Average National Asking Price in April Climbs to New National Record

MEDIA RELEASE - realestate.co.nz

Average national asking price in April climbs to new national record of $521,729, while new listings and total inventory plummet.

Auckland average asking price inches up to new high of $789,581.

Graphic 1

AUCKLAND, 1 May 2015 – The New Zealand property market in April continued the trend of the last four consecutive months with yet another increase in average asking price, creating a new record of $521,729, an increase of 1.4% on the previous month.

The latest monthly property data from Realestate.co.nz showed that Auckland, where the average asking price rose by 3% to a new high of $789,581, continued to be the main driver in the overall national increase – no other region experienced a new record in average asking price in April.

In fact, most parts of New Zealand experienced either little change or decreases in average asking price during the month. In Wellington the average asking price dropped slightly by 1.4% to $455,611, while Canterbury also experienced a small decrease of 0.8% to $463,175. The biggest drops occurred in Central Otago where the average asking price in April fell by 17.3% to $604,729, while the average in Southland fell by 11% to $232,549.

Significantly, the number of new listings was the lowest recorded for April by Realestate.co.nz, with only 9,673 coming on to the market, a fall of 5.6% on the same time last year, and a decrease of 18% from March. In addition, the national average in overall inventory* of available housing stock for sale fell to an all time low of only 21.3 weeks in April. The previous record low of 21.4 weeks was set in January, while the long-term national average is 36 weeks.

CEO of Realestate.co.nz, Brendon Skipper says, “The drop in listings coupled with the record low total inventory shows that sellers in many parts of New Zealand are experiencing very favourable conditions. As a result, robust average asking prices continue to be maintained at record levels, and the market appears to be meeting them.”

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Über Rich...and Getting Richer

Cosimo_ii_de'_medici_adn_two_[1]

"For Rich, ’13 Was Good for Making, and Spending, Money" - an  article in Yesterday's New York Times, highlights the fact that the wealth of the über-rich continues to grow.  

A few of the highlights:

  • The world’s club of ultrawealthy individuals, or those with $30 million or more in net assets, added about 5,000 new members last year
  • Over the last decade, the ranks of the über-rich have swelled by 59 percent, and the register of billionaires climbed 80 percent, to 1,682
  • The world’s 0.1 percenters had a pretty good year; three-quarters said their assets had increased. Only 4 percent said they wound up worth less
  • By 2023, China is expected to have 322 billionaires, more than Britain, Russia, France and Switzerland combined
  • Looking for someplace to park their wealth, the world’s rich still prefer property

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WSJ Video: Rise of the Young Luxury Home Buyer

For some time now, we've seen affluent foreign buyers snapping up luxury homes for their children being educated in the U.S.   This report suggests that in many cases affluent American families are "chipping in" on luxury home purchases for their children.  Not surprising given current economic and equity market conditions, the amount of money on the sidelines, and the current real esate market.

Are you seeing this trend in your market?  What do you see as the drivers?

 

http://youtu.be/rHmBKSkY3p8

 

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Information Resource on Wealthiest Chinese


Hurun
According to the National Association of Realtor’s 2013 Profile of International Home Buying Activity, 12% of International home buyers in the U.S. are Chinese.  In Canada, Chinese investors have been snapping up properties in Canada's largest cities, driving up prices and according to observers, often outbidding Canadians.

In the U.S., Chinese buyers pay more on average for properties – median price of homes bought by Chinese is $425,000.  Sixty-nine percent of Chinese purchasers pay all cash.

If you have tapped into this important market niche, or wish to work with very wealthy Chinese, here’s a useful resource.  The Hurun Research Institute publishes the Hurun Rich List, an annual ranking of the 1000 richest individuals in China.  The firm also publishes additional research on China’s high net worth individuals including demographic information and information on their consumption preferences.  Here are just some of their reports:

  • Chinese Millionaire Report
  • Hurun Global Rich List
  • Chinese Luxury Consumer
  • Chinese Luxury Traveler
  • Chinese Passion Investments
  • Best of the Best – Preferred Brands of China’s Richest

Find a listing of recent reports from Hurun Research Institute on their website.

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Liberace Luxury?

Liberace

Liberace’s once gold laced, not-so-humble abode is now being sold for what seems a bargain price, considering it is rumored that the previous owner paid $3.7 million for the property during the housing boom. Now bank owned, offers on the once lavish home must be cash only and according to the LA Times, owner JPMorgan Chase would prefer a quiet pre-sale.

The iconic entertainer purchased the lavish 14,939-square-foot Las Vegas property in 1974. The home features only two bedrooms and a staggering 10 bathrooms, plus several large entertaining areas.  A $1.6 million reproduction of Michelangelo’s Sistine Chapel was added by Liberace, who was once one of the world’s highest-paid entertainers with a career that spanned four decades. The former star was considered the epitome of extravagance, and his former home followed suit.

Liberaces-Las-Vegas
The property, which has had two owners since Liberace’s death in 1987, may not measure-up to its former glory, as reflected by its current $529,900 listing price.  The home may spark some interest in buyers who are looking for a project or who appreciate its history. To see the home represented as it once was, check out the HBO film, “Behind the Candelabra".  The sellers are most likely hoping the movie will spark new attention and interest for the home.

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The Ultra-Rich Plan to Buy More Property in 2014

UHNWIs plan to increase their allocation to propertyAccording to the Knight Frank The Wealth Report 2014 which surveyed about  600 private bankers or wealth advisors representing around 23,000 UHNWI clients across the world,

"Almost a quarter of UHNWI investment portfolios is accounted for by property and as an asset class it is growing in popularity.

Just over 40% of survey respondents said their clients increased their allocation to property in 2013 and 47% expect it to increase further in 2014.

Residential property was the most popular area to invest in (54%), followed by commercial premises (34%) and agricultural land and forestry (12%)."

More info on the Knight Frank blog

The Wealth Report 2014

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Most Expensive Homes for Sale in Canada

HuffPo

For those of you who like to look at the most expensive homes on the market (and who doesn't?!) The Huffington Post Canada has published a slideshow of the most expensive homes currently for sale in each province.  Enjoy.

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Forbes Billionaire List Hits Newstands

Billionaire List
Forbes’ new Billionaire List hit the newsstands and the Forbes website this month. The current list of 1,645 billionaires reveals that after four years, Microsoft magnate Bill Gates has jumped over Mexican Carlos Slim Helu to retake the number one spot on the list. The five wealthiest on this year’s list with their estimated wealth and home country:

  1. Bill Gates, $76, billion, U.S.A.
  2. Carlos Slim Helu, $72 billion, Mexico
  3. Amanico Ortega, $64 billion, Spain
  4. Warren Buffet, $58.2 billion, U.S.A.
  5. Larry Ellison, $48 billion, U.S.A.

Other highlights from the list:

  • The aggregate wealth of billionaires is $6.4 trillion.
  • Roughly two thirds built their own fortunes.  Another 13% inherited, while 21% added to their inheritance.
  • Sixty nine countries are represented on the list. Billionaires from the U.S. continue to dominate with 492 billionaires, or about 30%.
  • China is represented with 152 billionaires and Russia with 111.
  • There were 268 newcomers to the list.
  • Thirty one of the billionaires are under age 40.
  • The wealthiest woman, Walmart heiress Christy Walton, weighed in at #9 on the list with $36.7 billion.
  • Of 172 women on the list, 32 had a “meaningful hand in building their own fortunes.”

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Lifting the curtain: your home is a stage

Lifting the curtain: your home is a stage

Staging your home before showing it off to potential buyers is highly recommended as it can help you sell it faster. This is your chance to weave dreams and ideas into the hearts of those viewing your home – to see its beauty, as well as its potential. It’s a fairly new trend, though, so let’s lift the curtain on home staging.

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Award Winning New Zealand Real Estate Agent

Award Winning New Zealand Real Estate Agent

Media Release
April 2013

Kapiti Coast real estate agent, Della Randall, was honoured with a Lifetime Achievement Award at RE/MAX’s national awards in Wellington last night.

Her achievement was initially announced at the real estate company’s international convention in Las Vegas several weeks ago.

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Average National Asking Price in April Climbs to New National Record

MEDIA RELEASE - realestate.co.nz

Average national asking price in April climbs to new national record of $521,729, while new listings and total inventory plummet.

Auckland average asking price inches up to new high of $789,581.

Graphic 1

AUCKLAND, 1 May 2015 – The New Zealand property market in April continued the trend of the last four consecutive months with yet another increase in average asking price, creating a new record of $521,729, an increase of 1.4% on the previous month.

The latest monthly property data from Realestate.co.nz showed that Auckland, where the average asking price rose by 3% to a new high of $789,581, continued to be the main driver in the overall national increase – no other region experienced a new record in average asking price in April.

In fact, most parts of New Zealand experienced either little change or decreases in average asking price during the month. In Wellington the average asking price dropped slightly by 1.4% to $455,611, while Canterbury also experienced a small decrease of 0.8% to $463,175. The biggest drops occurred in Central Otago where the average asking price in April fell by 17.3% to $604,729, while the average in Southland fell by 11% to $232,549.

Significantly, the number of new listings was the lowest recorded for April by Realestate.co.nz, with only 9,673 coming on to the market, a fall of 5.6% on the same time last year, and a decrease of 18% from March. In addition, the national average in overall inventory* of available housing stock for sale fell to an all time low of only 21.3 weeks in April. The previous record low of 21.4 weeks was set in January, while the long-term national average is 36 weeks.

CEO of Realestate.co.nz, Brendon Skipper says, “The drop in listings coupled with the record low total inventory shows that sellers in many parts of New Zealand are experiencing very favourable conditions. As a result, robust average asking prices continue to be maintained at record levels, and the market appears to be meeting them.”