As values stabilise, owners and their financiers may offer more troubled assets for sale. In addition, continued receiverships will trigger an increased volume of property for sale. Although listed entities are gearing up for a return to acquisition, it is unlikely to happen this year on a substantial scale. In their continued absence, the appetite of private investors to keep soaking up a flood of opportunity will be tested.
The value of settled property sales over $2m in 2009 in the three main centres was considerably more than the total value for 2008. The total of sales over $2m settled in 2009 at $1.71b was almost 24% more than the total for 2008. There are interesting variances between centres and asset classes. Auckland’s continuing reputation for volatility seems assured. In 2008 significant sales were almost 62% down on 2007, but 2009 was 28% up on 2008. In both years the number of such sales was around half of the 2006 and 2007 number, illustrating that recent sales on an annualised basis have been at higher average prices.
In Wellington the number of sales in 2009 was 32% down on the previous year, but the total value higher. Average sale price for these over $2m sales in the region in 2009 was 61% higher.
Christchurch also maintains it’s reputation, as a model of stability and restraint. The number of sales, and overall volume were slightly down in 09 compared to 08. Indeed the number of sales was the lowest since 2001. It could be argued that most sellers in the last couple of years have been somewhat unwilling, and that these figures suggest that there are few distressed property owners in Christchurch. The three charts on the front page illustrate these trends.
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