Overall sales rate of 36% at Barfoot & Thompson's latest auctions

Property

Big variation in sales rates at Barfoot & Thompson's latest weekly auctions

6th Mar 18, 10:24am by Greg Ninness

Barfoot & Thompson achieved an overall sales rate of 36% at the agency's auctions last week.

It was an impressively busy week in Barfoot's auction rooms, with 261 properties marketed for auction.

However buyers are more cautious at auctions these days and sales were achieved on 93 properties, with most of the remaining 168 passed in for sale by negotiation.

At the agency's major auctions where 20 or more properties were offered, the sales rates ranged from 14% at the Shortland St auction on March 1, where most of the properties offered were in central Auckland suburbs such as Epsom, Mt Eden, Mt Albert, Mt Roskill and Royal Oak, to 44% at the Shortland St auction on 28 March, where a whopping 70 properties were offered, also mainly from inner Auckland suburbs, such as Remuera, Glendowie, Orakei, St Heliers, Epsom, Ponsonby and Pt Chevalier, and the sales rate was 44% (see chart below for the sales rate at all the auctions).

At the Manukau auction the sales rate was 21% and on the North Shore it was 40%.

Details of all the properties offered and the prices achieved for most of those that sold are available on our Residential Auction Results page.

**Barfoot & Thompson Auction Results 26 Feb - 4 March 2018**
Date	Venue	Sold	Not sold	Total	% Sold
26 Feb - 4 March	On site	10	13	23	43%
27 February	Manukau	9	34	43	21%
27 February	Shortland St, CBD.	6	7	13	46%
28 February	Mortgagee/High Court	2	1	3	67%
28 February	Shortland St, CBD.	31	39	70	44%
28 February	Pukekohe	1	11	12	8%
1 March	North Shore	19	29	48	40%
1 March	Kerikeri	3	2	5	60%
1 March	Shortland St, CBD	3	18	21	14%
2 March	Shortland St, CBD	9	14	23	39%
Total	All venues	93	168	261	36%

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58 Comments

by Houses Overpriced | 6th Mar 18, 10:37am 1520285830

The two highest rates of sales is Mortgagee and in Kerirkeri..

if they are removed, the sales rates for Auckland region would be around 30%

by tgcam4 | 6th Mar 18, 11:21am 1520288473

They were pretty low volume though, my calculations with those removed results in 34.8% clearance

by Averageman | 6th Mar 18, 11:33am 1520289182

Most property's offered are in central leafy burbs, owners looking to bank gains before Cullen and Taxinda find a way to harvest them (from the tax working group).

by Brock Landers | 6th Mar 18, 2:04pm 1520298278

Taxinda? Omg that's brilliant. Did you come up with that one all on your own?

by kpnuts | 6th Mar 18, 11:01am 1520287279

nope - 34.8 - so 35% small number very little impact overall -

interesting though that the highest clearance rates by far are still the inner suburbs - so quality still sells at auction - but yesterdays report stated a huge increase in the number of houses sold at lower prices - circa 500K

Clear evidence of how you need to consider where you live in terms of how you market your property

by CWBW | 6th Mar 18, 11:22am 1520288550

ROFL

by nymad | 6th Mar 18, 11:25am 1520288731

lol

by MrsWong | 6th Mar 18, 11:35am 1520289322

High percentage categories have such small numbers so cant really look at percentages. Seems like still a lot of junk wanting high prices.

by Chairman Moa | 6th Mar 18, 11:44am 1520289871

For people from the far east, Sydney is a better buy at this market!

by Clementé | 6th Mar 18, 1:04pm 1520294690

I remember when I was back in the UK, prior to 2008 and everyone was getting into having a couple of rental properties "as you couldnt lose!"
It got to the point where prices in the south east got so expensive to be able to buy to let that many wernt able to secure finance for them.
A couple of guys at work were talking about being able to get 3 appartments in Bulgaria for the same price as one in Slough, off the plan, marketed exclusively to Brits at investment conferences (around 80,000 euros each) Their minds had been so warped by the property only ever goes up mantra they thought that any property anywhere in the world was destined to moon.
I was only 18/19 at the time and these were fully grown adults with kids - I remember looking at them thinking "are you mad?" buying 3 properties in a country they had never been to because they seemed comparatively cheap, word on the street was one bought two in a block that never got built and I'm not sure he ever saw any of the money, the other bought two which when they ended up being completed were selling for half of the cost he'd signed up for.
just a little story, but as we can see comparing manias and prices in your home market to somewhere else where the local pop is earning significantly less is super dangerous and we might see something similar when the foreign moneys is further tightened here .

by Chairman Moa | 6th Mar 18, 3:02pm 1520301775

I am referring people from The Far East. I personally know two that were thinking of buying in Auckland. After a short visit to both Auckland and Sydney they parked their money in Sydney, better opportunities and higher Uni education

by RickStrauss | 6th Mar 18, 11:51am 1520290279

Manukau, eh...doesn't look like a good place to be holding an investment property coming off interest only any time soon.

by Laminar | 6th Mar 18, 1:17pm 1520295426

Assuming a 5 year interest only term that means they bought in 2013 and id guess they are pretty happy with their $250,000+ gain. If they are ending their second round of Interest only then they bought around 2008 and quite probably doubled or tripled their money. The $200,000 loan on a property worth $650,000 today is going to cost them about $300 per week assuming its amortized over 20 years, their rent income will be about $450 per week, after some costs and occasional renovations etc thats probably positive by about $50 per week.
Stupid investors, let us laugh at their tears... of joy...

by RickStrauss | 6th Mar 18, 1:55pm 1520297741

Fair point. All that tax-free income. Let us laugh instead at New Zealand's working plebs who pay the taxes.

by Laminar | 6th Mar 18, 2:14pm 1520298888

Ill crack a bottle of bubbles with you and celebrate the day we close the CG loop hole of 'windfall gains'. It would be a huge benefit to cut the lower half of earners taxes to 0 and roll back GST. However its no accident that windfall gains are excused by both the left and right politicians so i doubt we will ever see the day its closed.

by Double-GZ | 6th Mar 18, 12:02pm 1520290928

Bhuahahahaha another victim claimed!
'Not a trivial matter': Foreign buyer ban to 'significantly impact' Spark's 5G plans.
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=120…

by RickStrauss | 6th Mar 18, 12:03pm 1520291001

Someone who doesn't understand how the select committee process works?

by theglc | 6th Mar 18, 12:19pm 1520291940

how sad that you post a link to Mike Hosking.

Id rather poke needles in my eyes than listen to his drivel.

by sharetrader | 6th Mar 18, 12:19pm 1520291945

puts spark on the same footing as vodafone and three degrees, so why is that a bad thing, might make them sharpen up there act

by Houses Overpriced | 6th Mar 18, 12:30pm 1520292655

hahaha who would have guessed.. an article by a racoon

by swapacrate | 6th Mar 18, 10:47pm 1520329671

I am a juvenile but that is funny.

by Yvil | 6th Mar 18, 2:50pm 1520301041

Great link

by Retired-Poppy | 6th Mar 18, 1:03pm 1520294580

Leafy suburbs now feeling the weakness. The few quality ones are selling pretty much bang on CV. It was not that long ago quality were changing hands double digit % above CV;

41 Kawau Road, 2017 CV $1,450,000, Sold - $1,346,000
4 Otahuri Cres, 2017 CV $1,900,000, Sold - $1,450,000
81 Wheturangi Road, 2017 CV $2,700,000, Sold - $2,760.000

Nothing has come of the Chinese New Year, lower interest rates, foreign buyers ban or even rumoured easier lending standards. It's hard to get a handle on Kohimarama, St Heliers or Epsom because most if not all are being passed in!

The punch bowl has now been taken away.

by Ex Expat | 6th Mar 18, 12:35pm 1520292913

85 Baddeley Avenue Kohimarama goes to auction this afternoon at 4:30pm. It has a CV of $1,700,000, with a homes.co.nz expected price of $1,695,000. It has a pre auction offer and will definitely sell within one week of listing. This was one of the 'no stories' houses I mentioned previously. I'll revert with the price paid, but can guarantee it will be more than CV. All this proves is that CV on an individual property is not an indication of a trend. We need more Zachary size analyses.

by Retired-Poppy | 6th Mar 18, 12:59pm 1520294387

Ex Expat, fair enough ;-). I do think the spruikers dream theory that "leafy suburbs" are immune to price weakness is starting to come seriously unstuck. Interesting times ahead indeed.

by Zachary Smith | 6th Mar 18, 1:03pm 1520294621

The Otahuri Cres property above is an interesting one. Could be a bit of a bargain. It was an estate sale and in need of renovation. I have noticed the do-ups are not fetching premium prices. Compare to the Wheturangi Road one which was a funky villa with mod cons.

by ex socialist | 6th Mar 18, 5:08pm 1520309291

https://www.barfoot.co.nz/751252

doesn't look too bad

by Double-GZ | 6th Mar 18, 8:46pm 1520322366

Zachary these 2x properties sold over the last few days. SOLD stickers up.
https://rwremuera.co.nz/auckland/remuera/82-orakei-road-18036131/
https://nz.raywhite.com/auckland-city/remuera/1824804/

by Zachary Smith | 6th Mar 18, 9:51pm 1520326261

DGZ, things still seem to be selling around our areas. I walked by 4 Otahuri Cres and could see why it sold well under 2017 RV. It was actually quite a good price really as the REA's photos were shot with a wide angle lens and the property fairly close to the motorway and railway line. 25% above 2014 RV

by Double-GZ | 6th Mar 18, 10:23pm 1520328236

I agree with your logic. Houses are selling at a % above the 2014 CV. I think the 2017 CV is a little high but then it is for another 3 years so who knows what will happen in 3 years time.

by BadRobot | 6th Mar 18, 10:31pm 1520328696

ROTFL - this sounds just a tad revisionist.

by Zachary Smith | 6th Mar 18, 11:08pm 1520330907

BadRobot, in nearly all my reports I have remarked how close the 2017 RV was to the sales total when averaged out over a few properties. It is quite striking. See latest report below.

by BadRobot | 7th Mar 18, 8:14am 1520363654

But I believe you were crowing some weeks ago how the sales prices were above RV.

by Zachary Smith | 7th Mar 18, 8:42am 1520365361

They are above 2017 RV on average but only just. No report yet has come in below RV since the new values came out although this last one came close. I'm not crowing, just reporting.

by Ex Expat | 6th Mar 18, 1:06pm 1520294811

Nothing is immune, however aspirational, quality homes suffer less than most in a downturn.

by Double-GZ | 6th Mar 18, 5:32pm 1520310761

OMG 85 Baddeley Avenue has been sold in this afternoon's brought forward auction. Does anyone know how much it went for?? Ex Expat?
https://www.barfoot.co.nz/752940

by Ex Expat | 6th Mar 18, 6:29pm 1520314191

Not yet. Based on recent sales, I’m thinking $2,250,000. The CV doesn’t capture the renovations. New houses on Long Drive sold for $2,400,000 lately but I don’t think they had a pool. If you have a dog or young children this property would appeal.

by Ex Expat | 6th Mar 18, 7:24pm 1520317457

$2,030,000. 119% of 2017 CV. Not sure if that’s good or not. It looked like it was worth more in the pics. Anyway, just another data point.

by Double-GZ | 6th Mar 18, 7:35pm 1520318111

That's a good price considering land size only around 400m2.

by Ex Expat | 6th Mar 18, 8:08pm 1520320088

It certainly had no subdivision potential, but I thought North facing, five bedrooms and a pool might have countered that. Apparently a local buyer, carrying on the recent trend I’ve seen where it’s not the mysterious Chinese money launderer buying in the Bays.

by Retired-Poppy | 6th Mar 18, 10:04pm 1520327052

Ex Expat, thanks for the update - it's certainly a nice house :)

by Bobster | 6th Mar 18, 8:45pm 1520322300

Yeah it did look nice

by swapacrate | 6th Mar 18, 10:53pm 1520330034

Indeed, I get that price, at least that house makes sense.

by Badlad | 6th Mar 18, 5:47pm 1520311665

So are you saying buy in Sydney or not?

by Houseworks | 7th Mar 18, 5:40am 1520354437

RIP it was also not that long ago that the 2017 Auckland cv valuations came out! Mine went up 50 percent and if it sold for anywhere close to that cv I would be ecstatic and over the moon. So of course relation of sales values to cv values have changed!

by Hardly | 6th Mar 18, 12:36pm 1520293004

Things are not looking good in the south. When the prices fall there they will put pressure on the centre.

by canon | 6th Mar 18, 12:42pm 1520293378

8% at Pukekohe....

Looking at their latest 50 listings, 20 of 50 or 40% are up for auction. Does not compute

by Retired-Poppy | 6th Mar 18, 1:25pm 1520295941

Lemmings comes to mind.........

by Davo36 | 6th Mar 18, 5:17pm 1520309879

Agents love those auctions man! Buyers and seller be damned!

by Bluff | 6th Mar 18, 2:34pm 1520300057

If there's no rush to buy, I'd be waiting to see what effect the foreign buyer ban will have, implications of rate rises in the US, NZ inflation data that indicates a 2% plus figure might be in the wind, winter and how the All Blacks are looking this year. Prices are flat or modestly declining so the FOMO is now yesterday's emotion and patience is today's.

Plenty of stock in the leafy burbs, a number of reclads and leakers being passed off as a good deal

by CWBW | 6th Mar 18, 3:16pm 1520302600

It's amazing to see a spread in various stages of grief from the comments with the most verbose still in denial. LoL

by bigblue | 6th Mar 18, 5:16pm 1520309768

Why would you bother selling your house by auction when the failure rate is 70% and the remainder that sell have been beaten down with the auctioneers gavel to the head?

by Davo36 | 6th Mar 18, 5:20pm 1520310006

Because "You might get more..."

It's a ingenious system designed by agents for agents. They play into vendor's greed. Oh and buyers greed. All at the same time...

by Chairman Moa | 6th Mar 18, 6:09pm 1520312980

herd mentality

by swapacrate | 6th Mar 18, 10:37pm 1520329053

Pukekohe 1 11 12 8%

Quiet days in Pukekohe

by Zachary Smith | 6th Mar 18, 11:16pm 1520331376

I just checked 31 more properties that have sold and been added to the auction results page. I did exclude one that had pylon wires going over it as RV was not realistic. Only the normal, as far as can be determined, are included.
35.430M in sales with a 2017 RV of 35.270M - 0.45% above RV (close eh?)
2014 RV 24.560M - 44% above.
15 sold over RV, 15 sold below and 1 was the same.

by Nzdan | 7th Mar 18, 6:30am 1520357409

Vendors are aiming for RV. Wonder why there’s a 70% auction failure rate?

by Zachary Smith | 7th Mar 18, 6:57am 1520359023

It could be a case of buyers assuming that vendors are aiming for RV. I have a property that I believe would sell for 500k less than RV. If buyers think I want the RV value they're not even going to bid. I would probably need to sell by negotiation or signal strongly that my expectation is nowhere near RV. But then what if I am wrong and being too pessimistic?