Bayleys sold 44% at latest Auckland auctions

Property

Prices started at $552,500 at Bayleys' latest Auckland auctions

21st Aug 17, 3:10pm by Greg Ninness

Bayleys Real Estate sold 44% of the Auckland residential properties the real estate agency took to auction last week.

The total number of homes being auctioned at the moment remains low, with Bayleys putting 16 Auckland residential properties up for auction last week of which seven were sold, with the rest being passed in for sale by negotiation.

Most of the homes offered tended to be in the middle to upper end of the market. But a modest house in Manurewa sold for $552,500, while the most expensive sale of the week was a house on Remuera's northern slopes that went for $3.611 million.

The full results with details and photos of all properties offered and the prices achieved for the individual properties that sold are available on our Residential Auction Results page.

If you are interested in commercial properties, check out the latest sales results on our Commercial Property Sales page.

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25 Comments

by tothepoint - d… | 21st Aug 17, 5:15pm 1503292558

Despite auctions being a much less preferred mode of selling houses in the current soft market, the clearance rates are not as bad as might be expected.

And, clearly, the middle to upper spectrum of the market is ticking along. If people are still paying over $3.5million for houses ($3.611 million above) then there's still confidence out there......

by Yankiwi | 21st Aug 17, 5:35pm 1503293717

Whistling past the graveyard...

The total sales via auction are still considerably below past years. Agreed, there are a few homes that are selling. That is true for even the worst market conditions. What is certainly true, is that the number of sales are declining and the market supply is increasing. The low sale rate and increasing supply, coupled with the price decline of the last six months, suggests that the current market price correction is still in its early stages.

A rather large tell is market sentiment. For quite some time in the past, there were many people predicting imminent market corrections. The sentiment tends to be a contrary indicator. From what I can tell, there are many common tators here that are rather confident about the future of the market despite the obvious indicators. It is likely that we will not reach the nadir on prices until the majority of these bullish sentiments capitulate.

by paashaas | 21st Aug 17, 10:22pm 1503310957

I do not think there is much doubt that we are in correction . That however does not tell us much about how deep it will be.

by Bobster | 21st Aug 17, 5:55pm 1503294917

For goodness sake, open your eyes. This auction clearance rate is dreadful.

by tothepoint - d… | 21st Aug 17, 6:13pm 1503296022

Hi Bobster,

Not only are auction rates ok in the circumstances (often being in the 30-50% range) but some damned good prices are still being achieved.

Go look at the price data yourself.

by Double-GZ | 21st Aug 17, 6:22pm 1503296545

Exactly right tothepoint. Here's why Remuera is such an aspirational suburb for many...and you get to be Mike Hosking's neighbour!
http://rwremuera.co.nz/auckland/remuera/

by tothepoint - d… | 21st Aug 17, 6:48pm 1503298139

Hi DGZ,

I hear you're a very good neighbour too.

Well done, my son.

by Bobster | 21st Aug 17, 6:42pm 1503297741

No, that clearance rate range represents a very bad result. The volumes sold are also tiny. It it is a lead indicator of price falls. Please get a grip.

by tothepoint - d… | 21st Aug 17, 6:47pm 1503298034

Hi Bobster,

The clearance rate is the clearance rate. It has been reasonably consistent over the last few months.

There's no point in you trying to manipulate it.

by Bobster | 21st Aug 17, 6:55pm 1503298553

For goodness sake...yes it's been consistently BAD. It use to be around 90%. Now it's 50% or less. Often it's substantially less. This and the low level of sales is normally a sign of a market coming off the rails and a lead indicator of price falls.

by tothepoint - d… | 21st Aug 17, 7:40pm 1503301215

Hi Bobster,

Auction clearance rates have fallen - but what else should one expect in a post-upswing softer market??

With 30-50% of properties commonly selling at auction and more selling afterwards via negotiation - things are far from bad.

Talk of the market "coming off the rails" is idle, emotive chat.

Given the extent of the 2014-16 market upswing, the Auckland housing market is proving resilient enough.

by CJ099 | 21st Aug 17, 7:13pm 1503299620

Yes quite right Bobster. We only need to look at the auction results in Oz to see just how terrible and quickly ours auction results have declined.

Australia has declined in their auction results too but not to the same drastic extent our have.

https://www.domain.com.au/auction-results/

Recent auction clearance rates in Oz:-

Sydney 70%
Melbourne 69%
Adelaide 74%
only Brisbane is showing a 50%

by Narrabeen Boy | 21st Aug 17, 7:28pm 1503300531

Hi Cj.
Just got back from three weeks in sydney and from what i saw houses were selling and selling fast!Plenty of bidders at auction and prices are up 12 percent year on year on northern beaches which is pretty healthy.Not many signs of capitol restrictions from China as of yet but maybe its early days.Cheers

by Zachary Smith | 21st Aug 17, 8:00pm 1503302450

Narrabeen Boy, good to hear a report from someone who has actually gone and taken a look. It looks like Chinese money could still be making its way out via Hong Kong. The Chinese crackdown on speculation in their own residential markets and their hostility to democracy in Hong Kong has actually made investment in Western cities more attractive.

Hong Kong property investors go trophy hunting in London despite Brexit

by CJ099 | 22nd Aug 17, 7:42am 1503344574

Well one thing is for sure Zachary, They're certainly not that interested in purchasing in the Auckland market. If fact I have heard from a lot of my Chinese friends that they're either selling up in NZ right now or will wait until prices drop to more realistic levels before they even look at reinvesting. But the restrictions have certainly stopped the mainland Chinese which is huge in comparison to HK.

by dictator | 22nd Aug 17, 8:08am 1503346133

I'm not surprised. Often when I read the SMH the property section is still pumping property quite intensely. The RBA also hasn't tightened up conditions there.

I'm wouldn't be surprised if there's still Chinese money flowing. The CCP is still cracking down on methods of taking money out of the country. I understand ATMs in Macau now have extra measures to find out who's withdrawing money. There's a lot of regulatory cat and mouse going on over there.

by Stealth | 21st Aug 17, 5:18pm 1503292717

A good result considering a falling market.....watch and see!

by tothepoint - d… | 21st Aug 17, 6:15pm 1503296118

Hi Yankiwi,

The market might, in fact, be closer to the nadir on prices than many believe. There may be a lot less downside than many here would wish.

And nobody should assume that bullish sentiments are going to capitulate....... Auckland's longer term prospects look pretty good on a number of counts.

by Yankiwi | 21st Aug 17, 7:57pm 1503302221

On some counts, prospects look good. On other counts, the prospects are somewhat dismal.

My prediction from about 9 months ago was for a significant retrenchment with a decline of something on the order of 1%/month gradual value reduction. So far, reality has been matching my expectations. The decline may be only a year or so if my most optimistic scenario comes in to play. My pessimistic scenario has a decline of several years with a slow but persistent loss in value. IMO, at best we are maybe halfway in to the decline. We haven't even had a bulltrap short term rally in prices to purge the market of fools and optimists...

That said, I am still happy with our purchase here in Hawkes Bay a couple of years ago. Prices are still increasing here.

by tothepoint - d… | 21st Aug 17, 8:14pm 1503303283

Enjoy Hawkes Bay!

It's a lovely part of NZ! (Good investment potential too, I reckon.)

by Double-GZ | 21st Aug 17, 6:06pm 1503295609

...while the most expensive sale of the week was a house on Remuera's northern slopes that went for $3.611 million.
HOORAY!!! CELEBRATION ^^

by swapacrate | 22nd Aug 17, 2:58am 1503327535

I think if you add weights to the pat on the back you could actually build a good set of biceps, then you could have great guns, have a nice portfolio, and humbleness.

by CJ099 | 22nd Aug 17, 7:34am 1503344054

DGZ; You do realize that it's highly likely that you're celebrating the arrival of a Money Launder to your neighborhood.

I'd recommend that you watch Ozark before you invite your new neighbors around for a BBQ because lets face it, at the moment they're the only ones really that can afford to spend that kind of money.

Ozark Trailer: https://www.youtube.com/watch?v=5hAXVqrljbs

by Tui12 | 22nd Aug 17, 10:43am 1503355416

I live in Sydney and I'm not sure what nareeben boy is on about. Market has turning though not as drastically as Auckland. Also Sydney is a world class sought after place to live. Auckland is not and has multiple problems. It's like comparing a BMW to a Mazda

by Ex Expat | 22nd Aug 17, 10:55am 1503356145

In Sydney this week so asked a local. He pointed me to https://www.domain.com.au/auction-results/

Looks pretty healthy except for Chairman Moa's hood.