Spring brings higher prices along with increased available stock in the $2M-plus price bracket.
September saw a real step-change in the tempo of the greater Ponsonby real estate marketplace with the highest number of September property sales in seven years - 74 completed transactions - as seller reluctance waned in the face of some very strong local results over the last quarter. The increase in available stock didn’t halt general price momentum. The REINZ September statistics for the greater Ponsonby area (Ponsonby, Grey Lynn, Herne Bay, Saint Marys Bay, Freemans Bay, and Westmere) show that the median sell price for greater Ponsonby jumped 15% from August to a heady $1.9M, breaking a period of more narrow average sell price movements over the last few months. The greater Ponsonby marketplace also significantly outperformed the wider Auckland market in terms of median sell price growth (15% growth vs 6% growth for Auckland overall). A significant driver of the median jump was an increased proportion of ‘family stock’ property coming to market in Grey Lynn and Ponsonby in particular; larger 3 to 5 bedroom homes in closely held streets such as Wellpark Avenue, Selbourne Street, Admore Road, and John Street in the $2-3M price bracket that have been very thin on the ground stock-wise over the preceding period.
As more sellers decide to meet the market we anticipate the selling season to be longer than usual, particularly with recent Reserve Bank commentary signalling a possible return to tighter LVR restrictions at some point in the New Year. This is encouraging many sellers to list their property before the buyer pool is potentially affected. If you are thinking about selling, call me now to book your pre-Christmas campaign before Santa says hasta la vista to 2020! (thank-goodness).
THE SUPER FIRST HOME BUYER
An interesting development in the buyer pool over the market over the last three months has been the emergence of the ‘super first home buyer’, and in our observations, this group has been a significant driver of the recent market momentum. These super first home buyers have the following attributes;
• Purchasing their first home (or first property that they will live in compared with an investment apartment or similar)
• Many have recently returned from overseas (both before and after the lockdown)
Typical age profile 28 - 38
• Most are couples with young families
• Most have at least one family member in a stable professional occupation – engineers, architects, urban planners, and the like that the banks consider being attractive applicants in terms of lending capacity.
We are observing that these buyers are very active in the $2.0M - $3.5M price bracket, much more so than previous economic cycles, and are competing for 3-4 bedroom family homes with confidence and conviction. Several aspects can make your property more attractive to these particular buyers when preparing your home for sale that I will canvass in the December edition.
FIRST HOME BUYER AND DOWNSIZER ALERT!
Perhaps you are looking to help a young family member get onto the property ladder, or maybe you’re considering downsizing from your larger home in the greater Ponsonby area to something smaller, now that you’re mostly out of town at the bach or the children have all left home.
With greater Ponsonby prices sadly out of reach for many, it has been encouraging to see the green shoots of affordable housing options within the general area. Several more affordable apartment options have been or are in the process of being completed within the central suburbs of Point Chevalier, Avondale, and New Lynn, along with the significant mixed-model development at the Carrington Unitec site where up to 4,000 homes are to be developed over 15 years.
For those looking for more space, New Zealand Sotheby’s International Realty are very pleased to have recently brought to market the Alford Terraces in Waterview. Comprising of 21 well-crafted homes by Shanahan Architects and made with care by GJ Gardiner Homes, this water-side development represents a practical and affordable opportunity for local downsizers and first home buyers alike. With 2 bedroom options starting from only $889,000 and scheduled for completion in December 2021, this outstanding opportunity will not last long. The location is hard to beat, being minutes from shops, beaches, parks and only 10 minutes drive from the city center. Call me or my colleague Hamish Kofoed for more information.
Thank you for reading.
Charlotte Kofoed, M: 021 241 9394, T: 09 353 1220, www.ckre.co.nz,
E: charlotte.kofoed@nzsir.com
September 2020
Properties Sold 73
Average Sell Price $1,910,418
Median Sell Price $1,900,000
August 2020
Properties Sold 51
Average Sell Price $1,697,984
Median Sell Price $1,650,000
September 2019
Properties Sold 63
Average Sell Price $1,661,659
Median Sell Price $1,495,000
REINZ statistics for Freemans Bay, Ponsonby, Grey Lynn, Westmere, St Marys Bay & Herne Bay