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White Light Newsletter June 2016

By Dianne Boyle

Rodney North Market Report

The media coverage about the state of our real estate market just seems to go on ad nauseam.

Our Reserve Bank continues to search for mechanisms to subdue the market, major banks have taken to restricting loans to foreign buyers, the Government is threatening to come down heavy on Regional Councils for not freeing up enough land for housing development, Winston Peters is calling for an overhaul of our immigration policy and the Labour Party seems to be calling for anything that appears to be populist, at the time.

Outrage is being expressed about owners leaving houses empty for considerable lengths of time while Auckland, in particular, is supposedly suffering a housing shortage crisis. Apparently, more than 33,000 Auckland dwellings are officially classified empty, with figures being based on the last census. Now remember, this is Auckland Region as a whole.

Have the critics considered the thousands of Aucklanders who own holiday homes in areas such as Omaha and the like. Now we are betting that on Census night there weren’t too many people at home in Omaha. On the other side of the coin, how many people live outside of Auckland City but own an apartment in the city for their own use. Are these the sort of people that Labour’s Housing Spokesman, Phil Twyford refers to as, “the super-rich (who) were happy to leave houses empty when Auckland prices were rising so fast.

How about this for an idea? What say we compel all boat owners that own a boat, sitting on one of the marinas around the city, and are not using their boat regularly, to make them available for families to live in. Not very politically correct (PC) to make such mutterings, but really!

We are not for one minute denying that there are “ghost houses” (houses that have been deliberately left empty by speculators trading on a soaring market), but we are not sure about some of the sensational figures quoted. Fortunately we are not alone in our scepticism.

It was an interesting move taken by some of our major banks last week where, apparently directed by their parent companies in Australia, they announced restrictions to foreign buyers obtaining loans to purchase property in New Zealand. It seems they will no longer recognise foreign income for non-New Zealand and Australian citizens. Based on statistics released a few weeks ago, these buyers actually only make up about 3 percent of the market so we would argue the move is more in the interests of the banks preserving their own interests rather than on a move for the betterment of the real estate market and the country.

More interesting, our local markets continue to perform extremely well and are only hindered by the low numbers of stock coming to the market. Nevertheless, residential sales numbers for North Rodney have remained fairly consistent over the last three months and similar to the same period in 2015. However, sales numbers for residential properties in the Maungaturoto area absolutely soared during May and we can’t remember the last time or, if ever, this area recorded 24 residential sales in any one month. This figure was over double that recorded for April 2016 or May last year (2015). Broken down, the sales recorded for this area was; Kaiwaka (7), Maungaturoto (8), Paparoa (1), Ruawai (6) and Tinopai (2). What an amazing result, which is not expected to continue as stock numbers coming to this market have also dropped.

In North Rodney, Wellsford had the largest number of sales (13) with Warkworth second (11) and then Snells Beach (9). The balance were spread from Puhoi to Pakiri with Omaha having quite a low (4).

Rural/lifestyle sales numbers recovered from their recorded low of nine for April 2016 to thirty-one for May, which is the second best result in the last five-plus years.

The Lavender House Wellness and Healing Centre property at 27 Lilburn Street, which is a mix of residential and commercial use, was the highest price sale in Warkworth and attributed to Warkworth having a median sale price of $785,000. Wellsford’s median sale price for the month was $465,000 and Snells Beach $539,500. Compare these with the National median house price which passed $500,000 for the first time, reaching $506,000. Point Wells had the highest sale of $1,825,000.

Of the fifty residential sales in North Rodney only four were vacant residential sections and in the Maungaturoto areas vacant sections only accounted for two out of the twenty-four. Similarly, in the rural/lifestyle sector, only a very small percentage of sales were bare land.

Recent sales, from the table attached show that current sales prices in North Rodney are averaging 38% above the 2014 Capital Value and in the Maungaturoto area 31.5% above their Capital Value.

Number of Residential & Rural Sales 2015 – 2016

                   Residential Sales for North Rodney – A selection of recent sales 

R/S = Residential Section        X/L = Cross Lease      U = Unknown

Residential Sales for Kaipara District – A selection of recent sales

R/S = Residential Section        X/L = Cross Lease      U = Unknown

Disclaimer:      Market statistics based on settled sales recorded with CoreLogic NZ where sales from ALL sources are recorded. In preparing this document we have used our best endeavours to ensure the accuracy of all the information provided. We accept no liability or responsibility for any errors or inaccuracies and recommend that all recipients make their own enquiries to verify any information given.

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