More properties taken to auction in Auckland but Christchurch has a higher sales rate

Auction results from the week of October 27 to November 2 suggest the housing market remains on a reasonably steady footing.

Interest.co.nz monitored 333 auctions around the country over the week, and sales were recorded on 126 of them, giving an overall sales rate of 38% for the week.

That compares with an overall sales rate of 41% for the entire month of October.

The selling prices were able to be matched up with Rating Valuations (RVs) for 108 of the properties that sold. Of those, 75 (70%) sold for more than their RV, three sold for the same as their RV, and 30 sold for less than their RV.

That was a slight improvement on the 60% of sales that sold for more for than their RVs in the month of October.

Auckland remains the country auction capital, with 212 auctions monitored in the region in the week from October 27 to November 2, which was 64% of the auctions monitored nationally.

However the sales rate was lower in Auckland than in other parts of the country, with sales achieved on exactly a third of the properties offered at the Auckland auctions, compared to 38% in Tauranga and 49% in Christchurch.

Of the 56 Auckland properties that could have their selling prices matched up with their Rating Valuations (RVs), 30 (54%) sold for more than their RVs, in Tauranga 90% sold for more than their 2015 RV, and in Christchurch almost two thirds sold for more than their 2016 RV.

Details of the individual properties auctioned are available on our Residential Auction Results page.

You can receive all of our property articles automatically by subscribing to our free email Property Newsletter. This will deliver all of our property-related articles, including auction results and interest rate updates, directly to your in-box 3-5 times a week. We don't share your details with third parties and you can unsubscribe at any time. To subscribe just click on this link, scroll down to "Property email newsletter" and enter your email address.

We welcome your help to improve our coverage of this issue. Any examples or experiences to relate? Any links to other news, data or research to shed more light on this? Any insight or views on what might happen next or what should happen next? Any errors to correct?

We welcome your comments below. If you are not already registered, please register to comment or click on the "Register" link below a 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

Interestingly, some people here predicted that house sales would fall away dramatically following the introduction of the so-called Foreign Buyers’ Ban........

TTP

Notably also, houses selling above RV remains a widespread feature of the market......

TTP

up
10

Fact..

However the sales rate was lower in Auckland than in other parts of the country, with sales achieved on exactly a third of the properties offered at the Auckland auctions,

When did that become a good look story..

up
10

But for non-Auckland RVs when were the RVs updated?. saying 70% sold for more than RV if the RVs are from 2015 doesn't exactly mean much.

And to put the Auckland sales in another light:. 1/6th of Auckland auctions hit RV or better, 1/6 sold for less than RV, and 2/3rds failed to sell.

No. Section sales and apartment sales in Auckland City actually.
Sales over $1.2m have been falling for months.
Also, remember that comparator is 2017 which was an abysmal year compared to 2016.
Try comparing to 2013 and you will see sales are LOWER now than were then.
Why? Bleeding obvious - prices
Stock up, sales down. So much for being demand and supply led.
Why are banks offering silly low rates? Because interest rate is price of credit and no one wants it - lending is 28% below 2016 if you study RBNZ figures. Sales will disappoint over Spring and collapse in summer due to AML and turn in China economic cycle

In Australia they are freaking out at clearance rates above this right now...

These results are a week old..

What are the latest up to the minute results please

Your phone number?

That wasn’t a housewife you were asking her number of
That was houseworks

B&T auctions this week (for the Bays area) 5 sold out of 23 = 22% success rate.
Terrible result, especially for November.

Friday Shortland street, 1 sold out of 20

Thanks Triple
Someone with info I’m interested in
That’s an appalling outcomes for the bays

Christchurch sales are still going great with plenty sold under the hammer.

People are seeing that ChCh is going to be the city of the future in NZ.
Be in before you can’t afford them like Auckland!

Hi TM2,

Palmerston North housing market also thriving with buoyant house sales - and upward price pressure.

A good choice for families, students, young professionals and retirees who prefer a slower pace of life than the larger centres. Lower cost of living remains a big attraction......

TTP

A flat, charmless town with a serious crime problem and lack of police presence. Not to mention gang head quarters spread throughout the city, including up market suburbs like Hokowhitu and Kelvin grove.

Brisbane (2 million people vs Palmerston Norths 90,000) is similarly priced. Why not buy there, earn better money, pay less for groceries, enjoy better police protection and keep your family safe?

Personally, I’m not attracted to the (oppressive) heat, snakes and poisonous spiders of Brisbane.

In any case, Palmy folk are much more friendly.

But each to their own.

TTP

Agent TTP is a snake.

You're an REA. You couldn't make it in Australia right now. Why talk like that's an option?

snakes/spiders... lame. sub 100k towns with crime problems are as expensive as 2 million people state capitals with higher wages. No matter what way you spin it, it's a bad choice.

Here's a recent post I saw on reddit the other week, describing the situation at one of the towns largest employers:

Palmerston North Hospital had like 20+ car break ins like last year (over 2-3 week period)

Most weren't sick folk - but workers.

We also had the scummy gang members who live across the street, send their 7-10 yo children into parts of the hospital (read: past "secure" doors) to steal workers credit cards etc, while they were working;

took them no less than 20 minutes to spend some of it at hallensteins in the central city.

The Hospital Security knew about it - they knew who they were; but didn't want to get in trouble with both the Gang, or the police for scaring a child...

this is really really common stuff.

500,000 for to live in an average house and be in-amongst this vibrant lower north island community. Your children will thank you for it!

Hi Saving4AUhouse,

Don’t believe all you read in reddit!

For a start, $500,000 buys a really good house in Palmy - far better than average. In fact, that money will get you a very nice 3/4 beddie in highly sought-after Hokowhitu.

TTP

3/4 beddie

'beddie'? Are you a child?

highly sought-after Hokowhitu

Where the Mongrel Mob have moved into.

3/4 beddie

That's the common terminology for 3 to 4 bedroom house. I thought you would know that s4ah

Palmy ...... it’s the kiwi dream
High crime

Don't put yourself in debt living in a cold, smoggy, dull provincial town.

For the same price you could live in Brisbane and earn some real money.

I lived in PN through winter and didn’t encounter any smog - and neither has anyone else I know.

That’s hardly surprising, as the Palmy breeze would soon disperse any smoke/fog.

If Palmy is beyond your station in life, may I respectfully suggest picturesque Hawera in Taranaki......

TTP

I was referring to Christchurch, that has smog.

If Palmy is beyond your station in life, may I respectfully suggest picturesque Hawera in Taranaki......

You don't get it do you. Perth is the same price as Palmy. You would have to be a gibbering moron to buy there instead of Perth.

Sorry - but 85,000 people think otherwise.....

And they can’t all be glibbering morons. (Some are academics from Massey University, hospital medical specialists, successful business people and so forth.)

In fact, Palmy is a good place to buy a home and raise a family.

Palmy doesn’t have the vibrancy of Ponsonby - but it has very good sports/recreation, education & other facilities.

TTP

I've lived in PN, I know people in PN, you can't pull the wool over my eyes. It's over-priced, under-policed, has a gang problem, a p problem, a violence problem, and is as expensive as an australian capital.

Almost every man I've known who has lived in Palmerston North has a story about being bashed in by strangers. Good place to buy a family? You make me sick.

Does this make you sick as well?

https://www.stuff.co.nz/national/89850315/A-love-letter-to-Palmerston-North

We lived there for about 8 years just recently - never burgled, never bashed, never felt unsafe. Perhaps it has changed for the better since you lived there?

Oh dear Kate
I’ve relatives in Palmy who are moving because of the crime
This is today not years ago

We lived in Riverdale, Hospital, Aokautere and Hokowhitu - one son was in Takaro and another in West End. And none of us while there were ever the victim of any crime. I'm only speaking from experience but don't recall it being a big subject on Neighbourly either. Finding that aspect a bit different since moving to the Hutt - lots more talk on Neighbourly about thefts and break ins. But, hey, I'm sure your rellies have experienced something different and that's a shame.

Chinese not too keen on Chrischurch eh?

The only people keen on Christchurch are people from Christchurch. They love it.

It's a lovely city.. not sure why people beat it down..

13341 res props Auckland for sale trademe
800 Hamilton

Why are vendors still auctioning their homes ? Surely some read / see these results.
A friend of mine who was struggling for listings in ak a year ago, now has 13 albeit in his words, low quality mostly renters.

Why auction? Many reasons. We have bought and sold through auctions and it can have varied results up or down from what you were expecting or hoping for. Auctions can get results when other methods don't. As a buyer, I prefer going through auction than having to buy through tender where agents try their best (worst) to deceive.

Like you think auctions aren’t a place of deceptions ?
Vendor bidding still allowed in NZ

Like you think auctions aren’t a place of deceptions ?
Vendor bidding still allowed in NZ

Like you think auctions aren’t a place of deceptions ?
Vendor bidding still allowed in NZ

Yeah that's true NL, at least you know when they are vendor bidding. Agents also pause an auction and negotiate with both sides, possibly just the two parties of buyer and seller, so the agents have various tactics during an auction. What I was talking about with tender is the way some agents run their tenders to get you to pay more. Plus when you tender you never know what others are thinking. Auctions are in the same room and in public, at least.
How do the estate agents run sales campaigns where you are?

Auction = commission earlier

REINZ data coming out very soon. The DGMs are going to be so salty. Looking forward to it.

Hi BLSH,

Yes, indeed. The DGM are now bracing themselves for the release of the REINZ statistics - and their regular mid-month mauling......

TTP

To the contrary a lot of us here are merely being objective
The trend line has indeed altered from the continual rises
There has been a level off overall and in some instances a decline
Of course exceptions exist but no amount of puffery alters the facts
I’d be very concerned considering Sydney + Melbourne declines & my RE buyer on GC informs me not all’s well there either although nothing like the big cities

With all due respect, Sydney & Melbourne are Australian cities.

It would be fallacious to assume what happens in Australia will also happen in NZ - and vice versa.

TTP

Shows your petty brain.. nz can't survive by itself...

Our banks are linked.. they own thousands of our houses, they are our biggest trade partner...if things go pear shaped, you reckon no impact here..

Fallacy...

Mikekirk29, not sure what you mean about your question about Chinese not likeing ChCh!
There is basically 2 areas in Ch.Ch. Where it is like Chinatown with shops!!
As far as I can see there are plenty around but they tend to keep to their own.
Don’t mind the Chinese as they work hard and have good takeaways!

As far as I can see there are plenty around but they tend to keep to their own.

Keep to their own, eh?

Enclaves are the new black. That wasn't the Kiwi dream. Has the twice the average OECD rate been swamping that old dream?

But it was necessary because that and rising house prices were what constituted "sound fiscal management".

Just a few weeks back this article

https://www.interest.co.nz/property/96570/sales-rates-rising-bayleys-auc...

Now a 28% last week and a 33% this week. Looks like the FBB is doing its trick!