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Fewer Auckland apartments being offered at auction and although there are serious buyers about, they are being cautious

Property
Fewer Auckland apartments being offered at auction and although there are serious buyers about, they are being cautious

It was a slow week in the main Auckland apartment auction rooms with just five units on offer and they were split between two of the main agencies that hold regularly scheduled apartment auctions.

Barfoot & Thompson had just two units on offer at their apartment auction and only five groups of buyers turned up, but at least those that did show up weren't there to muck around.

There was just one bidder for one of the units and two bidders on the other, but they were serious bidders and it seems the vendors were prepared to be realistic in their pricing. Both apartments sold under the hammer, giving a 100% clearance rate.

Up at Ray White City Apartments' auction room three units were on offer and all attracted bids, with multiple bids on one and a single bidder on each of the other two.

Bidding on all three was cautious. Although auctioneer Ted Ingram attempted to lift their offers by placing vendor bids on behalf of the buyers, the bidders stood their ground and all three were passed in for sale by negotiation.

You can see details of the properties offered at both auctions at the prices of those that sold, on our Residential Auction Results page.

If you are interested in commercial properties check out our Commercial Property Sales page and for rural properties check out our Rural Property Sales page.

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33 Comments

Interesting reading of the Akl market. Any comparisons with success rate of Tenders from those same companies? That would give a more balanced and total overview of the market as a whole, rather than just fluctuations around those particular Auctions?

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It may be that there are fewer houses/apartments coming on the market right now.

Pre-election and mid-winter seem good reasons to postpone selling - and shifting.

Whatever, I don't hear of too many bargains. Even leaky apartments seem to fetching good prices.

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I don't know how you reached that conclusion. I simple search on trademe shows 1287 apartments listed in the Auckland region. There's plenty available for sale, the election shouldn't affect anyone looking to purchase an apartment (good luck getting finance).

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Welcome to planet "tothepoint", everything is so lovely here

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In fact, the higher proportion of apartments now on the market in Auckland has had the effect of pulling down the average price of total sales for Auckland (i.e. the aggregate of houses and apartments).

In May there were 453 apartments listed in Auckland, but this rose to 800 in June. (The average asking price for an apartment in June was $679,170 compared with $917,250 for all residential dwellings.)

If you take out the apartments, then HOUSE prices in Auckland are still climbing - in some of the more affluent areas.

Notably also, there are fewer houses for sale in Central Auckland now than 12 months ago.

This is a nuisance! I'd like to buy a house in Central Auckland for a dirt cheap price. I'm hoping for a drop in house prices of 50-60% by November this year and a drop in apartment prices of 60-70%. And maybe a further drop of 10-20% in December, prior to the January recess.

Some say I'm being a bit optimistic.

Others say I'm being a bit pessimistic.......

Certainly, it would be nice to get a firm footing on the property ladder.

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Wait for a global recession and buy dirt cheap commercial property. Residential property may be what the cool kids do but they don't want to make real money.

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Hi dictator,

That's a good point. I think there's a lot of truth in that.

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5 listing and only 2 sold oh my. winter must be really cold this year.

Don't worry once the election is over everyone will be able to afford a house again, thank goodness for democracy.

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Feeling lucky anyone??
Remuera 'grand dame' on the market - with expected $4m offers
http://www.nzherald.co.nz/property/news/article.cfm?c_id=8&objectid=118…
Also latest quarterly report: http://bit.ly/2tOWaMY

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It's actually quite expensive when you compare to this in the middle of Manhattan - NY. this is way better buy for someone from Shanghai..

http://www.realtor.com/realestateandhomes-detail/72-E-1st-St_New-York_N…

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Weird time to sell, would of thought 6months ago or not at all, I guess cashing in is wise

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Quality Remeura properties havnt dropped value so far as im aware.

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Yes they haven't dropped in value just yet as they're simply not selling, just take a look at the latest Not Sold auction listings on this site for that evidence.

And not to worry, the rest of Auckland outer suburbs will drag the over price valued down in the next year or so as price bottom out.

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Agree, just not selling.

When DGZ was half the price, it almost stacked when the private fees were more or less the same as the difference in zone premium. You could expect normal capital gain over time to make up the difference. Now you would need 10 or more kids to justify moving in. Then there's the 40+ classrooms, and teacher retention issues all about to get much worse with new apartments coming on line. Save $2m and live outside the zone.

$2m difference, at 5% interest still dosen't make sense. #justnotworthit.

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4 million, that's a fat as 1.5 million house in Tauranga, 2 rentals and 1 and a half mill in the bank, unreal

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LOL

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High-end properties in Auckland are in demand.

Part of the reason is said to be overseas interests buying-in for the America's Cup.

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yes totally agreed! Take a look at this one: https://www.barfoot.co.nz/601389

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Said by who? What are their sources? You'd have to have an incredible amount of money and an incredible lack of useful things to spend it on to throw 4 million + maintenance + rates for 4 years to get a decent spot to watch a sports event in several years time, I hardly think that's likely to be a large enough group to affect the market.

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Non cents - foreign buyers account for less than 5% of house purchases and that's official...

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Don't waste your breath on that. Everyone on this site knows that the Chinese have been buying and will continue to buy All The Houses At Crazy Prices. It's what they were put on this earth to do. Despite what the facts about non resident buyers actually are.

It's all a part of belonging to the Cult of Property.

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Agree overseas buying activity is still active in some areas. Is the main reason why the many are going to vote to slam that door shut foreign speculation, and immigration. Picking a large party vote in Winston's favor, and a swing vote back to labor to make that happen. Nat will try an divert debate elsewhere, but Little and Winston just need to play one song and they will walk into Govt benches. Nats polling is clearly identifying this, as witnessed by their fiddling around the edges of these two issues.

Once the govt changes, (tax loss ring fence, compulsory cap gain for 5 years or more, overseas ownership shot, immigration stopped, identifying Chinese owners back to PRC for clarification of funding) the grizzly bear of capital decline will come to town. Foreign and domestic speculators will stampede in an effort to beat each other to the door. Yes it will be tough, but like Iceland NZ must takes its medicine and just tough it out for 18-24 months. Yes the the stupidly in debt will get flushed. This needs to happen.

The election is either accept massive inflation on wages (and all goods and services to pay for that), or a decrease in stupid house prices. Inflation will hammer everyone, house drop only hit the banks and the specuvestors. I know who I'm not voting for.

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So the media is patently WRONG about the decline in the Auckland housing market which is clearly very very buoyant .

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Hi Boatman,

It's wise to consider a range of sources - not just the media.

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First of all, it's "the Americas cup will save us". Then, "it's the composition of sales have changed and prices are actually still going up".

I mean, is there any piece of real estate industry propoganda that you won't swallow?

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The change in the composition of sales is actually very important to understand. For example an area of 3 bedroom homes with developments selling large numbers of 4 bedroom homes can appear to rising in value very rapidly using a simple average sales price time comparison.

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I'd consider taking tothepoint's argument more seriously if he hadn't been simultaneously telling us how well high end properties are selling without mentioning the effect that would have on composition of sales and average prices.

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Hi Bobster,

You write: "I mean, is there any piece of real estate industry propaganda that you won't swallow?"

Well, I certainly won't be swallowing any of your propaganda......

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I appreciate that the mix of properties can effect averages, but you said:

"If you take out the apartments, then HOUSE prices in Auckland are still climbing - in some of the more affluent areas."

Come on.....they are hardly moving. You are clutching at the good news straws.

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It's wise to consider a range of sources - not just the media.

Sure. You can even get qualitative insights from reader comments on websites such as this. I would say that the more banal the comments, the more likely that feelings of insecurity are rising.

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But sir the media is our trusted friend! ;-)

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Range of sources could include comics. Particularly blue sky comics, where interest rates dont go up, where NZ is the land of milk and honey and yields mean nothing, banks dont want to make profits so reduce margins, banks lend to DTI's of greater then 10 and take massive risks, incomes of households are increased by having more children and sending them out to work.

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Hi swapacrate,

You write: "Range of sources could include comics."

Fine - if that's your reading level.

However, others may prefer more reputable sources.

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