Harcourts' auction rooms are getting busier as summer heats up, with sales achieved on just over half the auctioned properties

Harcourts' auction rooms are getting busier as summer heats up, with sales achieved on just over half the auctioned properties
This two bedroom house at Glenfield on Auckland's North Shore sold for $700,000.

Harcourts auctioneers have started getting busier as the market heads into February with the country's largest real estate agency auctioning 65 residential properties in the week to February 5, with sales being achieved on 36 of them, giving a clearance rate of 55%.

The auction rooms were particularly busy on Auckland's North Shore where prices ranged from $700,000 for a two bedroom house in Glenfield (pictured) to $1.85 million for a house on a large section in semi-rural Okura.

There was also a sprinkling of auctions in other parts of Auckland with a house at Hillpark in Manukau selling for $792,000 and a house in Epsom selling for $1.427 million.

In other parts of the country Harcourts held auctions in Taupo, Christchurch, Blenheim and Invercargill last week, with results varying widely between properties and locations.

The latest results from Harcourts' auctions with the prices achieved on individual properties that were sold and details of those that were not, are available on our Auctions/Sales Results page.

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12 auctioned 1 sold in CHCH. Must be some angry vendors writing out those auction fee and marketing cheques in the second biggest city.

Looks like the market is coming back, people are trying to get in before interest rates rise

Take your point but I hope these same people realise they are signing up for 30 years...

Given the inverse relationship between asset prices and interest rates, Why would you want to get in before interest rates rise?

Asset prices are always on the rise, take the opportunity to get on train before its too late, or you can risk waiting around and end up being left behind like many have in the past.

Sure there's a risk to not buying, but there are also risks involved in buying now. Even known people stuck in negative equity unable to move house? Happened to plenty where I'm from in the UK, no reason to think it could never happen here

In this world anything is possible, however Auckland is a growing city along side many other factors - such happening here is very doubtful and if you think that way, best nobody ever invest in property

I never said you shouldn't invest, but it pays to be aware of the risks before sticking your money in. I have some extremely risky investments, but none large enough to hurt me if they tanked. Leveraging into a single housing market without diversifying geographically and into other assets is much riskier.

The bigger the risk the bigger the win and vice versa, its up to the individual

Please tell me what it is that causes house prices as an asset class to continue to appreciate other than irrational exuberance? Consider that migration and limited supply should already be factored in to pricing. I would rather base investment decisions on current yield, and future yield potential than past price changes. If you are right that asset prices always rise, why not purchase an asset actually backed by fundamentals and not housing which is disconnected from yields and affordability (at least in auckland)

Purely RBNZ contributing their part to the bubble. If the volume of money wasn't created house prices wouldn't have taken off as much. The other possibility in Auckland is the heavy use of cocaine which will provide a bullish mindset.

Excellent answer

Many people do invest in asset however, I still believe property is the most safest investment - long term

You do understand the traditional trade-off between risk and return, right? Yes, property tends to be one of the safer asset classes, because the returns tend to be lower. Regardless, diversification is a no-brainer and it'd be short sighted to only invest in a single class.

Well considering today's property values in Auckland compare to 5 years ago, I would say its been one of the most profitable investments. Do you agree?

Yes, it has been. It should never have been

It's been on a pretty good run, sure, but an investor buying today gains nothing from that. The next step is for you to prove a link between past and future returns. The alternative interpretation of your data is that the price has got extremely high over the past 5 years, which could lead to poor returns in the future.

Yes, prices have gone very high, and it wasn't long ago, about a year when I heard the same thing 'how much higher can it go' if you look at the figures year to year you will see the difference, population in 5 years need a roof over their head, new housing will not cover this rapid population growth

Auckland prices have gone up approx 75% (excluding rental income/maintenance cost etc) in last 5 years, NZX50 index has gone up approx 110% (excluding dividends and fees etc) over the same period. I suppose saying "one of" is still accurate though.

Yes, because everything is stacked in its favour, things like not being charged commercial interest rates by banks as any other business would be, negative gearing, no capital gains tax worth a sou, crappy tenancy laws to name a few. The sooner some of those anomalies are addressed, making such investment less attractive, the sooner the dreadful situation around housing can be righted.

Getting on the train before it's too late is only viable for a select group of people, brah. Speculators, investors and foreign buyers buy a ticket and sit in First Class; first home buyers get left on the platform and have to walk.

You only walk by choice

Not if you've been knee capped

Or instead of following the herd and just jumping on the train, you did some research and found out the supports for the overbridges on the line are faulty and could give way at anytime..

Or look where the herd that jumped on the train 5 years ago are now

Yes- well done it's been a great ride! But dream runs don't last forever. Might be wise to get off at the next station Wiseguy.

I will observe the ride and get off when the train stops

But why would anyone buy your ticket if the train is broken?

I certainly won't be.

Hard for good old steam engines to break down

I be sure to wave goodbye.

When they run out of coal (aka credit or foreign capital) - like about now...

You be walking on your hands if you have to

I'm sorry, but what has happened over the last 30 years or so, concentrating itself in the last perhaps 10 or so, HAS prevented a whole strata of society from affording a house of their own, who, in the past would have quite realistically have bought. Now they cannot, no matter how much they try to save and now they are increasingly unable to keep up with rents. Earnings have stagnated while property prices have become ridiculous, you know that as well as I do. I know, I have been around for the lot of it, including the genesis of it all back in the 80s. It was a bit nasty then, it is completely gross now. It should never have been allowed to happen and now MUST be corrected and I mean must. This is not my country

Maybe it will, maybe it wont, don't give up

You read a bit like Ted Stanton

Trying to get into the housing market before interest rate rises is like putting the noose around your neck while it's still loose, before the weight comes on. It's a death sentence...

Death sentence is a bit far fetched :)
The key is to take risks, educated risks

The key is get laws and regulations stacked in favour of the homeowner/occupier

Voice of many but who is to care

Certainly not you, but as the disenfranchised become the majority, you'd best watch out

Wishful thinking has never got anyone anywhere

It is going beyond that now, Zac

Eh, New Zealand had riots, strikes and the like to fight for fair treatment of the downtrodden in the past. It resulted in previous governments taking steps such as introducing labour laws, introducing land taxes to break up land banks, and giving Kiwis a fair go at a reasonable job and the chance to own their own lot. Boomers ultimately benefited form the actions of previous governments...then elected politicians who changed all the rules and made it all about investment.

If the young get angry and educated enough about what's been done to them, perhaps they'll start to take action again. They need to realise that there are reasons of policy for why houses were once affordable, and there are reasons of policy for why they are not anymore.

I agree with you. Wiseguy is Zac in drag but not that well done in that we cannot spot him. Too many comments on inane topics just like Zac was doing so has to be Zac.

Hope your observations on Zac is better then your predictions on property market collapsing

Just needed to test the "must have the last word" theory.

The word mortgage is derived from a "Law French" term used by English lawyers in the Middle Ages meaning "death pledge"
https://en.wikipedia.org/wiki/Mortgage_loan

With most people having long term mortgages, there will obviously be many rises and falls in interest rates. If one can't afford this potential rise then they shouldn't be in the game

So 53% is really coming back?? Still pretty poor.

A year ago these clearance rates were at 90%+.....

79% on the Shore! Back to normal

Yep!

I love all the bear's who are proclaiming we're on the brink of a major collapse and in reality - seems to be the opposite. Auckland still not where it was for most of 2016.. but it certainly is showing signs of life again.

Hah, 36 houses sold in a week.

There were roughly 100 new listings in central Auckland alone yesterday.

The test of the market will be over the next few months when volumes really ramp up. Perhaps bears and bulls alike should wait and see how it plays out...

Exactly,

Its way too early to start picking the end result.

Given Feb/March are normally 2 of the biggest sales months of the year by the end of that period a trend either way should be visible.

The reality is is that we have an asset class with a very high P/E ratio and history would suggest that it will normalise over time - either dramatically or in an orderly manner.

Investors (not speculators..) would be much better off looking at other options than the Auckland housing market.

thats the only game left to keep the whole financial Ponzi afloat ... pump up all asset classes including shares until the p/e ratio is ludicrous... There cant and wont be any gentle orderly unwind.

....but it all depends on the sale price. I can sell a wigit worth ten dollars for five dollars and sell 100% or sell 5 wigits for ten dollars and still have 5 wigits left over - which would you prefer......

Don't congratulate yourself to much....

Another good point - until we see what price these are settling for then we only have half the equation..

we are not on the brink of a housing collapse ... we are on the brink of a financial collapse.
https://surplusenergyeconomics.wordpress.com/2017/01/09/85-perfect-storm...

Yeah I wouldn't get too excited about the auction results which are still fairly poor at just 55%.

Here's the reason why Capital Flight tightening up: China’s central bank is behind bitcoin’s falling price.
https://qz.com/881373/bitcoin-btc-price-crashed-because-of-notices-issue...

China’s foreign exchange regulator, SAFE, was looking at whether bitcoin was being used to avoid the country’s capital controls. Evasion of capital controls has long been cited as a major reason for bitcoin’s popularity on the mainland. The detail was first reported by Tencent Finance, citing an anonymous source close to the regulator.

When is it ever going to be good CJ?
55% is more then halfway and that's still rising

How about the 90% Auction clearance rates that were happening mid 2016 before the Capital Flight restrictions became enforced.

The thing is your at the mercy of economic forces way beyond our control, selling out to the highest bidder isn't going to work out all that well in the long run for NZ. Cash in whilst you can RE's!

There is always ups and downs in the market, 55% is reasonable

The last down (Oct 2015 to Jan 2016) was for the same reasons; lack of Foreign Buyers!

And where are the property prices now to that time?

10
up

Loving this constant celebration of home ownership being pushed constantly further out of reach of the next generations of Kiwis. At least now we've moved into openly-acknowledged greed with complete disregard for what's being left to the next generations.

Good call RickStrauss. As a prospective first home buyer I've pretty much given up completely on owning my own home. 10 years of saving and living on the smell of an oily rag just to get a deposit, in which time the house prices increase by 50%+ and you're right back at square one. Couple that with wage stagnation, a constant rise in living costs and food, a low salary and no jobs and it's a fustercluck of problems. Chasing something forever out of your reach is not a nice feeling, and it ultimately leads to unhappiness.

Something will have to give, no two ways about it.

And your landlord thinks it only fair you pay his pension regardless of his wealth too.

Why are we spending a massive proportion of our social welfare budget on giving money to rich people?

My advise is buy what you can when you can, 10 years of saving should get you something

Wake UP. do some basic math. the first home buys are getting locked out by economics of cost and debt payment. IF they stay in NZ to keep the economy moving forward we will be lucky.

if they can not get in they will need to start making other live decisions.

Buy airline shares so you benefit from all the overseas trips you will have to make to visit your kids and meet you grand kids.

when there is no next generation to buy your houses, what will you do?

Who says the next generation must or need to purchase in Auckland?
Plenty of opportunities out of Auckland

Yes this is what really gets my goat too. I find it disgusting that there are no controls what so ever over unregulated sales practices that allow whole scale money laundering, as well as handing the land over to all comers which mostly seems to be foreign buyers (Without even gaining some tax revenue for NZ).

All at the expense of NZ Citizens and future generations who home ownership opportunities and quality have life have quite literally been sold down the river by greedy Estate Agents.

It's all about the BabyBoomers and National - who will both be remembered in history as the self-licking icecream cones.

Doing what is best for them with very little consideration for other generations or the the future of the country.

CJ099 you don't have to live in Auckland if you're not happy about our house prices. It has nothing to do with Chinese foreign buyers. Please stop arguing the same point day in day out, I'm getting tired.

Nice alternative fact - 'it has nothing to do with Chinese Foreign buyers'.

Can you prove that with some more alternative facts please.

It's local investors flicking houses after buying them for just a few months. If you're in Auckland you'll know a lot of people are doing it especially those in the 20's and 30's who are impatient.

So are these 20 and 30 year old's on $100k salaries with $100k+ deposit affording those million dollar homes, I think NOT!

You know how I know? Because I work with a lot of them here in Auckland CBD and they're not on those types of salaries even in the IT industry, not even close! Most are living at home with their Parents or flatting, renting rooms that maxes out their wages.

The ones at home do have a fighting chance but their at home well in to their 30 and 40's. I was lucky I managed to buy a home before most of the property price craziness took off.

But there are lots of professional people that I know on good salaries that are having to rent. Their from all kinds of background, mostly immigrants or second gen immigrants. Who most certainly can not afford a home here.

This is also very damaging for recruitment for professional staff; since no one wants to move to a city that they can't afford to live in.

I love rubbing Estate Agents nose in it EVERY DAY so NO I WON'T STOP EVER!!!

And if it wasn't to do with Foreign Buyers then tell me why, the Auckland auction figures drop every time foreign buyers are put on hold. Example: The IRD requirements last year where property prices dropped -10% in Auckland and they were effectively locked out whilst they had to register for a few months.

Do you remember that one? No of course you don't RE's have very short memories as it helps them sleep a night, whilst they sell out on the next generation of Kiwi's.

Or how about just recently with the Trump effect and China having to enforce Capital Controls on out flowing money. Again the Auckland housing market took a dive! And it will happen again and I'll be here to remind you. :)

Please stop picking the Chinese just because they are easily identifiable. There are a lot of other foreigners from Australia, Europe (mainly UK & Ireland), America, Canada, South Africa etc who are active buyers / investors but most people just assume they are not foreigners based on their looks. So please stop singling out a single race/culture just because you can 'SEE' them. Start celebrating our multi-cultural society by popping into the Lantern Festival this weekend at the Auckland Domain to show you care about Auckland.

These are just facts Double-GZ, I'm not picking on anyone. Just pointing out how and where most of the Foreign Property Investment has been flowing from. It was only a few years ago that most of it flowed from other areas such as the UK, South Africa and the rest of Europe. I grant you that not all of NZ's Foreign Buyers are from China but in recent years there has been over whelming evidence given all the statistics and how the property market globally have fluctuated and the reasons as to why.

And how lots of other countries have pointed out the same flow in capital over inflating their property markets and they've had to take tax measures to even their markets.

Also and here's the proof. China has also recently 'pledged' that it will stop it's Investors for purchasing overseas property. Have you not been reading the news?

Can you provide me alternative facts - I'd love to hear them, please post the news links.

Foreigners are NOT part of any culture here, they are not part of society, they are not here, they should not be allowed to be buying houses here, end of story.

No you are very very wrong indeed. They are part of our culture and society. Just go and walk around Queen St at lunch time. They are part of our existence unless you're from the wop wops.

Are you sure you know what a foreigner is?

The wop wops?
Guess what built this country?
It wasn't done by sitting a some cafe ordering a latte.

There's a big difference in Foreign Investor and immigrant buyer. Foreign Investors are Speculators who don't necessary live in their invested country. They generally invest purely for profit or as a retirement option, or even a temporary home for educating their young.

Most live in their own country as the main wage earner and let their family (Usually wife, kids and parents) live in the host country so they can benefit from a nicer climate, clean air and host support. These are know as 'Astronaut families'.

In Canada some of these Foreign Buyers have been a bit cheeky having bought property with liar loans which are now being seize by the Asia banks. Part of the reason why they've tightened up on Capital Flight and this is why NZ Estate Agents need to be regulated.

http://business.financialpost.com/personal-finance/mortgages-real-estate...

Immigrant Buyers are Immigrants who are looking to live, work, pay taxes and invest in NZ as a home and country long term to become Citizens of NZ.

I disagree. I think there are more local speculators than foreign speculators in the Auckland market. I know a lot of young workers/professionals in their 20's 30's and 40's who combine their finances to buy and flick houses within a short period of time, and they are not of Chinese descent. Also there are a lot of foreigners who actually live here, and they do their shopping here, paying GST and they may / may not intend to become citizens of NZ.

Prove it, show us the evidence! I've got ample evidence to counter act that statement. :)

Plus friends buying together doesn't really work. Pressures of society; companies going under because the dollar is too high due to over priced property, having to move to else where in the world to find work etc...

Oh did you know that the birth rate has dropped also due to anxiety of social pressures.

I don't need to prove anything to you. I know from my personal experience and I know it is true. There are too many people who are trying to shut down everything and anything they do not want to see/listen to.

Hark an Estate Agent. Is that you Zachary / Double-GZ! :)

Waiting for the Banshee cry....!

Does that look like someone who's answered the question put to one nom-de-plume with another?

Yep its the 'echo of spin'

And in my eyes, the ilk of you, who tell born and bred New Zealander's to leave the city of their birth to make way for foreigners are nothing more than a traitor - period.

Must be lots of angry people about, I'm surprised how much people have taken without some kind of push back.

5 sold out of 10 at chch auction today. Not great prices but not a great selection of properties.

anyone been to the b&t cbd auctions?

Yes, its becoming more busy then the previous

just popped into their office, 3 sold out of 10

I reckon house prices are stabilising. There's enough demand to keep prices from falling.

NZ population - Increasing (Moderate)
Immigration - Increasing (Moderate - High)
Foriegn buyers - Restricted
NZ investors - Halted majority
Interest - Increasing (Slow)
Supply - Slow

My assumptions in the next couple of months:

Demand (Increase)
Listing (Increase)
Interest (Hold or increase slightly)

Prices will continue to level in the next couple of months and when variables change so does house prices.

Maybe the govt is right, just sit around for years doing sweet f*ck all, like Housing NZ's pathetic effort and the market will find its own solutions..............just because it hasn't worked for the last 8 years doesn't mean it might not suddenly start working.

I believe there is one major factor everyone seem to forget. This had a major effect in the UK, and is busy having a major effect in the US. Soon it will have a major effect in France and Germany. It's called POLITICAL WILL! Believe it or not, but its driven by people like you and me.

In NZ up to now the political will has been driven by the majority of voters being on the receiving end of the status quo. That majority is fast shifting to the voters that's been sidelined, similar to what happened in the UK and US (populism). I predict a shake-up of the status quo come election time, either by the current government changing, or a new one coming to power.

Harcourts in Hamilton expecting another BUMPER year and are increasing agent numbers.'''We have huge numbers of buyers coming into the market'''says GM,Brian King.

If there is another pandemic and we are certainly overdue for one in a vastly more interconnected world than the early 1900 hundreds. I wonder how such will effect housing costs. And of course there are other possible events that can change the value of housing overnight. For example, we are as subject to earthquake and tsunami risk as is Japan. Currently are earthquake events moving north from central New Zealand? Would a major upthrust under the Waitemata or Manukau harbours influence future desires to live in Auckland? Would such events trigger volcanism in the Auckland area? Indeed, what a stupid place to house such a high concentration of our peoples and industry.