Auction sales fairly evenly divided between those that sell above or below rating valuations

Property

Sales on around a third of the properties at the latest auctions monitored by interest.co.nz

2nd Mar 19, 7:03am by Greg Ninness

Selling prices were fairly evenly clustered around rating valuations at the residential property auctions monitored by interest.co.nz in the week from 18-24 February.

Of the 355 residential property auctions around the country monitored by interest.co.nz during the week, sales were achieved on 131 (including those that were sold prior to the auction and those that were sold immediately afterwards), giving an overall sales rate of just over a third (37%).

The remaining 224 properties were mostly passed in, but a few were either withdrawn from sale just prior to their auction or had their auction date postponed.

There were 106 properties where the selling price was able to be successfully matched to a council rating valuation (RV), and they were pretty evenly divided between properties that sold for more than their RV (57) and those that sold for less than their RV (48), with one property selling for the same as its RV.

The highest level of auction activity was in Auckland, where interest.co.nz monitored 234 auctions.

Of those, sales were achieved on 83 properties giving an overall sales rate of 35% in Auckland.

Of the 68 Auckland properties where selling prices could be matched with RVs, 31 (46%) sold for more than their RV, 36 (53%) sold for less than their RV and one sold for the same as its RV.

The results for individual properties at auctions montored by interest.co.nz are available on our Residential Auction Results page.

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52 Comments

by VeryInterested | 2nd Mar 19, 7:52am 1551466347

Hi Greg - Any chance of getting Ray White on board so we can see their auction results? Their agents appear to have stopped emailing monthly property sales and just concentrate on sales numbers by suburbs. Thanks

by richard1965 | 2nd Mar 19, 10:26am 1551475608

Not only stopped emailing but even if you want to know the sell price are reluctant many a times BUT if by chance the property is sold under the hammer and at a good price (Which is rare now days) will get an email the very next day :)

by VeryInterested | 2nd Mar 19, 7:59am 1551466798

It’s also worth noting that the Auckland. Boutique agency Unlimited Potential have stopped updating their blog. There have been no property updates since the beginning of spring.
https://uprealty.co.nz/blog/

by Zachary Smith | 2nd Mar 19, 8:41am 1551469268

These results tell me that you can still get a good price and be confident of selling at auction if you know your market.
A run down do-up is going to sell at a fairly low price while an immaculately presented place in a good location is still going to fetch a premium price.

This do-up which I think Pragmatist linked to the other day sold for $480k. Probably a good buy at this price as it could be made nice quite easily.

https://www.barfoot.co.nz/property/residential/waitakere-city/henderson…

While this place fetched a fabulous price, selling well above RV of 1150k and getting 1302k, as it ticked all the right boxes. It looks like it sold for 686k in Aug 2011 so that is a more than average price gain.

https://www.barfoot.co.nz/property/residential/auckland-city/one-tree-h…

by cmat | 2nd Mar 19, 8:42am 1551469352

You mean, you can still get a good price if you're half of the 37% that sell?

Right.

by Pragmatist | 2nd Mar 19, 8:50am 1551469855

Half of 70% of the 37% that don't hide behind price withheld, sold prior or sold post.

by Zachary Smith | 2nd Mar 19, 9:12am 1551471122

I don't think there is much point attempting to sell at auction if you don't have a premium property or quick sell do-up you just want to get rid off. See two examples above.

If you do have an average house in an average suburb then indicate to potential bidders that your price is going to be very realistic.

by sharetrader | 2nd Mar 19, 9:31am 1551472315

i think even the top end are having troubles, if you overpaid within the last two years no matter the property or where it is you will have trouble getting your money back after fees
https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12…
"Consistent with other evidence of a softer Auckland property market, the proportion of resales being made for a gross loss went above 5 per cent in Quarter 4, for the first time since mid-2013,"

by Zachary Smith | 2nd Mar 19, 9:42am 1551472936

I would tend to agree if you bought two years or less ago. Historically that has always been fairly normal.

The Herald article you link to is funny as they list some biggest losers at the bottom however two of them have dropped because of being subdivided. They do mention that in the article although many people may not bother to read to the end and get the impression that Ranui and Manurewa have dropped a couple of hundred grand.

With selling at a loss do they account for agency fees etc? If the figures are just gross sales prices the percentage of sales that are real losses must be much higher.

by richard1965 | 2nd Mar 19, 10:40am 1551476456

Agreed.

If you have bought the property in last 2 or 3 years and paid high price are unable to sell in the current market without a loss unless you bought at a decent price which is highly unlikely.

Anyone buying property in current market should check the Sell History of the property that is on sell and if it has been bought in last 2 or 3 years, most likely will go unsold over a period of time and may sell after few months if the vendor has no holding capacity and is ready to take a hit or will be withdrawn (Obviously may have some exception).

Another thing observed is that many property with CV of a million or 1.1 Million which are not been sold are stuck with asking of anything above 900 (So at the moment property with a CV of 1 or 1.1 million have a resistance of 900 though some are going in mid 800 to high 800s - which the vendor has bought ages ago - but mostly now resisting to sell under 900 but again for how long).

For many properties CV has become a hinderance as some are highly overrated and now agents are having a tough time unless vendor is realistic. Have seen few properties that are in market for more than 4 months with a CV of 1.225 and earlier agent wanted anything above 1.1 million and now saying will present any offer above 1 million still not being sold.

If this is the way market goes (momentum) will soon see a sharp drop. It is only a matter of time as need just one push to fall further.

by Zachary Smith | 2nd Mar 19, 10:56am 1551477360

Yes, ideally look for a property that has been owned for decades, someone going to a retirement home, something like that. They will still be getting a handsome profit on that 120k they paid way back.

I wouldn't even bother with something that has only been owned for a couple of years if I were bargain hunting.

by cmat | 2nd Mar 19, 1:47pm 1551487653

My point is the "average selling price" is subject to huge survivorship bias and distortion (63% or listing aren't captured and then there are a number of prices that are withheld for months)

When the market is up everyone fixates on the new high-water mark in a suburb and then that is a "pull" on prices.

On the way down no one focuses on the low-water mark and still tries to fixate on the "good" prices being recorded... even if they are few and far between.

by Zachary Smith | 2nd Mar 19, 10:38am 1551476326

Except they aren't "few and far between" currently. Many properties are being sold, well over a thousand a month in Auckland.

by cmat | 2nd Mar 19, 1:24pm 1551486278

[Duplicate - deleted].

by cmat | 2nd Mar 19, 1:23pm 1551486224

Yes. 1,000 are sold - at what price?
1. Not all of those are sold at auction;
2. If they sell outside auction the price is often withheld for months, so not reflected in that month's statistics;
3. Of those sold at auction without info withheld, half are sold below CV.
4. The remainder, ~10%-15% of listings, sell at auction date and above CV. That is, *relatively*, few and far between.

by stuart786786 | 2nd Mar 19, 9:10am 1551471019

Please add that balance 63% if sold will be most probably below RV.

Basically out of 355 properties 57 properties sold above RV and even those properties must be the one which have good size land and ade weatherboard as those properties RV at time is very low.

by VeryInterested | 2nd Mar 19, 9:31am 1551472265

Just seen these newly built shared ownership homes for sale in a village close to where I used to live in England.

https://www.rightmove.co.uk/property-for-sale/property-58340271.html

by Zachary Smith | 2nd Mar 19, 9:45am 1551473149

Looks interesting.

by Pragmatist | 2nd Mar 19, 9:48am 1551473285

Ewww, leasehold.. the worst bits of owning and renting combined.

by Zachary Smith | 2nd Mar 19, 10:40am 1551476440

"Shared ownership" - newspeak for leasehold.

by cmat | 2nd Mar 19, 1:53pm 1551487990

Yep, not much, if anything, about the UK residential housing market is aspirational for NZers.

Thinking about it gives me shudders.

by THE MAN 2 | 2nd Mar 19, 12:24pm 1551482642

There is no doubt that it is a gamble buying or selling in Auckland at the moment!
Would buy in Auckland if I was silly enough to want to live in Auckland if the price was right, but doesn’t appear to be at the moment!
Nothing surer though that if you were looking for your first home or investment, Christchurch would be the safest option with prices extremely stable.

by GenerationXY | 2nd Mar 19, 1:04pm 1551485062

But you have to live in Christchurch......

by Gummy Bear Hero | 2nd Mar 19, 4:59pm 1551499142

For a greater yield you could buy a rental property in Dunedin ...

... butcha risk getting tenants who make Rik , Vyvyan, Neil , and Mike from " The Young Ones " look like choir boys ...

Saturday is sofa burning night : Woooo hooooooooooooooooo !

by VeryInterested | 2nd Mar 19, 6:04pm 1551503072

I’ve had a look at the auction results page and there are some gorgeous properties in the area. I have also been looking at the development of the proposed East Lake regeneration site as I have family members who love watersports!
My biggest problems though are still around the risk of earthquakes and the insulation/warmth factor of the houses down there. I’m not sure I would want to go back to the harsh winters either! But I do agree that for many people it could be a viable option.

by THE MAN 2 | 2nd Mar 19, 1:27pm 1551486432

Your choice if you don’t want to live in NZs most liveable city!
Otherwise invest in property in ChCh as it is not going to ever get cheaper or affordable!
The Man is one adviser that people should take notice of!

by Nzdan | 2nd Mar 19, 2:55pm 1551491717

Is that why the NZTA are building a network of Motorway Corridors designed to encourage people to avoid Christchurch?

by Kakapo | 2nd Mar 19, 4:27pm 1551497252

Who needs encouragement?

by Pragmatist | 2nd Mar 19, 7:03pm 1551506626

Yep, pretty much. Since the quakes I've pretty much seen Christchurch as an airport, a car hire desk or three, and a place to get out of on my way to somewhere interesting.

by THE MAN 2 | 2nd Mar 19, 1:29pm 1551486573

by THE MAN 2 | 2nd Mar 19, 3:01pm 1551492083

Rubbish!
There are roads and motorways being built big time to bring more and more people
Into ChCh from satellite subdivisions
If you aren’t investing in CHCH housing st the moment you are missing the boat as it is sailing!

by gordon | 2nd Mar 19, 3:42pm 1551494563

He is just spruiking to try and get suckers to invest in poor old Christchurch where people are leaving in droves, where there are too many new built homes and house prices and rents are dropping. He is a one trick pony and is desperate. Is trying to sell one property but has done it too late.

by Gummy Bear Hero | 2nd Mar 19, 4:31pm 1551497464

... some facts to enlighten you ... Christchurch City currently has its highest recorded population , an estimated 388 400 residents ...

After the 2010/11 earthquakes , the population dropped by 15 000 to 355 000 in 2013 ... and has been recovering strongly ever since ....

... not exactly " leaving in droves " ... quite the opposite ... arriving in droves ...

by Chairman Moa | 2nd Mar 19, 5:19pm 1551500370

Nah just the skinheads, westies and bogans are flocking back to CHCH from their temporary shelters in Timaru!

by Gummy Bear Hero | 2nd Mar 19, 5:25pm 1551500707

... it does seem that Timaru is to New Zealand the same as Johannesburg is to South Africa ... an endless supply of skinheads , westies , bogans , beatings , hold-ups , hand-outs ...

Sigh ! ... makes me proud to be a Cantabrian ....

by THE MAN 2 | 3rd Mar 19, 8:58am 1551556709

Gummy, you are correct!
Gordon is wrong as per usual, and ChCh is thriving!
Rents are actually increasing g Gordon and demand is huge!
Yes there has been far too much land opened up for sections but the demand is still,there.
You only need to drive around and see how many people are buying and building new homes and young ones are now buying!
Yes, ChCh is the most liveable city in NZ and I am hearing that quite often from people that have lived in Auckland!!

by gordon | 2nd Mar 19, 5:11pm 1551499883

Nice try Grumpy. I like visiting Auckland. Warm, great sailing and fishing conditions and unlimited work and business opportunities. My niece and her husband have returned to NZ from London. Understandably they have settled in Auckland for the warmth and work facilities. Settling in Christchurch was not a consideration. They are too successful in their areas of work to consider such a backward move. Who in their right mind would shift to a city that still looks like a war zone in parts.

by Gummy Bear Hero | 2nd Mar 19, 5:39pm 1551501560

... it only looks like a war zone in the parts where you wouldn't risk going without an armed escort ... Aranui , Opawa , Sydenham , Woolston , New Brighton ... where the poor people live ... and Cathedral Square ...

Riccarton , Cashmere , Fendalton and Merivale got fixed up lickety-splick ... back to business a usual in no time flat ... where the affluent folks reside ...the friends of Jumbo Jerry Brownlee

by Nzdan | 2nd Mar 19, 7:20pm 1551507657

And that's where The Man buys his as-is rental dumps, because "you make money when you buy a property at under market value". I heard he has a couple of his better properties in Hampshire Street.

by Fritz | 2nd Mar 19, 7:20pm 1551507645

Auckland is a small and fairly sleepy city by world standards, and pricey.
But it has its good points, it has by far the best opportunities in NZ (unless you want to be a governemnt bureaucrat), and is by far the most urban place (that's not saying much).
I'm 45, I'll probably stay in Auckland till my daughter has finished school (another 7 years), and then head to a smaller NZ place, maybe like Nelson, Napier or Gisborne. But I'll want to have enough $$$ to get to Auckland or overseas on a regular basis, I'll always need my big city fix.

by BigDaddy | 3rd Mar 19, 8:59am 1551556795

Hey!..We were told that this is the time for the market to spring into action after a sleepy holiday break .
But no, it's still bumping along the same old way with around two thirds unsold and a third sold. Hardly sign of a resurgence. With autumn and winter only a coupe of months away, not to mention a CGT threat, I predict a catastrophic decline in sales as people bunker down for the duration. Pity the developers trying to sell new houses and apartments at market price plus GST plus profit, when next door can be bought for half price.

by Gummy Bear Hero | 3rd Mar 19, 11:56am 1551567366

... yes ... witness the collapse of interest in " Kiwi-Build " projects too ... the entire market has hit the headwinds , and is struggling ...

One of the economists on radio asserted why bother going near a new build , particularly anything with Phil Twyford grinning foolishly out the back door ... when you can get a far better deal in any older established green leafy suburb throughout the land ...

by Roger Witherspoon | 4th Mar 19, 7:30am 1551637823

What, you mean there is no shortage of overpriced new builds anywhere? Surely not? Whatever next?

by THE MAN 2 | 3rd Mar 19, 9:02am 1551556973

These so called opportunities are also,in Christchurch.
Living costs are higher in Auckland and rates of pay are no better for most Han Christchurch.
You can say what you like about Auckland being better than Christchurch which is only in the eye of the beholder!
Reality is that the average young person currently living in Auckland is far worse off and will be heading g to Christchurch in the future.

by gordon | 3rd Mar 19, 9:46am 1551559611

Dream on Grumpy. Christchurch’s small population reflects its bad weather, isolation, skinheads, lack of opportunities and now its massive severe earthquake potential. Auckland has a population many times the size of Auckland. Christchurch will always be small and irrelevant. Auckland for so many reasons will continue to grow. Grumpy and out of touch.

by Averageman | 3rd Mar 19, 9:54am 1551560064

The average young Aucklander is much more likely to head West for better jobs and housing in Straya than Chch.

by Zachary Smith | 3rd Mar 19, 11:19am 1551565149

You have to be a bit careful with the reported RVs as 27A Forest Hill Road says 650k (sold for 480k) however I am pretty sure it has an RV of 540k.

by Nzdan | 3rd Mar 19, 11:56am 1551567382

According to QV, there's 27 & 1/27 Forest Hill Road. 27 Forest Hill Road appears to be the one that sold, with an RV of $650k. Unless someone has applied the wrong picture to the QV page.

https://www.qv.co.nz/property/27-forest-hill-road-henderson-auckland-06…

https://www.barfoot.co.nz/property/residential/waitakere-city/henderson…

by Zachary Smith | 3rd Mar 19, 12:28pm 1551569286

If you look closely you will see on QV that the 650k one has a garage and 27A, the one that sold, doesn't (not as clear now as when I first looked!) 27A is also the smaller property of the two by far. 27A would equate to 27/1 I would think as well.

It is confusing though but I would put money on me being right in this case. I have noticed before that QV has put the wrong picture up.

I could be wrong (only betting 50 cents) but this is a case where the adjoining owner should have bought the property giving them a massive 2000m section for a small price. A fantastic opportunity for someone. I wonder if they missed it?

by Nzdan | 3rd Mar 19, 1:26pm 1551572794

└[⟃﹏⟄]┘

by Pragmatist | 3rd Mar 19, 1:40pm 1551573629

Zach is right, look at the construction type on homes.co.nz, one is fibrous cement/asbestos the other is roughcast. 1/27 matches up with that horrible hardiplank crap in the picture, and Google Street view shows 27 as a roughcast type finish.

by Zachary Smith | 3rd Mar 19, 2:13pm 1551575617

Also the size of the house. The one that sold is 60m according to the floor plan and QV report for 1/27 is 60m while the other one is 90m. Looking at satellite view the one that sold is much smaller.