Valuation Rodney Ltd

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Latest Property News

Welcome to our latest Property News report below or click this link to access downloadable Market Reports in PDF Format. Thank you for your interest in our reports, any commentary contained in these reports is subject to the conditions stated in our Legal Disclaimer posted on this site.

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Our Summary for Summer 2014

National Median Sales Price graphAs we draw to the end of yet another year, it's a good time to reflect on what an interesting year 2014 has been in the property market.

Following the introduction of Loan to Value Ratio (LVR) restrictions by the Reserve Bank in October 2013, 2014 has seen a significant shift in the market activity, certainly in the large property markets of Auckland and Canterbury. This shift has largely been a change in the type of purchaser remaining active, namely first home or low equity buyers have been mostly excluded from the market, to be replaced by investors (both local and overseas based) now looking to expand their portfolios.

This has done little to halt the rise in values in both Auckland and Canterbury, which are both being driven by supply issues, but has largely dampened the market for provincial towns and outlining areas.

It has been our view for several years now, that there will be little change to the Auckland market until we see a large increase in the availability of property. With a growing population due to migration to the region, a number of investors land banking (especially in the fringe rural areas of Auckland such as south, west and north of the city) and the council slow to process large developments, this leaves little housing stock available, pushing up values due to a lack of supply - this is Economics 101.

National Median Days to Sell graphWithout the supply of new subdivisions, those who are already in their first home waiting to trade up cannot do so, therefore limiting the availability of cheaper housing for the first home buyers, and so the circle is broken.

Furthermore, the expectations of many first home buyers has changed compared to say the 1960's - 1990's, with many of these purchasers looking for larger homes, complete with all the features and fixtures, that would historically have been a second or even a third home. Have people forgotten the concept of the property ladder, building value up over time adding equity by renovating etc, or are they more focused on reaching their dream home from the outset? Much of this change is largely because it is becoming more acceptable to take on debt, some of it frighteningly large in value as well as long in length, to achieve the dream from day one. This was also highlighted in a recent article by Dr Susan Flint-Hartle in the New Zealand Herald.

This is not the only anomolie in the New Zealand property market. Property has for too long been considered the prime investment sector, at the expense of other investment options. Tax advantages, such as largely tax free capital gains, is a sensitive topic, and whilst we agree with many commentators that applying a capital gains tax will not effect values, without this tax it does distort the market by attracting a large number of investors into this sector rather than more productive sectors like the equity or venture capital markets. Buying existing property does little to boost the economy of New Zealand, perhaps this country needs some similar restrictions as in Australia where overseas investors can only purchase new developed property, therefore supporting the building industry, and putting pressure on councils to release developments quicker.

Valuation Rodney region Median Days to Sell graphWhat we also have looming during the next two decades is the Baby Boomer generation moving into retirement. Many of this generation are asset rich, particularly in property, and will be looking to liquidate these assets, increasing supply of existing property stock, however with little respite in the growing greater Auckland population, this is unlikely to have any significant effect on values over this period.

Improvement in infratructure, especially transport and roading, will see some of the more distant towns surrounding Auckland and Christchurch gaining in popularity as home owners compromise travel to work time for a cheaper property. Areas such as Pokeno to the south of Auckland, and Warkworth to the north are typical of this shift in the market.

2015 looks to be pretty much more of the same as 2014, with little change to the OCR rates signalled by the Reserve Bank and the market, continued supply pressures in Auckland and Christchurch, and a generally positive economy with a good employment outlook.

Nationally the median house price was $455,750 in November 2014 as reported by REINZ. This represented a 6.0% increase on October, and a 7.2% increase on November 2013. We saw a welcome increase in the number of sales compared to last year (up 6.5%) driven by the seasonal spring surge of listings with a total of 7416 dwellings sold for the month.

Auckland's median price for November was $670,000 (a new record), which is 8.9% up on a year ago (seasonally adjusted median price), followed by Canterbury recording a 6.5% increase to $417,000. Sales of properties under $400,000 fell 3.8% compared to a year ago whereas properties with values greater than $400,000 grew 26.8%. "This suggests that the top end of the market is driving the overall rise in the national and some regional median prices, while those dwellings in the lower deciles are seeing less price growth and a lack of buyer capacity which may be related to the LVR restrictions currently in place" said REINZ Chief Executive Helen O'Sullivan.

New listings were higher than a year ago, especially in Canterbury (up 16.8%) however this has failed to keep pace with sales as we see total inventory of houses available for sale fall to 26 weeks stock, and well below the long term average of 36 weeks.

Greater Auckland Region Market Commentary

Valuation Rodney region Median Sales Price graphSales volumes across Auckland for November were 19.9% higher compared with October, and 5.5% higher on November 2013 with 2947 sales recorded. All districts recorded sales higher than a year ago except Auckland City which was only 6 down on a year ago.

Median prices were higher across all districts, with Outer Auckland leading the way with a 6.2% increase on October. Compared to a year ago, districts recording the greatest increases in median prices were Waitakere (up 12.5%), Outer Auckland (up 11.1%), and Auckland City (up 9.9%) to record an overall increase for the Auckland Region of 8.1% compared with November 2013.

As reported by unconditional.co.nz, the number of new listings for Auckland were 0.2% up on a year ago maintaining pressure on available stock to sell. This has translated into an increase in asking price of 4.6% as supply concerns continue to dominate the market.

Valuation Rodney region Number of Sales graph

For information about specific suburbs covered by Valuation Rodney Ltd, click on the links below:

Downloadable Market Reports

Download our market reports including recent sales data (all in Adobe PDF Format):

For previous newsletters, including sales data, click on the links below (PDF Format):

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Changes to the Insurance Industry

Insurance ChangesThere is plenty of recent media coverage about changes to household insurance policies during renewals this year. Fundamentally the change is in the way properties are insured, from an unspecified replacement cost to a maximum specified amount.

The onus will be on the homeowner or policy holder to advise their insurance company of the cost to rebuild your property should it be totally destroyed. Not all policies and insurance companies will be affected by this change, and you should seek advice from your Insurance Company or Broker. Further information is also available on this website need2know.org.nz/ promoted by IAG.

The key issue for the policyholder however is establishing a rebuild cost and the online calculator provided on the website may not suit all properties or situations. A good example is properties with extensive landscaping, expensive or complicated foundations, additional buildings and quality chattels, fixtures and fittings. Just as rating valuations are averages for specific areas, the online calculator cannot compensate for all the variety of properties we see daily, and we urge caution when using this to calculate your specified replacement cost.

As property valuers, we can provide a more accurate assessment of rebuild cost and an Insurance Certificate to assist you with this process - please contact us for more information.

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Property Institute Quality Assurance
Accredited Firm in Real Property Valuation

PINZ Quality Accredited Firm for Real Property ValuationIn December 2013, Valuation Rodney Ltd along with other branches of Property INDEPTH were proud to receive the Property Institute Quality Assurance accreditation in Real Property Valuation.

Being accredited with the Property Institute means that we operate policies and processes to support our compliance with the legal, regulatory and professional standards in the property profession, ensuring that our customers receive a high quality service by properly qualified professionals.

Our policies and processes are monitored and audited by the Property Institute for ongoing compliance with the required standards set out by the Property Institute and International Valuation Standards Council.

We are totally committed behind this cause, to ensure you, our customers, can be assured of receiving the best service possible.


And finally, a comment about the Auckland Rating Valuations

Auckland Council Rating ValuesThere has been lots of media criticism lately about the recently released Auckland Council rating valuations being all over the place and not being an accurate market valuation.

It's important to remember that the Rating Valuation, whilst supposed to resemble a market value as at 1 July 2014, is not a reflection of the true market valuation as at today.

These rating valuations are not an individual assessment of each property - with over 500,000 properties in the greater Auckland area doing individual valuations on each is an impossibility. Instead, a mass appraisal approach is used, using statistical methods as approved by the Valuer General, to assess a value for apportioning rates and levies as determined by the Auckland Council.

Unfortunately, New Zealander's have a tradition of relating the market value to the rating value (or CV as it used to be known) when in most cases there is little correlation. Take a look at some of the differences between sales prices and the RV's to see just how wildly they can differ.

Again this is because each individual property is not assessed for it's own particular benefits, features, quality and condition, or may even be based on inaccurate council records regarding dwelling size, renovations and/or other improvements. Movements in sales value in an area or suburb are also mass applied to other properties in the same locality that in reality may not share in the same gain or loss in value.

So putting this in context, Rating Valuations are for rating purposes only - with the only risk being one householder may be paying more or less than their fair share of rates.

A market valuation by a Registered Valuer will provide more certainty when determining a market value for selling, purchasing or financing purposes.

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What Makes our Valuations Different!

Using our Web Based TechnologyThis is a question often put to us by many people - customers, banks, mortgage brokers, investors. Quite a valid question too, especially given the number of different valuation companies in the market.

Valuation Rodney Ltd is part of the Property Indepth group, a nationwide franchise organisation with other franchise holders operating in other regions throughout New Zealand. The Property Indepth group is arguably one of the largest specialist residential and lifestyle valuation companies in New Zealand, and we are still growing! We can therefore offer our customers both the advantage of local expertise from our valuing team as well as a one point of contact if your property portfolio is widespread.

Our valuation reports are accepted by all financial institutions - including the second tier lenders, and we are also on the Genworth panel of approved valuers, and on the preferred list of many of the country's leading financial institutions. Some of our competitors are not.

We pride ourselves on our service. Employing the latest web-based technology and access to a variety of property databases enables us to complete many reports within hours not days of the inspection. You have secure access to your report through our Property Indepth website, and we keep you updated on the progress of the valuation via email or text message. Our systems won the Property Institute "Innovation in Property" Award.

When it comes to quality, our Valuation Reports are hard to beat. Our valuations include:

  • A Registered Value of the property
  • Detailed Market Commentary - national, regional and local
  • Room by room condition of fixtures, fittings and chattels
  • Risk Analysis of the property and the market
  • Plain English explanations and definitions for each section so you can understand the technical talk
  • Floor Plan layout
  • Plenty of photos, both inside and outside
  • Age, population and make up of community
  • Regional amenities and facilities including schooling
  • Suggested ways to improve the property

Our reports are often customised to suit the requirements of the lending institutions, and if you haven't made up your mind what finance provider to use, you can re-assign the report yourself.

We're backed by a New Zealand based call centre (free phone number) and you can speak with the valuers directly if you have any specific requirements.

You'll also find us competitively priced and when you consider all the benefits above, our reports represent fantastic value.

So if you've not yet used us, why not give us a go for your next valuation report? Come join the revolution in valuations and get smart when buying or selling your property!

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For further advice and information, contact Valuation Rodney Ltd on:
(09) 427 6020 or Mobile (021) 055 3485

Book a valuation or contact us by email , or Freephone 0800-463 378
to speak with our Property InDepth Customer Services Team

Property InDepth - First in valuation
Winners of the Property Institute of New Zealand Innovation of the Year Award 2008