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07 March 2025

Property owners are obviously pleased about the reduction in the OCR and the resultant reduction in mortgage interest rates by the banks. The real effect on the market will be felt in the next few months as property owners come off their fixed term rates. There is always a lag between a policy announcement and the market reaction to it. But one can safely say that a downward movement in mortgage rates will have an immediate and positive effect on market sentiment. My friend Duane is my go-to person when I want to gauge market sentiment. He does pre-purchase building inspections for property buyers. I asked him yesterday if he was busy. He said he was very busy since the OCR announcement and there seemed to be a sense of urgency among buyers. So there you go!

The graphs below shows how the OCR has moved over the last 10 years and how the Auckland median price has moved over the same period. As you can see there is a direct and inversely proportional relationship between the OCR and price. The OCR was at 3.50 in March 2015 and is now at 3.75.

The good news for property owners who bought their properties at least 10 years ago is that the median price in Auckland has gone up from $650,000 to $1,000,000. This represents a capital gain of almost 50% in 10 years.

Auckland median sale price movement over last 10 Years (Jan 2015 – Jan 2025) 

Graph is based on statistical data published by REINZ.

Market Confidence Grows with the New Year

As per the latest REINZ January 2025 property report, the data shows a 2.2% decrease in the Auckland median sale price, and a 1.3% increase in the sales count compared to the same period last year. Compared to the previous month, the Median Price is down 5.7% and Sales Count is down 49.9%. REINZ reports that there are signs of a steady market alongside a sense of uncertainty balanced by a growing expectation that activity will slowly improve over the next few months.

To view the full REINZ report, click here.

Property Investor Insights February 2025

Economist Tony Alexander shares his insights in his latest Property Investor report, which compiles the response he has received from 287 property investors. The results show the following:

1. An increasing proportion of investors are considering reducing the size of their real estate portfolio.

2. Concerns about the potential for house prices to rise have increased while optimism regarding the extent of interest rate declines has eased.

3. Landlords continue to report difficulties in securing good tenants, but banks are perceived as being willing to advance funds.

4. More investors are considering selling.

You can read the full report here.

03 February 2025

I want to start the New Year with an acknowledgement that the January edition of my monthly newsletter is late. But while some of you may have been enjoying time off work, I have been very busy trying to rent vacant properties. For the first time in 20 years, I have been struggling to find good tenants in Auckland.

There are two obvious reasons for this. One, there is an oversupply of new townhouses, available for rent. Tenants are preferring these townhouses to older properties. We had a property on the market for rent for 2 months before my clients were persuaded to renovate. Found a good tenant immediately thereafter.

Two, net immigration numbers are down and that is undermining demand. Over the past 4 months I have had to reduce the rent from what the previous tenants were paying, before I was able to rent those houses. This is good news for tenants, but not for landlords and investors.

The good news for landlords is that things seem to be getting better. Last month (January) I was able to get a modest rent increase and found a good tenant in 3 weeks.

We are now getting seriously involved in managing renovation projects. Will talk more about the upcoming editions. But if anyone is looking to give their property a quick makeover, do give me a call. We just did a whole house repaint and re-carpet for under $10,000. The photo below shows the lounge of the property after renovation.

The Residential Tenancies Amendment Act 2024

Parliament passed the Residential Tenancies Amendment Act 2024 on 17 December 2024. Said Housing Minister Chris Bishop, “These changes are part of our Government’s plan to fix our housing crisis.”

The key changes in the Act include the following:

1. Reintroducing 90-day notice ‘no cause’ terminations for periodic tenancies, meaning landlords can end a periodic tenancy without requiring a specific reason.

2. Reducing landlords’ notice periods for ending a periodic tenancy to 42 days in specific circumstances.

3. Reducing tenants’ notice periods for ending a periodic tenancy from 28 to 21 days.

4. Reintroducing landlords’ ability to give notice to end a fixed-term tenancy at the end of its term without requiring a specific reason.

5. Allowing landlords to require a pet bond alongside the introduction of new pet consent and damage liability rules.

These changes are set to take effect as off 30 January 2025.

You can find out more details regarding Act by clicking here.

A quiet close for December 2024

As per the latest REINZ December 2024 property report, the data shows a 4.3% decrease in the Auckland median sale price, and a 3.0% decrease in the sales count compared to the same period last year. Compared to the previous month, the Median Price is down 2.6%. REINZ reports that market sentiments have remained stable, however some buyers are holding off on transacting given the current economic environment.

To view the full REINZ report, click here.

Auckland median sale price movement over last 12 months

Graph is based on statistical data published by REINZ.

Property Investor Insights September 2024

Economist Tony Alexander shares his insights in his latest Property Investor report, which compiles the response he has received from 354 property investors. The results show the following:

1. Net interest from existing landlords in buying more property remains muted and for those with purchasing interest the demand is largely for properties already on the ground.

2. Compared with a year ago there has been a sharp deterioration in the ease with which investors say they can find a good tenant.

3. Worries have recently grown regarding house prices falling and interest rates rising.

You can read the full report here.

For Rent

2 / 44 Euston Road, Sandringham, Auckland City, Auckland 1025

$555 Per Week

2 Beds, 1 Bath

20 December 2024

Every December I am surprised how soon the year has passed by, and this year is no exception. It has been a very eventful year, with the elections and the cost-of-living crisis being the more significant events that we have all been affected by. With Christmas just a week away, I would like to thank all our readers for their interest in our newsletter and I wish you all a Happy Holiday Season. I look forward to catching up with you and sharing the news and my views about the property market in the new year.

The photo below was taken by me on my recent trip to Cambodia. It shows the famous Angkor Wat, a famous Hindu-Buddhist temple complex that was built in the 12th Century. Amazing!

More activity but low prices

As per the latest REINZ 2024 property report, the data shows a 1.2% decrease in the Auckland median sale price, and a 6.3% increase in the sales count compared to the same period last year. Compared to the previous month, the Median Price is up 3.8%. REINZ reports that while there is more activity in the property market, it expects a static market during the holiday period.

To view the full REINZ report, click here.

Auckland median sale price movement over last 5 years

Graph is based on statistical data published by REINZ.

The graph shows that while prices are considerably down from the peak in December 2021, they have been trending upwards over the last six months. I would also like to highlight the fact that the median price is up 20% compared to November 2019. So anyone who bought their property prior to November 2019 can expect a capital gain of at least 20% if they sold now.

Property Investor Insights September 2024

Economist Tony Alexander shares his insights in his latest Property Investor report, which compiles the response he has received from 330 property investors. The results show the following:

1. Investors have very little interest in purchasing a newly built dwelling.

2. Banks are seen as more willing to advance funds than before.

3. Finding a good tenant remains difficult.

You can read the full report here.

For Rent

237 Sturges Road, Henderson, Waitakere City, Auckland 0612

$650 Per Week

 3 Beds, 2 Bath

06 November 2024

Since the Reserve Bank announced a further reduction of 0.5% in the Official Cash Rate, on 9 October 2024, I seem to be noticing a lot of real estate sales signs with sold stickers on them. I’m not sure whether the market is responding positively to the news of the OCR drop. It’s too early to tell. We will be in a better position to report what’s happening in the market, once the statistics from October are in. But my feeling is that things are looking up for property owners.

The photo below represents that optimism for Aucklanders. Avinash from First Realty took this photo last week when he was out and about. Drop me a line if you liked it. You can reach me at 021703567.

Market sentients in a positive place

As per the latest REINZ 2024 property report, the data shows a 5.4% decrease in the Auckland median sale price, and a 11.8% decrease in the sales count compared to the same period last year. Compared to the previous month, the Median Price is up 2.1%. REINZ reports that market sentiments have moved to a more positive place, which has contributed to a confidence boost for first-home buyers and investors.

To view the full REINZ report, click here.

Auckland median sale price movement over last 5 years

Graph is based on statistical data published by REINZ.

Property Investor Insights September 2024

Economist Tony Alexander shares his insights in his latest Property Investor report, which compiles the response he has received from 348 property investors. The results show the following:

1. A record net 22% of investors have said that it is difficult to find good tenants. A year ago, a net 24% said it was easy.

2. Very few investors thinking about purchasing a property are considering developing a project themselves.

3. Plans for raising rents continue to decline.

4. Bank credit is however perceived as becoming more readily available.

You can read the full report here.

For Rent

237 Sturges Road, Henderson, Waitakere City, Auckland 0612

$650 Per Week

 3 Beds, 2 Bath

18 September 2024

FOR SALE

30C Godley Road, Green Bay, Waitakere City, Auckland 0604

Price By Negotiation

4 Beds | 3 Baths | 1 Car

Green Bay offers a peaceful, family friendly atmosphere with access to beautiful parks like Craigavon and Green Bay Beach. The suburb has excellent schools, local shops and a strong sense of community. Its proximity to both nature and Central Auckland makes it a desirable place to live in Auckland.

Near new family home perfect for growing or extended families. Two levels with lower level consisting of open plan living, dinning and kitchen which features stone bench tops, stainless-steel appliances, and gas cooking. There is also a double bedroom and a full bathroom on this lower level.

On the upper level is a master bedroom with ensuite and walk-in wardrobe plus another two bedrooms, plus a study and a full family bathroom. The study is big enough to be used as a bedroom. Other features include double glazing, heat pump, laminated flooring, quality carpets and tiled bathrooms. Internal access garage with laundry and bonus single phase car charger for EV. Easy-care section.

Digital door lock, doorbell camera with intercom and security alarm.

Two-minute walk to Green Bay Village, and zoned for Green Bay Primary and Green Bay High.

Interested? Contact Mohijit at 021 703 567 for more details.

OCR Affects Market Sentiments

As per the latest REINZ 2024 property report, the data shows a 4% decrease in the Auckland median sale price, and a 6.8% decrease in the sales count compared to the same period last year. Compared to the previous month, the Median Price is up 1.1%. There are no numbers or facts to back this up, but the REINZ reports that the change in the OCR has caused a rise in general confidence among buyers. The sizeable number of properties available for purchase is also contributing to that confidence among buyers.

To view the full REINZ report, click here.

Auckland median sale price movement over last 5 years

Graph is based on statistical data published by REINZ.

Property Investor Insights August 2024

Economist Tony Alexander shares his insight in his latest Property Investor report. The results show the following:

1. Respondents report that banks are becoming more willing to advance funds.

2. Worries are growing about the falling away of net migration flows.

3. A record net proportion of landlords now say they are finding it difficult to secure good tenants.

4. 21% of the respondents are looking at buying an investment property in the next 12 months.

You can read the full report here.

For Rent

3 Falkirk Street, Blockhouse Bay	41 Renata Crescent, Te Atatu Peninsula
$685 Per Week	$690 Per Week
3 Beds, 1 Bath, 1 Car park	3 Beds, 2 Baths, 1 Car park