Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Summer boosted by many favourable conditions

Century 21 New Zealand

Wednesday, 23 October 2019

By Derryn Mayne - Century 21 New Zealand owner

The Reserve Bank didn’t lower the Official Cash Rate last month, but let’s not forget it has already given the local real estate market a good shot in the arm.

At the end of September, the Reserve Bank announced it will maintain the Official Cash Rate at 1.00% for the time-being, with interest rates expected to stay at record-low levels. This followed its move in early August when it surprisingly slashed the OCR by 50 basis points.

This summer we’ll see a lot of first-time buyers entering the market and existing homeowners deciding to borrow more to purchase their next home, possibly even their first investment property. Many Kiwis were holding back, but since last month’s big OCR cut more will be taking the plunge this summer regardless.

I know I’ve said it before, but now is a great time for first-home buyers to do their sums and seek professional advice on what their rent payments are compared to the cost and commitments of servicing a mortgage. They may be surprised to find that the difference is minimal, and in some cases even less.

Having taken effect on 1 October, the Government-backed schemes for first-home buyers now have lower deposit requirements with the potential to purchase using only a 5% deposit.

Add that to the wider eligibility which was also part of the housing reset, plus record low interest rates, and I think more first-home buyers will discover they can purchase earlier than they’d possibly planned. This may see the market perform much better than some had expected this summer.

If you’re thinking of buying in the next year or two then you should talk to a mortgage broker now. Buyers need a plan. Even if you know you’re not able to buy today, a mortgage broker can help you plan where you need to be and how to get there.

All the numbers point to Auckland having slowed, returning to more sustainable and realistic levels which will also influence the market. At the same time, many other parts of New Zealand are still enjoying good growth.

Century 21 is excited for the Kiwis keen to buy this summer. What’s more, with fewer competing listings around, it also provides vendors with a great opportunity for their properties to be noticed.

Since Century 21 New Zealand got back in the driver’s seat, prospective franchise owners, salespeople and staff can see greater autonomy in Century 21’s direction and local decision-making, which they like. They’re also seeing our strong digital marketing presence and the company’s getting plenty of good PR.

Adding to that was the recent appointment of Denika Hair as Century 21 New Zealand’s Franchise Coordinator. Her appointment reinforces Century 21’s current momentum and our ongoing commitment to our franchise owners around New Zealand.

A further positive development is the arrival of Century 21 Local Realty. The brand-new franchise is set to officially open its doors in the coming weeks to service the Auckland growth areas of Papakura Takanini, Karaka and Drury.

In fact, even before its office has opened on Broadway in Papakura, Century 21 Local Realty is doing considerable business with Iresh Tennakoon picking up a sales award for the last quarter – highlighting the strength and experience of the new Papakura sales team.

Derryn Mayne is the Century 21 New Zealand owner.


© Scoop Media

Business Headlines | Sci-Tech Headlines


TradeMe: Property Prices In Every Region Hit New High For The Very First Time

Property prices experienced their hottest month on record in December, with record highs in every region, according to the latest Trade Me Property Price Index.\ Trade Me Property spokesperson Logan Mudge said the property market ended the year with ... More>>

Motor Industry Association: 2020 New Vehicle Registrations Suffer From Covid-19

Chief Executive David Crawford says that like some other sectors of the New Zealand economy, the new vehicle sector suffered from a case of Covid-19. Confirmed figures for December 2020 show registrations of 8,383 were 25% ... More>>

CTU 2021 Work Life Survey: COVID And Bullying Hit Workplaces Hard, Huge Support For Increased Sick Leave

New data from the CTU’s annual work life survey shows a snapshot of working people’s experiences and outlook heading out of 2020 and into the new year. Concerningly 42% of respondents cite workplace bullying as an issue in their workplace - a number ... More>>

Smelter: Tiwai Deal Gives Time For Managed Transition

Today’s deal between Meridian and Rio Tinto for the Tiwai smelter to remain open another four years provides time for a managed transition for Southland. “The deal provides welcome certainty to the Southland community by protecting jobs and incomes as the region plans for the future. The Government is committed to working on a managed transition with the local community,” Grant Robertson said. More>>


OECD: Area Employment Rate Rose By 1.9 Percentage Points In The Third Quarter Of 2020

OECD area employment rate rose by 1.9 percentage points in the third quarter of 2020, but remained 2.5 percentage points below its pre-pandemic level The OECD area [1] employment rate – the share of the working-age population with jobs – rose ... More>>

Economy: Strong Job Ad Performance In Quarter Four

SEEK Quarterly Employment Report data shows a positive q/q performance with a 19% national growth in jobs advertised during Q4 2020, which includes October, November and December. Comparing quarter 4, 2020, with the same quarter in 2019 shows that job ad volumes are 7% lower...More>>

NIWA: 2020 - NZ’s 7th-warmest Year On Record

The nationwide average temperature for 2020, calculated using stations in NIWA’s seven-station temperature series which began in 1909, was 13.24°C (0.63°C above the 1981–2010 annual average). New Zealand’s hottest year on record remains 2016, when... More>>

Quotable Value New Zealand: Property Market Set To Cool From Sizzling To Warm In 2021

Nostradamus himself could not have predicted the strange series of events that befell our world in 2020 – nor the wild trajectory of New Zealand’s property market, which has gone from “doom and gloom” to “boom and Zoom” in record time. Even ... More>>