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Confidence boost for Auckland apartment market as buoyancy bucks traditional winter trend

By Daniel Horrobin

We’ve passed the midway point of 2020 and, despite the obstacles that Covid-19 threw at us, the Auckland property market is bucking the ‘quiet winter’ trend. Throughout July, Auckland’s apartment market has remained buoyant. The confidence we’re seeing among buyers has rubbed off on apartment owners, stimulating an encouraging lift in new listings.

While we welcome this activity, buyers still face some challenges when it comes to seeking bank funding. Approval times are stretching over the two-week mark and this extended time frame brings greater stress-testing for serviceability. Regardless of this, buyers are still getting loans approved at record-low interest rates, allowing them to complete their purchase and fuel investment in Auckland’s apartment scene.

The motivation continues in our auction room, which is always a good indicator of how the market is behaving. At our weekly auctions, strong bidding competition across all properties and positive results on the day continue. Consequently, our auction success rate remains at circa 70%. This is a combination of strong under-the-hammer successes and post-auction negotiations that bridge the gap between buyers and sellers. Impressive figures like this in the current market reinforces what an effective method of sale auction is for our sellers.

“Overall, our heads are still very much above the water in this buoyant market, which means there are opportunities ahead. So why not talk to us today? We’re the experts in buying and selling apartments in central Auckland.” Daniel Horrobin Director of City Realty Group

Why are we seeing strong sales results now? – Carey Smith Chief Executive Ray White NZ

There are several factors that contribute to the basic elements of why sales results continue to remain strong. There are, however, two basic fundamentals of supply; being the number of properties available for sale and the demand, which is the number of active buyers in the marketplace, that still plays a significant role in establishing market conditions that remain favourable for sellers and giving buyers the confidence to purchase. Our clients that have come to market in recent weeks have achieved largely great results because of the basics of supply and demand. While the number of new listings has increased since the start of July, there are signs that more property owners are wanting to take advantage of the unseasonal levels of activity such as the sustained strength in auction clearance rates across the country. However, our strong suspicion is that there has been a deeper return of confidence in the market.

“ There are compelling reasons why we are seeing strong sales results now and this is fundamentally based around supply and demand, net immigration increases and historic low interest rates available to purchasers.” Brian Greer Chief Executive  of Loan Market New Zealand

If I am considering selling, why should I go to the market now?

This year it is much harder to look at the past to predict the future. The reality is that this is not a normal year, nor a normal property market cycle. While some homeowners would like to wait until what they perceive is the traditional selling season of spring, the fact remains that there are many unknowns in the wider economy. The current market activity could provide the best opportunity to sell, right now.

“If anyone looking to purchase a property were to ask me whether they should act now or wait for potential price falls, my response will be, as it was back then, I see no good reason for waiting and would be looking for a property now.” Tony Alexander economics commentator.

With so many buyers in the market, should I still invest in a marketing campaign? Short answer is yes. Ray White presents marketing as a fundamental at its very essence. We don’t build houses, we market them.

* Our ability to create competition has been our uniqueness.

* Creating competition is the best way to achieve exceptional results for your property.

So how can you be confident that you have achieved the very best price for your property? 

The reality is for most property sales, we can’t guarantee where the premium buyers will come from or where they will be searching for their property purchase. With this being the case, it’s essential that you cover all bases to ensure you are putting your property in front of all potential buyers. Short answer is yes. Ray White is a marketing machine at its very essence. We don’t build houses, we market them. We know it works. We are essentially playing a contact sport and need to get in contact with as many buyers as we can to quickly secure you a sale at the best possible price. Creation competition is our end game. Our agents ability to create competition for your property is what will ultimately drive the premium price. As listing numbers rise, so too does competition and marketing matters as it can elevate your property above others.

To read the full report and check out our stats  please read our e-Book: https://joom.ag/8mAC  – The 11th Edition of Ray White NOW

Download the market report here: http://tinyurl.com/y43nhdh3

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