City Sales Ltd: Market Comment Archive

February Comment 2012

Wed, 08 Feb 2012 00:00:00 +1300

WHAT A JANUARY!

City Sales budgets for a loss once a year – every January.

Our experience is that with most of the world in holiday mode, there is not a lot of point in good Agents languishing around a quiet office after Christmas………and then come the frenetic March, April, May months top earners deserting for their holiday break.

So we tell them all to go to the beach after Christmas and we wear the loss.

But we’re in weird times.

Despite only two weeks of business we achieved 3 x budget making it an almost normal month.

Never seen that before.

And the listings are pouring OUT the door as quickly as they pour IN.

To the point where by our first Auction day of the New Year, 5 properties had sold prior – and we hate it when that happens.

If you’ve been hurting out there we can advise prices are lifting and it’s a great time to sell.

Until some bastard comes along and stuffs it up again!

Hey the Prime Minister didn’t get beaten up at our national Waitangi Day “celebrations” so our optimism abounds.

Call us any time for an update.

Cheers all,

Martin
MANAGING DIRECTOR

Source: February Comment 2012

January Comment 2012

Wed, 18 Jan 2012 00:00:00 +1300

GOOD NEWS FOR 2012….and should WE become a Credit Rating Agency????

In the brief break Shelley and I took after Christmas…sheltering from storms at the bach at Pauanui with daughters at the CoroGold concert, Whitianga, drowning in mud, I reflected on a couple of forays through provincial towns.
Mt Maunganui and Tauranga are positively sparkling in prosperity – despite the Rena wreck offshore, Paeroa looks like Downtown Auckland, even Ngatea on the Hauraki Plains…which only takes two wiper swipes on fast to get through was bustling and with not a single “FOR LEASE” sign in the shops.

With world-wide doomsaying, why is this???

It’s because while you were at The Warehouse, worrying and buying the cheapest Christmas presents you could find you missed an important article in one of the Sunday papers.

In reaction to the prevalent tabloid nonsense it made the most extraordinary statement: For the first time in many decades New Zealand primary produce sectors had aligned in an unprecedented manner. New Zealand in 2011 had begun achieving record prices for: Beef, Lamb, Dairy Products (we all knew that but wait for this…) Timber AND Wool”.

This rather portends for a boom for New Zealand but let’s not enjoy it because Standard & Poors, the international credit rating agency has just (yes JUST) downrated the U.S.A., France, Spain, and Greece and the international journalists are selling their tabloids predicting international collapses.

Hello?

I knew and YOU knew in 2008 that Portugal, Ireland, Greece and Spain were hopelessly insolvent, that the U.S.A. was printing money frantically to inflate themselves out of their own self-driven bankruptcy.

That the E.E.C. was in danger of melting down and….NOW…S & P are re-rating them?

Obviously it is really easy to become an international credit rating agency because all you have to do is read the dailies and act a bit quicker than the incumbents. If you did forward research……why did you not act on it? Politics?

And I would have had four years up my sleeve.

Which compounds my suspicions as to why the world banking system and virtually all Finance Houses collapsed prior to this without a squeak from the so-called “Rating Agencies”.

Well, things change and for me it means ignoring the tabloids and S & P and the rest of them, looking over my shoulder but going in a straight line.

The major issue for Auckland residential…Apartments AND Housing is shortage of supply.

Haven’t noticed yet?

You’re not reading the papers.

If you’re confused call me or a Sales Manager or Senior Broker.

Something’s happening and by the time you read about it the best bits are over.

You’ve heard about it all before……..always too late.

Call me.

Cheers,

Martin
MANAGING DIRECTOR

Source: January Comment 2012

December Comment 2011

Tue, 13 Dec 2011 00:00:00 +1300

Hmmmm What a funny old year

Hmmmm.
What a very strange year.
Our 14th and the hardest yet.
The Pike River Mine enquiry, Rugby World Cup, continuing earthquakes, a scary election, ship on the rocks off Tauranga, the U.S.A. printing it’s way out of bankruptcy and Europe fighting its way further into bankruptcy, economists screaming about housing prices and apartment tenants “hot-bedding” on shifts.
Talk of liquidity crises and interest rate rises.
What’s a burnt out old Realtor to do?
Oh yeah, Pauanui.
Go to the beach, get fit, lose 5kg OK 10 and look after family and friends.
And I’m doing the Tongariro Crossing end of March so there’s a challenge that’s not fiscally driven.
There’ll be a skeleton crew working and I’m always available on mobile.
Actually getting a good vibe about 2012 but…of course….I’m a salesman.
And proud of it.
Cheers everyone and the very best wishes for Christmas!

Martin
MANAGING DIRECTOR

Source: December Comment 2011

November Comment 2011

Tue, 08 Nov 2011 00:00:00 +1300

I'M GLAD WE'RE NOT IN GREECE BUT......

Man you hardly catch your breath and the next thing happens.

Last year (when we thought we could afford it) we took the kids down the Adriatic on an 88,000 ton palace, Costa Mediterranea.
From my sister Elisabeth's abode in Venice as we sailed south to Bari, Dubrovnik, Mykonos, Santorini and Rhodes the people just got nicer and nicer.
The Greek hospitality blew us away with their charm and sincerity (sorry Liz) and having experienced our own meltdown in the 1987 world sharemarket crash I feel for what they are going to go through.
Will a European meltdown affect us?
All the economists say yes so perhaps not but......if you're exposed out there NOW would be a good time to talk.
And there are still 3 Auctions to get you out before Christmas.

Oh yeah......we won......but at 8 v 7 and the result sheer luck I actually felt sorry for France.

Now I feel sorry for the French, the Greeks......it'll be the Italians next.

Call us.

I was 58 last week but still only look 57.

Cheers all,

Martin
MANAGING DIRECTOR

Source: November Comment 2011

October Comment 2011

Tue, 18 Oct 2011 00:00:00 +1300

SOMETHING'S GOING ON

WOW!
We listed a record number of apartments in August and again in September, both unprecedented numbers so something’s going on.
And we’re feeling pretty lucky because out in the suburbs it’s starvation time.
Any listings our suburban colleagues secure are sold almost immediately.
I think there is a rapid escalation in suburban residential going on and it’s spilling over into the apartment market as well.
15 auctions tomorrow on 19 October should tell the story – the results will be posted up here instantly and of course you can see the action live.
And Shelley and I have scored tickets to the final so don’t call Sunday night.
We’ve put on a beautiful Auckland spring for our thousands of visitors and made them feel really welcome.
And beat them.
Well, one to go!
Fingers crossed and cheers to success.

Martin
MANAGING DIRECTOR

Source: October Comment 2011

September Comment 2011

Mon, 05 Sep 2011 00:00:00 +1200

I'VE DONE IT NOW:
“REALTOR BIBLE” – AN HONOURABLE PROFESSION EXPLAINED $24.95

Have you ever wondered how a Real Estate Agency…or a Real Estate salesperson operates?
This is not a salesperson training book but a real insight into “the unknown profession”…because until now, that’s what it was.
How Commercial, Industrial, Housing, Retail, Apartments…Business Sales broking works.
And I’ve done it all and I’ve been lucky to have done it at the very top of the profession.
And my experience as a Vice President of the Real Estate Institute of New Zealand made me very proud to be part of this extremely lucrative career.
I have written “REALTOR BIBLE” because a career in Real Estate invariably begins by chance – an unexpected call from a friend, a chance meeting…or sometimes through financial desperation.
“REALTOR BIBLE” is written for current practitioners wishing to do better, for associated professionals seeking an understanding of Agency, and for those concerned parents with that lost or careerless son or daughter who might discover this incredible new world.
Last of all, it is written for you guys and girls, our clients…so you can understand who you’ve got into bed with!
Click through and order your copy or call us.
Cheers all for our beautiful Spring September, Rugby World Cup madness and hopefully, happy transactions.

To order your copy of Realtor Bible email us at sales@citysales.co.nz

Cheers all,

Martin
MANAGING DIRECTOR

Source: September Comment 2011

August Comment 2011

Fri, 05 Aug 2011 00:00:00 +1200

CAN YOU ORDER CARPET?

I’ve waited 20 years ……now here’s the drill.

In 1991 the Auckland City Council changed the zonings to allow residential development in the CBD (Central Business District) and seeing the opportunity of a lifetime, I changed course.

At that time there were only eight buildings zoned residential in the CBD, 226 apartments (yes I counted them) and now there are 450 buildings and 24,000 apartments.

Yes I not only count them regularly I have spent over $1m databasing every owner and we’re in contact (as you know) all the time.

On April Fool’s Day 1997 I set up City Sales with two staff and now have 60 ….+ a little opportunity for YOU.

The spellcheck generation will need a calculator but the clue’s in the first sentence…..yeah you got it!!!...there are apartments out there 20 years old!
Tired.
Run down.
Burnt out – no that’s me – just tired and run down.

And the real good news for those who can handle a telephone is they’re cheap to do up. Like paint and carpet does most of it but we want you to do better.
And your Apartment experts at City Sales will find the opportunities for you, steer you in the right direction and of course resell the investment for you.

We sell, rent and manage ONLY Apartments and we have dedicated staff waiting to get you going.

Call us.

Might prove a change of career.

Don’t forget to watch my [[market_comment_video.tpl]]

Cheers all,

Martin
MANAGING DIRECTOR

Source: August Comment 2011

July Comment 2011

Wed, 20 Jul 2011 00:00:00 +1200

THE AUSTRALIANS, THE KIWIS AND THE YANKS

Yeah it’s getting really interesting.
Just had a week in Melbourne at a brilliant Robert Bevan “BEST PRACTICE” seminar where Agents from all over Australasia get together to see who’s biggest and best.
Unfortunately they beat us that week in the Rugby Super 15 (sort of by the skin of their teeth) and then the Netball.
So it was a somewhat uphill battle to convince them mine was the biggest but, like our valiant sports stars, I almost won.
And what a cool city.
More later.
We’re having a great July, suites selling as they come in the door and hopefully back to 60 listings for the month.
Hallelujah - I’ll pay for the trip before the auditors see the Trust Account.
And speaking of Trust…..the Yanks aren’t really going to default are they?
Can you imagine all those angry Chinese?
Yeah it’s getting really, really interesting…and the soft winter sun is getting stronger.
Errr…you’ve kind of had a month off readers.
Excuse grammar.

Don’t forget to watch my [[market_comment_video.tpl]]

Cheers,

Martin
MANAGING DIRECTOR

Source: July Comment 2011

June Comment 2011

Mon, 06 Jun 2011 00:00:00 +1200

A TIME TO SELL?

With the $NZ at an unprecedented high, swathes of buyers enjoying the lowest interest rates for decades….our offshore investors may be facing an unexpected opportunity.

Because we all know that nothing stays the same, that what goes up inevitably comes down!

Remember at City Sales we can appraise that suite from our library of every apartment in town and not even disturb that tenant.

Click through to sales@citysales.co.nz and get the best operators in town to advise.

Next year we celebrate 15 years as the experts in Auckland’s Apartment Market and we want to work for you!

Or just call us.

Shortest Day coming up and the mood’s already changing.

Don’t forget to watch my [[market_comment_video.tpl]]

Cheers for June!

Martin
MANAGING DIRECTOR

Source: June Comment 2011

May Comment 2011

Sun, 01 May 2011 12:33:00 +1200

IT'S FIRMING, FIRMING, FIRMING!

Yeah it’s only been 20 years since I pioneered the start of Auckland’s Apartment Market (1991….90kg) and wow how we’ve changed!
No I’m not disclosing that.
And all the way through the housing market kept doubling in value but our Apartment Market just kept doubling in size.
Not value.
Because we kept building more.
Eight buildings in 1991 and 226 apartments.
450 buildings today and 24,000 apartments.
Yes, and you’re all on my database.
But three things are happening today that are changing all that and we’re entering a brave new era.
Prices AND rents are firming….and quite fast…….because:

1) No new supply of stock mainly due to the recession
2) A serious shortage of new housing in Auckland is pushing all rents up
3) Auckland housing is on a new cycle and starts now over $600,000

The change of kilter in Investors v Owner-occupiers in the market is also a result of 2) and 3) above.

For 20 years I have measured this ratio and it has stuck at 70% Investors v 30% Owner-occupiers in an almost uncanny manner…until now.

In the last 12 months it has gradually altered to a current 55% Investor v 45% Owner-occupier and I predict it will soon reach 50/50.

And this is pushing prices up.

Studios that were flat out at $100,000 are now $120,000 - $140,000.
We are selling one bedrooms, no car now over $200,000 where they were always mid $100,000s.
And a reasonable 2 is now often $350,000 with a car.

Returns are 6% to 9%.

Oh what to do?

Hey you know we’ll only tell it like it is.

Go on.

Cheers,

Martin
MANAGING DIRECTOR

Source: May Comment 2011

April Comment 2011

Fri, 01 Apr 2011 12:33:00 +1300

ONLINE AUCTIONS FASCINATING!

A big "Hi" to our faithful followers from around the world.

Our second online auction drew an audience from all over – somewhat intriguing us with the interest shown.

One of our vendors was actually watching (from Abu Dhabi) while talking to Sales Director Mike Richards on mobile as his “Alpha” 2 BRM + carpark soared over the reserve and was knocked down for $240,000.

It was something like 4 o'clock in the morning for him but he told Mike he was thrilled with the result and to be able to actually watch the performance was a huge bonus.

He did get a little confused because the broadcast is very slightly delayed in comparison to the immediate advice he was receiving from Mike – so as he watched it just got better!

Online viewers offshore were from:

Singapore
Brisbane
Southport
Kellyville (??) … (Where are you Kellyville?)
Sydney
Kwai Chung
Lisbon
Kowloon
San Francisco (No it wasn’t my sister, Mary)
Gold Coast
Meanee… … (Where are you Meanee?)
Templestowe lower… … (Where are you guys?)

The broadcast will improve as we enhance our systems and no, you don’t have to worry, the cameras are placed so that bidders are not identified.

We are alerting solicitors of vendors that they can tune in from their desks and banks and valuers are already tuning in.

You need to register on this site as we have to adjust server capacity depending on numbers.

March we sold 25/28 auctions - another 90% clearance.

Yeah we're staying ahead of the pack.

Best for the last of the autumn sun.

Martin
MANAGING DIRECTOR

Source: April Comment 2011

March Comment 2011

Mon, 07 Mar 2011 00:00:00 +1300

WE HAVE TO DO WELL

I know you’re feeling like us – shattered and reeling from the tragedy of the Christchurch earthquake, New Zealand’s worst disaster.

I did not have the heart to market property on my Leighton Smith talk show – who would want to even think real estate? – but we have now resumed.

Business is going on, and at pace - and must go on if we, you, our clients and our country are going to be in a position to assist the people of Christchurch.

Our predictions of firming prices seem to be coming true with City Sales achieving record high prices in three CBD buildings, just in the last month.

My sales staff currently have more buyers than sellers.

We can and would like to be of service should you be restructuring assets.

With the largest Apartment Team in Auckland we would like to do well for you.

And, as always, I am personally available at any time on 0274-984.097 or martind@citysales.co.nz for any advice I may be able to offer.

With best wishes,

Martin
MANAGING DIRECTOR

Source: March Comment 2011

February Comment 2011

Tue, 15 Feb 2011 00:00:00 +1300

MAYBE HE'S RIGHT AGAIN

(click back to Jan)

Talk about positivity – we’ve attached some news items that you need to be up with.

It’s looking like the housing market is on the move bang on schedule (2011…wait for DunnFunds Prospectus) and, fuelled by the lack of supply, is compounded by renewed immigration.

The Apartment Market has also experienced a welcomed cessation of new construction giving us an uncomplicated period in which to sort out some of the Blue Chip debacle.

But in early February our Rental and Management Division has only two (TWO!) vacancies and we’ve been able to increase some rents already this year.

I think the “owner-occupier” movement is going to be the one to watch this year and possibly even a lift in some values with it.

But the big trick is in being INFORMED.

Trust us to do this for you, each month, right here.

We cover every publication and watch sentiment like a hawk – because it is sentiment that moves markets.

Let us be your eyes and ears – and what else was it????

Oh yes…….YOUR AGENT!

And click through or call us anytime.

Related Herald Article 1

Related Herald Article 2

Related Herald Article 3

Related Article 4

Related Article 5

Cheers all,

Martin
MANAGING DIRECTOR

Source: February Comment 2011

January Comment 2011

Thu, 13 Jan 2011 00:00:00 +1300

ROLE REVERSAL

There is only ONE economist I follow religiously and he is always right. But I have been worrying about him for the past fortnight.

We pride ourselves on telling it like it is but, as salespeople, we think we’re the eternal optimists.

My September 2010 website comment: “It ain’t gonna get better” was a sincere warning to owners in difficulty that it’s going to take a long time for us all to trade our way back to some semblance of economic order. And to take action.

But we’ve just been given a straw to clutch at and you will have missed it because you were hopefully at the beach.

Do yourself a favour and get a load of this:

Brain Fellow quoted in the 30th December NZ Herald the Westpac Chief Economist, Brendan O’Donovan opining on our future…

“Personally I think New Zealand could have a ripsnorter of a year and I think we could be on the cusp of a golden decade in terms of economic prosperity.
I know that is extremely unfashionable.
We only seem to be happy when we are miserable.”

On the pretext that Westpac Head Office does not allow staff to smoke Bob Hope I pinched myself, yep I was wide awake in the bach and the sun was shining.

I read it again and then again.

Soon it was dark so I turned the lights on and kept reading it.

Then Shelley asked me why my eyes were glazed over and made me go for a walk. I put it in my pocket.

If it wasn’t Brendan O’Donovan I would have dismissed it as an economist’s attempt at humour and we all know they don’t have that sense.

And if you’re now really confused join the party.

Ring us and we’ll be confused together.

But I’ll get the straw before you.

Call us.

Wishing you really, really earnestly and hopefully a prosperous 2011 but…….

Yeah call us,

Martin
MANAGING DIRECTOR

Source: January Comment 2011

December Comment 2010

Thu, 02 Dec 2010 00:00:00 +1300

A SAD END TO A DIFFICULT YEAR

29 men lost in the Pike River coal mine disaster, bodies not recovered, mass remembrance ceremony today and the whole country will stop at 2pm.

It sort of puts the world economic crisis into perspective.

My very best to all those who have supported us this year, a Christmas break – if you can afford one – is timely.

Time for family and the regeneration of the human spirit, which will never die.

Cheers everyone,

Martin
MANAGING DIRECTOR

Source: December Comment 2010