Bayleys Real Estate sold just under half of their auction properties at their Auckland and Hamilton auctions last week.
In Auckland, 39 properties were marketed for auction and sales achieved on 18 of them, giving a sales clearance rate of 46%.
It was a similar story at the Hamilton auction, where 11 properties were marketed for auction and sales achieved on five of them, giving a sales clearance rate of 45%.
Both of the homes auctioned in Matamata and Napier were sold.
Highlights of the Auckland auctions included a five bedroom bungalow on Bassett Rd in Remuera that sold for $3.05 million, a 4 bed/3 bath cedar house in a bush setting at Hillsborough than went for $990,000, a renovated, three bedroom, brick and tile townhouse at Howick that fetched $890,000, and a two bedroom house with a single garage at Papakura that sold for $528,000.
At the Hamilton auction a three bedroom character house in Cambridge East fetched $605,000 and a modernised five bedroom house at Thames went for $745,000.
In Matamata a four bedroom bungalow went for $600,000 and in Napier a modern 214 square metre house with three bedrooms and two bathrooms on a 760 square metre section sold for $667,000.
The full results from Bayleys' latest auctions, with the selling prices of the properties that sold and photos of all properties, including those that didn't sell, are available on our Auction Results page.
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70 Comments
Given many on here have indicated that the AKL housing bubble has burst, just under 50% is still not the end of the world, given the current conditions. It's certainly a downturn, that can't be argued at this stage, but certain types of properties still seem to be selling well which would indicate to me that there are still legs left in this ..
I've been quite a doom guy, a bear about the housing market.
But it is not to say I told you so when the market collapses but to avoid lots of kiwis go homeless.
Our economy is relying on the residential housing market too much and I don't think this is good for anyone. Assumptions of low-interest rate and flourishing foreign capital are not here anymore.
So yes, the sky is falling! Housing is not anymore a good nor healthy way to invest your money.
Sell now or hold it for 20 years.
Yes and remember folks, you better hope that this ex-Wall Street Trader chap isn't right about Vancouver since we seem to be sliding at a faster rate and for very similar reasons.
On the money article: https://twitter.com/OnTheMoneyCBC/status/842543716891992064
CJ099 excellent video on American calling out Vancouver as a place used for Chinese money laundering
He also stated that local politicians colluded to keep the cash flowing into the housing market and of course bribes. Gee remember a Nat politician caught helping out his rich Chinese neighbour ? Same collusion has happened & is happening in NZ .
You mean this one?
http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=11702347
John gave him a promotion just before he (John) resigned. Takin' care of business, eh?
Thank you for sharing this link, I must admit that I am somewhat buoyed by the fact that there are some people not afraid to to speak the truth, though I really do not hold out much hope when there are millions of multi millionaire Chinese roaming the planet searching for somewhere to park their money and escape Chinese regulations, when one area has been decimated then there will be another area that will follow. Somewhat like a swarm of locusts the numbers are simply huge.
It seems available listings on realestate.co.nz has come down for Auckland recently. I wonder if that's withholding listings/taking off the market, or actually selling? I know auction results are still soft, but what about other ways of selling? Anybody know RE's who can inform us of recent market conditions within the last week?
Just watched this interview on NZ Herald:
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=118…
This guy has to be joking. He's oblivious to the fact the he and people like him are the problem that we need to remove from our society ('landlords buying multiple properties', nothing to do with race. I understand he owns 10 or more rentals). He and his landlord mates buying up all the properties have artificially pushed housing prices through the roof. So it's great for the cause of the problem to tell others to toughen up. We appear to have departed controlled flight as a society. I'm pretty sure if we had a one house, one family ownership model we wouldn't have this issue. It's the greed of a few that is causing great distress for the many. #timeforchange
It's a moronic comment from someone who started immediately following the GFC via a $200,000 gift from his father, then simply had to buy more using the equity increases each year.
It's a guy who had a house gifted to him on a plate (via a 40% deposit) telling people they should get out there and work hard and it'll all happen. Ignorant of basic economics and the equation that young Kiwis entering the workforce today will face, and the fact that most of them won't have their first house given to them as he did.
It takes a special sort of stupidity for the NZ Herald to treat this as newsworthy commentary, especially given it looks much more like a thinly-veiled advertorial for his employer.
I think I might actually vomit, I wonder how much financial help he has received from offshore family, friends and incentives from John Key and his sycophants that the born/bred tax paying Kiwis who have contributed for most of ther working lives have had no chance of ever receiving
What other assistance has he been given offshore (through crowd funding) after the initial 40% deposit from his father I wonder. I simply find it quite difficult to believe Kiwis are that intellectually incompetent, if they are then our education system is somewhat lacking
Gary Lin's comments did have some merit!
As I have said many times before, moaning about things will get you nowhere and you need to be proactive to get ahead in life.
The fact that he owns 10 properties is irrelevant.
Gary was given a good hand up early on but has not just sat on his laurels and has achieved financial independence.
Personally have more than 10 properties and I can honestly say that I have not pushed up the prices of houses with any of my purchases.
Explain merit?
Young Kiwis today are already working hard and outsaving what the older generations did at the same age:
transportblog.co.nz/2017/03/07/no-boomers-its-not-like-it-was/
It's time to look to actual facts, not platitudes from someone who was given a house on a plate.
TM2 - your brain appears to be incorrectly wired (nothing personal).
Adding additional greed to an issue cause by greed does not resolve the situation. It would be like using petrol to put a fire out, when what you really need is water.
Landlords/speculators appear to have no empathy for others and a general lack of self-awareness to realise that they are a major cause of the issue.
Merit? The fact that he was GIVEN $200k as a GIFT automatically makes any of his comments about hard work and not moaning IRRELEVANT.
Why does he only have 10 properties if he's such a hard worker, then? Shouldn't he have 100 properties since he started off with a $200k gift?
Gary received financial independence as soon as he was gifted $200k. No hard work required. It's not an achievement that he DID NOT lose his money.
You're pushing prices up by holding onto 10 properties. Why don't you sell 9 properties below value so you can factually say that you're not pushing the prices up?
correct i bet most people that started with 200k at the beginning of the such a run of CG could do just as well if not better
also he had a cushy council job so most likely spent a lot of council time and resources on his own projects
i would take what he says with a grain of salt as he is a property tutor now
would not surprise me if he is TED has the same thoughts
The ten houses are just cover for the 'property coaching' scam. Have to keep convincing the suckers that there's a secret he can sell them, or the whole operation falls over. The 'work hard' thing is just to convince those suckers that it's their own fault they couldn't achieve the impossible, not that it was impossible. Same bullshit MO that faith healers and psychics use.
TM2 - what do you think would happen to the price of housing if you and all your thousands of landlord mates in the country sold your 'investment properties', got real jobs, owned your own home and were content.
There would be a massive over-supply of houses on the market for sale, prices would fall through the floor and we'd realise the true value of the asset. But what's happened is we've created a false market (that include irrationality now as well) because FHB's are competing with investors creating an artificial demand that's pushed prices waaaaay beyond their intrinsic value.
Full time property investors tend to be buying for yield and looking for property with upside.
Personally speaking I have always purchased under true market value but not going into that here.
Yes Gary was given a 200k gift and he has clearly used it wisely and invested wisely by not blowing it on unneeded items.
He hAs invested in property and if he has bought right he has next to no downside and not invested in anything risky
You are right most people won't have been given the 200k However life is not equal and if you want to achieve you need to do more than the average person.
I live by the theory that working for wages will generally get you by but you won't get rich or financially independent.
Our financial independence has been achieved by doing more than working for wages and by taking punts that have always paid off.
If you have the will and the determination in NZ you can achieve far more than you possibly think.
Kiwimm, you are wrong about perfect timing!
If I was 20 years older than now I would be even better off financially but not health wise.
Most important is the health and everyone worrying about the housing market is not beneficial.
There truly are opportunities around NZ that non home owners and investors should explore.
Rick, we have had a sizeable rental portfolio for many years and I can tell you that most of our tenants blow a lot of money on unnecessary things.
Kids leave school generally financially illiterate and it is up to the parents to teach the kids good habits.
My kids are leap years ahead financially than their peers!
"We have had a sizeable property rental portfolio for many years." The most telling and only sensible comment The Boy has made today. That was very easy to achieve many years ago in a small city like Christchurch. I have no doubt that he would be squealing if he was starting off today on the ladder.
Gordon, good to,have your input.
Would you really say that Christchurch is a small city?
Gordon, I could even teach you how to build a portfolio in Chch if you were prepared to learn?
Certainly not as easy at the moment with the LVRs adopted by the Banks but that will change at some stage.
It is a small city and your house prices reflect that The Boy. You pay more for houses in some regional capitals than in your city. The difference between you and me is that I know I am lucky in terms of my date of birth and timing. You are too arrogant to admit the same. Just remember that 3 houses in Auckland are probably equivalent to your 10 "as is where is " properties. I would be slightly more impressed if you had 10 Auckland homes.
Gordon, I have 2 as is where is properties only purchased last year, and will get insurance for them no problem.
Yes I did buy the as is,properties very well but don't intend to sell them as they return approx 15 per cent and very easy to rent.
Love for you to take me up on that challenge Gordon and then you will be able to see what is possible!
RickStraus yes the younger generation who witnessed GFC are not investing in the sharemarket also and have a higher amount in savings bank deposits. So when I read a piece in Anthony Robbinz new book that
they should be like him and take risk it really is the poorest advice at this the peak of the largest sharemarket ponzi in history ( with a 12% gain on top since Trump made all his false promises & predicted dark end to 2017)Now would be a stupid time to dump a pile of cash savings on the markets. Unless you were shorting the markets by using say a Vanguard ETF instead of futures. Even then you may be disappointed
waiting for the inevitable bust that's coming but could take years.
As for Auckland property let's hope the prices return to manageable levels for the average family to afford.
That was the kiwi dream
TM2, I should point out that if you offered a price and someone accepted then that was a market and therefore what you paid was THE market value. What you call “true” market value is your perception and it’s yours alone.
As for the rest of your comment, you’re missing the point. People are not complaining about the unfairness of life in general they are taking exception to the fact that someone who basically took none of their own risk (the $200k seed capital was given to him there the risk was not his) has the nerve to berate the less fortunate.
I share your opinion in that you should work hard and get everything you can. But you can do that while complaining about being in a rigged system and trying to change the rules. The working hard and trying to changing the environment you are in is not mutually exclusive.
Not too sure where I said anything about working Hard?
It is more about working smart with what you have.
Yes you need to work hard early but after that it is more about being smart with what you have.
No everyone isn't handy with their hands and able to do repairs but those non handy people have other attributes.
If you have got skills and no money get alongside someone who can assist with the funds and do a profit sharing system.
We Re indeed fortunate to live in NZ
As a country NZ is beautiful, the people are great and we have a relaxed attitude. But our wages are woeful, to what we have to pay for rent, mortage, accomodation and bills. I have lived in Spain, England and Australia, I earned quite good money in those locations. Its only NZ where the wages do not match my out goings as well as the other countries. When I first moved to England 1999, NZ was cheap, now it is so expensive, Im not sure how people survive, and I earn enough but I despair for people who dont earn as much. I have family and relations that can barely survive, its heartbreaking.
My mother worked two jobs, and bought up 3 kids, she worked hard, harder then most. These are people that built NZ up, but now they have it hard because a big chunk of their money is paid to rent and accomodation.
Yes, generally agree.
However, I think our natural beauty is a tad overrated. Most countries I have visited (more than 20) / lived in (4) have great natural beauty. A good example is Japan.
The cost of living is atrocious here, and in my opinion that detracts severely from the country's benefits.
People relaxed? yeah, but getting less so. So many people I see and know are really really stressed out and overworked. Companies and govt are squeezing more and more out of a smaller pool of people.
Does this mean, overall, NZ is not a good place to live? Of course not, it's probably in the top 20 in the world, if not the top 10.But we're really going in the wrong direction...
There's natural beauty, but unless you're in Fiordland you're more likely to be looking at crappy rust-stained 70s light industrial buildings that haven't been painted since 1991 and with the trim flapping loose, failing $2 shops, grubby fast-food restaurants, litter, graffiti, dirt, and a general air of shabby under-maintenance.
M Aurelius you are stretching the point The market for that single transaction was singular.
It may have been an aberration thar was proved by the greater market to have been a price paid too high or too low. One transaction does not make the entire market It is merely 1 transaction you are calling the market
Rich, I am well,aware that I am in the minority here in regard to property investing!
The reality is though that if the many that are dissappointed in regards to the high house prices would have the total opposite opinion if they were an investor with numerous properties.
Why bother building more houses as there has been too many new subdivisions opened up when a lot of the damaged houses have been repaired.
Building costs are too high to be able to receive a reasonable return from renting out when you can get a far better return from a mid range priced house.
You get very little more for a new build than an older permanent material home, so why bother?
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