A record median has been established for July 2019 with $462,290 now being our highest recorded median sale price, this figure is well up on July 2018 figure of $413,000. This large increase combined with the consistent upward trend for the median shows little sign of tapering off.
With the fall in the number of properties sold, July’s total at only 148 sales (down from last year’s 161) and combined with the low numbers of listings on the market (Currently 201 recorded on realestate.co.nz) we would have to say our market has never seen times like this before. There are plenty of instances to back up the limited supply of properties as buyers scramble to get themselves in a position to purchase, we recently marketed a nice 3 bedroom brick home in Kew on a 2 week Tender program, the open homes over both weekends were extremely busy and the end result, there was 9 offers for the vendor to consider and more importantly a sold sign, most buyers on this property managed to submit unconditional offers. We would suggest that as a buyer you discuss with your salesperson the best options/clauses when putting forward any offers you are making especially when competing for a home.
The median days to sell remain steady at 26 days down by one day on last year’s figure.
With the mounting pressure on the OCR and the banking industry, interest rates are available at levels not seen for a very long time, this is all good for the prospective buyers though the banks still have certain lending criteria that need to meet before approvals are obtained, giving some buyers financial circumstances we also have seen short term bridging loans being available to allow these buyers to get in a position to hold their existing home until the put it to market.
The latest rental/investment news has seen some landlords being fined under the recently established Healthy Homes Act for lack of compliant insulation, if you are either a landlord now or are thinking about becoming a landlord you are required to insulate the property in the ceilings and underneath (if accessible) to the required ratings standard.
The commercial market has received an enormous boost in the last 24 months.
For the previous 2 years tenants have merely been shifting between buildings, a corporate musical chairs, so to speak.
The past 2 years has seen new businesses begin to take on both large and small floor plates. Small and large scale tech companies are taking up previously vacant office space, while there seems to be a sprouting of tea cafes, vape shops and small scale retail filling the previously sad looking main street.
Good level premises are now hard to come by and the market has now reached a good equilibrium between owners and tenants.
Compliance however will be a costly experience for commercial owners for the next 12 months, while there is a clamp down on facets of properties such as fire separations, asbestos removal and the like. These costs are one off and things will level out, but not before it hurts some commercial landlords in the pockets to varying degrees.
All in all it seems there is a lot of optimism within the commercial sector and long may it continue.
Commercial Property Management