Surge in new listings on market
16.4.24 A surge in new listings has helped to boost turnover in the housing market, but is putting downward pressure on prices, notes Westpac House sales* Monthly % change: -2.1% (Prev: +17.9%) Annual % change: +8.0% (Prev: +37.9%) House Price Index* Monthly % change: -0.2% (Prev: 0%) Annual % change: +2.6% (Prev: +3.2%) * Monthly figures based on Westpac seasonal adjustment The New Zealand housing market remained soft in March. While sales have picked up from their lows, prices remain...
No rate cut of no surprise
10.4.24 The decision by the Reserve Bank of New Zealand (RBNZ) today to leave the official cash rate (OCR) unchanged at 5.5% was no surprise, noted CoreLogic NZ Chief Property Economist, Kelvin Davidson “Given the incoming flow of economic data released since their last decision in late February hasn’t emphatically moved in either direction,” he added. “In particular, most inflation measures are generally trending lower, but they remain ‘too high’, and the pace of decline in price pressures is...
Valuation affects PFI first half
26.2.24 An increased fair value drop is reflected in Property for Industry’s annual results for the year ended 31.12.213. “Strong leasing outcomes have delivered cashflow and stability,” says PFI Chief Executive Officer, Simon Woodhams. “Despite significant increases in interest rates during the year, low gearing, low vacancies and growing rents have all worked in our favour.”PFI reported a loss after tax for FY23 of $97.8m (loss of 19.48 cps), as compared to a loss of $13.9m (loss of 2.76...
New fund to target Auckland logistics
26.2.24. On the basis that a planned internalisation proceeds, Goodman Property will seek to establish a funds management platform anchored by a new Auckland logistics property fund. Initially investing up to $100 million itself, and with a commitment of up to $200 million from Goodman Group, GMT will leverage Goodman Group’s global investor relationships to secure further third-party capital. John Dakin, chair of GNZ said, "GMT's substantial Auckland industrial portfolio, urban logistics...
Property prices double in a decade
13.2.24 Despite the fall in property prices last year, the latest data from realestate.co.nz proves that prices inevitably go up in the long run. In the ten years to 2023, the average asking price in every New Zealand region has increased, with 12 of 19 regions at least doubling and the remaining six increasing by at least 50%. Of our 76 districts, 36 have increased by at least two-fold*, while a further six were up by more than 90%. Nationally, the average asking price was up by 77.5%,...
Less heat in construction costs
31.1.24 Reduced pressure on residential construction supply chains and capacity has seen annual growth in construction costs has reduced to the lowest level in around seven years. CoreLogic’s latest Cordell Construction Cost Index (CCCI) recorded a 0.8% rise in the fourth quarter of 2023. Despite a slight uptick in the pace of growth compared to each of the previous three quarters (0.4%-0.6%), it remained below the long-term average of 1.1%. This brought the annual change to 2.4%, well...
Property values rise but remain patchy
16.1.24 The CoreLogic House Price Index showed the third consecutive rise in average property values in December, with momentum building yet values remain well below the peak back in 2022. After October’s 0.4% increase and the 0.7% gain in November, December saw a rise in property values of 1.0%. This is the strongest monthly gain since January 2022 (2.1%). The average value now stands at $924,489, up 2.1% over the past three months since September’s cyclical trough. However, national property...
Precinct to redevelop Downtown car park
24.11.23 Precinct Properties Group has entered into a conditional agreement with Eke Panuku Development Auckland to acquire and redevelop the Downtown Car Park site in Auckland. Precinct will partner with Ngāti Whātua Ōrākei to redevelop the site located on the corner of Customs and Lower Albert Street. Precinct was selected as the preferred development partner in October 2022 and has since been progressing commercial negotiations. “This is an incredible, once in a generation, opportunity to...
Housing data positive
REINZ data showed further positive momentum in the NZ housing market, supported by a surge in net migration. The number of house sales was up 8% y/y in October and the house price index rose for a fifth consecutive month and a cumulative 3.9%, after its 18% peak-to-trough fall, although some positive seasonality has contributed to that recovery., noyes BNZ Markets
PROPERTY: Auction volumes ramping up
9.10.23 Auction volumes are on the rise as spring ramps up ahead of the election this week. Ray White New Zealand scheduled 174 auctions during the first week of October, and that’s up a impressive 55.4% year-on-year. The group recorded an all sold clearance rate of 56.3%, with an average of 2.5 registered bidders and 2.0 active bidders per auction. “Warmer days and auction figures are on the rise, indicating a stabilisation of the market and a growing sense of confidence,” says Ray...
Mortgage lending flows rise
27.9.23 Mortgage lending activity was higher in August than a year ago – the first annual rise for about two years. Part of this early-stage recovery relates to the loosening in the loan to value ratio rules from 1st June, Looking ahead, more growth in lending activity (and property sales volumes and house prices) seems likely, but it might still be fairly subdued by past standards, says CoreLogic NZ Chief Property Economist, Kelvin Davidson. The latest data from the Reserve Bank of New...
Property price falls in June
6.7.23 Property values across New Zealand weakened in June with the monthly rate of decline accelerating, down 1.2% compared to the 0.7% fall in May. CoreLogic’s House Price Index (HPI) shows June’s decline takes the national annual rate of change to -10.6%. The larger monthly decline was led by weaker figures in Auckland, down 3.0% for the month, however none of the other five main centres saw values shift by more than 0.6% either way. Christchurch had the largest increase over the month...
House consents at 2021 level
There were 45,159 new homes consented in the year ended May 2023, down 11% compared with the year ended May 2022, according to figures released by Stats NZ. “The latest annual number was down from the record high of 51,015 new homes consented in the year ended May 2022, but is at a similar level to the same period in 2021,” construction and property statistics manager Michael Heslop said. In the year ended May 2023, there were 18,734 stand-alone houses consented, down 24% compared with the...
Recession query for property market
16.6.23 The highest-profile economic data release this week was the country’s Q1 GDP figures, which confirmed what many suspected, we were in a recession at the start of the year, comments CoreLogic NZ Chief Property Economist Kelvin Davidson The Stats NZ data shows a minor 0.1% drop in GDP in the March quarter, which confirmed a technical recession after Q4’s fall of 0.7%. Education, transport, manufacturing, and retail trade were contributors to the latest drop, although other sectors such...
Kiwi Property selling Aurora Centre
9.6.23 Kiwi Property has agreed the terms for a conditional sale of the Aurora Centre in Wellington to an institutional investor for $142.8m (net). The transaction price represents a 13.5% discount to the asset’s March 2023 valuation and will deliver a property level return from inception of 10.5%. Further details, including the purchaser and settlement date will be provided once key conditions have been met. Kiwi Property Chief Executive Officer, Clive Mackenzie, said “Asset recycling is an...
Strong demand for Auckland space r
18.5.23 Sustained customer demand contributing to significant revenue and earnings growth is reported by Goodman (NZ) Ltd, the manager of Goodman Property Trust (GMT or Trust) for the year ended March 31, 2023. Customer demand for well-located warehouse and logistics space has ensured earnings targets were achieved, while new investment and capital management initiatives have made GMT a more sustainable and resilient business, says Goodman (NZ) chair Keith Smith, Mr Smith said, “While...
Housing market starts to stabilise
18.4.23 March was a somewhat perkier month for the New Zealand housing market, after a particularly weak February, comments Westpac. “With mortgage rates now approaching their peaks, and even falling for some terms, it’s not surprising that we’d see some signs of the market stabilising,” says senior economist Michael Gordon. “Even so, we think that the downward adjustment in prices has a little further to run. “Seasonally adjusted house sales rose 9% in March, though they remain close to the...
Construction material costs slowing
13.4.23 The latest Cordell Construction Cost Index (CCCI) shows construction costs rose 0.6% in the March quarter, well below the average quarterly increases of 2% recorded in 2021 and 2022. Meanwhile, the annual growth rate has dipped from a record high of 10.5%, to 8.5% in the three months to March. CoreLogic Chief Property Economist Kelvin Davidson said the worst of the construction materials crisis was over, with the rate of growth in costs to build a residential home at its lowest since...
Guidance overtakes Fletcher half-year
Convention Centre provision shadows FB half-year 13.3.23 (UPDATED) In an unusual development Fletcher Building this morning produced its expected results for the first half of FY23, which will be released on 15 February 2023, and updated earnings guidance for the full-year FY23 that has been trimmed by the softening in summer activity The half-year result remains subject to final approval by the Board and will be announced in full on Wednesday 15 February. The result includes the effects of...
ARE plans delisting from NZX/ASX
24.1.23 Following consultations with the major investors, Auckland real Estate Trust’s board will be presenting to unitholders a proposal to delist the Trust. Investors will shortly receive a meeting notice for a General Meeting, which will occur in early March, to present and seek investors approval for the proposed delisting. The ASX and NZX have both approved the delisting of the Trust in principle, with the key conditions being; • That investors who hold small unmarketable parcels...
Lift in multi-unit consents
13.1.23 There were 50,209 new homes consented in the year ended November 2022, up 3.2% compared with the year ended November 2021, according to Stats NZ. There were 28,364 multi-unit homes consented in the year ended November 2022, up 24% compared with the year ended November 2021. The number of stand-alone houses fell 15% to 21,845 over the same period. "Home consents remain at high levels mainly due to the continued rise in the number of multi-unit homes being consented," construction and...
Window for borrowers open for now
13.1.23 "Those borrowing to buy their first or next home have six weeks of likely interest rate stability so now could be a good time to pounce," says Tim Kearins, Owner of Century 21 New Zealand. His comments come ahead of the Reserve Bank - for the first time in 2023 - reviewing the Official Cash Rate on 22 February. In its last review in November, it hiked the OCR by 75 basis points, taking it to 4.25% - its highest level since 2008 when it reached 8.25%. It has forecasted a peak of 5.5%...
Office vacancy rates rises in Auckland
29.11.22 Auckland metro office space vacancy continued to trend upwards over the six months to September to reach 8.9% from 8.0% recorded in March, reported Colliers International. Prime grade vacancy stood at 7.1% in September while the secondary grade figure increased to 9.5% from the 8.8% reported in March. The figures showed the city fringe and metropolitan office markets to have remained resilient in the face of changes to workplace practices. The overall vacancy rate sits just 110 bps...
Kiwi Property rental income record
28.11.22 Kiwi Property has continued to expand both rental income and profitability in the six months ended 30 September 2022, despite the challenging macro-economic conditions. The results highlight the strong performance of the company’s property portfolio and the evolution into a creator of mixed-use communities at key metropolitan centres and transport hubs. Net rental income rose 6.3% to a record-high $100 million in the first half of FY23, driven by sustained revenue growth at Sylvia...
Property investors staying the course
23.11.22 Property values may be coming down but there are no indications of a wave of selling by property investors according to the latest survey report from Crockers Property Management and economist Tony Alexander. Each month they survey a selection of the many thousands of residential property investors on their databases with a view to gauging how things are changing over time across a wide range of indicators. . Key points of interest from this month’s survey include the following. There...
Housing values ease in October
3.11.22 The housing market downturn slightly eased in October, with values falling by -1.3% over the month after tracking down -1.5% in September. However any shoots of optimism are likely to be cut short by future increases to the Official Cash Rate (OCR), starting with the next Monetary Policy Statement from the RBNZ on 23 November, says CoreLogic NZ Head of Research Nick Goodall. He said the biggest constraint on the housing market right now is affordability, with potential buyers stretched...
Valuation drop for Kiwi Property
10.10.22 Draft valuations for the six months ended 30 September 2022 will see Kiwi Property posting an expected 5.8% decrease in the fair value of its property portfolio. The company’s mixed-use, office, retail and other properties are set to be worth $3.4 billion at the close of the period, down $212.5m from 31.3.22. Kiwi Property CEO Clive Mackenzie said: “The current high inflation, high interest rate environment has led to capitalisation rate softening across the property sector globally,...
Beca signs up for Precinct project
Precinct Properties New Zealand has confirmed that Beca will be relocating to the Wynyard Quarter Innovation Precinct on a 12-year lease term over 14,049m². The leasing to Beca will require Precinct to commit to 117 Pakenham, the last building of the Stage and the Wynyard Quarter Innovation Precinct. Scott Pritchard, Precinct CEO, said “Securing an occupier like Beca so early in the stage of the development highlights the value that businesses continue to place on high-quality,...
Consents tilt towards townhouses
30.9.22 The number of dwelling consents fell slightly in August, dropping 1.6% to a level of 4,164. That result was close to Westpac’s forecast for a broadly flat result. Annual consent issuance remains very elevated with just over 50,600 new dwellings consented over the past year. Satish Ranchhod, senior economist at Westpac comments, “Looking into the details of this month’s result, we’re continuing to see a rotation away from standalone houses and towards medium density developments (like...
House prices drop in August
13.9.22 The rot in the housing market continued in August. House prices fell by another 1.4%, notes Westpac. “That is the ninth monthly fall in a row,” says senior economist Satish Ranchhod. “House prices have now fallen 9% from their peaks in November 2021.” The drop in prices continues to be heavily centred on Wellington in Auckland. Prices in the Capital were down 3.6% in August alone and have now fallen by a total of 17%. Similarly, prices in Auckland have dropped 14% since November 2021....
