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: Saturday, October 24th, 8:48AM

News

rss
Latest Headlines

SuperCity sales defy expectations – for now

Auckland’s property market defied economic forecasts in June but that doesn’t mean it will continue to do so, according to the city’s largest real estate agency.

Thursday, July 2nd 2020, 10:28AM

by Miriam Bell

Barfoot & Thompson's Peter Thompson

Barfoot & Thompson’s latest data has June sales numbers returning to normal trading levels, with prices remaining stable.

There were 820 sales in June, which was up by 4.3% on 786 in June last year and by 107.1% on 396 in May this year.

At the same time, Auckland’s average price was $953,417, which was up by 0.6% (or $5,000) on May and by 1.4% on June last year.

The median price came in at $910,000 which was actually down by 0.4% on May but up by 7.7% on June last year.

Barfoot & Thompson managing director Peter Thompson says it was a remarkably solid month’s trading with no signs of market fragility.

“What contributed to the robustness of the market in June was solid new listings at 1,582 (up 56.3% from June 2019); an influx of first-time buyers; and some catch up business from the slow sales in May.”

But it is far too early to see this result as an indicator that the property market will defy forecasts and ride out the Covid-19 pandemic unaffected, he says.

“It does suggest that over a three to five-year time horizon buyers have confidence in property at today’s prevailing prices and that they are not holding back in the hope of a major decline in values.”

Properties in the above $1 million price segment were in demand, making up 44.6%of all sales, Thompson adds. “You have to go back more than two years (May 2018) to find a month when more $1 million plus sales were made.”

The agency ended the month with 4,001 properties on their books. Thompson says this gives buyers their greatest choice of property for 12 months.

Meanwhile, CoreLogic’s senior property economist Kelvin Davidson is warning about over-optimism when it comes to the housing market.

They recently ran a survey of users of their Property Guru platform and he says the results are a reality check on some of the strong positive sentiment that’s emerged lately about the market’s prospects.

“To be clear, we don’t think that the outlook is all doom and gloom. But at the same time, we’ve had the sense recently that the effects on property from the recession and rising unemployment might have been temporarily overlooked.”

Since the move out of lockdown in late April, market activity on a range of measures (both sales and rent) has rebounded.

Davidson says they’ve been wary of being unduly pessimistic about the economic and property market outlook.

“But there’s a sense that some have now become too optimistic – after all, we’re in a recession and unemployment has further to rise yet. These factors will restrain the property market for the rest of 2020 at least.”

 

Tags: Auckland average price Barfoot & Thompson CoreLogic coronavirus Covid-19 house prices housing market investment Kelvin Davidson listings market outlook median price new listings price growth property investment real estate rents sales activity

« Free Investment Property Showcase Events: Auckland, Wellington and ChristchurchWhy the future is not bleak for the housing market »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Mortgage Rates Newsletter

Daily Weekly

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA 4.55 2.55 2.69 2.79
ANZ 4.44 3.15 3.25 3.39
ANZ Special - 2.55 2.69 2.79
ASB Bank 4.45 2.55 2.69 2.79
Bluestone 3.49 3.49 3.49 3.49
BNZ - Classic - 2.55 2.69 2.79
BNZ - Mortgage One 5.15 - - -
BNZ - Rapid Repay 4.60 - - -
BNZ - Std, FlyBuys 4.55 3.15 3.29 3.39
BNZ - TotalMoney 4.55 - - -
CFML Loans 4.95 - - -
Lender Flt 1yr 2yr 3yr
China Construction Bank 4.49 4.70 4.80 4.95
China Construction Bank Special - 2.65 2.65 2.80
Credit Union Auckland 5.45 - - -
Credit Union Baywide 5.65 3.95 3.85 -
Credit Union South 5.65 3.95 3.85 -
First Credit Union Special 5.85 2.95 3.45 -
Heartland 3.95 2.89 2.97 3.39
Heartland Bank - Online 2.95 1.99 2.35 2.45
Heretaunga Building Society 4.99 3.50 3.40 -
HSBC Premier 4.49 2.45 2.60 2.65
HSBC Premier LVR > 80% - - - -
Lender Flt 1yr 2yr 3yr
HSBC Special - - - -
ICBC 3.69 2.45 2.65 2.79
Kainga Ora 4.43 2.93 3.07 3.24
Kainga Ora - First Home Buyer Special - 2.25 - -
Kiwibank 3.40 3.30 3.54 3.54
Kiwibank - Offset 3.40 - - -
Kiwibank Special 3.40 2.55 2.79 2.79
Liberty 5.69 - - -
Nelson Building Society 4.95 3.45 3.49 -
Pepper Essential 4.79 - - -
Resimac 3.39 3.35 2.99 3.35
Lender Flt 1yr 2yr 3yr
SBS Bank 4.54 3.05 2.99 2.99
SBS Bank Special - 2.55 2.49 2.49
The Co-operative Bank - First Home Special - - - -
The Co-operative Bank - Owner Occ 4.40 2.55 2.69 2.79
The Co-operative Bank - Standard 4.40 3.05 3.19 3.29
TSB Bank 5.34 3.29 3.45 3.59
TSB Special 4.54 2.49 2.65 2.79
Wairarapa Building Society 4.99 3.55 3.49 -
Westpac 4.59 ▼3.09 3.29 3.39
Westpac - Offset 4.59 - - -
Westpac Special - ▼2.49 2.69 2.79
Median 4.55 2.94 2.99 2.80

Last updated: 23 October 2020 5:00am

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