Sales rates ranged from 17% to 100% at B&T's latest auctions

Property

Prices started at $550,000 for a house at Papakura at Barfoot & Thompson's latest auctions

25th Oct 17, 9:36am by Greg Ninness

Auction activity remains relatively subdued throughout the country with fewer properties coming to auction and sales typically being acheived on 40% to 50% of them.

Auckland's largest real estate agency, Barfoot & Thompson, marketed 95 properties for auction last week and achieved sales on 40 of them (42%), with the rest either being passed in or in a small number of cases, withdrawn from auction just prior to the event or having their auction postponed.

The highest sales rates were achieved at the auctions held on site (50%), at the Manukau auction (48%) and at the Shortland Street auction on 13 October (57%), where most of the properties offered were in the middle to lower price bracket.

At the North Shore auctions just over a third (36%) of properties were sold (see chart below).

Prices ranged from $550,000 for a modern, two bedroom, brick and tile house at Papakura, to $2.2 million for a four bedroom villa in Mt Eden.

The full results are available on our Residential Auction Results page.

**Barfoot & Thompson Auction Results: 9-15 October 2017**
Date	Location	Sold*	Not sold*	Total	% Sold
9-15 October	On site	5	5	10	50%
10 October	Manukau	11	12	23	48%
10 October	Shortland St, CBD.	2	-	2	100%
11 October	Shortland St, CBD.	7	12	19	37%
11 October	Pukekohe	1	5	6	17%
12 October	North Shore	9	16	25	36%
12 October	Shortland St, CBD.	1	2	3	33%
13 October	Shortland St, CBD.	4	3	7	57%
Total	All locations	40	55	95	42%
*Sold includes properties sold under the hammer or by 5pm the following day. Not sold includes properties that remained unsold by 5pm the day after the auction, plus properties that were withdrawn from auction or that had their auction postponed.

We welcome your comments below. If you are not already registered, please register to comment

Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.

51 Comments

by user123 | 25th Oct 17, 10:15am 1508879747

I can't wait to see the flood of listings that hit the market over the coming months. All the price pressure is going to be coming from one side......

Immigration to be slashed, foreign buyers gone, interest rates heading up, no more capital gains for investors, capital gains tax in 3 years....it's pretty hard to conceive any positive outlook for property over the coming year...or two.....or three.

by Narrabeen Boy | 25th Oct 17, 12:00pm 1508886006

We'll it's usually ten year cycles so yes I wouldn't be suprised with three years of no growth.hopefully rents will go up in those three years and yields will look a little bit more attractive

by Houses Overpriced | 25th Oct 17, 11:43am 1508885013

to be fair, the property bulls have had a loooong run, everything needs to come to an end.. the question how well will they handle it.. ????

by Solidname | 25th Oct 17, 2:33pm 1508895231

Roughly as well as the election result I imagine. #Notmyhouse.

by cheeseball | 25th Oct 17, 12:12pm 1508886743

Pressure from the buyers side? Foreign buyers will see an increasingly limited opportunity to get into our market, while all buyers will see an opportunity to get in and fix interest rates ahead of projected interest rate rises -
I see it being a hot summer in the property market before the policies of the new government settle in!

by john wheeler | 25th Oct 17, 2:30pm 1508895018

Cheeseball - What real estate company do you work for ?

by Ex Expat | 25th Oct 17, 4:44pm 1508903091

Membership six hours old is a bit suspicious. A re-spawn? Is that you DGZ?

by cheeseball | 25th Oct 17, 4:59pm 1508903958

Not in real estate, personally think they've done far too well out of this whole housing crisis we've found ourselves in!

My comment was more a reflection on the looming factors that are going to have an impact on the housing market in the near-term that wouldn't impact a buyer who headed out to buy now with a long-term view. If I was looking to buy, and especially if I wasn't currently a permanent resident, now would be a pretty good time to stake a claim.

by theglc | 25th Oct 17, 8:51pm 1508917902

Why would anyone be rushing to buy in a falling market, there is a long way to the bottom.

by Double-GZ | 25th Oct 17, 7:05pm 1508911524

No not me sorry to disappoint lol

by Ex Expat | 25th Oct 17, 7:23pm 1508912619

I thought you were taking a 3 year sojourn.

by Sentinel | 25th Oct 17, 8:35pm 1508916919

So Cheeseball, its fairly obvious there is a lot of downside pressure coming onto the real estate market, but you are telling us people are going to rush in and buy while prices are still high to lock in a slightly lower interest rate? Are you serious??

by cheeseball | 26th Oct 17, 11:55am 1508972138

Auckland house prices are almost the same as a year ago - possibly up a bit in the centre, down a bit on the periphery but with everyone else that has been going on they've been pretty stable. There's been plenty of articles throughout about impending doom and gloom.

The new government might lower yearly immigration but last time I checked we had already a massive imbalance on housing demand versus supply - lowering immigration is going to slow that rate of change, not make it disappear overnight.

And Auckland is where people want to live, where the jobs are, and where a third of population already wants to live - until that changes it's going to weather any downturn better than the rest of the country.

Oh and non-permanent residents might rush in to buy if by Christmas they're not going to be able to do it at all...

by Sentinel | 26th Oct 17, 2:40pm 1508982049

Prices may still just about be level in some parts of town from a year ago, but they are down from the peak just after that. They are most definitely now on a downward trend.
Immigration may still be occurring, however until these residents attain permanent residence or citizenship they will be unable to purchase a property. The fact that overseas investors will be unable to purchase, due to both currency flight restrictions now in place from China coupled with our new regimes forthcoming overseas investor rules means a significant number of potential cashed up purchasers are now effectively locked out of the game. As for Auckland being a place people want to live, I can't speak for everyone but I can't wait to get away from Phil's motorway tolls and Jacinda's petrol tax. Auckland is no longer the funky little city I grew up in, its just one massive traffic jam and no random tram to the airport is going to fix that!

by kpnuts | 25th Oct 17, 12:16pm 1508886966

investors will be fine - speculators are in the deep deep doggy do unless they have managed to flick and realise a big chunk of capital gains to feed their huge cash flow negative purchases for the next few years!

by THE MAN 2 | 25th Oct 17, 12:55pm 1508889353

In Christchurch we have just let 2 properties and had several people wanting both, with no down time.
Rent the same as last year and tenants are high quality moving from not as good properties looking for better.
Both were 4 bedrooms and well cared for homes.
October/November can at times be harder to let than Jan;Feb but clearly there is demand in Chch for good property.
We have plenty due up at the end of Jan and most have said that they wish to stay on at the same terms, with the odd exception and from initial discussion we will fill the empty ones with existing tenants departing but wanting smaller or larger.
Renting property in Christchurch isn’t as bad as many are saying providing you go about it the right way!
Yes many landlords have dropped their prices when maybe it wasn’t necessary.

by mfd | 25th Oct 17, 5:10pm 1508904624

From a tenant's perspective (currently looking for a new place in Chch), the market is far better than a couple of years ago. Lots of high quality properties around at good prices, my current landlord offered reduced rent to encourage me to stay, agents are extremely keen to get us to apply for places. Certainly more affordable and more choice than last time I looked.

by Narrabeen Boy | 25th Oct 17, 2:33pm 1508895196

The man.What is your average yield over your whole portfolio?

by THE MAN 2 | 25th Oct 17, 4:50pm 1508903438

Gross yield on purchase price around 9 to 10per cent.
Lowest at about 6 per cent and have 3 at about 15 per cent.
Good returns but we also buy extremely well, under true value, but won’t elaborate on here!

by Didge | 25th Oct 17, 5:24pm 1508905445

Very disturbing!

by nymad | 25th Oct 17, 5:28pm 1508905726

My thoughts exactly!
I can't wait until Gordon sees this.

by nymad | 25th Oct 17, 5:28pm 1508905683

...What?!
Your gross yields are between 9 and 10%?!

How do you make money with financing costs, rates, insurance and maintenence?

by Narrabeen Boy | 25th Oct 17, 5:45pm 1508906722

Financing cost is a positive as the bank pays you for your business.don't know about rates down there but guessing about $100 a week.insurance maybe the same.maintenence negligible if they are new.I'd guess he's doing more than ok.good for him!!!

by O4 normal | 25th Oct 17, 6:36pm 1508909786

Not that sure about Christchurch but I can’t imagine insurance being anywhere near the same per week as rates. It’s not Auckland. If I was to guess in Christchurch I’d say rates around $70 a week and insurance about $20. And if I’m close thats why Christchurch is so good and Auckland’s terrible. With rentals prices probably not that lower, just guessing tho

by Zachary Smith | 25th Oct 17, 6:01pm 1508907709

This is the thing, landlords don't make huge amounts of money. They have to be frugal and be as efficient as they can be with costs. Everyone seems to think they get money for nothing.

by steven | 25th Oct 17, 6:07pm 1508908037

They do when they cash out, which is the entire problem. Sure there is awful cashflow for the risk being taken and its all a gamble they will get a tax free payout when they call it quits, but lets face it its a 30% gain if you can avoid the tax.

by Double-GZ | 25th Oct 17, 6:29pm 1508909354

Focus: Nervous homeowners checking property prices. Nuff said.
http://www.nzherald.co.nz/business-video/news/video.cfm?c_id=1503079&ga…

by Zachary Smith | 25th Oct 17, 6:45pm 1508910341

I'm pretty sure that was just me doing my CV comparisons.

by Double-GZ | 25th Oct 17, 7:00pm 1508911257

Rumour has it that Auckland Council is working overtime to take into account Jacinda's action to stop foreign buyers into next month's new CV. Watch for the new land values to go spiraling down the toilet.

by sharetrader | 25th Oct 17, 7:03pm 1508911392

hope so, many FHB are waiting for the prices to come to them rather than chasing the tail of a rocket ship

by linklater01 | 26th Oct 17, 9:29am 1508963371

I simply don't believe your figures. I have a small property in Mt. Maunganui which I have had for many years. It is debt-free and there is a good,long-term tenant. Based on a recent valuation,the gross yield is under 4%. I would accept that I charge less than the market would bear,but even a significant increase would only raise the yield by a small amount.
For your figures to be at all accurate,the price of the properties would have to have fallen dramatically.

by grum | 26th Oct 17, 11:24am 1508970271

He said "gross yield on purchase price" - your recent valuation has nothing to do with that number.

by Yankiwi | 10th Nov 17, 7:26pm 1510295170

"Gross yield on purchase price"... I suspect that this means that he has factored in capital gains into his yield. A long term investor would calculate yield as based on current valuation. If the yield is lower than the equivalent risk based yield found elsewhere, then the investor would sell. I'd be quite curious to hear what the yield is as based on the current market valuation. I suspect that the fully burdened current market valuation yield is less than that of a tong dated term deposit.

by Sentinel | 25th Oct 17, 4:24pm 1508901899

Still tiny numbers being offered for sale. Lots of downward pressure coming on prices now. Sellers holding off hoping for a reversal while buyers are happy to sit back and wait for the inevitable. Its going to be an interesting summer.

by O4 normal | 25th Oct 17, 6:38pm 1508909916

You wouldn’t think buyers would be happy to make high offers with what they know is coming round the corner. Unless they don’t watch the news or dumb

by gordon | 25th Oct 17, 9:09pm 1508918957

How can The Boy talk about true values when values in Christchurch are dropping by the week. Take what he says with a grain of salt as after all he is an agent. How many of them have bought undisclosed off vendors who are paying them a commission?

by THE MAN 2 | 26th Oct 17, 7:44am 1508957060

Gordon, you have no idea whatsoever.
Firstly I am not an agent , professional landlord that provides good quality housing.
Secondly prices aren’t dropping, there are less sales which is good for landlords.
Thirdly prices are irrelevant as we are investors not speculators and don’t need to sell when all positive returns.
Ringfencing wont affect us.

by Zachary Smith | 25th Oct 17, 10:22pm 1508923325

I just "analyzed" 35 of the Auckland sales just listed on the auction results page. A total of 44.724M in sales with a total CV (2014) of 29.630M. This is a new high of 50.94% over CV.
What is selling is still selling for very high prices and getting higher by the look of it.
Still haven't seen any obvious bargains.

by Ex Expat | 25th Oct 17, 11:37pm 1508927856

It will be interesting to see what happens to the markets close to the KiwiBuild homes. We may see the market diverge with the lower value homes in KiwiBuild areas subdued and the higher value homes elsewhere less affected. I hope the new KiwiBuild homes get acceptance by those that they’re intended for. It isn’t going to be traditional kiwi living so as a past Australian boss once said to me, “suck it up princess”

by nymad | 26th Oct 17, 8:31am 1508959887

ZS.
I still don't understand why you do this.
Continuing to do so highlights a very flawed or missing understanding of both schoolboy level statistics and the fundamental nature of a CV - selling price relationship.

Just look at the QV index for Auckland, if 35 sales is the extent of your 'analysis'. It uses a similar, but better methodology, and it will provide a much better story of the market than what you are wasting your time doing.

by Zachary Smith | 26th Oct 17, 1:01pm 1508976110

Nymad, I don't understand why you think it is just 35 sales. I've done a lot of these over a long period of time. Hundreds of them. It keeps me in tune with the market and what is happening and has enabled me to predict very accurately what next months results will be. I'm also looking for indications of distressed sales. Why does Interest.co bother with publishing these figures?
You are protesting too much I feel....I wonder why? Maybe just ignore the facts?
Edit:
Anyway this is data from just last week and is quite relevant - particularly on topic. My comment is purely a factual one.
The people who should be queried are those that are forever saying that prices are dropping rapidly in Auckland when the facts would indicate otherwise.

by nymad | 26th Oct 17, 1:13pm 1508976836

"enabled me to predict very accurately what next months results will be"
I call rubbish on that, given what the nature of the results should be from random sampling.
But do enlighten me on your technique to forecast growth.

If you are surveying 35 nonrandom properties of the approximately 3000 monthly sales in the Auckland region each month, you are just wasting your time.
Your results aren't factual at all. They are incredibly biased.
Your variances are going to be astronomically high, rendering any prediction worthless.

I'm just trying to help you save face on this site and prevent you wasting your time - you get enough stick, as it is.

by Zachary Smith | 26th Oct 17, 1:47pm 1508978859

Nymad, I don't believe for a second you are trying to help me save face. You have a different agenda. I suspect the real reason is that you think my "analysis" is dangerous, a form of spruiking. It does seem to annoy people but it shouldn't as it is just a few figures that are readily verifiable.

by nymad | 26th Oct 17, 1:55pm 1508979334

My day job is in statistical analysis.
It annoys me when people give credence to the (untrue) cliche "You can make statistics mean anything".

If you were in fact genuine about the accuracy of your analysis, you would improve it methodologically or not publish it.

by Zachary Smith | 27th Oct 17, 5:42pm 1509079332

Nymad, how can I improve it when the only data I have is last week's sales? This bit seems to be lost on you. All I am doing is giving a report on percentage above CV that houses sold for the week before which is 100% accurate.

by Shoreman | 26th Oct 17, 8:43am 1508960627

If anyone is interested... been an investor for 35 years in Auckland...We are in the doldrum years of the cycle, market will improve from 2020, great to see new Government to build ( hopefully ) 100,000 over 10 years... wait to see what they are....they will be 100sqm dwellings not all FHB's will want these....it will serve a worthy purpose but only increase the desirability of established suburbs in prime areas...thankyou

by ham n eggs | 26th Oct 17, 9:05am 1508961943

35 years .... but this is the end of a 200 year cycle

by Didge | 26th Oct 17, 9:15am 1508962522

Yes, there is a high probability that smaller homes will become much more desired if heating etc costs become much higher than now.

by Ex Expat | 26th Oct 17, 2:08pm 1508980115

Nature supplied a free heater, it's called the sun. If you are North facing in Auckland with no-one shadowing you, then heating costs are minimal no matter what the house size is.

by Pragmatist | 27th Oct 17, 2:16pm 1509066969

If its insulated and properly built. If its a 1950s tin roof & weatherboard with no insulation its freezing in winter and an oven in summer. But thankfully, in three weeks I'll be gone from this one, enjoying the market rent on a much nicer property that is costing the landlord in one way of another at least 10k a year on top of what we'll be paying.

by KH | 26th Oct 17, 2:35pm 1508981755

You don't have to build a tiny house to reduce heating costs. You just build a good house well designed for solar gain. If you work on it, you won't have heating costs much at all (doesn't have to be an expensive house either)