tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Thursday, March 28th, 10:13PM

News

rss
Latest Headlines

Figures paint more positive picture than the hype

While conceding the real estate market has “cooled”, the head of New Zealand’s largest real estate company, Harcourts, says the company’s latest statistics paint a more positive picture than the hype.

Wednesday, December 19th 2007, 12:25PM

by The Landlord

Commenting on the company’s latest figures, Harcourts chief executive Bryan Thomson says price levels in most areas are remaining stable, while the number of properties available for sale is still rising – which is good news for vendors and buyers respectively.

“The first half of the year was huge, with sales volumes and prices continuing to increase significantly. Admittedly in recent months sales volumes have cooled, however the number of sales remain at solid levels in most markets and prices are holding, so it’s a more positive picture than many are painting,” he says.


“Despite negative rhetoric from key banking figures and many industry commentators, some better informed and without the personal agendas of others, the truth of the matter is simply that the market is entering a more stable phase, after a number of years of record activity.

“In early 2008 I expect the solid sales levels continuing in the urban real estate sector with active buyers in most markets, a strong employment market and rising incomes. However, price escalations are unlikely to be at the same rates we have experienced in the recent past. Further, people who paid a premium over the past 12 – 18 months and are now looking to sell will be disappointed if they expect to make a significant capital gain or in some cases to obtain a price equal to what they paid,” Thomson says.

“As for rural real estate, dairy farms and lifestyle properties in particular have been strong performers in the past year. With the dairy sector experiencing such good times, dairy units (including conversions), support properties and run-off blocks of land have all experienced increased demand, as have cropping and arable properties – helping push the rural median sale price to record levels.”

Next year should see similar buoyancy in the rural market continuing, especially in dairying, Thomson predicts.

“With forecasts of record milk solid payouts, dairy farms are set to continue to be hot property. Dairy farmers’ good fortune may also have flow-on effects if they decide to invest in other types of property,” he says.

“In terms of other rural economic units, their demand and value is likely to follow historical trends based on the returns available, while I believe the value of most lifestyle properties is likely to increase.”

As for coastal/waterfront property, Thomson, says there is still strong demand for good quality coastal and waterfront properties.

 “In some areas where there has been significant subdivision/development in recent years there is an oversupply of sections, however in general this segment of the market is looking good. With more family groups and syndicates in the coastal and waterfront market and a more liberal lending environment there is now achievable demand,” he says.

Thomson says his advice to sellers is simple. “Select the best agency available, present and promote your property well and set a price that’s in line with the market and you will succeed.”

With buyers, his advice is to feel the fear and do it anyway!

“The biggest risk for buyers is that they procrastinate and miss out on a great property. Investing in ‘bricks and mortar’ for the first time or upgrading is of course a big decision, but if you’re clear about what you want and you do your homework you shouldn’t be disappointed. If you procrastinate too long you will miss out.”
« Property investors refocus on cash flowFree Investment Property Showcase Events: Auckland, Wellington and Christchurch »

Special Offers

Commenting is closed

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Mortgage Rates Newsletter

Daily Weekly

Previous News
Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 6.19 - - -
AIA - Go Home Loans 8.74 7.24 6.79 6.65
ANZ 8.64 7.84 7.39 7.25
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 7.24 6.79 6.65
ASB Bank 8.64 7.24 6.79 6.65
ASB Better Homes Top Up - - - 1.00
Avanti Finance 9.15 - - -
Basecorp Finance 9.60 - - -
Bluestone 9.24 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Classic - 7.24 6.79 6.65
BNZ - Green Home Loan top-ups - - - 1.00
BNZ - Mortgage One 8.69 - - -
BNZ - Rapid Repay 8.69 - - -
BNZ - Std, FlyBuys 8.69 7.84 7.39 7.25
BNZ - TotalMoney 8.69 - - -
CFML Loans 9.45 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 7.04 - -
Co-operative Bank - Owner Occ 8.40 7.24 6.79 6.65
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Standard 8.40 7.74 7.29 7.15
Credit Union Auckland 7.70 - - -
First Credit Union Special - 7.45 7.35 -
First Credit Union Standard 8.50 7.99 7.85 -
Heartland Bank - Online 7.99 6.69 6.45 6.19
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.60 7.40 -
HSBC Premier 8.59 - - -
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 7.85 7.05 6.75 6.59
Lender Flt 1yr 2yr 3yr
Kainga Ora 8.64 7.79 7.39 7.25
Kainga Ora - First Home Buyer Special - - - -
Kiwibank 8.50 8.25 7.79 7.55
Kiwibank - Offset 8.50 - - -
Kiwibank Special - 7.25 6.79 6.65
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 9.00 7.75 7.35 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
Resimac - LVR < 80% 8.84 ▼8.09 ▼7.59 ▼7.29
Lender Flt 1yr 2yr 3yr
Resimac - LVR < 90% 9.84 ▼9.09 ▼8.59 ▼8.29
Resimac - Specialist Clear (Alt Doc) - - 8.99 -
Resimac - Specialist Clear (Full Doc) - - 9.49 -
SBS Bank 8.74 7.84 7.45 7.25
SBS Bank Special - 7.24 6.85 6.65
SBS Construction lending for FHB - - - -
SBS FirstHome Combo 6.19 6.74 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.95 - - -
Select Home Loans 9.24 - - -
TSB Bank 9.44 8.04 7.55 7.45
Lender Flt 1yr 2yr 3yr
TSB Special 8.64 7.24 6.75 6.65
Unity 8.64 6.99 6.79 -
Unity First Home Buyer special - - 6.45 -
Wairarapa Building Society 8.60 6.95 6.85 -
Westpac 8.64 7.89 7.49 7.25
Westpac Choices Everyday 8.74 - - -
Westpac Offset 8.64 - - -
Westpac Special - 7.29 6.89 6.65
Median 8.64 7.29 7.32 6.65

Last updated: 28 March 2024 9:42am

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com