Buyers are still active but they didn't have a lot of choice at latest apartment auctions

This apartment in the Grand Chancellor building sold for $590,000.

There wasn't a lot on offer but just about everything sold under the hammer at this week's main Auckland apartment auctions.

At City Sales a 77 square metre, two bedroom apartment with a balcony and car park in the Newton Rise building on Newton Road attracted bids from several potential buyers, but the bids remained within a fairly narrow range, opening at $500,000 and reaching $555,000.

But that wasn't quite enough to get a sale across the line and it was passed in, for negotiations to continue post-auction.

There was also just a single offering at Barfoot & Thompson's regular apartment auction, a two bedroom penthouse unit (47 square metres) with a car park in the Imperial Gardens building on Hobson St.

The building has remediation issues and there was only one bidder for the unit but that that's all that was required and it was sold under the hammer.

At Ray White City Apartments three units were on offer; a 57 square metre, one bedroom unit with city views in the Grand Chancellor building on Hobson St, a 54 square metre, one bedroom unit in the Montepellier building in Eden Terrace and 41 square metre, one bedroom, leasehold unit in the Lighter Quay complex on Halsey St.

There was competitive bidding on all three properties and they all sold under the hammer.

That was the second week in a row that Ray White City Apartments has had a 100% sales clearance rate at their auctions.

Overall auction activity remains subdued at the moment but buyers are still about and sales are being made provided vendors have a realistic view of where the market is at.

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

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18 Comments

How many buers were non residents buying before the ban is implimented.

Would be interesting to know as I know agents are pushing hard to non resident buyers to buy now before it is too late.

Latest reports I read, non-residents will still be able to buy apartments. Law will only apply to detached dwellings. Similar to methods used in Canada. Does not surprise me in the least....been saying this for months that the next wave of capital gains would be in apartments/condos. Then of course, another waisted government funded tax payers study will come out denying any foreign buyers involvement.

An old report but stats worse today,,,
https://www.economics.utoronto.ca/gindart/2015-12-04%20-%20More%20foreig...

https://business.financialpost.com/personal-finance/mortgages-real-estat...

https://business.financialpost.com/real-estate/condo-prices-still-on-fir...

Hi Taimaiakka,

Contrary to DGM “opinion” here, there’s no evidence that foreign buyers are particularly active in the Auckland market right now.

But there’s plenty of evidence that auction clearance rates have risen over the last few weeks. Notably, however, a number of DGM are in denial about this....... (See their dubious comments below.)

TTP

Gotta love the most recent 18% clearance rate CBD auction. The future auction clearance rate is quite likely to improve on that number! :)

Mate, please, if a result doesn't fit the narrative please ignore it.

Hi TTP,

I find your use of the term "DGM" troubling. Lower priced housing is not doomy or gloomy or the vast majority of people in this country.

SFA

TTP, there's little achieved by deliberately weaseling your way around Barfoots early 30s clearance rates. Being that they are by far Auckland's largest realty, its a pretty good indicator of the yawning gap between buyers and sellers expectations. Again, note Australia's clearance rates are higher in the 50s, yet their market is falling.

In the now quieter times, I would suggest smaller agents presenting properties that are more likely to sell. This might have more to do with their own unique fee structure mixed in with pockets of strength still coming from their own provincial territories.

Hi TTP

so 4 out of 5 in these results

And 32 of 96 at Barfoots earlier in the week. https://www.interest.co.nz/property/94706/auction-sales-rates-ranged-18-...

Its not rocket science to guess which is the better indication of the market at the moment, although I dont expect you to make that correlation.

Oscillations, good sir.

Oscillations.

Lets all make our best estimate on a home that is about to come on the market. 15 Hesketh street , Kingsland. Will be listed with Ray White. What will be the asking price ? But most of all what will it actually sell for . This property is fully renovated.

Of course this will generate no response from China and have no impact on Chinese students coming to NZ - and thus the demand for apartments. The game is just beginning.

https://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=12086974

Do you know anyone who may be suffering from mortgage stress? Are their ramblings becoming less and less coherent? Maybe they need a little dose of reality from the Wizard of Oz - Martin North. Coming to a suburb near you!

https://www.youtube.com/watch?v=SO5MnQDZrNc

https://www.youtube.com/watch?v=T3KdR9gzr3Y

https://www.youtube.com/watch?v=F65pafZCv7M

https://www.youtube.com/watch?v=pURdUxsTepc

Nic, under stress test, $40 Billion losses projected by APRA, $298-$310 Billion from two private economists based on a -35% drop in house prices. Thats a huge disparity. APRA is saying "banks can comfortably absorb losses" private economists disagree and believe that Government intervention (bond buying) would be likely.

It would be good to see similar independent analysis to the RBNZs recently published stress test. What happens there, will happen here.

RP, How much information do you think we are likely to get with a 'confidentiality agreement' in place between the banks and the regulator?

Who are the two "private economists'? Are you sure they are not just talking up a private  'short' position?

Martin North of DFA, and LF Economics: https://www.lfeconomics.com/analysis/putting-apras-stress-test-test/

Curious, how do you short the RE market? I'm keen.

There was a general public educational movie..., well comedic movie, The Big Short. But in reality the key outcome is don't unless you have a lot of money either way.

Who the hell wants to live in Auckland CBD anymore?

https://old.reddit.com/r/newzealand/comments/8yyerj/the_state_of_aucklan...