The most expensive suburbs were Langs Beach, Russell (pictured) and Mangawhai Heads.
Northland house prices are finally starting to catch up to the rest of the country, according to a new property report released this week.
The OneRoof Property Report highlighted a range of national property statistics, including the most expensive and cheapest suburbs, the best and worst-performing suburbs and overall latest suburb property values.
Despite a slow start, the report showed Northland was starting to show an upswing in property price growth, similar to what the rest of the country had been experiencing in the last quarter.
OneRoof editor Owen Vaughan said Northland had always had a tendency to lag behind other regions, but the market was on a trajectory heading towards positive growth.
“Northland has traditionally always been slower, but the pace of decline has now slowed considerably,” Vaughan said.
“In the last couple of weeks, Northland has started to feel the benefit the rest of the market has had due to a lack of stock, which is creating upward pressure on prices.
“It won’t be rampant growth like we saw during the boom, though, and that’s mainly because interest rates are still high, so will provide a natural curb in huge growth in values and prices.”
As of Monday morning, Northland’s property prices had risen to 1 per cent- a marked increase from -0.5 per cent on August 20.
According to the report, the top settled sales for 2023 (up until end of October 2023) were in the Far North, Whangārei and Kaipara, with the top house selling for $4.1 million in Russell in January.
The next most expensive was a property in Hihi/Mangōnui in March, which sold for $3.87m, followed by a property at One Tree Point which sold for $3.7m and a Mangawhai Heads property that went for $3.65m in January.
In terms of the most expensive suburbs, these were Langs Beach, Russell and Mangawhai Heads, with the average property values coming in at $2,167,000, $1,478,000 and $1,332,000 respectively.
On the other end of the spectrum, Northland’s cheapest suburbs were Kaikohe, with an average property value of $398,000, followed by Kaitāia at $440,000 and Kawakawa at $500,000.
Despite Mangawhai Heads and Russell achieving high property sales in 2023, they also came in as the region’s weakest-performing suburbs, dropping 7.20 per cent and 6 per cent respectively in the past three months.
Kawakawa also took a knock, sinking 4.20 per cent in house prices between August and October.
Three Whangārei suburbs proved to have the strongest house price growth in the last quarter, with a growth of 2.3 per cent in Morningside and Riverside and 2 per cent in Raumanga.
Valocity Global senior research analyst Wayne Shum confirmed the housing market in most places in New Zealand had now hit (or were close to) the bottom, including Northland.
He said while the region as a whole had dropped around $100,000 from its peak of $925,000 in April 2022, it was still out-performing its pre-Covid average price of $614,000 by more than $100,000 ($827,000).
“In Northland it really depends where you are, because places like Whangārei have their own market which is doing well,” Shum said.
“The Far North is also performing well, but places like Kaipara are still lagging behind.
“The National Government has promised the new highway which will go further north, so the Auckland demand for a bach in Mangawhai or those working in the North Shore commuting once a week to the office will be strong.”
In terms of first-home buyers, Shum said most first-home buyers were already in the market.
He said house price increases plus changes with the incoming Government could make things potentially more difficult.
“The National Government has said they will likely bring back some of their former investment policies, so once investors are back, the market will start to pick up,” Shum said.
“The key issues for Northland is that flooding is definitely still a concern for people, so while there is a sense of a fear of missing out, first-home buyers and buyers in general are being a bit more careful and doing more homework than before.”
Myjanne Jensen is a part-time reporter for the Northern Advocate. She was previously the editor of the Northland Age, joining NZME in 2021 after moving to the region from Australia.
HARTFORD — Downtown Hartford’s largest commercial landlord said Tuesday it has acquired a commercial complex at the pivotal corner of Trumbull and Pratt streets and has plans to convert vacant office space into as many as 286 apartments in the building across from the XL Center.
Shelbourne Global Solutions LLC plans would provide a further boost to efforts to transform Pratt Street into an entertainment and dining destination blended with new apartments, many of them in historic buildings along the brick-lined street in the heart of downtown.
Shelbourne, of Brooklyn, N.Y., which had emerged in recent weeks as the expected buyer, did not disclose a purchase price.
The 8-story, Trumbull Street office building also includes almost all the storefront space along the north side of Pratt Street. The purchase now gives Shelbourne control over a majority of Pratt.
In the past five years, Shelbourne has acquired most of the south side of the street and, with partners, has pursued apartment conversions at 99 Pratt and 196 Trumbull, just around the corner.
Pratt Street is a major beneficiary of the city’s Hart Lift storefront revitalization program that is using federal pandemic relief funds for grants to fill long-vacant shops on the street. . There are 12 businesses approved for Hart Lift grants, seven are for restaurants or bars.
“Our intention with acquiring 242 Trumbull is to embark on the repositioning of excess office space to much needed quality housing downtown,” Ben Schlossberg, Shelbourne’s managing member, said, in a release.
“Our developments at Pratt and Temple streets have, in a short period of time, achieved occupancies in the mid-90% levels, and the demand for additional housing downtown has been corroborated by the influx of quality developers to this marketplace,” Schlossberg said.
Schlossberg added: “The city’s and the state’s vision for a robust downtown ecosystem is now a reality, and we hope to expand upon it.”
In addition to new housing at 242 Trumbull, Shelbourne said it will maintain commercial tenants on the second floor and a mix of shops, restaurants and bars in street-level storefronts.
The seller of 242 Trumbull, Northland, of Newton, Mass., put the property up for sale about a year ago, marketing it without an asking price. City records show Northland, once the city’s largest commercial landlord, bought the property for $11.7 million in 2003.
Northland did not immediately respond to a request for comment Tuesday.
Hartford Mayor Luke Bronin said Tuesday in an interview that the structure is a “natural candidate” for a residential conversion.
Bronin declined to comment on a pending foreclosure involving Shelbourne’s ownership of three buildings on Pratt Street. Shelbourne is seeking to negotiate an extension of a loan that matured in March which financed the purchase of the structures.
“We would want to work closely with anyone who had control of 242 Trumbull because it’s a really important property that if reinvented could add a lot of residential units right around Pratt Street, which is emerging as the nerve center of downtown,” Bronin said.
Last week, Shelbourne said the conversion of the upper floors of 57, 65 and 75 Pratt St. to apartments or commercial loft space had not moved ahead as quickly as had been anticipated. The conversions include resolving both state and city building code issues, Shelbourne said.
In its release Tuesday, Shelbourne said: “All landlords across the country are facing challenges as a result of current market conditions, high interest rates and the changing nature of workplace norms — at Shelbourne we are addressing those issues with confidence in the city of Hartford.”
At 242 Trumbull, which has anchored the corner with Pratt since 1926, there are 8 stories of office space that face Trumbull. There are 15 storefronts and those along Pratt are interconnected with differing architectural styles with a 6-story office annex above the Pratt storefronts.
It is likely a residential conversion would require public funding, perhaps with a low-cost loan through the quasi-public Capital Region Development Authority. Office-to-apartment conversions in downtown Hartford often have include financing packages with historic tax credits in the last decade.
Although a portion of 242 Trumbull could be considered historic, a large portion was added on along Pratt Street in the 1980s.
Last May, when the property was first listed by the Hartford office of CBRE, the commercial real estate services firm, floors 3-8 of office space was largely vacant.
Downsizing of corporate leases in downtown Hartford and throughout the rest of the region and country in the aftermath of the pandemic are raising questions about what to do with excess office space. One option has been converting the space to housing.
Shelbourne began acquiring Hartford office properties in 2014. The real estate investment and management firm now owns or has stakes in four major downtown properties: Metro Center, 100 Pearl St., One Financial Plaza, the “Gold Building,” and 20 Church St., the “Stilts Building.”
The Stilts Building fell into foreclosure during the pandemic, and the case is still pending in court. Recently, Shelbourne averted a tax deed sale by the city for delinquent real estate taxes at the Millennium apartments on Morgan Street.
Kenneth R. Gosselin can be reached at firstname.lastname@example.org.
Mukesh Naidu, wife Ashishna and daughter Aarashi recently moved into their newly built home in Kamo. Photo / Michael Cunningham
A gloomy autumn housing market has had the opposite effect on Northland which enjoyed a lift in house prices— one of three regions that experienced modest growth despite downward pressure on sales elsewhere.
Mangawhai, where housing prices have been increasing in the past year. Photo / Tania Whyte
New housing data shows Northland might be bucking the trend when it comes to decreasing house prices, but the impact on buyer’s confidence following Cyclone Gabrielle remains unknown.
Aotearoa’s property prices continued on a downward
Northland is one of just two regions bucking the downward national trend in the median house price.
Photo / Michael Cunningham
Northland is one of two regions experiencing a growth in the median house price but a real estate expert is advising buyers and sellers to treat the lift with caution.
Figures from the Real Estate
Numbers, numbers, numbers.
The Southern California real estate market is “doing numbers,” often eye-popping numbers, whether it’s because of a nine-figure trade or from shock over the amount lost. Some industrial properties are so hot they traded multiple times this year for major premiums, while other assets sold at major discounts.
Here are the deals that led the way or defined the state of their respective markets for Southern California in 2022, along with some of the most memorable deals and leases from the past 12 months.
Multifamily money moves
- For its first move in California, Northland acquired THEA at Metropolis, a 59-story luxury multifamily tower in Downtown Los Angeles for a “steeply discounted” $504 million. The buyer said the deal with Greenland Holdings marked one of the largest single-asset, market-rate multifamily acquisitions in U.S. history.
- Also downtown, developer Barry Shy sold a 1,037-unit portfolio for $402 million. MF1 Capital provided $328.8 million in financing for the deal.
- Blackstone bought into the 395,300-square-foot One Culver creative campus with LBA Realty for over $500 million.
- In El Segundo, Tishman Speyer sold a fully leased, 260,000-square-foot office for $205.5 million. And in Orange County, Hines sold a trophy campus called Intersect for $235.25 million to MetLife and PGGM.
- Thor Equities Group and a Danish pension fund bought a cold storage warehouse that’s leased to Anheuser-Busch for $85 million in July in one of the priciest industrial deals of the year, penciling out to an astounding $535 per square foot. But perhaps more notable, sellers Staley Point and Bain Capital bought the property six months prior for $35 million.
- In the Inland Empire, REDA and Clarion Partners secured $210 million in construction financing to build the first phase of a 1.7 million-square-foot project. The Home Depot has already preleased 1.1 million square feet.
- NFI Industries agreed to pay $220 million for a 759,260-square-foot distribution center in Eastvale, equal to about $290 per square foot. Sares Regis Group sold the property after acquiring it in 2019 for $87.5 million.
- Alere Property Group paid $199.3 million for a new warehouse with 709,081 square feet in Riverside that’s fully leased to a third-party logistics firm, and KKR paid $136.5 million for a 281,000-square-foot warehouse in July.
Major warehouse leases in the Inland Empire
Rams vs. Chargers
- The L.A. Chargers scored first this year with $276 million in financing to build a new headquarters in El Segundo.
- But the Rams scored more often: Earlier this month, Westfield announced it sold the Village mall to Rams owner Stan Kroenke for $325 million. Kroenke’s purchase expands on a string of nine-figure acquisitions this year, all in the immediate area, that combined to make an assemblage large enough for a major mixed-use development complex with retail, hotels, dining or residences to surround a new Rams’ practice facility and headquarters.
Mounting mergers & acquisitions
- Prologis was already one of the top landlords in the world for industrial real estate. Now, it’s even larger after buying Duke Realty this year in a $26 billion deal.
- Kroger and Albertsons grocery stores also merged in a $24.6 billion deal.
- Hudson Pacific Properties acquired Quixote Studios, a local company that provides soundstage and production services, in a $360 million deal.
- In addition to the recent deal with Stan Kroenke, Westfield also sold the former Westfield Santa Anita mall in Orange county for $537.5 million.
- Sterling paid $164.6 million in a bankruptcy auction to acquire the 403,200-square-foot Plaza Mexico in Lynwood.
Gregory Cornfield can be reached at email@example.com.
Barfoot & Thompson has released its November sales data. Photo / supplied
Auckland and Northland unsold residential properties hit a 12-year high last month, with 5052 listed on the market by the city’s biggest agency but yet to find buyers.
Barfoot & Thompson’s average number of properties for sale during any one month last year was just 3353. In 2020 it was only 3759.
But the agency’s data now shows a swelling number of available listings at the end of the month.
The previous record was set in February 2011 when the agency had 6053 properties for sale. During that year it had more than 5000 listings at the end of March, April, May and November.
But in more buoyant times lately, the agency had fewer places to sell as demand soared partly due to historically low interest rates.
The business today cited rising mortgage interest rates, high inflation and low consumer confidence for buyer tardiness.
Last year’s average number of sales was 1119 but in November this year, the agency only sold 700 places.
Yet even those low numbers were a recovery from June when it sold just 684 places, July’s 611, August’s 578, September’s 614 and October’s 627.
November’s median sales price fell 2.4 per cent from October’s $1,092,500 to $1,065,000.
“Property is selling, albeit at a level lower than at the same time last year,” said managing director Peter Thompson.
“What it demonstrates is vendors and buyers are reaching an agreement as to where prices are at.”
November’s median price fell 14.1 per cent on the peak median price recorded last November. The average $1,153,795 fell 9.8 per cent on the peak last December.
November’s average price increased from October by 1.5 per cent.
“Buyer choice in Auckland has rarely been greater in recent times,” Thompson said today.
The average sales price in November was influenced by a return of buyers to the $2m and over categories and to sales in the under $750,000 price category.
Many of the buyers in the lower-price sector were first-time buyers, Thompson said.
“In November we sold 64 properties for more than $2m, 19 of them being for more than $3m. This is the highest number of homes valued at more than $3m we have sold in a month for six months,” he said.
The agency sold 125 homes for under $750,000, or 17.9 per cent of all the homes sold.
New listings for the month at 1577 were down significantly on those for November in the past few years.
The lifestyle and rural markets had their best month’s trading in four months but trading was modest compared with this time last year.
Interest in lifestyle properties around Pukekohe was strong with sales from $1m to $3m. Vendors were testing the market by selling via auction or tender rather than listed price, the agency said.
In the Far North, the main focus during the month was on coastal lifestyle and existing homes.
Today, OneRoof published its property report which said house prices fell an average of $90,000 in parts of New Zealand after a turbulent year.
That meant homeowners who bought at the height of the property boom in late 2021 could find themselves with mortgages larger than their home’s value, especially in Auckland and Wellington.
But there were also some positives: the price fall allowed more first-home buyers onto the property ladder.
The report noted the huge market shift during the year and highlighted some risks for homeowners.
James Wilson, head of valuations at Valocity, said the fall in prices this year was the largest since 2010, but had to be seen in context: the boom since Covid was one of the strongest New Zealand had experienced, with an average growth of 33 per cent nationally from early 2020 to early this year.
The Herald also today reported how the rise in prominence of building societies, finance companies and credit unions for mortgages may have peaked.
Non-bank lenders’ share of the mortgage market hovered at an 11-year high in each of the five months to October, according to new Reserve Bank data.
While non-bank lenders only accounted for 1.8 per cent of the country’s mortgage lending, this was still equivalent to $6.1b in October – 29 per cent more than last October.
The shift went from banks to non-banks but has now swung back to banks again.