Archive | Agency

Barfoot & Thompson wins “best in world” title

Barfoot & Thompson won the award for best real estate company in the world at International Property Media Ltd’s awards in London on Monday.

The agency also won the New Zealand categories for best lettings agency, best in marketing for the Nugent Rise project in Auckland, best agency over 20 offices and best agency website.

The awards are open to residential & commercial property professionals around the globe.

Other best in category & award winners (runners up) in the New Zealand section were:

Property consultancy: Best, CBRE; award, JLL
Real estate agency: Best, Bayleys Realty Group; award, JLL
Marketing: Awards, Bayleys, Prestige Real Estate International Ltd
Agency over 20 offices: Award, Bayleys

Harcourts takes Reader’s Digest award

Meanwhile, back home, Harcourts International Ltd has won the Reader’s Digest quality service gold award in real estate sales for the second consecutive year.

The Reader’s Digest awards are decided through a survey by Catalyst Market Research Ltd. 1500 respondents were asked to nominate a service provider in up to 41 categories, including real estate sales. To qualify to vote on a category, respondents must have used a service provider from that industry.

Harcourts clients gave the agency an average star rating of 4.7 out of 5. Harcourts has also won the Reader’s Digest most trusted award every year since 2013.

Attribution: International Property Media, agency releases.

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2 Hamilton agencies lose price-fixing appeal case

2 Hamilton real estate agencies & their directors will face penalties in the  5-year-old agency price-fixing case following a decision of the Court of Appeal released on Friday.

The court overturned a High Court ruling that had cleared Lodge Real Estate Ltd & Monarch Real Estate Ltd & the 2 companies’ directors, Jeremy O’Rourke (Lodge) & Brian King (Monarch), of engaging in price-fixing in breach of the Commerce Act.

The Court of Appeal didn’t set penalties, but referred the case back to the High Court to do that.

This case is one of many brought by the Commerce Commission after agencies reacted to a decision by Trade Me to change its billing practice of charging agencies low monthly fees for their ads.

Agency heads met in 2013 and agreed to pull their ads from Trade Me, and to switch to a vendor-funding model.

The High Court has so far imposed penalties of $16.425 million on Hamilton-based defendants Lugton’s Ltd & Success Realty Ltd, Manawatu-based defendants Unique Realty Ltd & Manawatu 1994 Ltd, as well as Barfoot & Thompson Ltd, Harcourts Group Ltd, LJ Hooker NZ Ltd, Ray White (Real Estate) Ltd & Bayley Corp Ltd, either by agreement or after court hearings.

In the Lodge & Monarch case, High Court judge Pheroze Jagose ruled that, although there was an arrangement or understanding between the agencies & directors and they gave effect to it, the agreement didn’t have the purpose or effect of fixing, controlling or maintaining the price for Trade Me listing services.

Under Trade Me’s old scheme, agencies paid a base fee plus a fee for every listing, capped at $999/month/agency office, with some variations. Most agencies absorbed this cost and offered standard Trade Me listings to vendors for no extra charge.

In mid-2013, Trade Me decided on a new fee structure for standard residential property listings. It proposed a single fee for each standard residential listing of $199, of which $40 was to be commission payable to the agency. Trade Me later dropped that commission, so the proposed fee was $159. This was a New Zealand-wide proposal, and provoked a New Zealand-wide reaction.

Lodge faced an increase from an annual Trade Me cost of $8–9000 to one of $200–220,000. Monarch faced an increase of $36,000 to nearly $225,000. The general manager of the NZ Realtors Network began to organise a meeting of local agencies.

Following the meeting it was the general intention to cease using Trade Me for listings of residential property for sale in January 2014, and advertise primarily on the industry-owned website, realestate.co.nz. All Trade Me listings after January 2014 were to be vendor funded.

The Court of Appeal bench of Justices Raynor Asher, Brendan Brown & Murray Gilbert held that funding by an individual agent was consistent with, and part of, the definition of vendor funding in the arrangement as pleaded by the Commerce Commission.

Justice Asher wrote in the Court of Appeal decision: “The evidence objectively established a consensus & mutual expectations between the agencies that they would move to vendor funding. Whilst many of the agencies were unlikely to be able to absorb the increased costs of Trade Me listings and were likely to shift to vendor funding, the evidence established that the agencies appreciated that, unless they all shifted to vendor funding, they may lose listings to other agencies. The arrangement, which involved a co-ordinated withdrawal from Trade Me and shift to vendor funding in January 2014, was not simply conscious parallelism.”

The Court of Appeal held that the Commerce Commission didn’t have to establish the existence of a moral obligation between the agencies, provided there were consensus & mutual expectations.

The court also held that the fact that the agencies retained a discretion to fund Trade Me listings themselves didn’t mean there was no anti-competitive effect, that an arrangement as to a starting point or offer price has the purpose & likely effect of price-fixing, and a consensus needn’t be absolute to be anti-competitive. 

The commission took cases against Barfoot & Thompson Ltd, Harcourts Group Ltd, LJ Hooker NZ Ltd, Ray White (Real Estate) Ltd & Bayley Corp Ltd. It also alleged Property Page (NZ) Ltd aided & abetted the agencies in establishing & implementing the agreement. Property Page is an incorporated company owned by Harcourts, LJ Hooker, Ray White, Barfoot & Thompson and Bayleys, and owns 50% of property listing website realestate.co.nz, which is a competitor to Trade Me.

The maximum penalty for breaches is the greater of $10 million or either 3 times the commercial gain obtained from the breach (if readily ascertainable) or 10% of the company turnover from trading within New Zealand.

Link:
Court of Appeal judgment, 23 November 2018: Commerce Commission v Lodge Real Estate Ltd

Earlier stories:
12 April 2017 (I need to return to all the decisions to tally up the penalties – this article may include $1.5 million of penalties a second time): Manawatu decision lifts price-fixing penalties to $17.95 million
3 July 2016: Bayleys lands $2.2 million penalty for anti-Trade Me agreement
17 December 2015: Commission files action against agencies over reaction to Trade Me move

Attribution: Court of Appeal decision & release.

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Yield slashed as panelbeating shop sold again

A Penrose property occupied by a panelbeater has been sold by Bayleys agents on a 4.9% yield. It was previously sold in December 2014 for $1.23 million at a 7.52% yield.

Another 4 properties around Auckland’s southern suburbs were sold vacant.

Isthmus east

Glen Innes

233 Taniwha St:
Features: 429m² site zoned town centre (height limit 32.5m), dual street frontages; 248m² industrial building more recently used for offices, with potential to convert to retail/showroom; 7 parking spaces
Outcome: sold vacant for $1.22 million
Agent: Phil Haydock

Mt Wellington

218K Marua Rd:
Features: 549m² industrial unit – 332m² high stud warehouse, 168m² mezzanine, 48m² office & amenities, 90m² fenced courtyard, 9 parking spaces
Outcome: sold vacant for $1.75 million
Agents: James Valintine & Greg Hall

Onehunga

8-10 O’Rorke St:
Features: 1563m² corner site in 2 titles, with frontage also to Neilson St, zoned mixed use (height limit 21m); large yard areas with multiple buildings including 2 dwellings converted for office & storage
Outcome: sold with vacant possession for $2.165 million
Agents: James Valintine & James Hill

Penrose

176-178 Station Rd:
Features: 1621m² site zoned light industrial, 2 separate workshop buildings totalling 863m², leased to panelbeating business over both titles
Rent: $98,000/year net + gst
Outcome: sold for $2 million at a 4.9% yield
Agents: William Gubb, James Hill & Greg Hall

South

East Tamaki:

24 Sir William Avenue, unit E:
Features: 367m² industrial unit, mixture of tilt slab and block construction, 2 roller doors, 7 parking spaces
Outcome: sold vacant for $1.12 million at $3051/m²
Agent: Nelson Raines

Attribution: Agency release.

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Barfoots top large agency for 6th year, Houlker top in commercial

Mike Houlker.

Barfoot & Thompson has won the Real Estate Institute’s large agency award for the 6th consecutive year, beating Bayleys Real Estate when the awards were announced on Friday night.

Colliers offices in Auckland won the commercial & industrial sector awards for the 3 size categories.

Mike Houlker, of Bayleys, won the top commercial & industrial award. He heads a team of Auckland agents, works with Bayleys’ wider commercial & industrial network, project manages national marketing campaigns, is head of syndication & investment products and is a director & shareholder of Bayleys’ Queenstown operation.

The 37 awards & their recipients:

Property management

Residential:

Support person: Jill Birocchi, Housemart, Queenstown
Rising star: Danielle Smith, Goodwin Property Management, Massey North
Business development manager: Shanon Aitken, Crockers Property Management, Epsom
Property manager: Amanda Harrison, Tandem Property Management, Warkworth
Small office: Pedersens Property Management, Takapuna
Medium office: Barfoot & Thompson, Papatoetoe
Large office: Professionals Lovegrove Realty, Manukau

Multimedia campaign:

Linda Simmons, Barfoot & Thompson, City

Sales

Residential sales:

Rising star – highest gross commission: Lucy Wang, Impression Real Estate
Salesperson– highest volume: Chris Jones, Bayleys Whalan & Partners, Christchurch
Salesperson– highest gross commission: Chris Jones, Bayleys Whalan & Partners, Christchurch

Business brokerage sales:

Rising star: Greg Dunn, ABC Business Sales, Waikato
Salesperson: Neil Barker, Barker Business Brokerage

Commercial & industrial sales:

Rising star: Simon Felton, Colliers, Auckland cbd
Salesperson: Mike Houlker, Bayleys, Auckland cbd

Rural sales:

Salesperson: Ben Turner, Bayleys Whalan & Partners, Christchurch

All sectors:

Manager: Philip Kubiak, Property Brokers, Whanganui
Office administrator: Talia Rushton, Link Business Broking, Ellerslie
Personal assistant (non-selling): Megan Jarrett, Harcourts Grenadier Ferrymead

Residential:

Small office – highest volume: Property Brokers, Levin
Small office – highest gross commission: Success Realty Bayleys, Mt Maunganui
Medium office – highest volume: Property Brokers, Whanganui
Medium office – highest gross commission: Bayleys, Ponsonby
Large office – highest volume: Barfoot & Thompson, city
Large office – highest gross commission: Tommy’s Real Estate, Wellington city

Business brokerage:

Small office: Link Business Broking, North Shore
Medium office: Barker Business Brokerage
Large office: Link Business Broking, Ellerslie

Commercial & industrial:

Small office: Colliers, North Shore
Medium office: Colliers, South Auckland (Highbrook)
Large office: Colliers, Auckland cbd

Rural:

Small office: PGG Wrightson Real Estate, Cambridge
Medium office: Bayleys Waikato Country, Hamilton
Large office: PGG Wrightson, Tauranga

All disciplines:

Small agency: BCRE, Papakura
Medium agency: Harcourts Cooper & Co (Martin Cooper)
Large agency: Barfoot & Thompson

Attribution: Institute release.

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Sale & 4 leases in Christchurch

Knight Frank agents in Christchurch have sold one office unit in a new Addington development on Lowe St, and have signed 4 leases.

South Island – Christchurch

Sale

Addington

36 Lowe St, unit 5:
Features: 78m² new ground-floor office unit, 2 parking spaces, one unit still available
Outcome: sold for $400,000 at a 7.5% yield
Agent: Tom Lax

Leases

Addington

22 Clarence St:
Features: 2884m² site – 1354m² warehouse, 219m² office & amenities, 27 parking spaces
Rent: $140,000/year net + gst + opex    
Agent: Sam Stone

Rangiora

10 Kingsford Smith Rd:
Features: 1200m² industrial yard, fully fenced
Rent: $13,800/year net + gst + opex
Agent: Craig Edwards

Riccarton

295 Blenheim Rd, unit 3B:
Features: 146m², first-floor self-contained office, 6 parking spaces
Rent: $32,000/year net + gst + opex
Agent: Sam Stone

Richmond

325 Stanmore Rd, unit 3:
Features: 65m² hair salon unit, parking space
Rent: $20,000/year net + gst + opex      
Agent: Campbell Taylor

Attribution: Agency release.

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Mackelvie St building sells at nearly $7300/m²

Wilson Hurst agents have completed the sale of a Mackelvie St warehouse & showroom in Grey Lynn on a very low yield.

Isthmus west

Grey Lynn

49 Mackelvie St:
Features: 480m² mixed use site, comprising of 420m² of building being a mix of warehouse, showroom & offices leased to Wave Images Ltd (trading as Photogear); the property has a development clause
Rent: $112,500/year net + gst
Outcome: sold for $3.5 million + gst at a 3.21% yield, land price $7292/m²
Agents: Everett Jaura, Paul Kinghan & Jack Hall

Attribution: Agency release.

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3 sales & 7 leases on Shore

Bayleys agents on the Shore have completed 3 sales in Rosedale & Unsworth Heights, and 7 leases spread around Hauraki, Milford, Northcote, Rosedale & Takapuna.

North-east

Sales:

Rosedale

5 Civil Place, unit B:
Features: 232.1m² industrial unit – warehouse 143.6m², first-floor office 47.6m², ground-floor 40m², 4 parking spaces
Rent: $34,000 + gst
Outcome: sold in March for $726,000 + gst at a 5.68% yield, $3128/m² (including parking)
Agents: Matt Mimmack & Laurie Burt

27-29 William Pickering Drive, unit F4:
Features: 210m² office, 6 parking spaces
Outcome: sold in March for $760,000 + gst, $3619/m² (including parking)
Agents: Alex Strever & Ildy Meixner

Unsworth Heights

145 Unsworth Drive, unit 7:
Features: 186m² retail, 5 parking spaces
Outcome: sold in March for $520,000 + gst at $2796/m² (including parking)
Agents: Dean Gilbert-Smith & Adam Curtis

Leases:

Hauraki

347-349 Lake Rd, shop 2:
Features: 55m² retail
Rent: leased in March for $17,000/year net + gst, premises rental $309/m²
Agents: David Huang & Adam Curtis

Milford

56 Apollo Drive, unit 3A:
Features: 67.4m² retail,
Rent: leased in March for $34,000/year net + gst, premises rental $504/m²
Agent: Terry Kim

177A Shakespeare Rd, upper floor:
Features: 68m² office, 3 parking spaces
Rent: leased in March for $24,000/year net + gst, premises rental $353/m² (parking free)
Agent: Terry Kim

Northcote

Northmed, 3 Akoranga Drive, tenancy 3:
Features: 280m² retail, 2 parking spaces
Rent: leased in March for $160,520/year net + gst, parking $25/space/week, premises rental $564/m²
Agent: Jane Sims

Rosedale

34 Triton Drive, unit C4:
Features: 230m² office, 7 parking spaces
Rent: leased in March for $59,000/year net + gst, parking $20/space/week, net excluding parking $51,760/year, premises rental $225/m²
Agent: Alex Strever

36 William Pickering Drive, unit 4:
Features: 175m² industrial unit, 7 parking spaces
Rent: leased in March for $32,000 – 58m² office at $221/m², 67m² warehouse $120/m², 50m² showroom $221/m²
Agents: Ryan Dannhauser & Trevor Duffin

Takapuna

475 Lake Rd, level 1:
Features: 110m² office, 2 parking spaces
Rent: leased in March for $27,320/year net + gst, parking $30/space/week, $24,200 excluding parking, premises rental $220/m²
Agents: Dean Gilbert-Smith, Adam Curtis, David Huang, Michael Nees & Simon Aldridge

Attribution: Agency release.

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Property shopping high on Chinese new year to-do list

A survey by Chinese website juwai.com indicates shopping for property will be high on the list of things to do when respondents from around the country take off for the Chinese New Year holiday.

The first day of the new lunar year is tomorrow, 28 January.

While Juwai’s survey had responses from only 120 consumers, 1209 international real estate agents also took part, and they came from 27 provinces & 64 other countries.

Juwai said 92% of Chinese consumers planned to travel internationally in 2017, and 42% said they intended to hunt for property. That came ahead of 18% favouring shopping and 17% visiting family or friends.

“57% plan to purchase property in the countries they are travelling to overseas, while 58% are considering to migrate to the country that they are travelling to.

“Although less than 30% of international agents expect Chinese buyers to approach them during the Chinese New Year holiday period, over 41% of Chinese respondents who intend to purchase property in the countries that they’re travelling to in 2017 have plans to meet with real estate agents over their Chinese New Year travel.

“Already, 17% of international respondents say they have been in touch with Chinese real estate buyers who plan to travel during Chinese New Year. As for those yet to be contacted by Chinese property investors, 34% are optimistic and expect to have Chinese buyers approach them within this holiday period.”

Link:
Juwai survey

Attribution: Juwai survey.

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Nuffield precinct shop sells

A retail unit in Newmarket’s Nuffield precinct has been sold on a 5.35% yield by the Wilson Hurst real estate agency.

Isthmus east

Newmarket

2A Balm St:
Features: 116m² retail unit with 11m frontage to Balm St, share of 1581m² of land, parking space, Egg Maternity as tenant with one 4-year right of renewal taking final expiry to 2024; Eden Consultants Ltd assessed the building at 100% of new building standard for Insurance purposes in February 2013; zoned metropolitan centre under the unitary plan, giving development potential if all titles under unified control
Rent: $93,613/year
Outcome: sold for $1.75 million at a 5.35% yield
Agent: Everett Jaura

Attribution: Agency release.

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Real Estate Institute awards

Barfoot & Thompson was ranked the top large agency of the year, Cooper & Co the top medium agency at the Real Estate Institute’s national awards in Auckland tonight.

In commercial & industrial, Colliers Auckland was ranked top large office, Colliers Highbrook the top medium office and CBRE South Auckland the top small office.

Colliers’ national hotels director Dean Humphries was ranked the top commercial & industrial agent of the year.

In residential, the large-office awards went to Ray White City Apartments, central Auckland, for highest volume, and to Megan Jaffe Real Estate Ltd, Remuera, for highest gross commission.

The awards for excellence:

All disciplines

Small agency: Westerman Realty, Taupo
Medium agency: Cooper & Co Real Estate Ltd, Auckland
Large agency: Barfoot & Thompson Ltd

All sectors

Manager: Raymond Mountfort – Bayleys Real Estate Counties
Office administrator: Chloe Belli – Barker Business Brokerage, Auckland
Personal assistant (non-selling): Angela Hooper, Harcourts Blue Fern Realty, Glen Eden

Residential property management

Support person: Barry Constable – Wendell Property, Grey Lynn
Rising star: Shelby Wilkins – Wendell Property Management, Grey Lynn
Business development manager: Charlotte Murphy – Lovegrove Residential Property Management, Manukau
Property manager: Lizzie Simanke – Harcourts Cooper & Co, North Shore
Small office: Housemart, Queenstown
Medium office: Udy Realty Ltd, Browns Bay
Large office: Grenadier Accommodation Centre, Christchurch
Best multi-media campaign: Travers Smyth – Barfoot & Thompson, Takapuna

Residential sales

Rising star – highest gross commission: Thomas Cumming – Impression Real Estate, Auckland
Highest volume: Chris Jones – Whalan & Partners Ltd, Christchurch
Highest gross commission: Yvonne Wang – Barfoot & Thompson, Mairangi Bay
Small office – highest volume: Barfoot & Thompson, Mangawhai
Small office – highest gross commission: Blue Fern Realty, Henderson Heights
Medium office – highest volume: Town & Lifestyle Real Estate, Rolleston
Medium office – highest gross commission: Westerman Realty Group, Taupo
Large office – highest volume: Ray White City Apartments, Auckland
Large office – highest gross commission: Megan Jaffe Real Estate Ltd, Remuera

Business brokerage

Rising star: Martin Plom – Link Business Broking Ltd, Ellerslie
Salesperson: Bruce Cattell – Link Business Broking Ltd, Auckland
Small office: Resort Brokers Ltd, Auckland
Medium office: Barker Business Brokerage, Auckland
Large office: Link Business Broking Ltd, Auckland

Commercial & industrial

Rising star: Rebecca Hilliar – Monarch Commercial Ltd, Hamilton
Salesperson: Dean Humphries – Colliers International, Auckland
Small office: CBRE South Auckland
Medium office: Colliers International NZ Highbrook
Large office: Colliers International NZ Ltd Auckland

Rural

Rising star: Katie Walker – Property Brokers, Taumarunui
Salesperson: Ben Turner – Whalan & Partners Ltd, Christchurch
Small office: Success Realty, Hamilton Country
Medium office: PGG Wrightson Real Estate, Whangarei
Large office: PGG Wrightson Real Estate, Tauranga

Attribution: Institute release.

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