NEW ZEALAND REAL ESTATE
PROPERTY TRENDS
Effects of the foreign buyer ban
Kelvin Davidson
8 Feb 2019
Today’s data from Statistics NZ doesn’t show any clear effect from October 22nd’s so-called foreign buyer ban in the residential property market. However, because they measure final transfers rather than the earlier agreement, the three-week window in October to push through agreements has probably artificially raised the figures for Q4 as a whole. In other words, we won’t be able to detect any genuine influence from the ban in these figures until the next release (for Q1 2019) on 2nd May.
CoreLogic Senior Analyst Kelvin Davidson comments:
“The figures showed that in Q4 2018, there were 885 purchases by people without citizenship or a residency visa, equating to 2.3% of the total. In the same quarter a year ago, there were 1,038 purchases, equating to 2.9% of the total. The most purchases in Q4 were in Waitemata, at 159, down from 189 a year ago.
Clearly, these figures have dropped year-on-year, but the foreign buyer ban hasn’t perhaps had the ‘big bang’ impact that might have been expected. However, there was always a strong possibility that the reporting from this Stats NZ data series wouldn’t be able to show much effect in Q4. First, note that this series is based on settled transfers, not sales agreements (which occur much earlier in the sale process). Second, the data covers a full three-month period, which had a three-week window at the start when the ban didn’t apply. Therefore, the ability for foreign buyers to rush through agreements from 1st to 21st October, but just settle at a later date, may well have held up the figures for Q4 as a whole.
In fact, there probably has been a greater effect from the ban. As shown by other, timelier sales figures, there was a spike in overall activity in October with a commensurate drop-off towards the end of 2018. In other words, some activity appeared to move forward to the start of October to ‘beat the ban’.
So where to next? The Stats NZ data for Q1 (due on 2nd May) will be of huge interest, as the technicality of agreement/settlement should have disappeared and we’ll have ‘clean’ figures to look at. If the ban has been effective (and effectively enforced), the foreign activity in the market should fall away pretty sharply – albeit probably not to zero (because for example Australia and Singapore are exempt, while foreign buyers can still purchase and hold apartments in large-scale developments).
We’ll also be looking closely at our own Buyer Classification series (January figures due Monday) to see any effects, perhaps evidenced by a drop-off in the cash multiple property owner segment. Granted, this segment is much wider than just foreign buyers. But they will be a part of it, with that cash/equity generated overseas and put into NZ.
Overall, although the Stats NZ figures on foreign buying activity across NZ as a whole suggest that it’s never been an overwhelming influence anyway, the removal of this group of buyers will create purchasing opportunities for locals who might otherwise have missed out. Any impact on prices, however, is always going to be harder to detect – given that in theory the foreign purchaser may have effectively paid no more to buy a property than the failed domestic buyer would have paid.”
Lowest Number Of Properties Sold in December For 7 Years
The 2018 year ended with a fizz rather than a bang, with the lowest number of residential properties sold for the month of December for 7 years, according to the latest data from the Real Estate Institute of New Zealand (REINZ).
In December 2018, the number of houses sold across New Zealand decreased by -12.9% year-on- year to 5,330, down from 6,117 – 787 fewer houses.
For New Zealand excluding Auckland, the number of properties sold decreased by -8.2% when compared to December 2017, from 4,352 down to 3,994 – 358 fewer houses and the lowest for the month of December in 5 years.
In Auckland, the number of properties sold decreased by -24.3% year-on-year and was the lowest for the month of December in 10 years.
Regions with the largest annual fall in volumes were:
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Auckland: -24.3% (from 1,765 to 1,336 – 429 fewer houses)
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Taranaki: -23.0% (from 161 to 124 – 37 fewer houses) – the lowest for the month of December since December 2013
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Wellington: -16.2% (from 792 to 664 – 128 fewer houses)
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Otago: -14.6% (from 391 to 334 – 57 fewer houses)
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Southland: -13.4% (from 142 to 123 – 19 fewer houses) – the lowest since April 2017.
However, there were some regions that saw an annual increase in sales volumes during December including:
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West Coast: +42.9% (from 28 to 40 – an additional 12 houses)
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Tasman: +29.4% (from 51 to 66 – an additional 15 houses)
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Gisborne: +15.2% (from 46 to 53 – an additional 7 houses)
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Hawke’s Bay: +7.2% (from 195 to 209 – an additional 14 houses).
December Breakdown - Number of properties sold:
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$1million plus
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687
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12.9%
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$750,000 to $999,999
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834
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15.6%
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$500,000 to $749,999
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1,596
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29.9%
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Under $500,000
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2,213
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41.5%
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All Properties Sold
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5,330
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100%
December saw the national median increase by 1.5% from $551,750 in December 2017 to $560,000 in December 2018. Prices for New Zealand excluding Auckland increased by 6.4% to $480,000 up from $451,000 in December 2017.
In Auckland, prices rose by 0.2% to $862,000 up from $860,000 in December 2017.
Only one region experienced a record median price – the Bay of Plenty with a 2.0% increase taking the median to $610,000 up from $598,000 in December 2017.
Days To Sell
The median number of days to sell a property nationally increased by 3 days from 32 to 35 when compared to December last year.
For New Zealand excluding Auckland, the median days to sell increased on an annual basis by 2 days from 31 to 33. Auckland saw the median number of days to sell a property increase by 5 days from 34 to 39 – the highest days to sell for the month of December since December 2001. For the sixth month in a row, Southland has the lowest days to sell of all regions at 23 days, down from 27 at the same time last year.
Inventory
The number of properties available for sale nationally decreased by -1.8% from 24,610 to 24,158 – a decrease of 452 properties compared to 12 months ago. The is the largest decrease in 5 months. December again saw 7 regions with an annual increase in inventory levels.
Regions with the largest increase were:
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Marlborough: +9.9% from 333 to 366 – an additional 33 properties
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Taranaki: +7.6% from 603 to 649 – an additional 46 properties
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Northland: +7.5% from 1,338 to 1,439 – an additional 101 properties.
Regions with the biggest falls in inventory were:
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Gisborne: -48.1% from 160 to 83 – 77 fewer properties
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Otago: -33.3% from 676 to 451 – 225 fewer properties
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Manawatu/Wanganui: -24.4% from 1,088 to 822 – 266 fewer properties.
Price Bands
The number of homes sold for less than $500,000 across New Zealand fell from 43.5% of the market (2,663 properties) in December 2017 to 41.5% of the market (2,213 properties) in December 2018.
The number of properties sold in the $500,000 to $750,000 bracket increased from 28.3% in December 2017 (1,730 properties) to 29.9% in December 2018 (1,596 properties).
At the top end of the market, properties sold for more than $1 million decreased from 13.9% in December 2017 (852 houses) to 12.9% in December 2018 (687 houses).
Auctions
Auctions were used in 11.0% of all sales across the country in December, with 584 properties selling under the hammer – this is down from the same time last year, when 13.7% of properties (836) were sold via auction. This is the lowest percentage of auctions for 11 months.
Source: REINZ.co.nz
14 December 2018
For immediate release
Record house prices an early Christmas present to vendors, says REINZ Vendors from around the country have been delivered an early Christmas present with record median prices achieved in six regions and another record median price set for the country in November, according to the latest data from the Real Estate Institute of New Zealand (REINZ), source of the most complete and accurate real estate data in New Zealand.
The national median house price in November for residential properties was a record $575,000 up 6.5% from $540,000 at the same time last year. For New Zealand excluding Auckland, the median house price was a record $485,000 up 7.8% from $450,000 in November 2017. Auckland’s median house price dropped -1.5% to $867,000, down from $880,000 in November 2017, but was up from last month by 0.3%.
Additionally, six regions achieved a record price during November:
• Northland: +21.2% to $515,000 (up from $425,000 at the same time last year)
• Waikato: +8.0% to $529,000 (up from $490,000 at the same time last year)
• Hawke’s Bay: +11.9% to $470,000 (up from $420,000 at the same time last year)
• Wellington: +11.5% to $613,000 (up from $550,000 at the same time last year)
• Tasman: +19.2% to $645,000 (up from $541,000 at the same time last year)
• Southland: +3.8% to $275,000 (up from $265,000 at the same time last year).
SPRING SPROUTS INTO ACTION WITH HIGHEST NUMBER OF SALES IN 5 MONTHS
The number of residential properties sold across New Zealand increased by 15.5% year-on-year – the highest number of sales in 5 months according to the latest data from the Real Estate Institute of New Zealand (REINZ), source of the most complete and accurate real estate data in New Zealand.
The number of properties sold nationally increased from 5,880 in October 2017 to 6,791 in October 2018 – an increase of 911 houses.
Northland October, 2018
“October saw a welcomed spring uplift in listing numbers for the Northland market. New listings were up 26.2%, adding another 545 more houses to the market giving the region a total of 1,370 available properties. We see some investor properties coming to market due to landlords not wanting to cover the upgrade costs to meet the upcoming Healthy Homes legislation requirements. We also see a sharp decline in investor interest compared to 12 months ago, indicating a cautious wait and see approach to how legislative changes will affect the market. However, the overall sales volume is strong, with a 38.5% increase compared to September.
The increase in listing numbers will most likely continue up until Christmas suggesting a busy real estate market over the coming months.”
Bindi Norwell REINZ CEO
NORTHLAND R E G I O N A L COMMENTARY
Compared to October 2017
Median Price up 17.5%
Sales Count up 21.7%
Days to Sell decreased 4 days
Compared to September 2018
Median Price down 3.5%
Seasonally adjusted median price down 1.5%
Sales Count up 38.5%
Seasonally adjusted sales count up 22.8%
Days to Sell decreased 5 days.
Our seasonally adjusted results tell us that, compared to what we expect when moving from September to October, the observed decrease in median price was slightly greater than expected and the observed gigantic increase in sales count was much greater than expected. The current Days to Sell of 43 days is less than the 10-year average for October which is 51 days. The level of inventory available for sale currently sits at 38 weeks, nine weeks more than in October 2017.
New overseas investment rules live on October 22nd.
The new overseas investment regime comes into effect next Monday, 22 October.
From Monday 22 October, overseas people generally won’t be able to buy residential land in New Zealand unless they have a residence class visa and intend to live here.
Every residential land sale will require a Residential Land Statement which asks purchasers to confirm their eligibility to buy. Everyone, including New Zealanders, will need to complete the statement before their conveyancer can complete the transaction.
The Overseas Invest Office recommends that purchasers who do not have residence class visas see their conveyancers before signing a sale and purchase agreement. Alternatively, the sale and purchase agreement can be made conditional on the consent of the Overseas Investment Office.
Online tool to assess eligibility
A new online tool is available on MBIE’s Immigration website, New Zealand Now. It is an eligibility tool which tells overseas people whether they can buy or build on residential land, and how to apply for consent from the Overseas Investment Office. Find the tool
Overseas Investment Office
The Overseas Investment Office has also updated its website to make it easier for overseas people to find the information they need. People who want to buy one home to live in can find the requirements and criteria, application templates and an online application form in one place
Non-residential sales
You can find tailored consent information for investors wanting to develop residential land, invest in forestry, invest in significant business assets or in land that is sensitive for reasons other than being residential
REINZ Monthly Property Report
October 11, 2018
“There are now seven regions across New Zealand that have median prices in excess of the half a million-dollar mark with Northland the newest region to go over this level.
Prices continue to grow in the regions with 4 regions achieving record prices While volumes were down around many parts of the country, the reverse was true from a price perspective, with 14 out of 16 regions experiencing an increase in median prices when compared to September last year.
Of those 14 regions, 4 achieved record median prices and 1 region equalled a previous record median:
Gisborne: +26.9% to $342,500 (up $72,500 from the same time last year)
Nelson: +23.1% to $592,000 (up $111,000 from the same time last year)
Manawatu/Wanganui: +18.9% to $321,000 (up $51,000 from the same time last year)
Northland: +12.2% to $505,000 (up $55,000 from the same time last year)
Hawke’s Bay: +13.5% to $445,000 an equal record with August 2018 (up $53,000 from the same time last year).
Looking at the national picture, median house prices across New Zealand increased 5.9% year-on-year from $525,000 in September 2017 to $556,000 in September 2018.
For New Zealand excluding Auckland, the median house price increased 8.5% annually from $430,000 to $466,750 – a record high.
Auckland’s housing market has continued its now predictably stable pattern, with a median price of $850,000 the exact same price as September last year.
“There are now seven regions across New Zealand that have median prices in excess of the half a million-dollar mark with Northland the newest region to go over this level. Additionally, there are already three regions that have exceeded the $600,000 median mark and with Nelson’s median sitting at $592,000 it may not be too far away until we have a fourth region edging over the $600,000 mark,” points out Norwell.
“With our population growth and demand for properties continuing to exceed the supply of housing stock, prices are likely to continue increasing in the short to medium term. In fact, new research issued by AUT earlier this week suggested that at our current rate of supply we won’t reach demand until the mid-to-late 2020s. This means that price pressure could well be an issue for some time – particularly in our more densely populated cities,” says Norwell.
“Looking at the Auckland picture, we’ve seen Auckland’s median house price hover around the $850,000 mark for 18 months now – this incredibly stable market is positive for first time buyers who are desperately saving to get a foot on the property ladder. However, it’s also good for investors, buyers and sellers too, as it means that everyone knows what the market is doing – there don’t tend to be too many happy people when the market is particularly volatile,” concludes Norwell.
Northland
“The Northland market continues to see good buyer demand, especially for 3-bedroom houses in the $350,000 - $500,000 range, where stock numbers have been very low. This demand has helped push the median price up to the record $505,000 experienced during September. Much of this price growth has been in the Whangarei District in areas such as Hikurangi-Coastal and Whangarei Heads Wards which have experienced annual price increases of 142.9% and 34.4% respectively. The sunnier spring weather has brought a welcomed rise in new listings (up 13.7%) and a big lift of open homes attendance. Banks continue to be cautious with lending. Investors have started to show interest again, however, they are careful and are mostly interested in fully insulated properties that don’t need any maintenance ahead of the upcoming Healthy Homes legislation announcements.”
Bindi Norwell REINZ CEO
NORTHLAND
REGIONAL COMMENTARY
Compared to September 2017
Median Price up 12.2%
Sales Count down 21.9%
Days to Sell increased 9 days
Compared to August 2018
Median Price up 10.3%
Seasonally adjusted median price up 5.8%
Sales Count down 7.2%
Seasonally adjusted sales count down 4.0%
Days to Sell decreased 1 day.
Our seasonally adjusted results tell us that, compared to what we expect when moving from August to September, the observed increase in median price was greater than expected and the observed decrease in sales count was greater than expected. The current Days to Sell of 48 days is less than the 10-year average for September which is 55 days. The level of inventory available for sale currently sits at 33 weeks, four weeks more than in September 2017
LOWEST SALES VOLUMES IN 8 MONTHS A RESULT OF EXTREMELY LOW LISTINGS IN JULY
The low number of new listings in July has meant that the number of houses sold in New Zealand during September decreased by -3.0% year-on-year. This was the lowest level number of properties sold since January this year, according to the latest data from the Real Estate Institute of New Zealand (REINZ), source of the most complete and accurate real estate data in New Zealand.
BINDI NORWELL, REINZ CEO
The number of properties sold across the country fell from 5,674 in September 2017 to 5,506 in September this year – 168 fewer properties. This is the lowest for the month of September since September 2011.
For New Zealand excluding Auckland, the number of properties sold decreased by -3.3% – 133 fewer properties when compared to September 2017 (from 4,023 to 3,890).
In Auckland, the number of properties sold decreased by -2.1% or 35 fewer properties, from 1,651 in September 2017 to 1,616 in September 2018.
Bindi Norwell, Chief Executive at REINZ says: “Traditionally there is a lag of about 6 weeks between significant movements in listings and sales results. With July’s listings down by 5.4% year-on-year and an all-time low level of listings in seven regions, it’s little wonder that September’s sales volumes were so low. There simply weren’t as many properties for sale resulting in a very quiet start to spring. “However, with August and September’s listing numbers up 0.1% and 11.7% respectively, it is expected that October and November’s sales volumes will be much stronger – particularly as people want to sell ahead of Christmas,” continues Norwell. Across the country 12 out of 16 regions saw a fall in volumes with 6 of those regions experiencing double-digit decreases.
Regions with the largest annual decrease in sales volumes were:
Northland: -21.9% (from 215 to 168 – 47 fewer houses) – the lowest since January 2018
Gisborne: -21.7% (from 60 to 47 – 13 fewer houses) – the lowest since January 2018
West Coast: -18.9% (from 37 to 30 – 7 fewer houses) – the lowest since December 2017.
There were also some regions with strong annual increase in sales volumes including:
Marlborough: +31.5% (from 54 to 71 – an additional 17 houses)
Southland: +22.3% (from 139 to 170 – an additional 31 houses)
Waikato: +9.1% (from 582 to 635 – an additional 53 houses).
FOREIGN BUYER BAN - REINZ INFORMATION SHEET
REINZ has prepared an information sheet for members to assist them to understand the changes to the Overseas Investment Act. The Information Sheet is currently being reviewed by the Overseas Investment Office and will be released soon. In the meantime, key points to note include:
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The new rules apply to residential land, including bare land, lifestyle properties, apartments and mixed use properties.
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The new rules will apply to sale and purchase agreements entered into on or after 22 October 2018. The date of the agreement is the relevant date. For example, an agreement to purchase a house dated 21 October will not be captured by the new regime but an agreement dated 22 October will be subject to the new rules.
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From 22 October, all purchasers of residential land, regardless of whether they are an “overseas person” or not, will need to complete a new document called a Purchaser Statement. The Purchaser Statement is being developed by the Overseas investment Office and will be released shortly. The Statement requires purchasers to declare whether or not they are an “overseas person” and therefore require the consent of the Overseas Investment Office to buy the property.
Update on the overseas investment bill
Vesna Wells : 30th Jul 2018
The Overseas Investment Amendment Bill is currently before Parliament and seeks to amend the Overseas Investment Act 2005. The Bill is designed to ensure investments made in New Zealand by overseas persons have a benefit to New Zealand.
The “Benefit to New Zealand” as currently drafted states that the overseas investment will, or is likely to, benefit New Zealand (or any part of it or a group of New Zealanders).
Overview
The Bill introduces limitations on the types of property that can be purchased by overseas persons. For clarity, the Bill would not apply to all permanent residents and resident visa holders who spend the majority of their time in New Zealand. Such individuals would be able to purchase housing without the need to obtain consent.Further, Australian and Singapore citizens and residents will be treated the same as New Zealand citizens and permanent residents.
The impact that the Bill may have on our housing market is yet unknown and is causing some debate. Currently, New Zealand is experiencing a housing shortage. Some are of the view that the proposed amendments have the potential to impact negatively on the housing market, yet others are of the view that there could be a positive effect for all New Zealanders.
Property developments and business initiatives
Parliament’s Finance and Expenditure Select Committee have given some good feedback on the Bill and, through this feedback, provided some balance to the original drafting.
In particular, there’s support for developments and business initiatives. Broadly, the Bill provides that overseas persons could purchase residential land if it was used to increase the supply of housing. Properties built on land purchased under this pathway must not be lived in by the owner, and generally must be on-sold once they are completed.
The Finance and Expenditure Committee recognise that large developments often rely on the pre-sales of units to raise funds and satisfy financiers that a project is viable, which then ensures developers can access sufficient funding to develop and build.
They consider that requiring overseas persons to on-sell could reduce the attractiveness of some larger projects and negatively impact on viability. They advise that this is contrary to the intention of the Bill and therefore have recommended an amendment that developers of large multiple-storey apartment buildings of 20 or more units could apply for an exemption to sell a percentage of the units to overseas buyers in an “off the plans” format and further not have the need for consent or the requirement to on-sell them at completion.
The Finance and Expenditure Select Committee advise that an amendment would allow for a percentage of units per development that could be sold in this manner to overseas buyers and that this percentage could be changed by regulation to any level between 0 and 100 per cent. A proposal of 60 per cent has been made. The buyers would not be allowed to occupy the units themselves.
Hotel developments
Further, the Finance and Expenditure Select Committee recognise that hotels are also important developments in New Zealand. Financing of hotel developments can rely on investors purchasing individual units and leasing them back to the hotel.
These arrangements may involve an agreement where the owner may use the unit for their own interests for a certain period of time each year. Under the Bill as introduced, overseas investors would need approval to purchase hotel units if the land was categorised as “residential” or “lifestyle”. The Finance and Expenditure Select Committee consider that this could limit further development of large hotels.
They recommend that an allowance is made to overseas investors enabling the purchase of units provided a lease-back arrangement with the hotel’s developer or operator is entered into. A recommendation on placing restrictions on the length of stay in a unit has been made at 30 days.
Essential services
Other exemptions include those of network companies or the provision of essential services. It is recognised that overseas investments in gas and electricity, telecommunications and transmission networks are important for New Zealand and growth of infrastructure.
The Finance and Expenditure Committee has commented that many of these companies are overseas persons. Residential land purchased is used for network infrastructures such as cell towers and substations. A recommendation has been made that residential land could be acquired for this purpose without needing consent.
The Act currently screens leases for a term of three years or more. Submitters noted that many overseas persons (for example, international students) reside temporarily in New Zealand in rented accommodation, and a significant proportion may do so for three years or more. The Finance and Expenditure Select Committee has recommended that overseas persons be enabled to take leases of up to five years over residential land, compared to current three year limit without the need for consent.
The Bill is currently going through its processes and being moulded by feedback. We will keep an eye on its progress and provide further updates.
August 2018
issued 4 September 2018
overview
11 regions hit record high asking prices, while 9 regions hit record low total stock numbers. Signs of an early spring market for Auckland and Canterbury.
August 2018 has been a month of record highs and record lows since realestate.co.nz started collecting data more than 11 years ago, says realestate.co.nz spokesperson Vanessa Taylor.
Real-time statistics from realestate.co.nz show nearly two thirds (11) of the country’s 19 regions hit record high average asking prices in August, while half of the regions (9) registered all-time lows in the number of houses listed for sale.
“Added into the mix is a healthy number of unique browsers in August to realestate.co.nz, which hints at an early spring lift in housing activity,” says Vanessa.
In August, more than 911,012 unique browsers visited the site, which is a 5.2% increase on July and consistent with summertime browsing levels, she says.
“We’ve had a relatively static housing market since the election period and this lift in interest coincides with a healthy injection of new listings in two of the country’s largest regions.
Of the 8,739 new property listings across the country during August, almost half (4,343) were located in either the Auckland or Canterbury regions.
RECORD INCREASES IN ASKING PRICES HIGHS IN 11 REGIONS
The increase in property asking prices was led by the Central Otago/Lakes District which tipped over the one-million-dollar milestone, with the average asking price sitting at $1,019,094.*
“This is the first region to ever reach the one-million- dollar asking price milestone in the 11 years of data collection history on realestate.co.nz,” says Vanessa.
“Whether Central Otago-Lakes continues to outstrip Auckland as the most expensive region in terms of asking prices remains to be seen,” says Vanessa.
“It’s a smaller market and if there are a significant number of top-end properties coming onto the market at the same time, it can impact the average asking prices.
“Auckland is larger, with a more diverse range of properties, so it’s not always comparing apples with apples,” she says.
While Central Otago-Lakes led the charge with a significant lift in asking prices, there were 10 other regions which recorded record highs in asking prices last month. These regions registered more modest gains and were equally balanced across the North and South Islands.
North Island:
Northland registered a 1.8% increase in asking price to $635,112, Central North Island up 4.5% to $488,420, Hawke’s Bay up 3.7% to $521,138, Manawatu- Wanganui up 3.7% to $370,597, Wairarapa up 6.6% to $520,127 and Wellington up 1.7% to $639,553.
South Island:
Nelson & Bay’s asking prices increased 4.4% to$650,293, Marlborough was up 4.6% to $520,852, Canterbury up 1.6% to
$507,992 and Otago was up 6.6% to $401,499.
ALL-TIME LOWS IN STOCK LEVELS IN NINE REGIONS
A fall in housing stock levels nationally has led to a tightening of options. This particularly impacts home buyers in nine regions, all of which registered all-time lows in the number of homes available for sale since 2007 when realestate.co.nz started collecting data.
Nationally, total stock levels in August stood at 21,207 which is down 1.6% on August 2017.
“While this seems on the face of it a modest decline, for the regions with all-time stock lows there’s not a lot of options and homes are being snapped up,” says Vanessa.
North Island:
Coromandel registered a 9.2% decrease to 433 listings, Central North Island down 18.6% to 336 listings, Taranaki fell by 8.1% to 533 listings, Manawatu- Wanganui saw a 28.2% decrease to 649 total listings and the Wairapara dropped 7.6% to 204 listings.
South Island:
Marlborough registered a drop of 4.0% to 245 listings, West Coast decreased to 16.1% to 482 listings, Otago fell by 17.9% to 430 listings and finally the Southland region fell by 23.6% with 403 listings.
AUCKLAND AND CANTERBURY REGIONS SPRING INTO LIFE WITH NEW LISTINGS
“Spring appears to have come early for the Auckland and Canterbury regions,” says Vanessa Taylor.
“Canterbury has been an active market for some months, but it seems that the Auckland region has now sprung back to life with a surge of new listings,” says Vanessa.
Of the 8,739 new property listings across the country during August, almost half (4,343) were located in either the Auckland or Canterbury regions.
The Auckland region registered a 6.0% increase in new listings compared with August 2017.
“The 3,086 new listings in August are giving Auckland buyers more options,” says Vanessa.
Buyers in the Canterbury region have also got more options, with 1,257 new listings in August, representing a 7.2% increase on the same month last year.
“What we’re seeing is the surge in these regions compensating for the record lows in other regions,” says Vanessa.
Nationally, the number of new listings is static (an increase of 0.1% compared to August 2017).
*Average asking price is not a valuation. It is an indication of current market sentiment. This number is derived from the average price vendors across New Zealand and asking for their properties right now. Statistically, asking prices tend to correlate closely with the sales prices recorded in future months when those properties are sold. As it looks at different data, average asking prices may differ from recorded sales data released at the same time.
Vanessa Taylor Head of Marketing realestate.co.nz
Property asking price for August 2018 $659,309
Compared to July 2018 +1.1%
The average asking price is calculated by taking every residential listing’s indicated asking price and dividing it by the total number of properties.
Northland
$635,112
1.8%
New property listings for August 2018 8,739
Compared to August 2017 +0.1%
New listings are properties that have been added to realestate.co.nz during the month. This is compared to the number of new listings in the same month in the previous year.
Northland
357
9.2%
inventory of listings
NZ inventory of listings for August 2018 18 weeks
Compared to Long Term Average (LTA) 30 weeks
Inventory means if no new listings were to come onto the market, all the existing properties in each region would be sold within the number of weeks stated, based on historical trends.
Northland
31 weeks
LTA: 93
The inventory levels reflect the projected number of weeks to clear existing inventory of unsold homes on the market matched to the Long Term Average (LTA) for the region based on 11 years of seasonally adjusted data.
Housing stock in August 2018 21,207
Compared to August 2017 -1.6%
The stock map shows the total number of residential dwellings that are for sale on the penultimate day of the month.
Northland
1,176
-2.3%
428 FARM SALES IN THE 3 MONTHS ENDED JUNE, 2018
Winter market remains resilient
Data released today by the Real Estate Institute of NZ (REINZ) shows there were 32 fewer farm sales (-7.0%) for the three months ended June 2018 than for the three months ended June 2017. Overall, there were 427 farm sales in the three months ended June 2018, compared to 443 farm sales for the three months ended May 2018 (-3.6%), and 459 farm sales for the three months ended June 2017. 1,480 farms were sold in the year to June 2018, 17.0% fewer than were sold in the year to June 2017, with 1.2% less dairy farms, 3.2% less finishing farms, 25.0% fewer arable and 28.0% fewer grazing farms sold over the same period.
THURSDAY 19 JULY 2018 09:03:15
RURAL PRESS RELEASE FOR JUNE 2018
Inconsistent early winter market
Data released today by the Real Estate Institute of New Zealand (REINZ) shows there were 136 less lifestyle property sales (-6.4%) for the three months ended June 2018 than for the three months ended May 2018. Overall, there were 1,995 lifestyle property sales in the three months ended June 2018, compared to 2,088 lifestyle property sales for the three months ended June 2017 (-4.5%) and 2,131 lifestyle property sales for the three months ended May 2018.
OVERSEAS INVESTMENT AMENDMENT BILL PASSED BY PARLIAMENT
The new law restricts certain overseas people from buying residential land in New Zealand, and takes effect late in October. Overseas people will not be able to apply to the OIO for consent to buy until then, but there will be information on the OIO website from early October. REINZ will be relaying information and guidance for members regarding the new rules shortly.
17 AUGUST 2018
RESIDENTIAL PRESS RELEASE FOR JULY 2018
WEDNESDAY 15 AUGUST 2018
JULY BRINGS PRICE RISES FOR ALL REGIONS BAR AUCKLAND
House prices across New Zealand have continued to rise in July with a 6.2% increase year-on-year with a median price for the country of $550,000 according to the latest data from the Real Estate Institute of New Zealand (REINZ), source of the most complete and accurate real estate data in New Zealand.
Northland (+5.7% to $481,000)
BINDI NORWELL, REINZ CEO
The winter chill has impacted real estate sales volumes across the country in June but has done little to halt price rises in most regions, according to the latest data from the Real Estate Institute of New Zealand (REINZ), source of the most complete and accurate real estate data in New Zealand.
In June the median price across the country rose by 5.7% to a record equal median of $560,000 up from $530,000 the same time last year. Additionally, the New Zealand excluding Auckland median price remained at a record equalling figure of $460,000 in June, up 7.0% on June 2017. However, Auckland’s median price decreased by 0.7% year-on-year to $850,000 down from $856,000 last year.
New Zealand’s most expensive three territorial authorities are Auckland City with a median of $1,010,000, North Shore City with a median of $975,000 and Queenstown Lake District with a median of $908,000.
Three regions saw record median prices during June – Waikato (+11.7% to $525,000), Wellington (+12.3% to $595,000) and Marlborough (+11.4% to $440,000). Additionally, regions with strong annual increases included Gisborne (+26.9% to $330,000) and Hawke’s Bay (+15.3% to $430,000).
However, the number of properties sold across the country decreased by 1.6% to 6,034, down from 6,131 in June 2017. This was the result of significant decreases in sales volumes in 8 out of 16 regions and a 9.9% decrease in new property listings year-on-year.
Property Market Report
Dwellings Median Price Comparison Over Last 10 Years
OneRoof
June, 20th 2020
Auckland median house price for May 2020 rose but new listing numbers were down.
Record low numbers of properties listed for sale had helped push median house prices to new highest in some regions.
According to figures from Real Estate Institute of New Zealand, eleven out of 16 regions had median prices increased from April to May but the number of properties available for sale is the lowest it has ever been since records began.
And REINZ chief executive Bindi Norwell says there will likely be a continuing effect of demand for good properties outstripping supply.
Median house prices across New Zealand increased by 6.9 per cent in May to $620,000, up from $580,000 in May last year.
But while prices went up, the total number of properties available for sale nationally went down by 19 per cent in May, a decrease of 4,955 properties compared to 12 months ago. The is the lowest level of inventory for the month of May since records began.
"What continues to surprise us, is the fact that there are still regions with increases in median price and that there are still regions experiencing record median prices – a far cry from some of the doom and gloom predictions that were immediately touted when Covid-19 first hit the country,” Norwell says.
The number of new listings in May for the country is down 12 per cent. Wellington had the biggest drop in new listings, at 548 that’s down 24 per cent on May last year. Auckland new listings dropped by nearly 13 per cent to 2,973, while Waikato listings were down 18 per cent.
Norwell says evident listings shortage in the region has been driving up prices for the last few months.
This is clear in across New Zealand. The Waikato region reached its median price record of $598,000, with Hamilton achieving a record price of $645,000 and $585,000 in Matamata-Piako District.
REINZ regional director for Waikato, Neville Falconer, says there’s a healthy level of buyers and lot of enquiries from investors.
“The number of buyers in the market outweighs the number of listings on the market evidenced by multi offers with many exceeding asking prices,” Falconer says.
Wellington City hit a record median price of $830,000, $31,000 up from April's price and a $10,000 lift from its previous record in October last year.
REINZ Wellington regional director Mark Coffey says their market has been busy but tends to slow down during winter months.
Auckland’s median price went up too, reaching $910,000, up from $850,000 this time last year.
Norwell says Auckland region recorded its third highest median price on record, but prices were mixed across the districts.
“Four districts saw falls in price when compared to April - Auckland City, North Shore, Papakura and Waitakere, with the remaining three seeing lifts.”
Auckland had increased investors activity and more sales in the $2m-plus price range as vendors downsize and free up money to support their businesses, Norwell says.
“Interestingly, there has been a lot of interest in new builds amongst first home buyers for properties under $1million in areas such as New Lynn and Ellerslie,” she adds.
But despite the new figures, Westpac bank chief economist Dominick Stephens is standing by the bank’s forecast of a house price fall of 7 per cent over the final nine months of this year, despite rises in Northland, Bay of Plenty, Gisborne/ Hawke’s Bay, Taranaki and Canterbury.
“We think it is only a matter of time until these regions begin to register price declines too.
“The only possible exception is Canterbury, where prices have been much weaker than the rest of New Zealand for years and are therefore due for a bit of catch-up.
Stephens points out that the 3990 houses sold number is not much different to what it was during the 2008 recession. He expects this to hold steady as there will be low flow of people into and out of New Zealand.
“During recessions people are less likely to move region upgrade their house, or invest in property due to fear of what might happen in the economy, and this time will be no different,” he says, adding that lower-than-expected economic fallout from Covid-19 and extremely low interest rates may provide the “silver lining