Tag Archives | Barfoot

Updated: Mt Eden shops passed in (now sold), 2 apartments sold

Published 11 October 2018, updated 5 November 2018:
A commercial site in Mt Eden with 3 shops & 2 flats on it (outlined in photo) was passed in at Barfoot & Thompson’s auction on 11 October and sold shortly after, which I missed updating at the time.

Of the 6 apartments, townhouses & suburban units the agency had up for auction on Wednesday afternoon, one was sold under the hammer and another post-auction. 2 in the new Conrad Properties Ltd Victoria Residences development across the street from SkyCity remain on the market.

Commercial

Isthmus west

Mt Eden

Updated: 547-551 Mt Eden Rd:
Features: 501m² site, total floor area 273m² – 3 shops & 2 flats (one derelict), zoned business – mixed use, erected about 1912, seismic rating 19% new building standard
Rates: $13,481/year including gst
Rent: partially leased with demolition clause – rent $30,600/year from one shop + flat
Outcome: no bid; sold unconditionally post-auction for $1.35 million + gst
Agent: Marie-Anne Molloy

Apartments

CBD

Learning Quarter

Eden Apartments, 32 Eden Crescent, unit 8B:
Features: one-bedroom apartment
Income assessment: $430/week current
Outcome: no bid, sold post-auction
Agents: Selina Zheng & Tommy Zhang

Uptown

Winsun Heights, 113 Vincent St, unit 7B:
Features: studio
Outgoings: rates $933/year including gst; body corp levy $2406/year
Outcome: passed in
Agents: Stephen Shin & Lauren Lee

Victoria St

Victoria Residences, 75 Victoria St, unit 301:
Features: 50m² + 5m² balcony, fully furnished 2-bedroom apartment, tower completed in June
Income assessment: $750/week current guaranteed income
Outcome: no bid
Agents: Will Liu & Nicole Zhang

Victoria Residences, 75 Victoria St, unit 1801:
Features: 50m² + 5m² balcony, 2-bedroom apartment, balcony, tower completed in June
Outcome: auctioned postponed, on market at $745,000
Agents: Alastair Brown & Hayley Sok

Isthmus east

Ellerslie

39 Peek St, unit 1:
Features: 3-bedroom unit, single garage (currently used as a studio)
Outcome: passed in, back on market at $845,000
Agents: Alex Baker & Cindy Jiang

Kohimarama

53A Rawhitiroa Rd:
Features: 4-bedroom townhouse, 2 living areas, 3 bathrooms, double internal-access garage, courtyard & garden
Outcome: sold for $2.5 million
Agents: Veronica Schoonraad & Cheryl Woodward

Attribution: Auction documents.

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Barfoot figures show residential rent rises slowing

Real estate agency & property manager Barfoot & Thompson said yesterday its latest data showed the trend of slower-paced residential rental rises in Auckland continued through the third quarter.

Barfoot’s manages over 16,500 properties in Auckland. Director Kiri Barfoot said the average weekly rent for a 3-bedroom home cost just 3.2% more during the September quarter than it did a year earlier.

“This represents a real cost increase of around $17/week compared to last year. The increase is $2 lower than last quarter and is now the lowest average weekly rent rise that we have observed in well over 2 years.”

The average weekly rent rise for all properties (all bedroom sizes & eligible suburbs) was also lower than the historical norm, up 3.5% year-on-year to $563. This compared to earlier quarterly increases of as much as 4.8%.

Ms Barfoot said central Auckland had the biggest rise due primarily to a growing number of large luxury apartments pulling in higher weekly rents, while demand in West Auckland saw it come in second place with a year-on-year increase just over 5% for the quarter.

The smallest average rises were for homes in Pakuranga & Howick, up 2.2%, and for homes with 5 or more bedrooms, up 2.1%.

Yields rising

Meanwhile, Ms Barfoot said gross rental yields across the city indicated many landlords would be starting to enjoy a rebound in rental returns, despite the slower pace of rent rises: “More than two-thirds of the Auckland suburbs we reviewed this quarter showed an increase in gross yield over the same period last year, with all but a handful sitting above 3% return.

“This follows a period of relatively flat gross yields during 2016 & 2017, and declining yields prior to that, so landlords will be relieved to be making up some lost ground.”

She says this, coupled with low interest rates & a desire to keep properties occupied with good tenants, could be contributing to landlords’ reluctance to raise rents further.

Average weekly rent received in Auckland, Quarter 3 (July-September) 2018 vs same period 2017:

Number of bedrooms % change Q217 v Q218
1 2 3 4 5+ Total
Central Auckland $408 $570 $1076 $496 5.46%
Central suburbs $379 $500 $635 $813 $1,049 $607 3.85%
Eastern suburbs $379 $513 $665 $907 $1,062 $645 2.80%
Franklin/Manukau rural $308 $366 $447 $561 $654 $470 4.70%
North Shore $397 $478 $595 $738 $923 $616 3.99%
Pakuranga/Howick $346 $455 $557 $676 $785 $589 2.16%
Rodney $345 $438 $534 $665 $817 $557 3.40%
South Auckland $310 $408 $499 $597 $724 $497 3.56%
West Auckland $331 $425 $513 $621 $752 $516 5.05%
Auckland $370 $469 $559 $697 $859 $563 3.51%
% change Q217 v Q218 3.08% 4.01% 3.17% 2.64% 2.11% 3.51%

Table source: Barfoot & Thompson averages for managed tenancies as at end of each month in quarter. Categories with fewer than 4 tenancies aren’t included.

Based on statistics from about 16,000 Auckland rental properties managed by Barfoot & Thompson. This includes over 6700 3-bedroom properties, which have been chosen as the standard example to provide the best insight into the ‘typical’ weekly rental price in Auckland.

Gross yields: Average annualised rental income divided by median sale price within the same area. Only suburbs with sufficient sales data for the period were reviewed.

Attribution: Agency release.

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Listings way up but prices hold, says Barfoots chief

Barfoot & Thompson managing director Peter Thompson said this week the average price for the agency’s home sales in September was marginally up on August, while the median was marginally down.

New listings were up 28.4% on August and 21% on last September, but Mr Thompson said the increased availability of stock had no impact on price stability.

The average price was up $6000 on the previous 3 months at $929,757 and the median was up $15,000 at $835,000: “The price point at which vendors & buyers are agreeing has barely moved in the past 9 months. The number of property sales in September, at 722, was modest but vendors & buyers will take confidence in the stability of the prices achieved, and this will assist sales numbers as we advance into spring.

“The standout feature of the month’s data was the high number of new listings, which at 1709 was the second highest ever for a September and more than 20% higher than at the same time last year. It is more than 42% higher than the monthly average for the previous 3 months.

“The high number of new listings significantly increased available choice during the month and, at month end, the number of properties on our books was 4515. You need to go back 7 years to find a September when available listings were higher.

“More than 30 percent of all the sales in the month were of properties that fetched a sales price of more than $1 million, with 3% of that number selling for $2 million or more.

“Properties with a sales price of less than $500,000 accounted for 9% of all sales.”

Mr Thompson said sales of lifestyle properties increased markedly north & south of Auckland, at an average $1.36 million.

September August   Previous 3 months, average   September 2017  
Average price  
$929,757   $928,266

+0.2%

$923,198

+0.7%

$928,213

+0.2%

Median price  
$835,000   $840,000

+0.6%

$820,000

+1.8%

$860,000

-2.9%

Sales    
722   795

-9.2%

843

-14.4%

 

658

+9.7%

New listings  
1709  

 

1331

+28.4%

1199

+42.5%

1414

+20.9%

Month-end available stock  
4515   4022

+12.3%

4135

+9.2%

3829

+17.9%

 


Attribution: Agency release.

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Barfoot chief says house price indicators point upwards

Published 7 September 2018
Barfoot & Thompson managing director Peter Thompson says key price indicators are pointing to Auckland house prices starting to rise.

In the agency’s monthly summary of the residential market, he said: “In August, the average sales price at $928,266 and the median price at $840,000 increased over those for the previous month and were also higher than their equivalents last year.

“Another indicator that prices are edging up is that the average & median prices in August are higher when compared with the average prices paid across May, June & July.

“The increases we are seeing in the market are unlikely to be the forerunner of another seller’s market. Rather, they are an indication that the bottom of the price cycle is likely to have been reached, confidence in prices is returning and that, as spring advances, buying pressure will increase.

“Sales numbers in the month, at 795, were still modest, and down 4.2% on those for July. Traditionally, August is the month when the lowest number of sales are recorded in a year, whether prices are rising, declining or neutral.

“Another positive sign the market is gearing up for a positive spring is new listings hitting 1331, a quarter higher than those for July and 5.6% higher than for the same month last year.

“The number of available listings at month end, at 4022, is the lowest they have been since September last year, and this low number is also likely to have an effect on prices as spring advances.

“During the month, 12.6% of all homes sold were for under $500,000. Sales in this price category have been climbing in the past 6 months and are being affected by the higher number of apartment sales now taking place.

“Properties in the top price ranges continue to find buyers, with nearly a third of all the homes sold in the month being for $1 million or more and, of these, 13% sold for more than $2 million.”

Mr Thompson said prices being achieved for rural & lifestyle properties in August didn’t show the same upward lift as residential property. Listings remained in short supply, but more owners were seeking appraisals.

August July Previous 3 months* August 2017
Average price  
$928,266 $912,487

+1.7%

$919,931

+0.9%

$918,966

+1%

Median price
$840,000 $810,000

+3.7%

$813,000

+3.3%

$810,000

+3.7%

Sales
795 830

-4.2%

920

-13.6%

 

777

+2.3%

New listings
1331

 

1057

+25.9%

1241

+7.3%

1260

+5.6%

Month-end available stock
4022 4115

-2.3%

4317

-6.8%

3993

+0.7%

 

*Average for 3 months

Attribution: Agency release.

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Freemans Bay house sells, Onehunga unit passed in, new SOMA apartment withdrawn

A tired house (outlined at foot of picture) in Georgina St, Freemans Bay, was sold at Barfoot & Thompson’s city branch auction today for a land price of $3667/m².

Picture shows the proximity of the city centre to this western fringe suburb.

A penthouse apartment in the new SOMA development in Grey Lynn was withdrawn from auction and a home unit in Onehunga was passed in.

Isthmus east

Onehunga

99 Mays Rd, unit 503:
Features: 2 bedrooms, garden courtyard, 2 parking spaces
Outcome: passed in at $542,000
Agent: Repeka Laulalu

Isthmus west

Freemans Bay

29 Georgina St:
Features: 306m² section, 3 bedrooms
Outcome: sold for $1.122 million
Agent: Repeka Laulalu

Grey Lynn

SOMA, 10-12 Mackelvie St, unit 503:
Features: 100m², 2-bedroom penthouse apartment, 2 bathrooms, balcony, parking space
Outcome: withdrawn from auction
Agents: Louise Stringer & Neil Dayal

Attribution: Auction.

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Barfoot’s sees slowdown in residential rent rises

Barfoot & Thompson said on Wednesday the cost of renting a home in Auckland was rising at the slowest pace in years.

The real estate agency manages nearly 16,000 rental properties and said its quarterly review of weekly rent prices showed the downward trend in the first 2 quarters of 2018 followed a period of steady rises of about 4.3%/quarter throughout 2017, compared to the same quarter a year earlier, and increases of 5% or more during 2015 & 2016.

Director Kiri Barfoot said over 6000 of the rentals the company manages have 3 bedrooms, and it uses them as a standard example: “Renting a typical 3-bedroom home in Auckland between April & June this year cost 3.5% or $19 more/week than it did during the same period in 2017.

“This is the smallest percentage increase in weekly rents that we have observed in at least the last 2 years and is also the first time the average increase has dropped below the $20/week mark.

“This time last year, the average increase in weekly rent on a 3-bedroom home was more like $22, and in 2016 it was as high as $24.

“We are likely seeing the beginning of a ‘new normal’ in rental price trends as landlords strike a fine balance in their pricing in the face of rising operating & compliance costs.”

The average weekly rent for all property sizes is edging downwards in keeping with the three-bedroom example, up 4.0% on the same period last year to $559. This compares to recent year-on-year quarterly increases of between 4.4% and 4.8%.

One-bedroom properties bucked the trend, with continued pressure on weekly rents pushing the June quarter increase up 4.6% over the June 2017 quarter. Properties of other sizes moved in a band between 3.4% & 3.9%.

West Auckland was the only where rent rises exceeded 5%, which Ms Barfoot said reflected the growing popularity of the area among renters.

Average weekly rent, change from Q2 2017 to Q2 2018:

Attribution: Barfoot & Thompson release.

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New Lynn commercial & Harvard apartment passed in

A commercial building in New Lynn and a Harvard apartment in the city centre were both passed in at Barfoot & Thompson’s auction today.

The commercial unit attracted only 2 bids, but there were multiple bids for the apartment.

Apartment

CBD

Victoria Quarter

Harvard, 147 Hobson St, unit 1F:
Features: 38m², 2 bedrooms
Outgoings: body corp levy $4172/year
Income assessment: $560/week
Outcome: passed in at $303,000
Agent: Stephen & Leo Shin

Commercial

North-west

New Lynn

14 Delta Avenue:
Features: 202m² site, 320m² commercial building, 2 storeys, 3 long-term tenancies
Rent: $93,600/year + gst
Outcome: passed in at $1.35 million + gst
Agent: Nick Wilson

Attribution: Auction.

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Updated: Yield under 4.5% in St Heliers post-auction sale; Metropolis old courthouse hospitality spaces were passed in

Published 29 June 2018, updated 30 July 2018:
Update: A small commercial property on Polygon Rd in St Heliers, passed in at Barfoot & Thompson’s auction on 28 June, has been sold for an extra $215,000, taking the yield below 4.5%.

2 commercial spaces in the old Magistrate’s Court section of the Metropolis apartments complex in central Auckland were passed in at the auction and a third space withdrawn.

All 3 of the courthouse premises were offered vacant. One (outlined in photo) was previously a bar, another a restaurant and the third, withdrawn from the auction after the other 2 failed to sell, was a commercial kitchen.

CBD

Kitchener St

The old Auckland Magistrate’s Court building on Kitchener St, former bar area outlined.

Metropolis, 40 Kitchener St, unit CC:
Features: vacant 159m² unit set up as a bar, seismic rating 67% new building standard
Outcome: passed in at $1.25 million
Agents: Andrew Clark & Reese Barragar

Metropolis, 40 Kitchener St, unit CD:
Features: vacant 151m² unit, previously used as a restaurant & conference room
Outcome: passed in at $750,000
Agents: Andrew Clark & Reese Barragar

Metropolis, 40 Kitchener St, unit CE:
Features: 62m² commercial kitchen unit, vacant possession
Outcome: withdrawn from auction
Agents: Andrew Clark & Reese Barragar

Isthmus east

St Heliers

13 Polygon Rd:
Features: 121m² site, net lettable area 165.5m², seismic rating 50% new building standard, property has an 18m height limit Domino’s Pizza 2 years into a 7-year lease, with 2 5-year rights of renewal, Bay Physiotherapy the upstairs tenant on 3-year lease, 2 2-year rights of renewal
Rent: $97,141/year net + gst
Outcome: passed in at $2.07 million, representing a 4.69% yield; sold to the neighbour post-auction for $2.285 million, at a 4.25% yield; sold to the neighbour post-auction for $2.285 million, at a 4.25% yield
Agents: Rex Fowler & Daniel Braid

Attribution: Auction.

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$90,000 gains in 3 years on 2 apartments at auction

2 apartments auctioned at Barfoot & Thompson today sold for $90,000 more, or just over that, than they sold for 3 years ago. Both were previously auctioned in August 2015. Prices peaked towards the end of 2016 and the auction market has been slower since then.

A unit at 207 Federal St went for $93,500 more, and a Quay Regency unit on Quay St (pictured) went for $90,000 more. The Quay St unit also requires joinery maintenance.

CBD

Federal St

The Federal, 207 Federal St, unit 701:
Features: 61m², 2-bedroom corner unit
Outgoings: body corp levy $5542/year
Income assessment: $580/week until 11 September
Outcome: sold for $567,500; sold in August 2015 for $473,000, and in May 2006 for $396,000
Agents: Annie Xu & Sean Zhang

Waterfront

Quay Regency Apartments, 148 Quay St, unit 7F:
Features: furnished one bedroom, joinery repairs required
Outgoings: body corp levy $4786/year
Outcome: sold for $582,000; sold in August 2015 for $492,000
Agent: Estee Zeng

Attribution: Auction, files.

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Winter impact on residential market negligible, says Barfoots chief

Barfoot & Thompson managing director Peter Thompson (pictured) reckons the onset of winter had a negligible impact on the Auckland residential property market.

“The sales data for June is a mix of up & down numbers but, overall, sales prices & availability remained stable,” he said in his monthly market assessment.

“The average price edged up to $928,842, up 1.1% on that for May, 0.2% higher than the average for the previous 3 months and 1.7% higher than in June last year.

“At the same time, the median price at $810,000 was down 1.2% on May, down 3.2% on the previous 3 months and down 3.6% on that for June 2017.

“It means market prices, which have marked time and came under no pressure to move in one direction or another since the beginning of the year, have entered the winter period in the same state. It is a market environment that is likely to remain constant to the start of spring.

“Sales numbers for June, at 903, were solid for the start of winter and, while as expected were down on the 1027 sales in May, they were 5.6% higher than at the same time last year.

“For the first 6 months of 2018, sales numbers are 6% higher than they were for the first 6 months of 2017, showing market activity is potentially slowly re-emerging.

“New listings at 1210 for the month were modest, and down nearly a quarter on the comparative figure in June last year, but listings at month end, at 4267, were less than 1% lower than those in June last year.

“A feature of the month’s trading was the high number of properties that sold for under $500,000. At 165, it represented 18.3% of all sales.

“While some of these sales would be apartments, it also represents a high number of standalone homes being sold on the outer northern, western & southern suburbs of Auckland.

“Sales of homes for $1 million & $2 million remained strong, with a third of all homes falling within these 2 price categories.”

Mr Thompson said June was the second most active month this year in the rural & lifestyle markets: “In the north interest was being shown in orchards, dairy farms and land for kiwifruit development. Interest in lifestyle blocks around Pukekohe increased, as did inquiries around bare land for development.”

Attribution: Agency release.

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