Ray White Warkworth

White Light Market Report - August 2011 Issue

Following on from our opening comments last month, July and the beginning of August has been an interesting time.
 
With the United States Congress being unable to come to a satisfactory result regarding budgetary requirements, in a timely manner, the global financial markets have been thrown into panic. The last couple of days have seen a little settling, but the after-effects will reverberate for a while yet.
 
What has been interesting to observe has been the confidence that our Government has shown in our domestic position, compared to many other nations. Not only the government, but there does appear to be an overall air of confidence among us that the affects of this latest round of global financial insecurity, is something that we will ride out much better than others. It is a confidence that was lacking after the 2007 downturn, but has slowly been returning and, is very necessary as we continue to grow.
 
The real estate market, continues to draw attention to itself and consistently continues to be one of the leading dinner-table discussions around the country.
 
One article in the New Zealand Herald, last week, told of a prediction that, “house prices could increase by 12 percent over the next 3 years.” A report into the country’s housing market found that, “… a shortage of new housing is driving property values up.” The report, focused mainly on the low building activity in Auckland over the last six years as being one of the leading factors in the projected increase in house prices over the next three years. Predicted house price increases in the three years to June 2014 were Auckland +16%, Northland +11%, Hawkes Bay +20% and Waikato, Bay of Plenty, Gisborne +3%.
 
In contrast, a report released by the Real Estate Institute of New Zealand stated that the median house price had actually fallen in July, due to a “mid-winter breather.”
 
Residential sales, for July, through North Rodney were slightly increased on the June figure, with thirty-six being recorded (32 in June, 41 in May). However, this was nearly a 70 percent increase in numbers for July 2010. A very significant difference between the two years is that only one of the twenty-five residential sales was for a vacant section, whereas fifteen of this years thirty-six sales were for vacant sections. Perhaps this does suggest that the shortage of new housing, written of in the Herald report last week, is being evidenced here as well, and buyers are intending to build again rather than accept older or lower standard or problematic existing houses, that are available on the market.                                                                     

Industry comment throughout the Auckland Region is that not all suburbs are performing equally, and so it is in our market area. Whereas areas such as Algies Bay, Omaha, Point Wells, Warkworth and Wellsford have had good increases in sales numbers for the first seven months of this year, compared to 2010, areas such as Leigh, Sandspit, Scotts Landing and Snells Beach have had a decrease of between 27-50 percent.   Matakana has recorded the same number for both years. Again, these sales numbers for the seven month period show an increase of 31 percent in the number of vacant sections being sold, over the 2010 year.

Rural and lifestyle sales continue to lag with only seven being recorded in July. This result was well down on the thirteen recorded in June and also down on the ten for July 2010. The highest priced rural sale was for a 42 hectare site in Anderson Road, Matakana, where the overseas investor intends to plant a vineyard. The property sold for $4 million. Only one of the seven sales recorded last month was for a small, undeveloped site. 

The graph below shows the continued progress of both residential and rural sales, compared with the same period last year. The residential graph is of particular interest as it shows how the two years were in parallel for the first four months, then split significantly in May, came back together in June and split again during July. August 2010 numbers slumped to twenty-three for the month and so it will be interesting to see this years result.

 Residential house sales for North Rodney -  July 2011                                                                               RS = Residential Section              X/L = Cross Lease

                                                                                                                                                                                                                         
Property Address   Sale Price   Days on Market  Bedrooms Land Area M2  2007 CV  Last Sale Price    Year
Algies Bay Alexander Rd 475,000  159  4 1,123 500,000  179,000  1995 
  Athol Pl 525,000    3 623 530,000  97,000  2003 
Omaha Darroch Slope 750,000  123  3 556 700,000  193,000  1998 
  Kokopu 1,275,000  53  3 754 1,200,000  1,275,000  2011 
  Mangatawhiri Rd  1,310,000  150  4  973 1,750,000  205,000  2003 
  Mangatawhiri Rd  325,000  311  RS  8,063 365,000  190,000  2003 
  Mangatawhiri Rd  550,000  279  RS  2,160 700,000  355,000  2003 
  Mangatawhiri Rd  560,000  3  RS  1,528 500,000  525,000  2010 
  Omaha Dr  479,000  21  3  799 610,000  495,000  2006 
  Paraone Pl  1,900,000  283  RS  992 1,600,000     
  Point Wells Rd 445,000 17 2  1,000 650,000  20,000  1985 
  Thistle Tce 635,000  70  3  558 695,000  650,000  2008 
Point Wells Harbour View Rd 1,370,000  330  RS  8,063 1,250,000  985,000  2004 
  Point Wells Rd 260,000  210  RS 1,500 330,000     
  Point Wells Rd 285,000  8  RS 1,725      
Sandspit Kanuka Rd 677,000 47  4 1,244 600,000  765,000  2008 
  McCallum Rd 295,000 22  RS 4,100 250,000  288,000  2010 
Snells Beach  Arabella Ln 435,000  562  RS 2,000      
  Grant St 615,000  106  3 5,160 770,000   150,000  2003 
  Kawau View 335,000  18  3 840 450,000  87,000  1987 
  Kawau Waters 370,000  956  RS 711 425,000     
Ti Point Laika Ave 310,000  153  2 1,110 400,000  137,500  1997 
Warkworth Ashmore Cres 675,000  11  3 1,744 605,000  195,000  2004 
  Blue Gum Dr 382,000  9  4 604 430,000  245,000  2007 
  Falls Rd 169,000  200  RS  935 190,000     
  McKinney Rd 170,000 388  RS 823   New Subdivision   
  McKinney Rd  172,000  394  RS  705   New Subdivision   
  Southgate Rd  465,000  35  3  600 495,000  220,000  2007 
  Vernon Shaw Pl  305,000  14  3  809 335,000  330,000  2009 
  Victoria St  540,000  243  3  1,333 585,000     
  Walton Ave  465,000  157  3   475,000     
  Wickens Pl  350,000  31  6  1,670 440,000  445,000  2006 
  Wilson Rd  320,000  637  RS  2,712   New Subdivision   
Wellsford  Centennial Park Rd 180,000   626  3  1,229 295,000  27,000  1987 
 
Rural house sales for North Rodney - July 2011 
Property Address  Sale Price Day on Market Area (Hectares) Description 2007 CV Last Sale Price Year
Kaipara Flats  Tauhoa Rd 200,000   155 1.4000 Bare Land New Subdivision  275,000     
Matakana  Omaha Valley Rd 1,100,000   141  5.3320 246m2 roughcast dwelling  1,100,000  315,000  2001 
Snells Beach  Grange St 650,000   28  1.2140 4 bedroom 1980's home  1,100,000  721,000  2006 
Warkworth  Anderson Rd 4,000,000   96 42.1800 Overseas investor intending to plant vineyard  2,530,000  3,100,000  2006 
   Matakana Rd 1,200,000    13.63 North facing lifestyle 1,205,000  460,000  2000 
   Moirs Hill Rd 275,000  1559 1.8190 Bare land 420,000     
   Sandspit Rd 920,000    14.47 Basic house, river boundary 1,350,000     
 
 
Disclaimer
N.B. Market statistics based on unconditional sales recorded with REINZ during the prescribed period. In preparing this document we have used our best endeavors to ensure the accuracy of all the information provided. We accept no liability or responsibility for any errors or inaccuracies and recommend that all recipients make their own enquiries to verify any information given.