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Auckland property prices stay firm as listings swell
Barfoot & Thompson February Report
Sales volumes in February were down 15 per cent on the same period last year.
Concurrently, the actual number of available listings reached its highest level since March 2013, at 3674.
Barfoot & Thompson Managing Director, Peter Thompson, said these figures indicate that the market is good for buyers, but sellers need to be cautious not to overprice their properties.
“We are starting to see a return to listings levels of October and November last year. For buyers, that’s good, they can start to shop around, but greater choice means more competition. Sellers will need to be realistic and not overvalue their assets if they want them sold.”
House prices surge in spite of loan restrictions
Wednesday Mar 5, 201
level of listings is keeping the market tight, especially in Auckland, says expert.
New tighter lending restrictions don’t appear to have done anything to stop prices rising according to one economist, and the country’s biggest house sale website has recorded record-level buyer interest.
ASB economist Daniel Smith, who analysed data from realestate.co.nz, said listings in the city fell 4 per cent in the five months since the rules came in, compared to the previous five months.
That’s despite a surge in listings in October, the first month of the Reserve Bank’s limits where a 20 per cent deposit is required from most new residential mortgage lending customers.
“While the restrictions have marginally dented demand, they may also have scared off potential sellers,” Mr Smith said.
“The low level of listings is keeping the market tight, especially in Auckland. That is likely to maintain upwards pressure on house prices, especially given strong inwards migration, especially in Auckland and the tentative rebound in sales activity seen since the turn of the year.”
A sell out crowd of 140 people converged on the TomTom bar in Auckland last Thursday for the first Young Professionals in Real Estate (YPIRE) event of the year. Along with a panel of YPIREs, key note speaker Olly Newland generously invested his time in the next generation of property professionals.
The captive audience of young real estate professionals, gathered to hear New Zealand’s long-time property investor and developer, television presenter and best-selling author Olly Newland address the crowd and answer questions from the floor. Olly spoke with passion about his years in the property industry, and then it was then over to the inspirational panel of young professionals including Blair James, Eliza Waszsak, Jared Cooksley, Kyron Gosse, Phillip Haeder, Rick Hale, and Theo Thrasy. The panel talked about their highlights and challenges in the industry and why they chose property as a career when youth is deﬁnitely the minority demographic
The threat of higher interest rates, and the choking off low deposit buyers must result in lower building consents.
Even if new builds are exempt, the affordable end of the market is being strangled.
New dwelling consents fall 1.3pc
The number of residential building consents issued last month fell slightly but the trend continues to rise, to be at its highest since late 2007.
In January the number of new consents, excluding apartments, fell 1.3 per cent, following an 11 per cent rise in December.
Including apartments, consents fell 8.3 per cent. Statistics New Zealand figures showed 1640 new dwellings were consented in January.
A total value of $930 million in building work was consented last month – $642m worth of residential work and $289m of non-residential work.
Consents issued in Auckland and Canterbury accounted for 58 per cent of all consents issued nationwide.
5 out of 10 sell at Ray White apartments auction
27 February 2014
Empire, 21 Whitaker Place, unit 1523:
Features: 52m², 3 bedrooms, student hostel facility, mortgagee auction
Outgoings: rates $1133/year including gst; body corp levy $4892/year + legal & building defects investigation levy of $782
Income assessment: rental according to formula
Outcome: sold for $165,000 + gst
The Quadrant, 10 Waterloo Quadrant, unit 1914:
Features: 32m², furnished one bedroom
Outgoings: rates $2444/year including gst; body corp levy $4334/year
Income assessment: in hotel pool
Outcome: sold for $107,500 + gst
The Statesman, 1 Parliament St, unit 5:
Features: 31m² studio, 8m² balcony, parking available to rent
Outgoings: rates $824/year including gst; body corp levy $2108/year
Income assessment: $340-360/week
Outcome: sold for $240,000
City Lights, 16 Liverpool St, unit 3I:
Features: 80m², 2 double bedrooms, parking space
Outgoings: rates $1185/year including gst; body corp levy $4796/year
Rent assessment: $460/week
NZ net migration climbs to decade-high in January with more arrivals, fewer departures
Thursday February 27, 2014
New Zealand’s inbound net migration rose to a 10-year high in January as fewer people quit the country to cross the Tasman and the number of new migrants continued to gain.
The country gained a seasonally adjusted 3,100 net new migrants in January, the most since May 2003, and up from 2,900 in December, according to Statistics New Zealand. Seasonally adjusted, there was an outflow of about 2,640 people to Australia, while about 8,210 new migrants arrived in New Zealand.
On an annual basis, New Zealand gained about 26,700 migrants, compared to a largely flat level a year earlier. In the year, there was as net loss of 17,400 people to Australia, down from 37,900 a year earlier, with net gains led by migrants from the UK at about 6,000, China with 5,700, India at 5,600, the Philippines at 2,400 and Germany at 2,300.
Auckland attracted the biggest gain in net migration at 12,300, followed by Canterbury with 4,800, then Otago at 600 and Wellington at 300. Auckland and Wellington’s net gains were largely in professionals, while Canterbury attracted technicians and trades workers and Otago community and personal service workers, Statistics NZ said.
About time our authorities did the same here rather than take the leads from our Aussie cousins.
My team and I are frequently asked to clean up the mess that some investors have got themselves into by believing these “get-rich-quick” merchants.
The old adage that if it’s “too good to be true” means it’s not for real and could cost you a bomb.
Property spruikers under investigation by state governments amid rent-to-buy and vendor finance deal concerns
25 Feb 2014
Amid increasing concerns about property spruikers, state and territory governments are gathering information on 15 property dealers Australia-wide.
Victorian Consumer Affairs Minister Heidi Victoria says there are concerns about property spruikers, and those educated at their seminars who then go on to operate the rent-to-buy and vendor finance deals.
The two approaches are similar, but involve different paperwork.
Rent-to-buy puts a tenant into a rental contract with an option to buy the home after a set period of time.
Vendor finance includes a contract of sale with a delayed settlement, as the person lives in the property and pays for it in instalments.
Property crash ‘unlikely’ – experts
By Matthew Backhouse
Feb 23, 2014
An American economist’s prediction of a sudden collapse in New Zealand house prices is unlikely to eventuate, local property experts say.
Last week, Harry Dent said New Zealand house prices were in a bubble which would burst in the next few years, hitting property values by between 30 to 50 per cent.
The economist and demographer – who has been in Australia to promote his latest book, The Demographic Cliff, and to speak at seminars – said the bubble was being propped up by baby boomers, immigration and foreign buyers, especially from China.
He predicted a global fall in resource prices and the collapse of China’s own real estate bubble would trigger a house price collapse here.
Investors Who Work With Advisors Say They Are More Knowledgeable About Alternatives; Morgan Stanley Wealth Management Investor Pulse Poll Finds That Physical Assets Dominate List of Alternative Asset Classes Investors Own or Intend to Purchase
Regarding ownership of alternative asset classes, real estate has no rival. Fully 77% of millionaire investors say they own it, and 35% say they own a related investment, Real Estate Investment Trusts (REITs). This is a key finding of the Morgan Stanley Wealth Management Investor Pulse Poll, a periodic survey of U.S. high net worth investors, including a subset of households with a million dollars or more in financial assets. 1 Questions about investments in alternative asset classes were posed only to the millionaire sample.
The survey found that investors who received advice from a financial advisor are much more likely to say they were knowledgeable about alternative asset classes (57%), compared with those who have not received professional advice (30%).
“This finding underscores the important role financial advisors play in providing information and education about the potential use of alternative asset classes by suitable investors in an appropriately diversified investment plan,” said Andy Saperstein, Head of Investment Products and Services for Morgan Stanley Wealth Management.
After real estate and REITs, millionaire investors cite ownership of collectibles (34%), followed by precious metals (28%), private equity (27%), real assets (oil, gas, mining, 17%), private real estate funds (16%), hedge funds (16%), and venture capital (13%).
Asked to recall an alternative investment unaided, 77% of millionaires can recall at least one (led by hedge funds, at 19%), while the remainder (23%) said they could not recall an alternative without prompting.
As with actual ownership, real estate (33%) and REITs (23%) lead the list of alternatives the surveyed investors expect to buy in 2014, followed by collectibles (20%), private equity (19%) and precious metals (16%).
If you are tired of low returns on your residential investments why not try commercial? Give me and my team a call and learn all about this fascinating subject.
7 East Tamaki sales for Bayleys
19 February 2014
Bayleys South Auckland agents have reported 7 sales around East Tamaki.
27 Accent Drive:
Features: 7975m² business 5-zoned site
Outcome: sold to a vehicle dealership for $3.5 million at $438/m²
45 Greenmount Drive:
Features: 1179m² warehouse, showroom & office building on 2260m², leased to a flooring company for 4 years from December 2013, with one 4-year right of renewal
Outcome: sold for $1.74 million at a 7.6% yield
89 Springs Road, unit E:
Features: 300m² retail, office & warehouse unit, lunch bar & car alarm installation business on 6-year & 2-year leases from 2012
Outcome: sold for $630,000 at a 6.8% yield
135 Cryers Rd, unit 12:
Features: 255m² modern office (160m²) & warehouse (95m²) building in secure gated complex
Outcome: sold, with a short term lease, to an owner occupier for $440,000
89 Springs Rd, unit D:
Features: 205m² showroom, office & warehouse unit, 2-year lease to printing company from 2013 at $28,000/year
Outcome: sold for $435,000 at a 6.4% yield
9-11 Laidlaw Way, unit 32:
Features: 105m² first-floor office unit, 2 parking spaces.
Outcome: sold vacant for $215,000
14 Basalt Place, unit 4:
Features: 80m² warehouse, including 30m² mezzanine, 2 parking spaces
Outcome: sold vacant for $173,850