Yes, it's a small niche property market.
But interesting to see what is happening. Effective supply of inventory to the market has doubled. The Waiheke property market is no longer a sellers market, and more of a buyers market given the increase in property listings.
If you take a look on trademe.co.nz, the number of properties listed for sale currently is 230. Compare this with the sales of 253 over the last 12 months, and assuming at that sales rate of 4.8 sales per week (253 sales /52 weeks), it would take 47 weeks to sell all the properties listed for sale.
A quick look on QV.co.nz indicates that there were 2 sales in the last 3 months. At that sales rate of 0.16 sales per week (2 sales /12 weeks), it would take 1,380 weeks to sell the listed inventory (or 26.5 years).
Any desperate vendors may need to cut their price expectations to attract buyers in order to sell their property urgently. A desperate seller could include an owner who purchased their property financed by an interest only mortgage and after their 5 year interest only period, their loan is converting to a P&I mortgage - given that Waiheke properties purchased in the last few years with high LVR mortgages are likely to be negative cashflow, the change from an interest only loan to a P&I mortgage may be too much cashflow pressure for the property owner to bear.
Article excerpts
"In the past seven to eight months, the number of available listings has doubled, mostly from landlords selling rental properties," Brisbane said.
"The market has become less buoyant since the dizzy heights of 2016, when almost every deal was a multiple offer.
"Demand for Waiheke is still strong but not irrational," Hazell said.
Properties are sitting on the market for longer across the island, he said.
Both Hazell and Brisbane said the government has introduced new rules that make investing in property less attractive - and the new rules are having an impact.
Overseas property investors face tighter restrictions and capital gains tax could soon apply to anyone selling a second property within five years.
Some landlords are selling in response to new rules the government has introduced to improve the lot of tenants, Brisbane said.
Labour has banned agencies from charging tenants letting fees and plans to stop landlords ending tenancies without cause.
The government also plans to introduce longer notice periods for landlords wanting to sell or move into a rental property, and to only allow rent rises once a year.
Rents in Auckland and on Waiheke are generally not high enough to cover interest on mortgages, so some Auckland investors have been buying comparatively cheaper properties in outlying regions, Brisbane said.
According to figures released by realestate.co.nz, nationally asking prices for residential properties dropped 1.6 per cent between February and March to an average of $644,028.
Auckland's asking prices dropped 1.3 per cent to an average of $949,538, while "hot regions", including Gisborne, Northland, Marlborough, Coromandel and Hawke's Bay, recorded a 3.5 per cent increase in asking prices in March.
Brisbane said the Reserve Bank's easing of lending restrictions for first time home buyers has been one "welcome change" recently.
Waiheke's median house price peaked at $1,037,500 in June 2017, but fell by 1.6 per cent in the year to November 2017, he said.
The general election slowed traditionally strong spring sales, but after the election the market picked up, with a busy December and February, Brisbane and Hazell said.
In the year to the end of March, 253 properties sold on Waiheke.
Source: https://www.stuff.co.nz/business/pro...waiheke-island
But interesting to see what is happening. Effective supply of inventory to the market has doubled. The Waiheke property market is no longer a sellers market, and more of a buyers market given the increase in property listings.
If you take a look on trademe.co.nz, the number of properties listed for sale currently is 230. Compare this with the sales of 253 over the last 12 months, and assuming at that sales rate of 4.8 sales per week (253 sales /52 weeks), it would take 47 weeks to sell all the properties listed for sale.
A quick look on QV.co.nz indicates that there were 2 sales in the last 3 months. At that sales rate of 0.16 sales per week (2 sales /12 weeks), it would take 1,380 weeks to sell the listed inventory (or 26.5 years).
Any desperate vendors may need to cut their price expectations to attract buyers in order to sell their property urgently. A desperate seller could include an owner who purchased their property financed by an interest only mortgage and after their 5 year interest only period, their loan is converting to a P&I mortgage - given that Waiheke properties purchased in the last few years with high LVR mortgages are likely to be negative cashflow, the change from an interest only loan to a P&I mortgage may be too much cashflow pressure for the property owner to bear.
Article excerpts
"In the past seven to eight months, the number of available listings has doubled, mostly from landlords selling rental properties," Brisbane said.
"The market has become less buoyant since the dizzy heights of 2016, when almost every deal was a multiple offer.
"Demand for Waiheke is still strong but not irrational," Hazell said.
Properties are sitting on the market for longer across the island, he said.
Both Hazell and Brisbane said the government has introduced new rules that make investing in property less attractive - and the new rules are having an impact.
Overseas property investors face tighter restrictions and capital gains tax could soon apply to anyone selling a second property within five years.
Some landlords are selling in response to new rules the government has introduced to improve the lot of tenants, Brisbane said.
Labour has banned agencies from charging tenants letting fees and plans to stop landlords ending tenancies without cause.
The government also plans to introduce longer notice periods for landlords wanting to sell or move into a rental property, and to only allow rent rises once a year.
Rents in Auckland and on Waiheke are generally not high enough to cover interest on mortgages, so some Auckland investors have been buying comparatively cheaper properties in outlying regions, Brisbane said.
According to figures released by realestate.co.nz, nationally asking prices for residential properties dropped 1.6 per cent between February and March to an average of $644,028.
Auckland's asking prices dropped 1.3 per cent to an average of $949,538, while "hot regions", including Gisborne, Northland, Marlborough, Coromandel and Hawke's Bay, recorded a 3.5 per cent increase in asking prices in March.
Brisbane said the Reserve Bank's easing of lending restrictions for first time home buyers has been one "welcome change" recently.
Waiheke's median house price peaked at $1,037,500 in June 2017, but fell by 1.6 per cent in the year to November 2017, he said.
The general election slowed traditionally strong spring sales, but after the election the market picked up, with a busy December and February, Brisbane and Hazell said.
In the year to the end of March, 253 properties sold on Waiheke.
Source: https://www.stuff.co.nz/business/pro...waiheke-island
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