CONSENTS RISE-BUT CAN THE SYSTEM COPE?

Residential building consents jump 20% in July, driven by Auckland intentions.


New Zealand residential building consents jumped by a fifth in July, turning around a decline in June, and spurred by increased construction intentions in Auckland.

Seasonally adjusted consents climbed to 2525 in July, from 2096 a month earlier, according to Statistics New Zealand. Of that, house building consents gained 12% to 1710 in the month.

On an unadjusted basis, new dwelling consents rose 24% to 2824 from July 2014, led by a 54% jump in intentions to build townhouses, flats and units, and a 21% rise in new apartment permits. Dwelling consents were up 8.4% on an annual basis to 25,696.

Auckland accounted for about 40% of all new consents in July, with a total of 1116, up from 849 permits in the same month a year earlier. Canterbury was the next biggest regional contributor with 650 permits, compared to 609 in July 2014.

Link:

http://www.nbr.co.nz/article/residential-building-consents-jump-20-july-driven-auckland-intentions-b-178036

SOLID SALES FOR INNER CITY APARTMENTS

8 units out of 10 sell at Ray White auction
Thursday 20 August 2015


8 of the 10 apartments auctioned at Ray White City Apartments today were sold under the hammer, and the other 2 went straight to multi-auction wit sales expected.

CBD

Learning Quarter

Avenue 105, 105 Anzac Avenue, unit 4C:
Features: 109m², 2 bedrooms, 2 bathrooms, penthouse level, renovated, secure covered parking space
Outgoings: rates $1960/year including gst; body corp levy $6374/year
Outcome: sold vacant for $750,000
Agents: Ryan Bridgman & Mitch Agnew

Emily, 22 Emily Place, unit 4F:
Features: 55m², one bedroom
Outgoings: rates $1249/year including gst; body corp levy $6623/year
Outcome: top offer $355,000, vendor put sale price at $475,000, passed in
Agents: Donald Gibbs & Liam Kyle

Oakwood Hall, 81 Wakefield St, unit 5D:
Features: 29m² studio
Outgoings: rates $953/year including gst; body corp levy $3206/year
Income assessment: $350/week
Outcome: sold for $238,000
Agents: May Ma & Mark Li

The Quadrant, 10 Waterloo Quadrant, unit 2107:
Features: 41m², 2 bedrooms, parking space
Outgoings: rates $1406/year including gst for unit, $123/year for parking; body corp levy $5563/year for unit, $1197/year for parking
Income assessment: $450/week
Outcome: sold for $463,000
Agent: James Mairs

Uptown

Parklane, 68 Greys Avenue, unit 3C (pictured above):
Features: 113m², 2 bedrooms, 2 bathrooms, high stud, 2 balconies, parking space
Outgoings: rates $2434/year including gst; body corp levy $9746/year
Income assessment: $/week
Outcome: sold vacant for $1.32 million
Agents: Daniel Horrobin & Damian Piggin

Victoria Quarter

Harvard on Hobson, 147 Hobson St, unit 4D:
Features: 37m², 2 bedrooms, secure covered parking space
Outgoings: rates $1138/year including gst; body corp levy $3837/year
Outcome: sold vacant for $345,000
Agents: May Ma & Mark Li

Fiore, 152 Hobson St, unit 406:
Features: 40m², one bedroom,
Outgoings: rates $1237/year including gst; body corp levy $2601/year
Income assessment: $425/week, fixed until end of January
Outcome: sold for $339,000
Agent: Krister Samuel

Altitude, 34 Kingston St, unit 13L:
Features: 27m², one bedroom
Outgoings: rates $1015/year including gst; body corp levy $3283/year
Income assessment: $350/week
Outcome: passed in at $237,000
Agents: May Ma & Mark Li

Zest, 72 Nelson St, unit 112:
Features: 37m², 2 bedrooms
Outgoings: rates $1089/year including gst; body corp levy $2611/year
Income assessment: $420/week, fixed until January
Outcome: sold for $290,000
Agent: Krister Samuel

Alpha, 17 Vogel Lane, unit 909:
Features: 47m², 2 bedrooms, secure basement parking space
Outgoings: rates $1385/year including gst; body corp levy $4172/year
Income assessment: $430/week
Outcome: sold for $435,000
Agent: Krister Samuel

(source Bob Dey)

Property Values Soar To New Heights

( click link below for video )

Property commentator Olly Newland says new rules aimed at cooling the market have actually fuelled it.

“It was a big blunder, I’m afraid, by the authorities to announce the new rules coming up [in October], and so we naturally have a rise in prices now as people try to get in first.”

Nationwide property values for July increased at the fastest annual rate in the last seven years, according to the latest Quotable Value (QV) figures.

Data shows July property values rose 10.1 percent in the past year and 4.1 percent in the last three months.

Values are now 27.4 percent above the previous market peak in 2007.

Auckland values increased 18.8 percent year-on-year, 5.7 percent over the past three months and are now 56.6 percent above the 2007 peak.

Papakura was once a sleepy rural village on the outskirts of south Auckland, and is now at the centre of a property boom, with values rising 22 percent.

Business owner Fay Day says it’s “pretty scary”.

“It’s frightening for the young people and it’s just gone crazy.”

QV national spokesperson Andrea Rush said there has been a definite upward swing in market activity in the upper North Island.

“This is especially evident in Hamilton, but also in Tauranga, Whangarei, and the Franklin, Hauraki and Waikato districts.

“There’s also been increased interest from Auckland investors in the Wellington and Dunedin markets, and while parts of the Wellington, Christchurch and Dunedin markets are showing some moderate increases, other

areas of these markets are flat or down slightly.”

Sales volumes have been tracking down since March, which is part of the normal seasonal downturn and also the result of a lower number of homes being listed for sale during winter, she says.

“Net migration remains at record highs and there are now incentives for new migrants to move to areas outside of Auckland, so this coupled with record low interest rates is likely to see continued upward pressure on

home values as we move towards spring.”

When adjusted for inflation, the annual nationwide increase drops to 9.9 percent, values 8.8 percent above the 2007 peak.

Adjusted Auckland values have increased 18.5 percent in the past year and 33.7 percent since 2007.

Homeowners and those selling their homes in places like Papakura are reaping the rewards.

A three-bedroom house sold for $480,000 on Saturday. That’s $155,000 above its CV and $100,000 more than agents would have expected it to fetch a year ago.

link:

http://www.3news.co.nz/nznews/property-values-soar-to-new-heights-2015080411#axzz3hpIVWZmI

Latest Commercial Sales

A motor vehicle testing station in Christchurch and a light industrial unit with live/work potential at Onehunga in Auckland were among recent commercial property sales completed by Colliers International and Knight Frank.

The vehicle testing station (pictured) at 471 Colombo St in Sydenham, Christchurch was a 440 square metre building on a 1710 square metre site and sold for $1.6 million, providing its new owners with a 7.6% yield. The agent was Craig Edwards of Knight Frank.

The two level Onehunga building had a 140 square metre workshop downstairs and 120 square metres of space upstairs which could be used as an office or converted to residential use. It was vacant and sold for $585,000. The agents were Tim Wylie and Ben Cockram of Colliers.

Colliers also sold a 385 square metre light industrial building with eight car parks in the Wairau Valley on the North Shore, which had a long term tenant in place providing a net return of $50,400 plus GST a year. It sold for $890,000, providing its new owner with a net yield of 5.6%. The agents were Mike Ryan and Janet Marshall.

 


Source: Interest.co.nz

ALMOST FULL SELL OUT AT AUCTIONS

ALMOST COMPLETE SELL-OUT AT AUCTIONS
Commercial & apartment auction results from Colliers, B&T, City Sales & Bayleys

22 July 2015
6 commercial properties sell at Colliers
Suburban unit sells at Barfoot & Thompson, cbd apartment passed in
All 4 apartments & townhouse site sell at City Sales
4 apartments sell at Bayleys

6 commercial properties sell at Colliers

5 of the 6 commercial properties taken to auction at Colliers International today were sold under the hammer, another was sold prior and the last property on the auction list was withdrawn

Auction results:

Otahuhu, 192 James Fletcher Drive, sold for $3.19 million.
Epsom, 409 Manukau Rd, passed in at $2.55 million.
East Tamaki, 23 Ra Ora Drive, sold for $2.2 million.
New Lynn, 16 Bentinck St, sold for $921,000.
Mt Wellington, 39B Mt Wellington Highway (Warehouse Stationery), sold for $2.36 million.
Mt Wellington, 39C Mt Wellington Highway (Bedpost), sold for $1.425 million.
Hamilton, 13, 17 & 22 Norrie Avenue, sold prior for $3.55 million,
Onehunga, 19-23 Hill St & 4 Newsome St, withdrawn from auction.

Suburban unit sells at Barfoot & Thompson, cbd apartment passed in

A suburban unit was sold under the hammer at Barfoot & Thompson’s auction today and a cbd apartment sold prior, but a Grey Lynn commercial building and another cbd apartment were passed in.

Auction results:

Grey Lynn, 36 Monmouth St, commercial building, passed in.
Meadowbank, 37A Fancourt St, residential unit, sold for $861,000, CBD, Bianco off Queen, 2 White St, unit 8F, apartment with parking space, passed in.
CBD, Tower Hill, 1 Emily Place, unit 5A, apartment with parking space, sold prior.

All 4 apartments & townhouse site sell at City Sales

All 4 cbd apartments and a townhouse site in Remuera were sold under the hammer at City Sales’ auction today.

Auction results:

Heritage Farmers, 35 Hobson St, unit 733, sold for $282,000,
Romano, 75 Anzac Avenue, unit 1H, sold for $380,000,
Harbour Green, 11 Union St, unit 203, sold for $385,000,
The Docks, 6 Dockside Lane, unit 149, leasehold, sold for $135,000.
Remuera, 17 Ascot Avenue, unit 3, townhouse site, sold for $790,000.

4 apartments sell at Bayleys

4 apartments were sold under the hammer and a large waterfront property on Mataka Station, on the north side of the Bay of Islands, was passed in without a bid at Bayleys’ auction today

Auction results:

Devonport, 93 Vauxhall Rd, unit 14, apartment on cross-lease, sold for $545,000.
Bay of Islands, Mataka Station, lot 3, 47.7ha, no bid.
14 Emily Place, unit 7B, sold for $1.121 million.
Heritage Tower, 22 Nelson St, unit 614, sold for $412,000.
Heritage Farmers, 35 Hobson St, unit 513, sold for $300,000.

Attribution: Bob Dey

Auckland Housing Market “continues to go mad” -QUOTABLE VALUE

MARKET GOING MAD?
(Comment: The big mistake was to give several months notice of the new LVR and tax rules to come in September.
Now every man and his dog is climbing in before they take effect.
I predict that the market will rise even higher before the new rules come in, and then pause as they are digested, only to continue upwards once everyone has worked out how to get around them.
And remember most of the market is unaffected by either Mums and Dads buying and selling without restriction, or by those who can raise the money in any event.)

 

 

“Auckland’s property market continues to increase 10 times faster than the rest of the country, new data has shown.

Trade Me Property’s June price index has revealed the average asking price for a residential property in Auckland had increased by $130,950 in the last 12 months – 10 times the average increase across the rest of the country.

The average asking price for a property outside Auckland increased by just $13,950.

In Auckland, the average asking price is now $834,300, while elsewhere the average is $404,550.

Trade Me Property head Nigel Jeffries said it was clearly a two-speed market.

“The ‘Auckland Effect’ is casting a huge shadow over the residential property market as a whole as it continues to go mad”.

Link:

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11481324

Ordinary Do Up Sells For $975,000

This Mt Roskill house sold for $975,000


It  was as plain as a pudding and on a smallish section in Mt Roskill but still sold for $975,000: Full results of this week’s Bayleys auctions

Posted in Property July 10, 2015 – 12:27pm, Greg Ninness

An unremarkable three bedroom house in Mt Roskill (pictured) sold for just shy of $1 million at this week’s Bayleys Auctions.

The 1940s-era weatherboard home, which had two bathrooms and a single garage, was on a cross-leased section, which gave it a half share of 827 square metres, which meant it was not an obvious redevelopment opportunity but it still fetched $975,000.

Bayleys advertising brochure for the property described it as “ripe to restore or renovate.”

“If you bring your paintbrush, tool belt and imagination, this house could be transformed,” the brochure said.

Other highlights from Bayleys’ auction rooms this week included a three bedroom home unit at Torbay on the North Shore that fetched $716,000, a Remuera townhouse that went for $1.5 million, a large Muriwai home that sold for $995,000, and a Glendene house described as a “do up opportunity” that was on a potentially subdividable site that sold for $785,000.

link:

http://www.interest.co.nz/property/76463/it-was-plain-pudding-and-smallish-section-mt-roskill-still-sold-975000-full-results

NEW TENANCY LAWS COMING

Landlords required to insulate and install smoke alarms to rental properties


Minister of Building and Construction Nick Smith has announced new requirements to insulate rental properties.

Landlords will be required to insulate properties and install smoke alarms, Housing Minister Dr Nick Smith has announced.

Under plans to strengthen the Residential Tenancies Act all tenanted properties will require floor and ceiling insulation by mid 2019, while social housing which receives government subsidies will require insulation by July 2016.

From next year all rentals will also need to have smoke alarms, and Smith said that where new alarms were being installed they would have to be more expensive long-life smoke alarms which retail at around $40 each.

“Overall this package will see the biggest improvement in the quality of New Zealand’s older homes this decade than in any decade and it will see a half million New Zealanders, particularly those on low incomes, having a safer warmer and drier homes,” Smith told reporters in his office in the Beehive.

Labour dismissed the changes as a half measure while the NZ Property Investors Federation (NZPIF) described the coming rules as “reasonably balanced”.

Other changes will be made to tenancy laws which will allow the government to sue landlords who commit severe breaches of the law, while the laws around abandoned tenancies will be modified to allow landlords to re-tenant properties faster.

LEARN HOW TO INVEST IN COMMERCIAL PROPERTY

COMMERCIAL PROPERTY RETURNS UP TO DOUBLE COMPARED TO RESIDENTIAL

14 & 16-18 St Johns Rd Meadowbank (See photo below)
Features: 493m² 2-level character building on a 444m2 site, in 2 equal titles, 3 retail tenants on ground floor, office space & flats above
Rent: $140,000/year net + gst
Outcome: sold for $2.7 million at a 6.4% yield

Kingsland
332 New North Rd:
Features: 326m2 development site zoned mixed use
Outcome: sold for $910,000 at $2791/m2

Mt Albert
43A Linwood Avenue, units 1A and 1B:
Features: 2 units totalling 764m2 – vacant 412m2 ground-floor warehouse unit, 351m2 under-rented first floor with final lease expiry in September, 8 parking spaces
Rent: $44,200/year gross + gst
Outcome: sold for $1.34 million

Mt Eden
15 Mont Le Grand Rd:
Features: 2 houses converted for commercial use on 688m2 site zoned residential 5, 2-year lease in place to a charitable trust
Outcome: sold for $1.43 million at a 3.5% yield, reflecting underlying land value

390 Mt Eden Rd:
Features: Large 2-storey house, to be converted  back from offices to residential use, on 1122m2 corner site
Outcome: sold for $2.51 million

3-7 & 9 Tawari St (pictured at top):
Features: 2 warehouse & office buildings of 1100m2 & 323m2 on 1489m2 site zoned mixed use, 4-year lease over both premises from April 2015 to Saito Labels Ltd which has been there for 18 years
Rent: $248,000/year net + gst
Outcome: sold for $4.05 million at a 6.1% yield

Bob DeyCOMMERCIAL PROPERTY RETURNS UP TO DOUBLE COMPARED TO RESIDENTIAL -LEARN HOW TO INVEST FROM US

14 & 16-18 St Johns Rd Meadowbank (See photo below)
Features: 493m² 2-level character building on a 444m2 site, in 2 equal titles, 3 retail tenants on ground floor, office space & flats above
Rent: $140,000/year net + gst
Outcome: sold for $2.7 million at a 6.4% yield

Kingsland
332 New North Rd:
Features: 326m2 development site zoned mixed use
Outcome: sold for $910,000 at $2791/m2

Mt Albert
43A Linwood Avenue, units 1A and 1B:
Features: 2 units totalling 764m2 – vacant 412m2 ground-floor warehouse unit, 351m2 under-rented first floor with final lease expiry in September, 8 parking spaces
Rent: $44,200/year gross + gst
Outcome: sold for $1.34 million

Mt Eden
15 Mont Le Grand Rd:
Features: 2 houses converted for commercial use on 688m2 site zoned residential 5, 2-year lease in place to a charitable trust
Outcome: sold for $1.43 million at a 3.5% yield, reflecting underlying land value

390 Mt Eden Rd:
Features: Large 2-storey house, to be converted  back from offices to residential use, on 1122m2 corner site
Outcome: sold for $2.51 million

3-7 & 9 Tawari St (pictured at top):
Features: 2 warehouse & office buildings of 1100m2 & 323m2 on 1489m2 site zoned mixed use, 4-year lease over both premises from April 2015 to Saito Labels Ltd which has been there for 18 years
Rent: $248,000/year net + gst
Outcome: sold for $4.05 million at a 6.1% yield

Bob Dey

RESIDENTIAL RENTALS RISING STEADILY

Auckland tenants paying $3500 more than others nationwide

Rent hikes in Auckland have bucked the national trend, reaching a median weekly high of $490, Trade Me data shows.

Numbers released by Trade Me Property today show rents in Auckland have increased by 6.5 per cent in the year to May 2015.

Rental increases are slowing in most of the country with the national median rent hovering at $420 since January.

Trade Me Property’s Nigel Jeffries said Auckland tenants were now paying at least $3500 more than tenants nationwide.

“It’s an all too familiar scenario for those renting in the Super City – we’ve seen the average price of houses explode and the rental market continues to follow a similar trajectory,” he said.

May had been the “weakest” month for median rent prices in New Zealand but that did not mean it was cheap, he said.

Link

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11470392