We had a good, strong end to the year at our last auction of 2016, held at the Sapphire Rooms in Ponsonby Central. As it turned out, December was Ray White Damerell Group’s best month ever, with $62m worth of property going under the hammer.
Interestingly, this record number was achieved with just 30 sales in the area – the lowest monthly sale figure of the year – showing that there is clearly still a huge demand for quality properties in the area, with buyers prepared to pay top dollar to acquire one.
Despite some fairly gloomy market reports from our competitors and the industry in general, we can confidently say that December, and in fact the whole of 2016, has been a very successful period with regards to median sale price for our vendors and home owners in the city fringe suburbs.
Surprisingly, the number of properties sold in December 2016 was down quite dramatically on December 2015. On analysis, it would appear that this was a knock-on effect from having low number of listings in the previous month – 65 in Nov-16, compared to 92 in Nov-15, and 90 in Nov-14.
Month on month, there was a slight increase (3%) in the median sales price in December, bucking the Auckland trend. The surprising figure, however, was the 17% increase in median sale price year on year. This we have attributed to less properties available on the market, thus demand increased and prices were elevated.
There was very little change in this figure in December, month on month, or year on year. What is very clear is that auctions continue to be the quickest and most effective way of selling a property in the Greater Ponsonby area – 50% quicker than setting a sale date, and 100% quicker than selling by negotiation.
With 93%* of all properties sold by auction, it’s no wonder that this method of sale remains by far the most popular choice for selling a property. It’s a process that allows both vendors and buyers to work towards a deadline with absolute transparency. (* 90% by auction, 3% prior to auction)
The desire to sell their properties by the end of the 2016 had a dramatic effect on the sale method chosen by vendors in December, with 86% opting to put a deadline on their campaign by selling their home by auction, as opposed to 14% by negotiation. In November, by comparison, these two methods were running neck and neck.
There’s little doubt that Greater Ponsonby remains a gilt-edged suburb of Auckland, and December’s record sales figures back this up. Its proximity to the city, good transport links, excellent schools, and unsurpassed selection of bars and restaurants, make it the number one choice for executive singles, young families and affluent retirees, alike.
There has been lots of media commentary this past week about rental increases. It’s a standard refrain for this time of year, and it will continue to be voiced as long as demand outstrips supply – and there’s no sign of that changing in the near future. Good quality rental stock is flying out of the door, and we are supplying our landlords with well-vetted tenants.