Local Market Wrap with Charlotte Kofoed

The greater Ponsonby marketplace (St Marys Bay, Herne Bay, Freemans Bay, Ponsonby, Grey Lynn and Westmere) saw the median sell price for January remain very consistent comparative to January last year, the month representing a traditionally quieter period for the marketplace with many Aucklanders away on holiday.

There were 24 properties sold compared with 26 in January 2020, and 25% of sales were conducted by auction.

Compared to December, the median sell price declined by 4%, mainly reflective of an increased number of apartments and units in the sub-$1M bracket being sold in January.

December and January saw a strong trend toward more off-market activity in the area, as many homeowners look toward some outstanding local results in their neighbourhood and the potential opportunity to sell their property without conducting a full campaign.

Off-market sales tend to increase during buoyant markets and for many, especially those with young families and the time-poor, house preparation for sale can be difficult. I am currently working with a large pool of buyers on my database looking for various property types, so if you are looking to potentially sell your home contact me today for a no-hassle obligation-free chat.

Many of you will have noticed the impressive new Willis and Bond development ’30 Madden’ at Wynyard Quarter, impeccably designed by Studio Pacific Architecture to add a unique vibrance and character to this maritime precinct. The complex looks simply stunning as you drive over the Harbour Bridge toward the city, and there has been a hive of activity over the last week with new homeowners starting to receive the keys to their new apartments.

We are excited to have commenced marketing a prime north-facing option in the building, completely brand new and spanning the entire length of the building facing onto the waterfront. With an abundance of natural light as a result, enjoy views of the Harbour Bridge right through to Wynyard Wharf. With a true connection to the street-life below it, this is a home for Saturday morning lunch outside or taking in the ever-changing evening lights.

Call me now to arrange a time to view, or check it out on www.nzsothebysrealty.com listing ID NZE11194

The Reserve Bank recently announced some important changes to its loan-to-value ratio requirements for bank lending. For all new lending from 1 March, most investors will now be required to have a 30% deposit, rising to 40% from the 1 May.

In reality however, most new applications not already pre-approved will be subject to the 40% requirement straight away. While this may on face value stymie your potential plans to purchase an investment property, for those with an existing home the recent buoyancy in the market may well help you reach the 40% threshold given that your home will likely have increased in value and therefore potentially improved your LVR position as a result.

There is also light in the tunnel in the form of new-builds, which are generally exempt from the 40% requirement, although criteria can vary from bank to bank. Not all banks are passing on this exemption.

Another avenue for your next investment property can be to look outside of Auckland to the regions for value. We are anecdotally seeing an increase in ‘rental property stock’ coming onto the market in places such as Hamilton and Napier, where many current landlords are cashing up rather than complying with the new Residential Tenancies Act requirements that were introduced into law in February.

Many of these properties are ‘Barry basic’ older homes that may need a bit of work to get up to the required Healthy Homes standards that will come into effect from July next year. So if you’re willing to look outside the square for your next investment property and perhaps roll your sleeves up on some maintenance, you might just find a well-priced opportunity outside of Auckland. Happy hunting, and we always advise you to seek independent advice before making any financial decisions regarding your next property purchase.

Thank you for reading.

Charlotte Kofoed, M: 021 241 9394, T: 09 353 1220, www.ckre.co.nz, E: charlotte.kofoed@nzsir.com

January 2021
Properties Sold 24
Average Sell Price $1,768,208
Median Sell Price $1,620,000

January 2020

Properties Sold 26
Average Sell Price $1,930,240
Median Sell Price $1,627,500

December 2020
Properties Sold 65
Average Sell Price $1,784,507
Median Sell Price $1,690,000

REINZ statistics for Freemans Bay, Ponsonby, Grey Lynn, Westmere, St Marys Bay & Herne Bay


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