25 Mar 2016

Auckland auction sales heat up again

8:34 am on 25 March 2016

A real estate firm says auction selling rates in Auckland have recovered, after a slump in auction sales late last year.

A potential buyer at a house auction in Manukau, Auckland.

A potential buyer at a house auction in Manukau, Auckland. Photo: RNZ / Kim Baker Wilson

In December, some real estate firms reported that just 30 percent of houses sold at auction, which analysts put down to fewer investors in the market, following tighter lending and tax rules.

The biggest declines were seen in the $500,000-$750,000 price range

But Barfoot and Thompson managing director Peter Thompson said sales had returned to normal levels, because sellers had scaled back their expectations of price rises, while demand from buyers remained strong.

"If we go back prior to Christmas, there was something like 30-35 percent selling under the hammer. These days we're seeing around about 60-70 percent, and as high as 80 percent in one of our auction sessions last week."

Peter Thompson.

Earlier this month, the property valuer QV said clearance rates were still below the 85 percent rate experienced in the second half of last year, but post auction negotiations were proving increasingly successful.

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