The panic in the financial markets over the spread of the coronavirus hasn't affected Auckland's house sales, with the city's auction rooms reporting strong results, including two sales of more than $4 million.
Clearance rates were high and there were plenty of bidders for the homes being sold under the hammer, with buyer appetite for properties in the $800,000 to $1.5 million bracket showing no signs of abating.
Auctioneer Sam Steele, who presided over sales at Bayleys' auction rooms in the central city on Thursday, told OneRoof: “The market is very positive. At the start of the week there was uncertainty, but there are genuine sellers and genuine buyers still transacting."
A three-bedroom town house in Greenlane went for $1.21 million as five bidders went for it and next week’s auction bookings include properties from $500,000 to $1m-plus.
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“In fact, first home buyers are least affected, there’s massive opportunity.”
“The next six weeks are very positive, very strong, we’re pleasantly surprised,” Steele says, adding that the company is following Ministry of Health guidelines for safe distances, sanitising and contact tracing in their auction rooms.
A cliff-top property at 90 Seacliffe Ave, Narrow Neck, Devonport sold for $4 million at a Bayleys' auction this week. Photo / supplied
The top sales under the hammer at Bayleys this week were a grand 1930s homestead at 134 Mountain Rd, Epsom, in the heart of the desirable double grammar zone, which went for $4.9 million, and a clifftop house on a huge 1568 sq m section at 90 Seacliffe Ave, Narrow Neck, Devonport, which sold for $4 million.
Ray White chief auctioneer John Bowring says that the company has seen no sign of a slowdown, with auctions booked through April and May.
This week, several auctions were brought forward, with strong bidding well-exceeding pre-auction offers. A property at 10 Ranleigh Rd, Mt Albert, broke the $3 million barrier, achieving $3.155 million as three bidders battled for the property. Only three other properties have ever sold for above $3 million in the suburb, Bowring says.
He says the sweet-spot in the market will be properties in the $800,000 to $1.5 million bracket. Right now, 82 per cent of these properties are selling under the hammer, and well above CV is “pretty much the norm”.
Bowring sees that with interest rates at record lows, there were still incentives for buyers to enter the market. “Kiwis love their bricks and mortar,” he said.
Around the rest of the country, Christchurch auctions are at 75 per cent clearance rates, says Bayleys' national auction manager Conor Patton. Queenstown, too, has had good clearance rates, with buyers being both locals and overseas buyers, many returning Kiwis.
"In Christchurch, interest is really good across all price points, from $500,000 to $1 million plus, so that's a positive.
"Our Auckland clearance rate this week is 58 per cent under the hammer, a slight drop, but not huge, on February's 65 per cent, and we are expecting a few more to settle post-auction."
"Across the board it's business as usually, even slightly up. Forward bookings are good, we've had a number of new listings."
"[With auctions] we are dealing with cash and certainty, and those are the two currencies that are doing very well now."
