Stefan Fuchs

property update
020 404 29926

04 280 7431

sfuchs@villarealty.co.nz
jaNUaRy 2017

call

today

for

current

market

update

Apartment & townhouse law to be strengthened

The Government is proposing reforms to better protect people buying and owning
property under the Unit Titles Act, Building and Construction Minister Dr Nick Smith
says.
We need better property laws to support the change in our cities, where more
people are living and investing in townhouses and apartments. The number of
households in unit titles is already 145,000, with a value of more than $50 billion.
This number is expected to double by 2040.
An important driver to these reforms is that the scale of unit title developments
is increasing. The average complex size currently is only 10, but many new
developments have more than 100 units. The responsibilities and finances of body
corporates now requires a greater degree of professionalism and regulation.
Six significant changes are proposed:

Warning against Debt to Income

mortgage lending limits
Property Institute of New Zealand Chief Executive, Ashley Church, has issued a
warning about the possible consequences debt-to-income limits on mortgage
lending.
If introduced (the DTI limits), the Reserve Bank would have the power to restrict
what New Zealanders could borrow for a mortgage relative to their income.
The Reserve Bank has asked for such powers but indicated that the Government
would not grant them lightly as they represented a significant policy change
which has never been tested in New Zealand.
Risk of higheR Rents
Mr Church says the policy would also lead to a dramatic increase in rents over a
relatively short space of time as property investors looked for ways to increase
income so as to be able to buy more property. Most Landlords are currently
showing restraint and choosing to accept lower returns because capital growth
is strong. But in an environment where every extra dollar enhances borrowing
power Landlords will want to maximum rentals and theyll be able to do it
because the Reserve Bank policy will exacerbate the current housing shortage.

Better disclosure rules at the time of purchase

Strengthening body corporate governance
Increasing professionalism of body corporate managers
Ensuring proper maintenance plans
Variable compliance requirements relating to complex size
Improving the accessibility of dispute resolution.
These reforms have been initiated by the strong advocacy of Auckland Central MP
Nikki Kaye and a group of property professionals who highlighted inadequacies
in the current law in a report presented to me earlier this year. This law reform is
critical to the future shape of our cities. Getting the planning law right to allow
higher density living is an important first step but the development cannot occur
without investment. These changes are about increasing the security and confidence
people can have in their rights as unit title holders. We want apartment and
townhouse living to be an attractive lifestyle and a sound investment.
consultation woRkshops
Consultation on the proposals runs until Friday 3 March 2017. Stakeholder
workshops have been organised in Auckland, Wellington and Christchurch in
February. Submissions received during consultation and feedback from the
workshops will help inform the final scope of changes to the Unit Titles Act. This
is a further strand to the Governments wide-ranging housing reform programme.
The new Auckland Unitary Plan, the KiwiSaver-HomeStart Scheme, the Crown Land
Programme, Special Housing Areas and legislative reforms to the Building, Resource
Management and Construction Contracts Acts are all part of a comprehensive plan
to address New Zealands long-term housing challenges. Discussion document:

Mr Church says that the proposed policy could also:

Create a further barrier to young people looking to buy their first home a
prospect already made almost impossible by the Reserve Bank clampdown
on loan-to-value lending.
Restrict, or eliminate, the ability of small business owners to use the equity
in their home as security for cash-flow potentially putting thousands of
small businesses at risk.
Theres a strong case to be made that the introduction of stricter Loan to Value
rules has already compounded the issue and dragged out the speed at which the
market corrects itself.
We understand the Reserve Bank want to protect the economy against the risk
of financial shock but doing anything which reduces the construction of new
dwellings is a hollow solution because it will only delay an even bigger problem
down the track.
The fundamentals which are driving house price growth havent changed and
you wont see an end to this thing until theyre addressed. Artificial solutions
such as debt-to-income clampdowns will only slow down the speed at which the
problem is solved.
Mr Church says history shows us that, left to run their course, property booms
eventually peter out once the underlying issue lack of supply is resolved.

https://www.beehive.govt.nz/sites/all/files/Unit%20Titles%20Act%20Review%20

www.property.org.nz

Discussion%20Document.pdf

wellington regional CoMPariSon

sales aRea

sales

NOV 15

Median days to sell

NOV 16

NOV 15

NOV 16

Median sale pRice

NOV 15

NOV 16

sales aRea

sales

NOV 15

Median days to sell

NOV 16

NOV 15

NOV 16

Median sale pRice

NOV 15

000s
Wairarapa
Wellington Central
Wellington West
Wellington East
Wellington South
Wellington North

95
73
56
55
62
90

103
60
39
33
31
65

020 404 29926

67
35
21
34
22
22

24
23
22
26
29
24

$240
$485
$658
$570
$567
$528

04 280 7431

NOV 16

000s
$295
$596
$750
$694
$651
$670

Pukerua Bay/Tawa
Lower Hutt
Upper Hutt
Otaki/Paekakariki
Levin

91
197
83
121
48

75
155
70
112
44

34
28
29
35
41

31
28
24
24
22

$440
$410
$360
$402
$181

$550
$475
$442
$462
$264

Compiled from the Real Estate Institute of NZ statistics https://www.reinz.co.nz

sfuchs@villarealty.co.nz
Homenet Enterprises Ph: (04) 234 8006, E-mail: graham@homenet.co.nz

Disclaimer: All the information published in Property Update is true and accurate to the best of the publishers knowledge. No liability is assumed by Leaders in Real Estate, nor the publisher, for any losses suffered by any person or organisation relying directly or indirectly on this newsletter.

Recent tawa to kapiti Residential property sales

Street Name
Kepler Way
Hanmer Cove
Wangapeka Way
Yemen Pl
Conclusion St
Saint Austell Cl
Truro Rd
Pope St
Saint Ives Dr
Saint Ives Dr
Cumberland Gr
Northumberland St
Durham St
Ruru Rd
Lupin Rd
Waerenga Rd
Cobb Pl
Waitohu Valley Rd
Totaranui Rd
Brandon St
Cobb Pl
Kirk St
Freemans Rd
Te Manuao Rd
Waerenga Rd
Scott Ave
Moana St
Marine Pde
Ames St
Dornoch Pl
Brora Cres
Cromarty Pl
Belford Ct
Makarini St
Moana Rd
Aorangi Rd
Makarini St
Langdale Ave
Georgia Gr
Quadrant Hts
Donovan Rd
Manly St
Nathan Ave
Winton St
Matuku Pl
Anthony Gr
Hurley Rd
Anthony Gr
Cedar Dr
Callender Tce
Manly St
Monarch Pl
Seaview Rd
Mana Esplanade
Whitianga View
Seaview Rd
Kahu Rd
Raukawa Rd
Paetawa Rd
Saint Andrews Rd
Gordon Rd
Te Pari Pari Rd
Raroa Pl
Maher Pl
Mungavin Ave
Mckillop St
Rose St
Tiromoana Rd
Tennis Court Rd

Area
Aotea
Aotea
Aotea
Ascot Park
Ascot Park
Camborne
Camborne
Camborne
Camborne
Camborne
Cannons Creek
Cannons Creek
Cannons Creek
Otaihanga
Otaki
Otaki
Otaki
Otaki
Otaki
Otaki
Otaki
Otaki
Otaki
Otaki
Otaki
Otaki
Otaki
Otaki
Paekakariki
Papakowhai
Papakowhai
Papakowhai
Paraparaumu
Paraparaumu
Paraparaumu
Paraparaumu
Paraparaumu
Paraparaumu
Paraparaumu
Paraparaumu
Paraparaumu
Paraparaumu
Paraparaumu
Paraparaumu
Paraparaumu
Paraparaumu
Paraparaumu
Paraparaumu
Paraparaumu
Paraparaumu
Paraparaumu
Paraparaumu
Paremata
Paremata
Paremata
Paremata
Paremata
Peka Peka
Peka Peka
Plimmerton
Plimmerton
Pukerua Bay
Pukerua Bay
Ranui Heights
Ranui Heights
Ranui Heights
Ranui Heights
Raumati
Raumati

Beds
4
4
5
3
4
4
3
5
3
5
3
3
2
2
4
3
3
2
3
3
3
3
1
4
3
2
3
3
2
4
4
3
4
3
3
3
3
3
4
4
3
4
2
3
3
2
3
2
3
3
3
4
4
2
4
4
3
3
5
3
3
4
3
2
3
4
3
3
4

SOLD
$965,000
$882,500
$810,000
$359,500
$400,000
$745,000
$580,000
$735,000
$625,000
$801,000
$265,000
$255,000
$225,000
$350,000
$480,000
$271,000
$335,000
$315,000
$752,500
$465,000
$313,000
$232,000
$190,000
$340,000
$340,000
$272,000
$250,000
$480,000
$360,000
$745,000
$711,000
$440,000
$562,000
$428,100
$775,200
$395,000
$505,000
$695,500
$670,000
$880,000
$441,175
$1,210,000
$478,000
$427,000
$583,000
$361,000
$330,000
$455,000
$580,000
$641,000
$550,000
$625,500
$765,000
$520,000
$805,000
$995,000
$622,000
$800,000
$585,000
$445,000
$757,777
$519,500
$505,700
$235,000
$300,000
$350,000
$480,000
$455,000
$415,000

RV

Street Name

$690,000
$800,000
$235,000
$250,000
$245,000
$580,000
$460,000
$430,000
$450,000
$600,000
$180,000
$205,000
$215,000
$245,000
$405,000
$155,000
$225,000
$265,000
$670,000
$345,000
$240,000
$175,000
$124,000
$220,000
$200,000
$225,000
$185,000
$400,000
$360,000
$540,000
$450,000
$465,000
$395,000
$270,000
$675,000
$290,000
$390,000
$560,000
$520,000
$840,000
$305,000
$850,000
$375,000
$280,000
$465,000
$220,000
$235,000
$325,000
$435,000
$520,000
$395,000
$485,000
$680,000
$360,000
$670,000
$780,000
$460,000
$650,000
$485,000
$350,000
$500,000
$460,000
$365,000
$210,000
$215,000
$215,000
$275,000
$305,000
$375,000

Nugget Gr
Kingswood Gr
Margaret Rd
Matatua Rd
Alexander Rd
Gavin Rd
Wilfred St
Duncan St
Wilmshurst Pl
Ranui Tce
Larsen Cres
Chester Rd
Westwood Rd
Saint Benets Pl
Mexted Tce
Westhaven Dr
Greer Cres
Fyvie Ave
Chester Rd
Westhaven Dr
Ranui Tce
Ordley Gr
Turkington St
Franklyn Rd
Lambley Rd
Toms Rd
Jillett St
Herewini St
Pikarere St
Finn Pl
Jillett St
Taupiri Cres
Herewini St
Moult St
Moki St
Thornley St
Rimu St
Winara Ave
Te Moana Rd
Belvedere Ave
Kakariki Gr
Cranbrook Gr
Belvedere Ave
Tutere St
Titoki Rd
Hona St
Tutere St
Frances St
Sunset Tce
Ashleigh Way
Omapere St
Madeira Cl
Navigation Dr
Picketboat Ln
Garboard Ln
Musket Ln
Pilot Ln
Charthouse Ln
Spinnaker Dr
Bosun Tce
Shackle Ln
Cannon Ln
The Bollard
The Masthead
The Masthead
Discovery Dr
Discovery Dr
Endeavour Dr
Flotilla Pl

Area
Raumati
Raumati
Raumati
Raumati
Raumati
Raumati
Tawa
Tawa
Tawa
Tawa
Tawa
Tawa
Tawa
Tawa
Tawa
Tawa
Tawa
Tawa
Tawa
Tawa
Tawa
Tawa
Tawa
Tawa
Titahi Bay
Titahi Bay
Titahi Bay
Titahi Bay
Titahi Bay
Titahi Bay
Titahi Bay
Titahi Bay
Titahi Bay
Titahi Bay
Titahi Bay
Titahi Bay
Waikanae
Waikanae
Waikanae
Waikanae
Waikanae
Waikanae
Waikanae
Waikanae
Waikanae
Waikanae
Waikanae
Waikanae
Waikanae
Waikanae
Whitby
Whitby
Whitby
Whitby
Whitby
Whitby
Whitby
Whitby
Whitby
Whitby
Whitby
Whitby
Whitby
Whitby
Whitby
Whitby
Whitby
Whitby
Whitby

Beds
2
3
3
3
3
3
3
2
5
4
5
3
4
4
3
3
2
6
2
4
2
4
1
3
3
3
3
2
3
3
3
3
3
3
3
3
4
4
4
2
3
4
3
2
3
2
4
3
3
3
4
3
5
4
3
3
3
4
3
4
5
4
3
4
4
3
3
4
4

SOLD
$415,000
$520,000
$500,000
$685,000
$445,000
$505,000
$486,000
$463,000
$620,500
$580,000
$702,500
$495,000
$689,000
$750,000
$465,000
$510,000
$375,000
$557,500
$417,000
$550,000
$723,000
$580,000
$259,000
$499,000
$540,000
$781,000
$550,000
$375,000
$453,000
$450,000
$660,000
$440,000
$485,000
$407,000
$417,000
$420,000
$582,000
$730,000
$650,000
$360,000
$360,000
$670,000
$491,000
$340,000
$689,000
$572,000
$826,000
$661,000
$705,000
$580,000
$485,000
$670,000
$650,000
$695,000
$457,500
$510,000
$440,000
$462,000
$425,000
$650,000
$670,000
$586,000
$462,000
$635,000
$710,000
$508,000
$510,000
$921,000
$995,000

Courtesy REINZ

www.reinz.co.nz

RV
$330,000
$380,000
$385,000
$460,000
$285,000
$345,000
$290,000
$290,000
$480,000
$530,000
$530,000
$360,000
$215,000
$540,000
$290,000
$380,000
$265,000
$405,000
$640,000
$500,000
$405,000
$455,000
$205,000
$285,000
$475,000
$640,000
$350,000
$230,000
$280,000
$330,000
$400,000
$370,000
$350,000
$275,000
$300,000
$255,000
$415,000
$620,000
$495,000
$305,000
$310,000
$510,000
$350,000
$255,000
$465,000
$330,000
$720,000
$465,000
$435,000
$430,000
$355,000
$500,000
$630,000
$470,000
$325,000
$400,000
$420,000
$375,000
$320,000
$480,000
$465,000
$425,000
$335,000
$560,000
$610,000
$345,000
$345,000
$670,000
$900,000

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