, 5-10 groups at a time.

by Penguin | 3rd Apr 16, 6:20pm 1459664409

That's what I hear. Anything above $2m is more difficult to sell although there are still buyers around for decent homes. Let's face it the rental yields on properties about $2m are generally very low.
People still seem to be buying dross at the lower end just to get on the ladder.

I've heard of some properties above $2.5m in the Eastern Bays selling for quite a bit less than the vendors had hoped for.

by rastus1 | 3rd Apr 16, 4:53pm 1459659209

...is it really...all I seem to be reading and hearing is that it's all go again...especially in the ham, Tauranga and other regions as well. Maybe the msm has conned me?

by Alter Ego | 3rd Apr 16, 4:23pm 1459657431

Tis Irish, but true. Sub Prime, never went away, it just got a lot Bigger.

Taint houses, taint here, Owe my gawd. We am different.

http://www.independent.ie/business/farming/farmers-carried-crucifixes-a…

by Clarence68 | 3rd Apr 16, 6:04pm 1459663443

Scary stuff

by Clarence68 | 3rd Apr 16, 5:07pm 1459660046

What area is this Zachary?

by Zachary Smith | 3rd Apr 16, 5:58pm 1459663132

Around the Epsom Greenlane area. Everything else seems to sell quickly.

by doublegz | 3rd Apr 16, 6:03pm 1459663389

Is it that block of white terrace houses at the corner of Great South / Omahu Rd?

by Zachary Smith | 3rd Apr 16, 6:57pm 1459666635

Yes those ones, it is strange in that they are multi-listed but I can't see them on TradeMe or the Realestate websites. I think they can afford to wait and hold out for a high-ish price.

by doublegz | 3rd Apr 16, 7:55pm 1459670105

Hmmm if I have $2m I probably wouldn't look at that location. Very busy corner i.e. both Great Sth Rd & Omahu Rd are extremely busy roads and you can probably hear the traffic from the southern motorway nearby too...it's abit of a nightmare really. Should be made commercial...a block of shops would be ideal :-)

by Zachary Smith | 4th Apr 16, 6:03am 1459706611

Yes I was surprised and a little disappointed when I saw them being built as that style of construction is a little out of place for the area. Modern construction with double glazing should keep noise levels okay but it is a very busy intersection at times and probably needs traffic lights. I wonder about multi-level dwellings too as it must be hard work climbing up and down three flights of stairs.
It is not typical and a general conclusion about sales in the area shouldn't be drawn from it. I'm just trying to give the impression that my reporting is not all great news for property owners and that I am being objective.

by O.Farr-Kinnell | 3rd Apr 16, 6:56pm 1459666610

Please move to Auckland. Help to reality back in the market here. (1 and a bit hours South).