Property

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

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.”
Heartland Bank - Online 6.69
SBS FirstHome Combo 6.74
Wairarapa Building Society 6.95
Unity 6.99
Co-operative Bank - First Home Special 7.04
ICBC 7.05
China Construction Bank 7.09
BNZ - Classic 7.24
ASB Bank 7.24
ANZ Special 7.24
TSB Special 7.24
Unity First Home Buyer special 6.45
Heartland Bank - Online 6.45
China Construction Bank 6.75
TSB Special 6.75
ICBC 6.75
ANZ Special 6.79
ASB Bank 6.79
AIA - Go Home Loans 6.79
Kiwibank Special 6.79
BNZ - Classic 6.79
Unity 6.79
Westpac Special 6.39
China Construction Bank 6.40
ICBC 6.49
SBS Bank Special 6.55
Kiwibank Special 6.55
BNZ - Classic 6.55
Co-operative Bank - Owner Occ 6.55
ASB Bank 6.55
AIA - Go Home Loans 6.55
TSB Special 6.59
Kainga Ora 6.99
SBS FirstHome Combo 6.19
AIA - Back My Build 6.19
ANZ Blueprint to Build 7.39
Credit Union Auckland 7.70
ICBC 7.85
Heartland Bank - Online 7.99
Pepper Money Essential 8.29
Co-operative Bank - Owner Occ 8.40
Co-operative Bank - Standard 8.40
First Credit Union Standard 8.50
Kiwibank 8.50

More Stories

Support for regulation

Monday, March 18th 2024

Support for regulation

REINZ has emphasised the need for property management regulation to Parliament’s Social Services and Community Committee.

A better investment market

Thursday, March 14th 2024

A better investment market

“Reinstatement of interest deductibility starting from the new tax year on 1 April brings property investors back in line with every other business in the country, where interest costs are a legitimate deductible expense," Tim Horsbrugh, New Zealand Property Investors Federation (NZPIF) executive committee member says.

[OPINION] Recessionary times

Thursday, March 14th 2024

[OPINION] Recessionary times

It is not the best out there for many businesses and property sector people. Sales are down across the board, our clients’ confidence is falling, and there is a lot of uncertainty.

Interest rate expectations: It’s not over yet

Thursday, March 07th 2024

Interest rate expectations: It’s not over yet

Most Kiwis think interest rate increases have peaked.