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