Archive | Residential

Hobsonville Land becomes HLC

Housing NZ Corp subsidiary Hobsonville Land Co Ltd changed its name to HLC (2017) Ltd on Tuesday, and has changed its trading name to HLC, representing “Homes Land Community”.

Chief executive Chris Aiken the change came as the company widened its focus to additional largescale developments around Auckland.

The company was formed to develop Hobsonville Point, the former NZ Defence Force site on the Upper Waitemata Harbour, and celebrated 10 years of residential development last year.

1000 homes have been built at Hobsonville Point and it’s now home to 2310 residents. About 500 more new homes/year are being built. On completion, the 167ha masterplanned development will have 4500 houses & over 10,000 residents.

Mr Aiken said the company had learned a great deal about building quickly at scale, and in a quality way that would foster strong communities and produce affordable homes.

Attribution: Company release.

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Auckland house median slips

The Real Estate Institute said today the median house sale price in Auckland in February, $800,000, was down $5000 from January but up $50,000 on the median a year ago.

Nationally, the equation was up on both previous periods – up $5000 on January and up $45,000 on a year ago.

The $1 million-plus price bracket regained some of the market share it lost in January. After falling from 13% in December to 10.6% in January, the top bracket was back up to 11.3% of the market in February.

The breakdown of sales in price brackets and their share of the market in February 2017 & February 2016:

$1 million-plus, 708 (675), 11.3% (9.3%)
$600,000-999,999, 1639 (1656), 26.2% (22.7%)
$400,000-599,999, 1632 (1934), 26.1% (26.5%)
Under $400,000, 2247 (3026), 36.4% (41.5%)

Around the region on the old boundaries, February 2017 median & sales with January 2017 & February 2016 in brackets:

Rodney, $832,500 ($897,500, $760,000), 148 (112, 163)
North Shore, $1,013,000 ($965,000, $940,000), 296 (182, 372)
Waitakere, $805,000 ($761,500, $683,000), 200 (170, 289)
Auckland City, $891,000 ($845,500, $825,000), 464 (416, 549)
Manukau, $800,000 ($815,000, $749,500), 273 (193, 320)
Auckland region, $800,000 ($805,000, $750,000), 1661 (1247, 1936)
NZ, $495,000 ($490,000, $450,000), 6253 (4307, 7291)

Attribution: Institute release.

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Barfoot home sales down but average price a record

Barfoot & Thompson said on Friday its average sale price for residential properties reached a record high of $944,574 in February while sales were at their lowest in 6 years and available choice was at its highest for 5 years.

The previous average sale price record, set last October, was $943,801.

Director of the real estate firm Kiri Barfoot said: “Experience has taught us to be cautious about reading too much into a single month’s trading results, particularly in February when a good portion of the sales relate to property negotiations that took place over the extended holiday break.

“What is clear from the results is that prices at the top end of the market were not under downward pressure, with the average sales price increasing by 2.6% on the average price for the previous 3 months. Compared to February 2016, the average price was 14.9% higher.

“Competition for properties around the $1 million mark was strong. In February, 187 – or a third of all sales – were for in excess of $1 million. Sales numbers for properties sold in excess of $750,000 were also in line with the numbers sold in 2016 & 2015.

“Conversely, sales under $750,000 were down a third on those for 2016 and under half those in 2015. The lower number of sales in the under-$750,000 price category brought the median price for the month down to $820,000, its lowest level since May 2016.

“The median price in the last 3 months has declined by 3.1% but remains 11.1% higher than it was 12 months ago.

“The number of new listings for February, at 2295, was our highest ever in a February and, combined with the low number of sales in the month, saw available listings at month end at 4546. The last time we had more listings on our books than this was in 2012. Based on buyer interest, this situation may be short-lived.

“At present, the market has divided around the $750,000 mark. Above this point sales numbers & prices remain consistent. Below it, uncertainty has developed as to whether asking prices represent value for money, and sales numbers have fallen.”

Barfoots’ figures in February (January & February 2016 in brackets):

Average price: $944,574 ($913,938, $822,024)
Median: $820,000 ($846,500, $738,000)
Sales: 556 (629, 698)
New listings: 2295 (1142, 2060)
Month-end available stock: 4546 (3620, 3318)

Attribution: Agency release.

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Residential building slump forecast for Australia over next 3 years

The Housing Industry Association of Australia is forecasting a slump in housebuilding over the next 3 years.

In its forecast, out today, the association said there were 228,000 housing starts last year but the figure should fall to 201,000 this year and to a range between 174-180,000 over the next 3 years.

The decline would be nationwide this years and continue on the eastern seaboard in 2018, when the forecast falls are 21.7% in New South Wales, 18.2% in Victoria & 8.6% in Queensland. A further 5.7% fall is forecast for New South Wales in 2019, with real recovery nationally only starting in 2020.

The association calculated that building starts peaked at 231,000/year in the March 2016 quarter, then began easing. However, the detached housing sector had remained resilient, with 29,600 starts in the September quarter for a total 116,000 over 12 months.

The decline has been in multi-unit developments in Victoria & Queensland. That sector’s cyclical bottom is forecast for the 12 months to September 2019, with 68,400 starts.

The association will release its national & state outlook reports next Wednesday, 8 March.

Attribution: HIA release.

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Shore & Manukau housing values drop over last quarter

Housing values on the North Shore, a few spots on the isthmus and in Manukau have slipped in the latest report by Quotable Value, out today.

QV produces its monthly house price index on rolling 3-month & 12-month bases.

The whole of the Auckland region slipped by 0.7% in the last 3 months. The biggest declines in the region were in the old North Shore City boundaries, where the index for the whole the old city fell 2.2%, as did the Onewa area. Coastal property values fell 2.7% on average.

Nationally, values were up 1.1% over the 3 months, 13.5% over the last year.

QV said the index for Auckland was still up 12.8% over the year despite the more recent declines. Adjusted for inflation, Auckland values rose 11.3% over the last year, 61% since the 2007 peak. Nationally, adjusted for inflation, the index rose 12.0% over the year, 28.5% since the 2007 peak.

QV’s index figures around Auckland on the old council boundaries, plus Kaipara, the Auckland & Wellington regions and nationally – the latest average value & index shifts in the last 3 months, last 12 months & since the 2007 peak:

Kaipara, $470,913, 8.1%, 25.3%, 18.7%
Rodney, $936,877, 1.4%, 13.6%, 59.7%
North, $957,228, 0.8%, 13.6%, 59.4%
Hibiscus Coast, $918,495, 2.6%, 13.4%, 56.4%
North Shore, $1,196,987, -2.2%, 11.2%, 85.5%
Coastal, $1,363,263, -2.7%, 11.6%, 80.9%
Onewa, $962,999, -2.2%, 11.0%, 94.1%
North Harbour, $1,176,182, -1.0%, 11.2%, 93.6%
Waitakere, $831,705, -1.7%, 13.8%, 96.2%
Auckland City, $1,224,673, 0.2%, 12.5%, 96.7%
Central, $1,062,336, 0.7%, 11.6%, 86.5%
East, $1,540,731, 1.3%, 13.5%, 93.3%
South, $1,100,193, -1.3%, 11.5%, 104.4%
Islands, $1,057,341, 2.7%, 18.9%, 65.4%
Manukau, $902,477, -0.4%, 14.2%, 97.2%
East, $1,159,890, -0.7%, 14.5%, 94.6%
Central, $685,233, -1.7%, 11.6%, 82.3%
North-west, $785,112, 1.6%, 16.2%, 112.5%
Papakura, $686,465, 0.9%, 13.6%, 90.8%
Franklin, $663,638, 2.4%, 13.3%, 67.8%
Auckland region, $1,043,680, -0.7%, 12.8%, 91.0%
Wellington region, $589,784, 4.3%, 21.5%, 29.4%
Total NZ, $631,349, 1.1%, 13.5%, 52.4%

Link:
QV house price index for February 2017

Attribution: QV release.

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Avanda wins Airfields stage 2 development

Auckland Council company Panuku Development Auckland has confirmed Chinese-owned Avanda Ltd as the housing developer for stage 2 of the 20ha council-owned Airfields precinct at Hobsonville Point.

Avanda and its building partners will develop over 500 homes in stage 2, of which a minimum 10% will be affordable housing. Housing will be delivered within an agreed timeframe.

Panuku chief executive Roger MacDonald said Avanda was chosen after a competitive tender process, with strong interest from 6 potential developers.

“Avanda is a significant new entrant in the property development market and they showed commitment to developing all of stage 2, rather than just individual parcels that were offered to the market.”

Avanda project manager Winson Tan said the company would deliver a range of high quality housing options. The company has started detailed design to obtain the necessary resource consents for infrastructure works.

Avanda’s ultimate holding company is Guangzhou Jinxiu Dadi Property Co Ltd.

Building at Airfields stage 1 will start over the next few months. It will have 102 standalone & terrace homes.

Image above: Airfields stage 2 at Hobsonville Point, outlined in red.

Earlier story:
21 September 2015: Avanda launches first townhouses on Crown Lynn site

Attribution: Company release.

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Median sale price falls as fewer expensive homes sell

The median sale price for residential properties sold in Auckland dropped 4% ($35,000) from December to January, according to Real Estate Institute figures.

That happened as available stock in Auckland rose 17% compared to a year ago (1135 more properties on the market than in January 2016), but available stock outside Auckland fell 22% (by 4878 properties).

2 other market moves occurred in January – the trends of a rise in the $1 million-plus share of the market and decline in the under-$400,000 share were turned on their heads, at least briefly.

As prices overall have risen, the bottom market bracket’s share has steadily declined – from about 45% in mid-2014 to 34% in December. But, in January, that share climbed to 37.4%.

The $1 million-plus share of the market was in single figures in 2014, but climbing, and was 13% in December. But in January it dropped to 10.6%.

The Real Estate Institute said Auckland agents had 5.5 weeks’ more inventory than they had a year ago, rising to 16.6 weeks’.

280 homes were sold by auction nationally in January, representing 7% of all sales, down by 138 (33%) compared to January 2016.

The breakdown of sales in price brackets and their share of the market in January 2017 & January 2016:

$1 million-plus, 456 (423), 10.6% (8.4%)
$600-999,999, 1135 (1128), 26.4% (22.3%)
$400-599,999, 1105 (1310), 25.7% (26.0%)
Under $400,000, 1611 (2187), 37.4% (43.3)

Around the region on the old boundaries, January 2017 median & sales with December & January 2016 in brackets:

Rodney, $897,500 ($841,750, $793,750), 112 (160, 130)
North Shore, $965,000 ($1,038,500, $870,000), 182 (354, 280)
Waitakere, $761,500 ($760,000, $685,000), 170 (268, 217)
Auckland City, $845,500 ($978,000, $790,000), 416 (558, 406)
Manukau, $815,000 ($820,000, $700,000), 193 (325, 273)
Auckland region, $805,000 ($840,000 $720,000), 1247 (1873, 1526)
NZ, $490,000 ($516,000, $448,000), 4307 (6533, 5048)

Attribution: Institute release.

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Agency says rents slow to rise

Barfoot & Thompson said yesterday average Auckland residential rent has risen at a relatively reasonable pace despite high demand for rentals, rising property sale prices and long-term interest rates tipped to go up.

Based on the latest data from its property management division, Auckland renters paid about 4.4% more on average in the December quarter, compared with that quarter of 2015. Average weekly rent across all property types & locations in Auckland was $524, up from $502 in the fourth quarter of 2015.

Average rent rose more in South Auckland (6.3%) and slightly less in central Auckland, (2.6%) Franklin/Manukau (3.1%) & Pakuranga/Howick (3.3%).

Barfoot & Thompson director Kiri Barfoot said: “Rents have risen at quite a modest rate given the record house sales prices we saw last year. Most property owners would prefer a trustworthy long-term tenant, paying rent on time, to asking for higher rent.

“Landlords obviously consider the return on investment, but are very conscious an empty property doesn’t pay rent. This is why we don’t tend to see tenants being hit with large rent increases, even when house prices or interest rates rise.”

She said rent was determined by property location, size & number of bedrooms, as well as taking into account desirable features such as internal garaging & sunny outdoor spaces.”

Over $300 for one bedroom, no matter where

The largest rent increases in terms of property size were for one- & 2-bedroom homes: “For the first time, the average rent for a one-bedroom property in all areas of Auckland passed $300, ranging from $302 in Manukau/Franklin to $373 in central Auckland. However, 3-bedroom homes are the most common rental and the best reflection of what the overall market is doing.”

The average rent for a 3-bedroom home during the December quarter was $525/week, rising less than 1% on the September quarter ($520) and 4.4% on the December 2015 quarter ($503). Rent for a 3-bedroom home ranged from an average $419 in Franklin/Manukau to $887 in central Auckland.

One-bedroom properties averaged $344 (up 5.1% from $327 in the December 2015 quarter), and 2 bedrooms $437 (up 5.1% from $416), while 4-bedroom homes brought in $658 (up 3.4% from $636) and 5+ bedroom homes averaged $812 (up 3.2% from $787).

Management demand grows

Ms Barfoot said property owners were turning to professional property managers in droves to mind their investments. Barfoot & Thompson was managing 9% more rental properties at the end of 2016 than in 2015, and 12-16% more in Franklin, Rodney, central & south Auckland.

“Typically we sign on around 450 new properties every month. There are 2 clear trends. The first is a desire for professional management in areas further north & south as rental demand increases beyond the traditional city limits. The second is owners coming to us as developments are being completed in the central city.”

Attribution: Agency release.

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Chinese spent $A2.4 billion in 2016 on Australian residential sites

Chinese developers & investors bought $A2.4 billion worth of residential development sites in Australia last year, according to Knight Frank research.

Knight Frank’s director of residential research in Australia, Michelle Ciesielski, said in a paper released in January: “This was 9.4% stronger than recorded in the prior year. This trend has been emerging over the past 5 years, while the Australian residential market collectively strengthened throughout 2012 and in 2013, growth in sales turnover encouraged prices to rise for local developers & investors alike. At this time, the $A became very favourable against other currencies for investment into Australia. The Chinese renminbi was no exception.

“Despite overall total sales falling during 2016, and sales to Chinese developers & investors are still 11.2% lower than the market peak recorded in 2014, their influence has grown. In the past 3 years, Chinese developers & investors accounted for over 25% of disclosed total sales each year, with 2016 recording a share of sales as high as 38%.”

Link:
Knight Frank, January 2017: The rise of Chinese developers in Australia, full report

Attribution: Knight Frank report.

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Big rise in over-$1 million sales keeps Barfoots average & median up

Barfoot & Thompson managing director Peter Thompson said on Friday there was normally a dip in Auckland house sale prices in January, but this year both the average & median were marginally higher than in December for the first time in 14 years.

“At the same time sales numbers fell more than is usual, new listings were healthy and choice increased to its best level in a January for 3 years.

The big factor was the much higher percentage of $1 million-plus sales – 31.2% this January, 20.7% in January 2016 & 21% in January 2015, up from 10.7% in January 2014.

“The average sale price for the month was $913,938 and the median price $846,500. These prices reverse a 3-month sale price decline from the alltime highs set in October 2016.”

Mr Thompson cautioned against trying to read too much or future trends into sales data for January: “The market is still regaining momentum from the holiday break and it can lead to statistical anomalies.”

He said what came through across all price segments was that “tthere were no obvious signs prices were under great pressure to fall. At the start of this year buyers enjoyed greater choice than has been the case at this time of the year for 4 years.

“Sales numbers in January, at 629, were their lowest in any month for 5 years while new listings, at 1142, ensured choice remained high. At the end of the month we had 3620 properties on our books.

“During the month 79 properties, or 12.5% of sales, were for under $500,000.

“Sales of rural & lifestyle property in January mirrored those for residential houses, with 49 properties sold. Prices achieved remained in line with those being paid in December, with a high level of new listings coming to market.”

Attribution: Agency release.

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