The auction rooms are slowly springing back to life after the holiday break, as the early marketing campaigns run their course.
Last week Auckland's biggest real estate agency, Barfoot & Thompson, kicked off the New Year by auctioning 17 residential properties, with eight selling under the hammer, giving an overall sales clearance rate of 46% (see table below).
Prices of the properties that sold ranged from $781,000 for a fire damaged house in need of demolition that was on a large section in New Lynn, to $1.8 million for a property in Ponsonby.
Details of all the properties offered and the prices achieved for those that sold, are available on our Residential Auction Results page.
| Date | Location | Sold | Not sold | Total | % Sold |
| 23 January | Manukau | 0 | 4 | 4 | 0 |
| 24 January | Shortland St, CBD | 2 | 0 | 2 | 100% |
| 25 January | North Shore | 4 | 3 | 7 | 57% |
| 25 January | Shortland St, CBD | 1 | 1 | 2 | 50% |
| 26 January | Shortland St, CBD | 1 | 1 | 2 | 50% |
| Total | All venues | 8 | 9 | 17 | 46% |
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23 Comments
Hi thegic,
Obviously, you haven't kept up with my recent posts here about auction clearance rates.
I re-confirm that I take little notice of auction statistics these days. Things have moved on and "By Negotiation" is where the market has headed for 2018.
So, Greg Ninness reports a near-50% clearance today. In his next report he might well report a 15% clearance rate. So what? Who cares? Certainly not me.
Too much focus on auction statistics can mislead and deceive.
TTP
It might be helpful if we started to talk about our predictions probablistically. That way we would be acknowledging the uncertainty. Here, I still things off:
10% chance of a significant decline in Auckland house prices greater than 25% in real terms
35% chance of a moderate decline 10%-25%
35% chance of a small decline 0%-10%
10% chance of a small gain 0%-10%
45% of that range hovers around 0%. And that’s 0% real so actually about 1.5% nominal. If TTP, Zack, and DGZ all think things will be flat then we are 45% in agreement.
Hi Hardly,
You're welcome to your views.
I think it's highly likely that Auckland sales volumes will remain relatively soft - but that prices will remain firm.
And that's very much a majority view - with the exception of this blog (which has more than its fair share of doom and gloom merchants with loaded agendas).
TTP
Thanks for mentioning me. OMG if a derelict state house is worth over $3M on Hapua goodness only knows how much my mortgage-free home is worth LOL. Not that I'm selling :-P -P -P
Just because the tenant thinks it is "Bulls**t" (as reported) it doesn't mean it won't fetch that much!! It is also obvious that DGZ, sea views and >2000sqm of land are omitted in the article on purpose to make it sound more ridiculous...meh! http://www.nzherald.co.nz/property/news/article.cfm?c_id=8&objectid=119…
John Key’s brighter future:
https://i.stuff.co.nz/auckland/local-news/northland/101016271/one-woman…
Well there's economic planning for you. Squeeze the local population on rents in a region where incomes are arguably among the lowest in the country. That's the perfect situation for decimating consumer spending and to send the Northland economy into a self-perpetuating downward spiral.
i have just returned from kaitaia and that town is a shadow of what it should be, job prospects for the young are not good ( from talking to locals), most have to move away, the biggest building on main street is welfare with two guards stationed at the door, one outside one inside.
i stayed in a motel run by an ex RE from my area that just moved there,
it is sad how governments have neglected the regions
A family member who just bought a semi-rural property 2 hours north of Wellington, just banged up a fully detached sleepout on his property, no consent needed for a total of $2,000. The foundation posts are concreted in and he built it to comply with the no consent laws. He is a builder and knows the law inside out. He will be housing his younger brother and charging fair and minimal rent. It helps out his family and at the same time adds value to his property which has an amazing view and not overlooked by any neighbours. I am thinking about doing the same thing on my property in town. Add an extra room/sleepout to help out our kids who think they are still stuck in the Auckland Rental cycle. One less builder for Auckland wouldn't be missed surely? Plenty of builders jobs advertised in the regions right now. Name your price. There is a 2 year waiting list where I am right now.
A family member who just bought a semi-rural property 2 hours north of Wellington, just banged up a fully detached sleepout on his property, no consent needed for a total of $2,000. The foundation posts are concreted in and he built it to comply with the no consent laws. He is a builder and knows the law inside out. He will be housing his younger brother and charging fair and minimal rent. It helps out his family and at the same time adds value to his property which has an amazing view and not overlooked by any neighbours. I am thinking about doing the same thing on my property in town. Add an extra room/sleepout to help out our kids who think they are still stuck in the Auckland Rental cycle. One less builder for Auckland wouldn't be missed surely? Plenty of builders jobs advertised in the regions right now. Name your price. There is a 2 year waiting list just to get builders where I am right now.
It is really sad to read such an article about this new homelessness problem:
https://www.stuff.co.nz/auckland/local-news/northland/101016271/one-wom…
I think that AIRBnB is going to create a huge rental problem if more landlords get sucked into using the scheme in a chase for better yields and a more profitable temp accomodation business!. and Obviously a good way for bypassing the new Healthy and WOF bills, let alone tenancy headaches etc ...
In Fact, this will exacerbate the current shortage in Rentals and disturb the healthy pool of rental properties required for maintaining a smooth market ... Are we going to see more Teepees, tents, and caravans in Parks ? .... What about Winter?...
Things are just not adding up and are pushing the problem to a tipping point - First, an ill considered foreign buying bill ( which is facing resistance from lawyers ... etc as reported in the Herald today), .... then, All the rhetoric about closing tax loops and scaring off landlords with imminent CGT, Neg Gearing etc removing the remaining incentives for being in this business !.... in addition to Tight Supply, LVR, and tight lending ...all eventually leading to a smart fast Decrease in the available Rental properties !... So What would any sane person expect the results of all above would be ? .... Teepees and tents for starters !! ... Did i mention the annual organic increase in rental demand ??
As if the rental market didn't have enough vows of its own ... we now have to thank the "AIRBnB phenomena" to create a bigger disaster !! .... I had a look at what was available on AIRBnB ....Geez, this is amazingly convenient and Dangerous !!
I couldn't stop wondering how this shortage in rentals would help in improving the child poverty problem going forward ? ..and BTW, Noticed that no one is talking about the "thousands" of Homeless people and their Motel Bills anymore... Was that issue solved ? or just pushed under wraps for now ?.
By the time Kiwi Build starts next year ( if ever ! ) I think the Gov will hardly build enough each year to house the "new homeless people in the parks " !! .... Which will be Great, it will eventually make it the largest Landlord in town and leaves Property owners ( mum & dads) to make some money through AIRBnB !! .... half the country will turn to B&B business in no time, isn't technology wonderful ?
It just seems that this Government has lost the plot to fix this issue and don't seem to take notice of the cliff they are driving us into !!...
Pity really !! ... I hope like hell, that I am wrong..
You seem to be blaming the current Government yet ignoring the role of the previous Government - more outrage porn. Get over it. New Zealand has dug a hole and we have no one blame but ourselves - suck it up ladies. Is your comment really about the situation with housing or are you still smarting over the loss by National. If you havn't realised we have been indoctrinated that greed is good.
I'm still on holiday.....like a lot of people... so really Dec/Jan numbers don't interest me.
Perhaps April/May will be a better idea where things are headed. AKL Ann weekend, Waitangi, still a lot of weekends for people to be away into Feb. I'm not saying the numbers are aren't down. It's just reading articles like this everyday and hearing the over analysis be the select few is very draining. Back to the holiday, will investigate the market later....
Agreed. April/May will provide a clearer picture. Everything looks currently to be a typical stagnant/ plateau stage. It's hard to call where the market will go after this kind of pause, but certainly no dramatic news either way right now (apart from RE's tightening their belts).
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