Put your property in safe hands

September 19, 2022
Posted in News
September 19, 2022 veps

While spring traditionally turns the page on winter’s damper climate, the market is still adjusting to lower price settings and the number of days to sell. Economists’ opinions also differ about when and if prices will rise. In the meantime, EVES suggests property management could be a viable option.

Real Estate Institute of New Zealand’s figures for July do show improvement in Rotorua’s median price. The number of days to sell were longer, however. Rotorua still lingers behind other areas in the Bay of Plenty and Waikato in terms of their median prices. So, while vendors decide whether now is a good time to sell, EVES believe property management is worth considering.

Rotorua clocked up 64 sales in July, compared with 40 in June. The median price was $638,756, up on the previous month. However, the average number of days to sell was 50, compared with 44 in June.

Naturally, vendor expectations increase accordingly. However, the question still remains. If selling is the ultimate goal, but now isn’t the right time, why not rent the property and see what next year brings.

Economists and banks have differing opinions on the market mood and where prices are headed. ANZ is still predicting a decreased market well into next year. Independent economist Tony Alexander, however, envisages a brighter forecast for 2023. At a OneRoof conference in Taupo last month, he believed prices would rise 5 percent next year. OneRoof property commentator Ashley Church is also positive. He is on record as saying that between 1982 and 2011, the average growth rate of houses over any 10-year period was almost exactly 100 percent, when averaged out across the entire 30-year period. While that rate was slower leading up to 2021, it took house prices an average 12 years, rather than 10 to double over that time. Ashley believes long term the general direction is up.

Renting viable in the interim
In Rotorua there are 600 rentals currently on EVES Property Management’s books. A dedicated team of property managers are kept busy as they assess market valuations, rental expectations and handle property management on behalf of clients.
The trend is similar to the noticeable drift that property managers in neighbouring Tauranga and Western Bay of Plenty have been experiencing in recent months. Reasons vary. Some vendors have gone overseas and chose to retain their property rather than sell in the interim. For various circumstances, some have rented their parents’ home, rather than sell immediately. Others have relocated elsewhere, but chose to rent and wait for a better market. Some have selected to rent while still advertising their home for sale; the tenant fully aware of the temporary situation.

General Manager, Rental Department, Joanna Martinez-Hart says Rotorua property managers have noticed the mind shift.

“People are looking at other options, rather than selling. Renting while still marketing a property for sale is also being picked up – such is the demand – sometimes with a reduced rent.”
Tenants are under no illusion that the house could sell. In the meantime, the vendor gains from income, while their property continues to be marketed.

Depending on the property, rental estimates in Rotorua run from $400 for two bedrooms; $500 for three bedrooms and $600-$650 for four bedrooms. More upmarket properties can achieve higher rents. Location is always key as well.

In an industry driven by results and satisfied customers, this rental solution is gaining popularity as a win-win outcome. And, in filling the rental demand, the double win ultimately becomes a trifecta.

Source: nzherald