More apartments on offer at the main auctions and more buyers about too, but they remain cautious

This one bedroom apartment in the Spencer on Byron building, which has remediation issues, sold for $148,000.

Activity continues to pick up at the main Auckland apartment auctions, with more units being listed and more buyers out and about too.

However, buyers remain cautious, especially around the smaller shoebox apartments, as they wait to learn of the government's plans for student migration and any possible effects that could have on the smaller CBD apartments, which are popular with overseas students.

City Sales had six apartments on offer this week and a good crowed turned out to their Karangahape Rd rooms.

There was a good range on offer too, with everything from a leasehold unit at Viaduct to a large three bedroom apartment with two car parks in Vincent St.

Three of the apartments attracted multiple bids and two of those sold under the hammer, but there were no bids on the other three and they were passed in

There was also a reasonable crowd at Barfoot & Thompson's apartment auction, although about half of them were there for a commercial property in Mt Roskill which sold under the hammer (check out our Commercial Property Sales page for the details).

Of the three apartments offered, two attracted multiple bids and one had a single bidder, with one selling under the hammer and the other two passed in for sale by negotiation.

At Ray White City Apartments, three apartments and a house in Papatoetoe were on offer.

The Papatoetoe house had a pre-existing offer which had been accepted subject to there being no better bids at auction, and when it received no bids it was sold at its offered price.

Of the three apartments offered, one attracted multiple bids and was sold under the hammer, one had just a single bidder and was also under the hammer and the third received no bids and was passed in.

So it was a bit of a mixed bag this week, but listing numbers are rising as we head into summer, buyers are also active although they can be cautious, and sometimes it takes a bit longer to get buyers and vendors to agree on price.

The details of the properties offered at all three auctions and the selling prices achieved are available on our Residential Auction Results page.

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62 Comments

Someone took a deep bath on that Spencer on Byron one.

Unfortunate. Takapuna would be an ideal location for multiple Spencer on Byrons. The place is a testament to waste considering all the wonderful amenities the area has. Perhaps if NZ went cap in hand to the Japanese, they would help us build something appropriate. The Japanese govt is spending up large supporting infrastructure in developing countries.

Agree with you, J.C.

Takapuna has delightful beachside atmosphere, with up-market shops and houses.

Am sure Japanese people enjoy its delights. Great for retirees too.

TTP

Multiple apartments with remediation issues? Doesn't Takapuna already have a few of those. Add that to the council wanting to flog off public land and utilities to property developers for some coin and backhanders. They even have the road closures of Hurstmere Rd as a done deal.

What is wrong with our construction industry that they cannot seem to build weatherproof buildings? Seems like a fundamental lack of competence to do their jobs. And then they seek to blame the council for not stopping them from building a bad product.

Lack of competence, also lack of honesty, integrity, and anything resembling responsibility. I'm sure there are exceptions, I don't get to meet them.

Perhaps. But brave buyer got good deal. If he leaves it in hotel pool, defers GST. If pulls it out, pays GST and council use change fee, ends up with 1 bedroom in full facilities Takapuna bldg with CCC and watertight when finished. Either way, approx 50k levy toward full 35m remediation paying over next 20 months. Personally, I believe that bldg was ok as a leaker, but its body corp voted to proceed. What do you guys think?

"vendors have been forced to eat humble pie in the inner city Sydney suburbs of Redfern and Darlinghurst as asking prices continue to fall. Asking and sold prices have come down by up to 18 per cent in the two suburbs in the last two months to match cautious and reticent buyers"
http://www.afr.com/real-estate/innercity-sydney-property-asking-prices-f...

It appears that things have come to a point where "no price is too high" simply doesn't rub anymore. And that makes complete sense. Yes Redfern and Darlinghurst are central, but AUD 2 mio is still AUD 2 mio. It can be used elsewhere for other productive purposes.There are people with that kind of money who can throw it around like confetti. Like Japan in the late 80s. Like China today. Doesn't necessarily mean that confetti will be thrown.

Not surprised when you read articles like this.. http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=1194...

Hi bw,

So what?

Sydney is not Auckland - nor Hawera for that matter.

TTP

up
10

Come on TTP you really think Sydney house sale softness has no relation to Aucklands?

Hi Frazz,

Certain people here are prone to picking markets in the world that have shown weaker activity and immediately likening them to Auckland - with no systematic analysis. "XXXX has fallen so Auckland must be next."

It's BS - and it gets tiresome after a while.

Pointedly, nobody here bothers to compare buoyant real estate markets (of which there are plenty across the world) with Auckland. Yet, obviously, Auckland has been a buoyant market of recent years - and for quite understandable reasons.

This blog is full of the biases of a group of disaffected people. (It's certainly not representative of NZ society at large.)

TTP

More utter garbage!

Hay TTP, DGZ , Zachary Smith, all the same person. Im right wing , I have owned 40 properties and love making money from property. Property works in cycles , it seems to be about 7 years or close before it repeats itself. It has been a long boom, and now it is going to be a bust. The smart money gets in early, and the smart money gets out early before the bust. It takes one to know one, and i dont know you ! You dont own property, but you are a real estate agent trying to keep his job. So keep up your Spin all you like but the ship is sinking and it is time for a new job.

So you're hoping to get in after the bust and buy up large again?
There seem to be a lot of these types on this forum. Made lots of money on property in the past but now feel a need to side with the anti-landlords. I wonder if I will be like that one day?

Actually I develope properties which adds to the supply bringing prices down. Zachary Smith, TTP, DGZ all the same person. You remind me of that movie me myself and Irene. LOL. Keep up the spin.

Selling property as a R E agent doesn't count as developing J W

Hi John Wheeler,

Just to be clear, there's no evidence of a so-called "7 year property cycle" in NZ.

It's a myth that people like you have expounded - but it doesn't stand up to scientific scrutiny.

TTP

John Wheeler is a RE agent

Yeah Auckland is special, not like Sydney, it’s special Aucklandness protects it from the winds of capitalism. While the Sydney market may rise and then fall like a ball thrown into the air, the Auckland market will rise forever like the .... the .....wait nothing has risen forever. Ok maybe Auckland is screwed.

How come there are so many prices missing on the auction results pages?

(whispering) If prices were published more fools might become educated it's all starting to tank.

So you think interest.co.nz is in on this conspiracy?
Can we just stick to facts?

I see Zachary you have been busy voting for yourself using your other user names .

Woah now, let's not forget how quick NZ herald is to boast.. this literally featured in their 'breaking news' header..

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=1194...

Zachary will tell you this is not newsworthy.

That breaking news ticker is criminal.

Breaking news: Married at First Sight couple's pasta dinner is not quite al dente!

Breaking News; Adele used black/brown mascara instead of just black.

I watched Slice of zparadise the other night on TV.
They had buyers fromAuckland on and buyers looking in Christchurch.
Couldn’t beleive the prices in Auckland for what you get up there!
As an investor I wouldn’t be buying anything at the levels they are at and I certainly do feel very sorry for first home buyers now.
Christchurch houses are unbelievable value compared to Auckland and rental returns can also be great!
Chch is going to be the city of choice in Australasia going forward.

You could make a case for investors keeping the prices of houses down because of business fundamentals. Obviously yields are important to investors. This is what makes a property market neither a ponzi nor a tulip type investment. Christchurch is especially good buying at the moment as it is the gateway city of the South Island.

Zachary. You are making yourself look an imbecile with this sort of utter nonsense.

So, Didge, you having nothing intelligent to say, as usual.

ZS - you should start buying property at Scott Base because it's the gateway to the South Pole....

Houses are good value in CHCH but reality says how far away is another earthquake.Okay they can happen anywhere but its like the housing price crash everybody is predicting it(not me) but nobody can say when.

Reality check from Chch. The effect of the earthquake sequences (over 14,000 now) can be easily summed up:

  • 5% of residences and particularly URM commercial trashed
  • 10% of residences plus the Old CBD demolished or (residences only) condemned and rebuilt elsewhere
  • Rest of city (85%) a few cracks in the Gib BUT
  • The Old CBD is toast - the Gubmint has had to stuff it full of the non-tradeables (brown cardies) to get any semblance of life (always excepting Ballantynes)...
  • And the New CBD (the arc from Sydenham through Addington, Riccarton, back to Victoria St and Bealey Ave) is doing just fine PLUS
  • the outer areas (Kaiapoi, Rangiora, Amberley, West Melton, Templeton, Rolleston, Halswell and even down to Ashburton and Timaru) have gratefully accepted thousands of new residences, businesses and residents, as folks make up their own minds about perceived risk
  • BUT don't forget that this happy outcome (and it is, for most) was only made possible by completely depleting the EQC coffers, and jacking insurance rates (doubled, fairly much) to cover the now-apparent risks

And lest the rest of Godzone gets a leetle complacent, there's:

  1. Wellington on the major Fault,
  2. Napier and Gisborne adjacent to a stuck section of the subduction zone of that there Fault,
  3. New Plymouth sheltering under a volcano that last blew its top 350 years ago,
  4. Awkland ditto with Rangitoto not a millenium old.

So the safer choices are Northland (warm but infested) and Southland (empty-ish but cold).

Yer pays per munny and yer makes yer choice....

Yep. Better head for the cheese roll!.

Christchurch, what to do?. Remember B Jones said dig up the red zone. Lake Shakemore!! Think waterfront!!
Gotta be done!

And Hamilton and bop. Good lifestyle and opportunities

Good value only when related to the exorbitant values of Auckland.

Eh, you can get an okay first home for 350k ish and a nice first home for 450. Obviously not in the best locations but nowhere in Christchurch is that far away. Worst case pick a side of the city and you've got at worst a 30-40 minute bike (or drive if you're that way inclined) to work. Median incomes aren't as high as Auckland but they're not terrible. My partner and I were making 100k plus between us as young professionals before we went traveling. Personally I felt very little risk regarding earthquakes at all while living there and I was there for them all, people seem to talk this up on here a lot, funny that no one shares the same concern for Napier.

Christchurchians are a little up tight about schools, aren't they? I recall reading Christchurch was set up by the same guy who set up Adelaide, and he instilled some weird obsession with "the right school" into the culture.

Watching you trying to pump up your Christchurch property portfolio in every comments section is hilarious and sad at the same time. Good luck mate.

Only about 25 percent sold at latest Harcourt auction. I still think some over supply in chch but would welcome your thoughts?

Same in Auckland and around the country.
The LVRs change affected things.
I love the auctions as you can buy well because of less competition!

Zachary, you are correct, investors do not force prices up!
Reality is that they look to buy for long term to produce income if they want to be a full time landlord.
Capital gain is a bonus for investors if they ever look to sell.
Obviously there are a lot of people who for some reason want to live in Auckland and it is those people who have pushed the price of houses to where it is today and not investors.
Personally wouldn’t purchase a property that I have to prop up unless zi buy it well under it’s true market value.
Chch is very good value and if Aucklanders came down and looked I am sure investors will be buying.
Of course I am biased towards Chch just as most Aucklanders like Auckland..
However although it has been slow to rebuild, things are going ahead now and is going to be a magnificent city
that is going to be the envy of Australasia.
Now is a great time to be buying while the uncertainty Re Govt. Etc as opportunity are there.
Yes there will be Gordon coming on and commenting about what he has no idea about, but then the doomsayers are always the 9nes who never get ahead in life and rely on others for everything.

A lot of them seem to be old folks who have taken up social justice warrioring as a hobby. Many of them actually made money themselves in property in the past. I can't abide them.

I don't need to comment The Boy as official data says it all. House prices and rents are surely but steadily dropping in Christchurch. Unlike myself you chose the wrong investment category.

Yet you still commented

Palmerston North represents excellent value too. All the amenities you could want for a family and a 2-hour drive to Wgtn.

You don’t need to struggle with Auckland/Wellington prices if you don’t want to.

TTP

Still got that Square downtown, where the gang congregate and do whatever gangs do?
maybe I'm getting confused with....No.no... I don't think I am.

Yes there will be Gordon coming on and commenting about what he has no idea about, but then the doomsayers are always the 9nes who never get ahead in life and rely on others for everything.

Suburban prattle. Your "evidence free" opinions are based on your beliefs and emotions. Furthermore, "doomsayer" is the most stupid moniker being bandied around. Its descriptive use is mainly used by media and spruikers who heavily rely on the status quo and need affirmation from others that the status quo is somehow a universal reality. There is no objective benchmark for what a "doomsayer" is, hence its use by the sheeple.

This just in, demand does not affect prices.

We have a Terrace in Darlinghurst/Paddington bought it in '10 for under $895k its a great place to live. I said on here a couple of months back that Sydney prices are dropping and that is clearly the case now as is Auckland.

Oh and the reason I put the price on there is that people probably think its cheap. The reality is it is not that is a normal multiple of income value. I would expect things to come down much closer to these multiples. Unprecedented low interest rates mostly and foreign buyers are what have artificially driven the ponzi.

I keep up with Trading Economics forecasts for NZ. Interestingly they only last updated NZ housing HPI in June, so their forecasts (which were for Q3) can now actually be compared to the reality. So for instance they predicted Sept would be HPI of 0.55% and REINZ data was 0.5% for that month. The reality was slightly worse than the forecast but it was pretty close.

I'm looking forward to their Q4 forecast.

https://tradingeconomics.com/new-zealand/housing-index

err, Trading Economics does not do forecasts. It only reports actual data, as reported to them. In the NZ case, this data is from New Zealand sources. (I refer to them a lot too.)

Oh? I'm confused. What is the data specifically named forecast on the website then? And the drop down menu which is named "forecast" and the data that refers to 2020 etc?

https://tradingeconomics.com/new-zealand/forecast

Kind of a stupid article in Stuff this morning:

https://www.stuff.co.nz/business/property/98704818/peter-williams-as-new...

Peter Williams seems to think because his house has gone up a certain percentage his rates will go up by the same percentage.

Peter William's is a nice, genuine guy.

He's a broadcaster who, in fact, seems to recognise that his job is to tell the news - and not be the news. That's refreshing. (Compare him with the likes of Hosking and Henry.)

I've no idea about Peter William's credentials re housing market analysis. But if he decides to post on this site, then he's welcome as far as I'm concerned.

TTP

So because Peter William's is a nice, genuine guy he can spout fake news? It even looks to me that his rates may go down as his house didn't appreciate as much as the average.

[ That's over the line. Insults deleted. Ed ]