Sales rate of 63% at Bayleys' latest Auckland auctions and 67% at the Tauranga auction - Hahei beach house sells for $4.05m

This penthouse apartment across the road from the beach at Mt Maunganui sold for $1.495m

Bayleys Real Estate had an overall sales rate of 40% at its residential property auctions last week.

The agency took 47 residential properties to auction in Auckland, Hamilton, Matamata and Tauranga and achieved sales on 19 of them, with most of the remainder being passed in for sale by negotiation.

At the Auckland auctions, 27 properties were offered and sales were achieved on 17, giving a clearance rate of 63%.

Prices at the Auckland auction ranged from $950,000 for a three bedroom villa in Onehunga to $4.05 million for a contemporary waterfront house at Hahei on the Coromandel.

And sales were especially good at the Tauranga and Matamata auctions, with both of the houses offered at the Matamata auction selling, while a lifestyle block on the outskirts of town was passed in, and at Bayleys' Tauranga auction six of the nine properties offered were sold.

Sales were slower at the Hamilton auction with just one of the seven properties offered changing hands, while sales were achieved on two of the six farm properties that were offered at the same auction.

Details and selling prices of the residential properties offered at the above auctions are available on our Residential Auction Results page, while details and prices of the farm properties that sold are available on our Rural/Farm Property Sales page.

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81 Comments

Having recently looked at the money laundering disclosure paperwork that is part of sale and purchase today , I suspect the increase disclosure requirements in Jan 2019 will have more impact than the FBB itself. Disclosure of Trustees, Company owners ship (ultimate ownership) and presentation of passport details of those parties will definitely shine a light in this area.

Great that some agents can maintain squashed advo and a few glasses of rose for Xmas.

"I suspect the increase disclosure requirements in Jan 2019 will have more impact than the FBB"

I agree as it closes a lot of loop holes for foreign purchasing, but you nee both to have an impact

Why 2019 ?
This should’ve been done years ago
Why wasn’t it National ?

check out the Auction results page and it appears that tomorrow's auctions have already had a wonderful success rate???? I smell a 'dead horse' in this data! Why are results for the 28th of November being posted on the 27th?

Thanks Nic. It appears the wrong auction dates have been entered. We are checking to see how this happened.

Thanks Greg.

I see all the Auction results that had been posted for the dates of 27th and particularly 28th of November have now been removed. Did we get to the bottom of the data issue?

The levers and data inputs don't happen automagically. Someone had to provide this data for it to be entered into an article. Wonder who came up with the figures if they are indeed false, and why would they provide false data?

I'm sure the B&T update on last week's auction results isn't far away. Hint - it's not good....

Bayleys seem to have consistently higher clearance rates than other agencies (not scientific, just an impression). Makes me wonder if they only recommend an auction to the vendor when they really believe they have a quality property that the market will compete for. Whereas other agencies send crappy properties to auction that don't have a hope in hell of selling.

Total sales of 17 in Auckland. Interesting result, but does seem we'll need larger data sets to get any reasonable impression, yes. Reasonable chance of selection bias as you identify.

14% clearance rate in Hamilton. But again, small numbers...

Both numbers seem most useful to those who don't grasp how percentages work. See below.

Also at least one of those "Auckland" sales was in fact a house at Hahei on the Coromandel.!

My RE agent recently traded her black Mercesdes 350 CLS to a Skoda Octavia. Her husband is also a RE agent changed his Audi A6 to a VW Golf TSi Trendline (not even a Gti)
We are doing very well she said !

Petty, envious, pathetic

Give me a Hillman Hunter any day.

TTP

Take a deep breath Yvil! I paid them good money selling 3 houses over the years!

Don't tell me - Did they waste it all on negatively geared buy-to-lets in Hobsonville?

The Merc is junk Drive Lexus

No point looking for excuses all the time.

Better to just accept each outcome and keep on with the monitoring.

TTP

When the clearance rate hits 100% we will know desperation has set in - any price now being better than what might transact next week! But until then....
...it appears that any property that 'might not sell' at auction is being pulled from the process, so it doesn't get reported. That will change.
(NB: "Desperation' hit at both ends of the spectrum; on the way up, for fear of missing out ( Nov 2016?) and on the way down for the opposite reason)

So now that the clearance rate is high in Auckland you say 100% clearance rate means desperation…
Please judge the validity of your own comment

The last thing our resident agent wants you to see is the devil hiding in the detail. Like the monthly REINZ commentary, take that with a grain of salt too.

I know right?

I'd take that approach too though if I knew the downgrade from Tarocash to Hallensteins was inevitable.

Not surprised that a property at Hahei sells for that price. It is one of the best beaches in NZ. There is only around 10 beachfront properties, so very limited and rarely on the market.

Common Greg...... Let's have the Barfoot results, it's nearly Tuesday lunchtime!

How can Barfoots sugarcoat 20 percentiles? I guess we'll soon find out.

'There was 100% success rate at the mortgagee court auctions this week, where 3 sold from 3 offered.'

If the data provided in the article doesn't suit your narrative, just talk about other data, that hopefully will suit your bias.

Hello Yvil - good to have your cheery disposition back in the forum.

If you read the comments above you will see that we have already established that the data in this article is very likely to be incorrect. It is impossible to already have a result for an auction that doesn't take place until tomorrow. Unless you are Bill and Ted and have a time machine?

Nic

Lately, resident spruikers have really started gnashing their teeth. Vaccination time?

RP we have a problem. Total mortgage lending is not growing nearly fast enough to prevent price falls!
Total New mortgage Lending in Year to end October.
2018. $63.10 billion
2017 $60.87 billion
2016 $72.46 billion
2015 $67.01 billion
First Home buyers for whom the market was too expensive are now doing their best to prop it up and have diligently increased their total share of borrowing (own that home, own that home) https://www.youtube.com/watch?v=9khstFJD3R8
To Year End October First home buyers total new borrowing
2018 - $10.01 billion
2017 - $8.59 billion
2016 - $8.55 billion
2015 - $6.92 billion
The investors however really do need to dip their hands in their pockets if they are going to keep the credit growth alive and the Ponzi financing that underpins their Ponzi financed homes.
New mortgage lending in Year to Oct (investors)
2018 - $14.07 billion
2017 - $14.31 billion
2016 - $22.51 billion
2015 - $21.43 billion.
Maybe we need a few more adverts like this one to get them fired up again and spending
https://www.youtube.com/watch?v=0Ssu3R16h7U

The funny thing is that if the first home buyers can't keep the debt growth growing then it relies on the participants of the Ponzi debt stacking to have another go and take some more debt on.

Yvil, BLSH, TTP your round at the bar again gents or they may call time on this little façade!

Great post Nic. Investors appear impotent, owner occupiers are getting deeper in debt and first time buyers are still being sucked in.

Many areas in Auckland have dropped since I've been a commentator here. It's such early days.

Pontificating (more like defecating) like an expert .... "It's such early days"

Hilarious

"If the data provided in the article doesn't suit your narrative, just talk about other data, that hopefully will suit your bias."

Indeed - never let the facts ruin a good crusade.

TTP

"Sales were slower at the Hamilton auction with just one of the seven properties offered changing hands" Trademe listings today at 852, this time last year 773. 852 is the highest I have recorded since I began 7/11/16

Good point rastus, more listings ... dont forget the city has grown rapidly since 2016 so wouldn't you have expected that result?

Many vendors expectation has fallen by 10% to 15% (earlier if expecting a million are now ready to settle for High 800 to early 900s unless they have bought the property in last 2 years) so maybe ..............

Where are you getting this info please?

Most recent reports I've seen were published last month on Trademe asking prices. In Auckland average asking price was up by 2.6% on last year to $917,150. Auckland City saw the largest annual increase with the average asking price climbing 7% to $1,022,000, while Waitakere City saw record high asking prices, up 1% on the year prior to $826,500.

Check any property in Howick, Pakuranga, Buckland beach area and will know (I am aware of this area). If interested can check listing and asking/sell price.

If I give one or two - may feel it is cherry picking but can check 23A Luton Avenue (Expectation near around million and went for 850000) / 3 Jade Avenue RV $1070000 and had asking $1090000 for few weeks /Months went for $980000 near around. For more can do your research.

Many other properties that are in market - have price expectation much less than the RV (10% Plus) and may go much less.

Another fact most properties purchased in 2015 Onwards and are trying to sell now - are in for a loss and if lucky may just manage to sell at no lose no profit (If exceptionally lucky).

Right, cherry picking.

Nah, this is factual evidence. These days, there's just loads more low hanging cherries. It is a buyers market after all.

Hey BLSH

Found this little treasure of a clip for you. Features the Investor of the year 2012 from Australia. The video is 6 months old but even more relevant to Aussie today.....where else perhaps?

https://www.youtube.com/watch?v=BNAqA7R95Wo

BLSH; Tamaikiki, RP & Nic have a lot more reliable data than REINZ, TradeMe or QV, didn't you know that? (unless the data suits them of course, then they're happy to quote the above)

Ah the Baloneys.....ah sorry Moloneys. I wonder what they're up to these days.

https://www.domain.com.au/news/what-to-do-when-property-bubbles-burst-35...

Scratching around in rubbish bins, whimpering that it was all the banks fault they got so stupidly greedy!

Hi Nzdan

I have found some other very worrying stats. The average IQ in New Zealand dropped to the same level as the Aussies in 2010. (Credit crunch brain drain) ..... to sit at a meagre 98 point average... conveniently this occurred at the same time that the banks were getting very generous expanding household debt by 80% between 2008 and 2017 to $253 billion. 98 IQ is about the average 'milkman' level. Who could very well be the father of some of our commentators!

https://www.google.co.nz/search?q=average+iq+new+zealand&oq=average+IQ+N...

My IQ has dropped considerably since joining this site, I think it’s from reading TM2’s posts.

I don't think those IQ statistics are legitimate. The website claims that China's IQ grew from 101 in 2003 to 106 in 2010.

Also whatever you do don't do the IQ test. A friend of mine, known him for years, attempted it and it starts off absurdly easy and becomes ludicrously difficult and just nonsense, then asks for your facebook credentials. The last question is the true test of your IQ! If your IQ is below 80 it then asks you to pay for the results. The test is free but the score is not..lol. Apparently - I found this out by researching the website.

Never enter any credentials, even your facebook one, into a webpage you were directed to even if it looks genuine - it is not.

Probably your link should be deleted as there are a lot of gullible people on this forum.

We were told to go and refinance our home and get finance to buy an investment property

They bought 16 properties in mining towns such as Queensland’s Moranbah

Isn't this an extreme example? It also seems to be the only example.

It’s still a great example, it really appeals to my sense of schadenfreude.

What could possibly go wrong?

House value $735k
Mortgage $465k
Usable equity up to 80% LVR $163k

Let’s recycle our equity and get an investment property!!!

https://www.propertytalk.com/forum/showthread.php?43288-Getting-started-in-2018-(or-more-realistically-2019-)

Good grief. It's unbelievable. We are at the height of a bubble...on those figures he might have damn all equity on his home when it blows and he's thinking of gambling on buying more??

If you have doubts just check the properties that have been sold and also the properties that are in market and ask the the agent the price range and will be much below CV. Not one but many.

Face the reality and as your name suggest - it is good for you and will have more opportuinity for you to buy low and sell High in future - in the next boom after ......years.

taimaiakka0, I actually think you are largely correct in what you are saying here. Expecting much of a profit after commission if you bought in 2015 and selling now is optimistic. Especially if the property is in need of sprucing up.

The 3 Jade Avenue property got a good price considering it sold in 2012 for 662k appreciating by $1000 a week. It looks to be in nice condition.

The Luton Ave one has had nothing done to it for years and needs top to toe redecorating. It is also joined to another house and shares the section. It actually got a pretty good price considering full section properties nearby fetch 1.2M and needing a lot of work knocks off 100k+.

Buyers should definitely seek out properties like the Luton Ave one where the owner has owned it for many years and some work needs to be done.

Premium properties in premium areas will still command high prices and may sell for much more than they did in 2015 though.

A possible explanation of the higher asking prices is that higher priced properties aren't selling as well at auction as they used to (relative to lower priced houses). Not saying that's definitely the case, but it's a possibility worth considering.

Do Trademe's asking price stats include houses that are going to auction? Or are such houses only included if/when they fail to sell at auction?

Not sure regarding both of those points to be honest. All too easy to succumb to confirmation bias on both sides of the fence though, and as far as many of the above go, as jy dom is sal jy sukkel.

that is the whole point asking price has almost never anything to do with actual "sale price" . The sale price very often lower by relatively much in today sales

Bayleys doesn't provide a good indication of the overall market, because they primarily deal in very high end property

Great result for Bayleys, they''ll be stoked with that.

Great comment, well done NZ Dan

The only data that matters comes out today at 3.00 pm.

Yeah, school reports coming home!

New poster here so sorry for the dumb question but what data are you referring to?

House hunter, apologies sometimes I post in code or shit, dependent on the grass.. RBNZ mortgage data. 3.00 pm.
Interest will ( in all likelihood ) run over the numbers later

New residential lending up 15.7% from last month. From $4,777M in Sep to $5,527M in Oct. Highest its been in at least two years by the looks of it.

Don't tell Nic, you'll ruin his day.

Yvil

Tell me what happened on October 23rd? Could it be that there may have been a few kiwis still competing with very wealthy (or very leveraged) foreign 'marginal' buyers.

A very tenuous excuse Nic. Can’t fault your creative thinking though, so good on you I guess.

Greg

I have a question about these auction results having just looked at the residential auction page that you link to. It appears that Bayleys have already sold at Auction a number of Auctions that are apparently listed for the 28th November.... How can they have sold properties on the 28th November when today is the 27th?

It smells a bit like a 'dead horse' to me?

(edit) - there are 9 results listed as results from tomorrows data? And a good number from today which I suppose have only just happened, hence the article may have been published before the Auction? What's going on?

See my reply above.

ta Greg.

I noticed a recent trend " Address withheld " on property listings? Any reason for this other then to continue the lack of transparency...

Eves auction results from 22/11 in Tauranga had 16 properties for auction with 2 selling. 12.5% clearance rate.
Everything is fine. Nothing to worry about.

Wow, amazing clearance rate in Auckland, I'm very surprised

If one feels that the housing market is bad - wait for next year.

Yep - next year will be better. (-:

TTP

.......for fhb's

A true reflection on those seeking to escape Auckland
https://www.stuff.co.nz/opinion/108783158/how-mount-maunganui-turned-fro...

Hands off my beloved Remuera golf course!
Phil 'John Wayne' Twyford and his new housing authority aka the New Zealand People's Republic of Housing - wants unchallenged powers of what land it can take for building affordable housing. So who's at risk here of losing their park, nature reserve, recreational oasis? I'll tell you who - the 'evil' wealthy.
https://www.newshub.co.nz/home/new-zealand/2018/11/mark-richardson-hands...

typical baby boomer mark, its public land therefore its use is best decided for the use of all of Auckland by all of Auckland or those that represent us.
if those that use it were so concerned why did they not raise the funds ages ago to buy the land from the council like the other golf clubs mentioned try looking it up and compare apples with apples or ask a born and breed Aucklander of 50+ about the history of Auckland, why listen to a blow in from the hawkes bay

Mark would have to be at least 54 years old to qualify as a Boomer, which I doubt he is. I suspect he’s at least 10 years younger than that. Personally I couldn’t care less if the course disappeared but I do worry about giving unfettered powers to an incompetent like Twatford and running roughshod over legal leases.

Mark still has a sense of humour so couldn't possibly be a boomer....