The latest from the BNZ's monthly survey results.
Real Estate – Residential
• High end real estate - positive, although better once the NZD declines
• Property Valuation and Advisory ChCh strong slowing up in activity and now real evidence of price
weakening although not across all bands of property. High interest rates for many more months to come
may exacerbate what is becoming a potentially fragile situation. Tax cuts maybe the panacea
• Property Development, Tauranga: Has been busy again here since Labour Weekend. Renewed interest
in property since the collapse of finance companies, the uncertain dollar and the unpredictable stock
exchange. Waikato farmers making noises about property investments during 2008. Outlook is rosy.
• Real Estate Advisory Quite!
• Residential Real estate sales east Auckland. Slow at open homes. buyers generally unmotivated with
the gap seller to buyer expectations big. However against the grain we had 3 offers on one property
(good location) the other day which sold unconditionally as a result.
• Property development - residential decline on high interest rates and poor returns on rents and capital
gains.
• We are a Real Estate company operating in Whakatane, Ohope Beach & Districts. September &
October were very good months in terms of property sales however November was slow. December has
really got away to a great start with lots of activity by the salespeople which are resulting in house sales.
If the rest of December is as good as this first week we will come close to a record December. Sales
People are having to work much harder than they needed to 12 – 18 months ago, but their efforts are
showing good results. Our property management department is still very short of properties to rent as
there is strong demand from quality Tenants. Properties sold to investors are quickly tenanted at the
moment. We really really need rental properties to manage.
• Property. Outlook is good for my sector - Apartments - rising rents, finite amount of new builds within
CBD, population changes all work for us.
• Property development: new sections still selling well in Hawkes Bay. We do not see a slowing down in
the market yet.
• Auckland residential property sales: I am seeing some very scary registered valuations held by second
tier lenders. Some are well beyond current realisable value.
• Valuation - still busy
• Residential Property Investment: Interest rates are having a big impact and is causing tremendous
cash-flow problems. Added to this is the tightening up a lending criteria. However, there are many
wealthy investors with low gearing who have been waiting for this moment for 3+ years. So much so, that
the downward pressures on pricing caused by possible over supply may to a large degree be absorbed
by the number of potential buyers waiting in the wings.
• Property Development. The market has gone completely quiet. The Bollard message has come through
load and clear and buyers are choosing to sit tight rather than commit. Add to this the Christchurch City
Council has ground to a complete halt and is adding significant costs to the system through financing the
delays.
• Residential Real Estate, Auckland Eastern Suburbs. After fairly mediocre results in September and
October, November was our second best month of the year. Auctions have been attracting multiple
buyers and many have sold above reserve with spirited bidding. Days on market for the Eastern Suburbs
crept out to 39 in October. November stats are not yet available. Listing activity was strong during the
month. Vendors who are motivated and listening to the market are achieving sales, but many vendors
are hanging out for unrealistic expectations. Property sales were across all price ranges with $1m plus
properties making up over a third of settled sales. Several leasehold sales were also made. December
2006 was an exceptional month but we would expect sales this year to be at a lower level. Rental activity
was also strong and if anything there is a shortage of good stock to satisfy demand.
• Property - valuer Hamilton/Cambridge. We have been a lot busier than at anytime last year with a lot of
new properties being bought by investors particularly in the last 2 months. There seems to be a good
number of investors with cash and equity available to purchase good quality properties.
• Residential real estate Pakuranga/Howick. Sale numbers down on last year, prices seem to be holding
at last years; actually reasonably busy, possibly vendors accepting that to move on they need to get real
with price expectations. Many buyers say they are waiting for huge drops next year, but others who are
buying suggest that perhaps we are at the low point.
• Property investing and land development/low end of market/middle end of market. (Mangere/Waiuku)
1), the low end of the market stuffed, only vultures circling Waiuku: new brick & tile homes lying empty
for some time now. not even any vultures to be seen. 3)1910 circa Villa ,Remuera, more than 50%burnt,
1020 m steep site sold for just on 1.8ml within eight weeks, land value only (one dwelling per 1000m).
Three competing purchases. Amazing! There seems to be a new benchmark for high-quality homes in
the best Remuera streets, starting at 3.5 upwards. Amazing a lot more "for sale" real estate signs
springing up across the board
• Real estate. Good inquiry, especially from overseas, harder to get buyers to commit, some vendors still
over pricing.
• I am a US mortgage broker and we are surviving the mortgage crisis, but had seen the meltdown coming
and were prepared. I have property holdings in Kaikoura and am pleased with the strength and
appreciation. Not thrilled with the New Zealand mortgage rates or current exchange rate, but do like the
interest rates paid on term investments. So, overall no real reason to complain!
• Open Homes are like "Waiting for Godot" after the initial two weeks showings when the left over bargain
hunters check out any new listing
• Residential in Christchurch: The market has suddenly gone very quiet. No properties in last week’s
auction at …. in Christchurch reached their reserves. It would appear that the long awaited correction in
the residential market is about to happen.
• Property Industry poor sales already evident
• Real Estate - Eastern Beaches, Auckland We are at a full-stop across all price ranges. There are lots of
excellent buys out there for the astute investors and expect this to continue for quite some time.
• Residential Real Estate Auckland Central - Sales volume is down from a year ago about 20%. Some
prices being achieved seem low, but others high. An open home today of a just-listed family home in
the $1mil plus bracket was attended by 25 groups or about 65 people. Several buyers were cashed up
but more-so than last year, many were not.
• Rental properties. Rents are rising and the future looks better as housing costs prevent first home
owners buying, and investors bide their time for expansion.
• Residential property investor House values are now confirmed to have stopped rising. Tenant demand
for property is very strong. Locally, residential property managers are complaining to me that they need
more houses from investors to lease to tenants. I believe long-term property investors will see large
increases in rents over the next two years. The media is starting to run "pity the poor renter" type
headlines.
• In the Property and Investment sector we note that high interest rates are leading to a steady decline in
investment as people are becoming more cautious about where they place their funds. Pessimism in
overseas markets is also being reflected in increasing uncertainty by our clients.
• Real Estate Christchurch, things are definitely picking up after a couple of pretty flat months Vendors
need to be well priced to the market, but the stock is flowing onto the market .Surprised by the number of
sellers asking about auction as a marketing initiative .
• Real estate. feels like the tap has been turned off.
Real Estate – Residential
• High end real estate - positive, although better once the NZD declines
• Property Valuation and Advisory ChCh strong slowing up in activity and now real evidence of price
weakening although not across all bands of property. High interest rates for many more months to come
may exacerbate what is becoming a potentially fragile situation. Tax cuts maybe the panacea
• Property Development, Tauranga: Has been busy again here since Labour Weekend. Renewed interest
in property since the collapse of finance companies, the uncertain dollar and the unpredictable stock
exchange. Waikato farmers making noises about property investments during 2008. Outlook is rosy.
• Real Estate Advisory Quite!
• Residential Real estate sales east Auckland. Slow at open homes. buyers generally unmotivated with
the gap seller to buyer expectations big. However against the grain we had 3 offers on one property
(good location) the other day which sold unconditionally as a result.
• Property development - residential decline on high interest rates and poor returns on rents and capital
gains.
• We are a Real Estate company operating in Whakatane, Ohope Beach & Districts. September &
October were very good months in terms of property sales however November was slow. December has
really got away to a great start with lots of activity by the salespeople which are resulting in house sales.
If the rest of December is as good as this first week we will come close to a record December. Sales
People are having to work much harder than they needed to 12 – 18 months ago, but their efforts are
showing good results. Our property management department is still very short of properties to rent as
there is strong demand from quality Tenants. Properties sold to investors are quickly tenanted at the
moment. We really really need rental properties to manage.
• Property. Outlook is good for my sector - Apartments - rising rents, finite amount of new builds within
CBD, population changes all work for us.
• Property development: new sections still selling well in Hawkes Bay. We do not see a slowing down in
the market yet.
• Auckland residential property sales: I am seeing some very scary registered valuations held by second
tier lenders. Some are well beyond current realisable value.
• Valuation - still busy
• Residential Property Investment: Interest rates are having a big impact and is causing tremendous
cash-flow problems. Added to this is the tightening up a lending criteria. However, there are many
wealthy investors with low gearing who have been waiting for this moment for 3+ years. So much so, that
the downward pressures on pricing caused by possible over supply may to a large degree be absorbed
by the number of potential buyers waiting in the wings.
• Property Development. The market has gone completely quiet. The Bollard message has come through
load and clear and buyers are choosing to sit tight rather than commit. Add to this the Christchurch City
Council has ground to a complete halt and is adding significant costs to the system through financing the
delays.
• Residential Real Estate, Auckland Eastern Suburbs. After fairly mediocre results in September and
October, November was our second best month of the year. Auctions have been attracting multiple
buyers and many have sold above reserve with spirited bidding. Days on market for the Eastern Suburbs
crept out to 39 in October. November stats are not yet available. Listing activity was strong during the
month. Vendors who are motivated and listening to the market are achieving sales, but many vendors
are hanging out for unrealistic expectations. Property sales were across all price ranges with $1m plus
properties making up over a third of settled sales. Several leasehold sales were also made. December
2006 was an exceptional month but we would expect sales this year to be at a lower level. Rental activity
was also strong and if anything there is a shortage of good stock to satisfy demand.
• Property - valuer Hamilton/Cambridge. We have been a lot busier than at anytime last year with a lot of
new properties being bought by investors particularly in the last 2 months. There seems to be a good
number of investors with cash and equity available to purchase good quality properties.
• Residential real estate Pakuranga/Howick. Sale numbers down on last year, prices seem to be holding
at last years; actually reasonably busy, possibly vendors accepting that to move on they need to get real
with price expectations. Many buyers say they are waiting for huge drops next year, but others who are
buying suggest that perhaps we are at the low point.
• Property investing and land development/low end of market/middle end of market. (Mangere/Waiuku)
1), the low end of the market stuffed, only vultures circling Waiuku: new brick & tile homes lying empty
for some time now. not even any vultures to be seen. 3)1910 circa Villa ,Remuera, more than 50%burnt,
1020 m steep site sold for just on 1.8ml within eight weeks, land value only (one dwelling per 1000m).
Three competing purchases. Amazing! There seems to be a new benchmark for high-quality homes in
the best Remuera streets, starting at 3.5 upwards. Amazing a lot more "for sale" real estate signs
springing up across the board
• Real estate. Good inquiry, especially from overseas, harder to get buyers to commit, some vendors still
over pricing.
• I am a US mortgage broker and we are surviving the mortgage crisis, but had seen the meltdown coming
and were prepared. I have property holdings in Kaikoura and am pleased with the strength and
appreciation. Not thrilled with the New Zealand mortgage rates or current exchange rate, but do like the
interest rates paid on term investments. So, overall no real reason to complain!
• Open Homes are like "Waiting for Godot" after the initial two weeks showings when the left over bargain
hunters check out any new listing
• Residential in Christchurch: The market has suddenly gone very quiet. No properties in last week’s
auction at …. in Christchurch reached their reserves. It would appear that the long awaited correction in
the residential market is about to happen.
• Property Industry poor sales already evident
• Real Estate - Eastern Beaches, Auckland We are at a full-stop across all price ranges. There are lots of
excellent buys out there for the astute investors and expect this to continue for quite some time.
• Residential Real Estate Auckland Central - Sales volume is down from a year ago about 20%. Some
prices being achieved seem low, but others high. An open home today of a just-listed family home in
the $1mil plus bracket was attended by 25 groups or about 65 people. Several buyers were cashed up
but more-so than last year, many were not.
• Rental properties. Rents are rising and the future looks better as housing costs prevent first home
owners buying, and investors bide their time for expansion.
• Residential property investor House values are now confirmed to have stopped rising. Tenant demand
for property is very strong. Locally, residential property managers are complaining to me that they need
more houses from investors to lease to tenants. I believe long-term property investors will see large
increases in rents over the next two years. The media is starting to run "pity the poor renter" type
headlines.
• In the Property and Investment sector we note that high interest rates are leading to a steady decline in
investment as people are becoming more cautious about where they place their funds. Pessimism in
overseas markets is also being reflected in increasing uncertainty by our clients.
• Real Estate Christchurch, things are definitely picking up after a couple of pretty flat months Vendors
need to be well priced to the market, but the stock is flowing onto the market .Surprised by the number of
sellers asking about auction as a marketing initiative .
• Real estate. feels like the tap has been turned off.