Bayleys had a 45% sales success rate at their latest auctions - prices in Auckland started at $140,000 for a three bedroom flat in Grafton

This three bedroom terrace house in Hamilton East sold for $465,000.

Bayleys' auction rooms remained on the quiet side for the last week of winter with just a dozen Auckland properties going under the hammer and another eight offered up further down the line.

Of the 12 Auckland homes marketed for auction, just four were sold with seven being passed in and one having its auction date postponed.

However conditional contracts were put in place on two of the properties that were passed in, shortly after they were auctioned.

The lowest price achieved was $140,000 for a three bedroom unit in a student accommodation complex in Grafton and the most expensive was a house at Rothesay Bay on the North Shore that fetched $1.49 million.

At Bayleys' Hamilton auction rooms three of the four properties offered were sold, including a modern, three bedroom, terrace house in Hamilton East that went for $465,000.

And sales were also achieved on two of the four properties auctioned in Hawke's Bay.

The full results, with details and photos of all of the properties that were auctioned and the prices achieved on the ones that were sold, are available on our Residential Auction Results page.

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35 Comments

Not sure why people would use the auction method in a soft market - unless it really is a very special property that's likely to attract many bids.

The stigma of a property "failed to sell at auction" is a risk best avoided in a slow market.

I know that some real estate agents are still pushing the auction method - but vendors need to ask themselves just whose interests such agents wish to serve.

"By negotiation" is the prudent approach - or for those properties that are a bit more popular, perhaps a tender. But the latter invites the risk "failed to sell at tender".

Tothepoint, I agree. A very well presented property in a desirable location should be sold by auction onsite. The only good thing with a failed auction might be to gauge how much interest there is and to see how high a bid goes. A relative of mine just sold a house in Central Auckland, it failed at auction, but did eventually get 100K more than the final bid selling by negotiation a few weeks later.

"Not sure why people would use the auction method in a soft market". Well the RE's have to try to attract the Money launders some how and give them easy access to our real estate market.

The NZ Police state that $1.35 billion is laundered each year in NZ. Now just think how many houses and apartment that kind of money could buy in Remuera!

That's quite a specific number. How do they know this? Why can't they stop it? Is our police service an implement of the state? Are we becoming more like apartheid South Africa, where the rich dictate the law?

Yes all very good questions Blue Meanie; I'm guessing that they've average out the figures and if you read Ron Pol's article on money laundering, he estimates that $1.35 billion that police say is laundered each year, could be double that again due to tax evasion. So it could be as much as $2.7 billion.

As to why the can't stop it? Well I would hazard a guess at us having a National Government who have allowed us to be come dependent on a false economy and one that isn't sustainable since in need to have lots of never ending money pouring in from Asia. This is why I view National as being corrupt, they could have introduced those regulations years ago but they didn't.

National have very clearly strung it out for as long as possible to delay implementing those regulations, most don't actually kick in until next year or later in to 2019. See for yourself take a look at the link below.

NZ Justice department: Tackling money laundering and terrorist financing
https://www.justice.govt.nz/justice-sector-policy/key-initiatives/aml-cft/

Also on a soft market with a average house and maybe a buyers market a auction will just bring out low ball offers, which is probably what happened to your relative, making auctions a waste of time, it is what it is in these markets

They go for an auction because they want an unconditional sale. Why won't you want that. Wouldn't you want two bidders set against each other if you were a seller. Conditional overs can take forever to get across the line.Waiting for other people to sell their property is an absolute pain in the proverbial. Start with an auction then move to a price I say.

I would have to agree. The stigma of failing to sell at auction is over stated I feel. Some people think it is a huge waste of money but it is only the auctioneers fee which is fairly minimal. You can still use all the pre-auction marketing work to then go on and sell the property by negotiation.

The fact they are still mainly using auctions in Auckland as the primary way to sell shows it is still a strong market. IN Wellington Tenders are more common, and should also result in a better price for the vendor. If I was a buyer, I would prefer an auction, as long as I had preinspected the property first, as you are on;y bidding up to the top other bidder, so you don't have to offer your top price.. Tenders allow you to have the sale conditional on a property inspection if agreed by the vendor. Auctions are easier for agents IMO, as less likelyhood of the sale not going unconditional, and the sale is concluded quickly.

Seeing a fair few sales by negotiation popping up in Welly now.

Zak and Zach a good auctioneer helps.

Yeah keep encouraging those money launders DGZ shame on you! Keep waving the facilitator flag!

In NZ Herald today - Top 10 suburbs http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=1191...
Herne Bay: $2,481,050
1.7 per cent decrease in value
Down by $42,907

Saint Marys Bay: $2,164,100
2.1 per cent decrease in value
Down by $46,421

Remuera: $2,032,950
0.1per cent increase in value
Up by $2,031

Stanley Pt: $1,951,300
1.4 per cent decrease in value
Down by $27,706

Campbells Bay: $1,874,550
1.3 per cent increase in value
Up by 24,056

Epsom: $1,855,100
0.1 per cent increase in value
Up by $1,853

Westmere: $1,809,050
2.5 per cent decrease in value
Down by $46,386

Orakei: $1,779,750
1.5 per cent decrease in value
Down by $27,103

Ponsonby: $1,773,500
1.2 per cent increase in value
Up by $21,030

Mission Bay: $1,766,600
1.1per cent decrease in value
Down by $19,649

Double-GZ, good to see Epsom and Remuera neck and neck percentage-wise in the race.

Very interesting DGZ......

It goes to prove that, despite a softer market in 2017, a significant number of Auckland suburbs have still been increasing in price. That explodes the myth being perpetuated by CJ099 and several others here.

But even for those suburbs that show a (percentage) fall, it's minuscule compared with the gains of the 2014-2016 era.

DGZ - you're going to get a hostile reaction to this (especially after Gregg runs an item on it tomorrow). You'd better brace yourself for an onslaught and the feverish outpouring of bile and malice.

Ok - I'd like to buy into Ponsonby at a heavily reduced price. But I accept the fact that the horse has bolted and I'm certainly not going to get resentful and turn nasty about it........ Instead, I'm looking at places that offer value-for-money and where I can realistically afford - like Palmerston North (which, to its credit, is a university city with an international airport - plus there are plenty of jobs).

I like this house in Ponsonby but I can't afford it...
https://www.trademe.co.nz/property/residential-property-for-sale/auction...

Thanks again DGZ,

Sure it looks a nice property but, even surer, I can't afford it either!

I see the land area is less than 300sqm - so pretty damned small. (But I know there are lots of houses in Ponsonby that have less land than that.) It's an indication of the scarcity/value of land in the inner city suburbs.......

Would you agree that Ponsonby is well-placed for the future? Interested to hear your views on that part of town.

Yes I think homeowners in Ponsonby are sitting on a gold mine. The prices can only go up but it is a place for the DINKs as you have pointed out, very limited space to bring up a family. The suburb would suit professional couples.

Thanks DGZ,

Ponsonby does appeal to me. I like its vibrancy and the buzz factor - as well as the convenience of being so close to Queen Street and the CBD.

Constant daily drooling over 0.0002 % of Aucklands housings stock will have no impact on the unwinding of Auckland real estate prices over the coming years.

Cowpat is incorrect with her use of percentages........ yet again!

Toopointy.
1 cherry picked home from 5=20 percent
1/50=2 percent
1/500=0.2 percent
1/5000=0.02 percent
1/50000= 0.002 percent
1/500000=0.0002 percent. If toopinty wants the writer to use the unrounded amount of Aucklands housing stock , the percentages are weaker .A mathematics course when Toopinty eventually gets to Palmerston North would be merited.

As numerate people here soon figure out, Cowpat seeks to mislead and deceive with her use of figures/percentages.

I will continue to red-flag her transgressions. She's notorious.

You do realize that you're a complete moron 'tothepoint'! You would be wise to listen to Cowpat and you should also realize that women have far more common sense so stop trying to be sexist by branding her as notorious, it just makes you look weak and even more pathetic than usual.

He's not a moron. He is a human and there's no need for personal attack.

No he's a moron alright and an RE! Just like how you and Zachary are one in the same and we all know it.

And by the way he was personally attacking Cowpat and he's personally attacked me in the past quite a few times.

CJ099 is our resident White Knight.

Isn't claiming "women have far more common sense" being sexist?

Really Zachary now you're just being a bit childish it's just a well known fact but I thank you for the white knight comment. :)

Nice place this and much better buy than Islington Street and closer to the city.. pool is at the shady end!

https://www.kellands.co.nz/property/view/property-for-sale-auckland-city...

No it doesn't explode any myths 'tothpoint' all it shows it that the sales have been very slow and we can all see that by the auction results where less than a handful of properties are being sold week by week.

A slow market drags down prices we all know that, it's been in decline since early this year and is set to continue that way. Really you should stop kidding yourself and grow up!

If your in a hurry and want an unconditional bid, use auction. An example could an over leveraged owner looking to inject equity elsewhere.

Otherwise all it serves is the agent/agency to put the seller in a small room and condition them to sell for less than expected. Everyone should remember the agent/agency is more interested in your house selling, than what it actually sells for.

Watching up close in 2008 agency owners advised their agents to promise the earth for a listing, but deliver reality for a comission cheque.

These real estate agents only continue to push auction as it is the easiest way to "condition" sellers and ensure they get commission paid quickly! The "feedback" will always be lower than what the owners want as these agents are trained to knock you down from the time the first buyer goes through.

Hi bigblue,

That's fair comment and I agree with you.

Too many agents (the majority??) put their own private interest (summed up as commission earnings) ahead of the best interests of vendors (and purchasers).

Agents are a two-edged knife: be cautious of any recommendation they make. And certainly don't let them talk you into an auction in the current soft market if you're a vendor.

.