38% sold at Bayleys' latest Auckland auctions, 59% sold at Eves in Tauranga

Property

Top prices at Bayleys' latest auctions were $4.4m for a three bedroom villa in Herne Bay and $7.2m for a Te Aroha dairy farm

19th Nov 18, 4:50pm by Greg Ninness

Bayleys Real Estate sold exactly a third of the properties at their upper North Island auctions last week.

The agency marketed 58 residential properties for sale by auction in the upper North Island last week and achieved sales on 19 of them, giving a sales clearance rate of 33%.

The main action was at the Auckland auctions where 40 properties were offered and 15 were sold giving a sales clearance rate of 38%.

At Bayleys' Hamilton auction a mix of residential and farming properties were offered, with a third of the residential properties changing hands but 80% of the farms finding new owners.

The most expensive residential sale of the week was a three bedroom villa on Herne Bay's northern slopes that sold for $4.4 million, while the least expensive sale was a four bedroom bungalow in Cambridge that went for $602,000.

The farming properties sold at Baileys' Hamilton auction included a 78 hectare dairy unit (with 554,720 Tatua shares) at Te Aroha that fetched $7.2 million and a 40.8 hectare support block at Gordonton that went for $2.36 million.

In the Bay of Plenty Eves Real Estate had a cracker week, taking 17 properties in and around Tauranga to auction and selling 10 of them, giving a sales clearance rate of 59%.

Details including photos of the residential properties offered at Eves' and Bayleys' auctions and the selling prices of most of those that sold are available on our Residential Auction Results page.

Details of the farming properties that sold are available on our Rural/farm sales page.

For commercial property sales check out our Commercial Property Sales 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 comments below. If you are not already registered, please register to 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.

40 Comments

by Nzdan | 19th Nov 18, 5:00pm 1542600051

Great result. What do you doom and gloomers have to say about this one?

OTP

by Nic Johnson | 19th Nov 18, 5:10pm 1542600604

Looks like the Real Estate Industry has gone into overdrive over the weekend..... several articles already published today and big celebrations of a 33% clearance, positive news- it will be toast and beans this Christmas!

Do we have any other economic news, business news that might be worth talking about? Something about kiwi firms taking over the world with big growth in exports would be a lovely story to hear!

by BuyLowSellHigh | 19th Nov 18, 5:18pm 1542601097

We are sitting on a debt landnmine packed full of cyclical illiquidity, Chinese bonds, Sydney appartments, Fed rate hikages, interest only Melbourne mortgages, overly leveraged bonds and bubble bath. The chickens coming home to roost are just around the corner. These chickens mean business and we are all in seriously serious trouble.

by PropertyPrices2Fall | 19th Nov 18, 5:25pm 1542601535

The first time I see you talk sense, intentional or not

by tothepoint - d… | 19th Nov 18, 5:33pm 1542601993

The housing market remains steady.

Nonetheless, there are increasing signs that this summer will see a more buoyant level of activity than last summer.

A strengthening labour market (with increasing wages) is adding to buyer confidence.

TTP

by stuart786786 | 19th Nov 18, 9:58pm 1542617939

Check result of Raywhite Auction today at Halfmoon bay and will realize that doom and gloom is an understatement.

Reality is that market is going down and gling fast - knew it would but did not expect it to go downhill so fast.

It seems is trying to match the speed with which it went up.

By denying one is fooling onselves.

by Pragmatist | 19th Nov 18, 11:06pm 1542621995

don't leave us in suspense.. from 8 on the webpage they sold? one? none?

by Pragmatist | 20th Nov 18, 7:21am 1542651680

I love their auction results page for the last auction..https://rwhalfmoonbay.co.nz/auction/results-from-our-5-november-auction/ clearly that was a flop, and the half-hearted spin they put on it is comical.

by HouseHunter | 20th Nov 18, 8:04am 1542654257

Did you see that 182A Cook Street, Howick passed in at $1.2mil (way more than it's worth)? CV is $1.115. Think the vendor shot himself in the foot and is going to struggle to get above $1.2 mil for that house. You can buy a brand new 5 bed house in Howick for $1.2 mil.

@Pragmatist - Out of the first four, 2 sold. One way above the CV (+200k) and the second well below (-150k or so). The fourth should have sold (refer above 182A Cook Street) but the vendor had exceptionally high expectations.

by Pragmatist | 20th Nov 18, 8:16am 1542654970

Yep, I'm watching 62 Oranga Ave, it exceeded RV at auction but didn't meet reserve, now with an asking well above RV. I wonder if in a month or two they will be kicking themselves for not taking the auction offer.

50% clearance from the first four is good, and even if none of the last 4 sold that's about normal.

by Yvil | 19th Nov 18, 5:05pm 1542600341

Some expensive sales, looks like some Kiwis do have money after all, given foreigners can't buy in NZ anymore

by Nzdan | 19th Nov 18, 5:18pm 1542601083

Even owners of houses worth $1.5 million+ buy and sell in the same market, for a change of scenery or to move closer to work. The market is just carrying on as normal.

by tothepoint - d… | 19th Nov 18, 6:19pm 1542604746

Hi Yvil,

I've always doubted that the FBB would have much impact.

Now that NZ house buyers/investors are seeing for themselves that the housing market has not collapsed with the FBB's introduction, I suspect they are becoming more confident.

Of course, this is NOT what many people here thought/hoped would happen - so there will be quite a bit of disappointment and tension (as we are seeing right now).

But, often government policy has unintended consequences....... especially when it's made "on the hoof" and based on ideology.

TTP

by J.C. | 19th Nov 18, 7:12pm 1542607925

But, often government policy has unintended consequences....... especially when it's made "on the hoof" and based on ideology.

Are you referring to the ideology and / or hegemony that both Labor and National share where public debt is kept low and private debt high?

by fat pat | 19th Nov 18, 8:17pm 1542611863

Amazing how two people can look at the same data and reach different conclusions. Of course Tauranga with its best suburbs like Matua and the Mount are doing just fine. Those places are typically purchased by boomers with tons of equity, but more importantly they're not insanely overvalued. Meanwhile Auckland has collapsed, particularly at the upper end. Check out this or this. Both beautiful houses in St Heliers that went to auction and failed, now discounted by negotiation. In late 2016 they would have sold like hot cakes to "you know who".

by Ex Expat | 20th Nov 18, 9:22am 1542658939

Beautiful is over egging it, but both are certainly attractive, in a Bays way. We have expressed a standing interest in the apartments next to Vellenoweth Green, but only the West side and only in the area directly facing the Green. Early morning sun. We would expect to pay $2,000,000 and have to completely gut the apartment. This is gods waiting room so sellers have been there for yonks and the interiors show it. Very little upside, you buy to live in it until you cark it.

by Yvil | 19th Nov 18, 5:12pm 1542600766

Going through the 5 first pages of the linked "residential auction page results", I am very surprised that 31 properties sold for over CV and 6 sold under CV, I thought this number would be about even.

by PropertyPrices2Fall | 19th Nov 18, 5:29pm 1542601740

Evil. Do you need to be reminded that the cream of properties are selling at auction, ie ones which would normally have sold 60 or 70 % over rv. Now they are just scrapping over that mark

by Zachary Smith | 19th Nov 18, 5:42pm 1542602525

Now that's just plain wrong. When I did my analysis regularly it was very rare to see such a thing. In general the good houses in Central Auckland were selling for only a 10 -20% or so above RV. The average was something like 3% above RV.
You may be confused with the sales comparisons with the 2014 RV where such percentages were seen.

by tothepoint - d… | 19th Nov 18, 6:16pm 1542604597

Hi Zachary,

Your analyses were both thorough and helpful.

Any chance you might continue?

If so, much appreciated.

TTP

by Zachary Smith | 19th Nov 18, 8:47pm 1542613670

Thanks TTP. I do believe they gave a good snapshot of the general state of affairs. I see Interest.co now publish the RVs for many of the successful auctions. I like to give myself some credit for this development as it is quite interesting. Readers can now quickly ascertain how things are looking without me working it all out.

by HeavyG | 19th Nov 18, 6:55pm 1542606957

Sshh... you can't call BS on a BS merchant, that's all they have.

by PropertyPrices2Fall | 19th Nov 18, 7:11pm 1542607864

Amazing self recognition

by Yvil | 19th Nov 18, 10:25pm 1542619539

PP2F, your comment about houses selling 60 to 70% above RV is about as wrong as calling for property prices to fall 8 years ago.
Do you actually know what the RV you refer to stands for?

by PropertyPrices2Fall | 20th Nov 18, 11:30am 1542666619

[Unnecessary personal abuse deleted. Ed ]

by tothepoint - d… | 20th Nov 18, 9:44am 1542660269

"PP2F, your comment about houses selling 60 to 70% above RV is about as wrong as calling for property prices to fall 8 years ago."

Indeed. We need to hold the culprits to account. (Let this serve as a warning to others.)

TTP

by PropertyPrices2Fall | 20th Nov 18, 10:55am 1542664512

Lol, do you realize that you are referring to yourself

by J.C. | 19th Nov 18, 7:15pm 1542608100

Is CV some kind of benchmark to determine whether or not you "got a good buy"? I would think that CV is simply a construct created by local govt. Correct me if I'm wrong.

by PropertyPrices2Fall | 19th Nov 18, 7:19pm 1542608350

There are some jerks that still use that as the gold standard. .

by Pragmatist | 19th Nov 18, 7:25pm 1542608732

Far from perfect, but unless there is a registered valuation its probably the best impartial stat available.

by Nzdan | 19th Nov 18, 9:29pm 1542616192

People like Ex Expat use minute by minute CoreLogic updates for self affirmation. He’s been trying to get it loaded into the Stocks iPhone app for a while now.

by PropertyPrices2Fall | 19th Nov 18, 10:32pm 1542619921

Hahaha, you listed one of them ;)

by Ex Expat | 20th Nov 18, 6:03am 1542647035

Fake news, I use the CV relationship because it’s pointless posting a value without a reference point. Btw the estimated value is $2,510,000, which is probably a lot higher than it was in August 2012.

by Ex Expat | 20th Nov 18, 9:25am 1542659145

New value hot off the press. Down to 98.70% as of 18/11, to $2,467,000. A drop of $43,000 in one week.

by PropertyPrices2Fall | 20th Nov 18, 10:56am 1542664581

You poor bugger, you will need to put in a couple more hours at work to make that up

by Miggle | 19th Nov 18, 5:26pm 1542601565

Bayleys Tauranga didn't quite mention their Tuesday 14 Nov auction. 8 up for sale, none sold, one sold prior....

by theglc | 20th Nov 18, 9:27am 1542659233

How convenient!

by DitchSkipper | 20th Nov 18, 4:16pm 1542683814

Oh that's because if they sell zero properties it doesn't count.....right??!
The market is tanking, blind Freddy can see it.

by alittle | 19th Nov 18, 10:14pm 1542618897

NZ housing boom is over but it is not just in NZ but world over

https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12…

10% to 20% fall could be seen in Manuakau region, still have some resistance but will soon be across the country and will not be surprised if the fall is 30% by early next year.

by BacktoPerth | 19th Nov 18, 10:27pm 1542619648

I wish I was back in NZ buying property after all of this significant positive news... oh wait, couldnt afford it... thats right....