Housetalk Issue 191

Dear Resident,

There were 247 dwellings including apartments and 20 sections sold in November in Waitakere City. The median selling price was $750,000. The average days to sell was 33.

       Sale Prices    
Suburb Median selling price
November 2017
Number sold Days to sell
Green Bay $823,000 4 17
Laingholm $735,000 5 17
Titirangi $927,500 21 34
Sunnyvale $672,000 8 45
West Harbour $943,750 10 38
Glendene $807,170 5 30
Royal Heights $835,000 4 29
Henderson $847,500 50 33
Massey $703,500 28 33
Ranui $650,500 15 37
Swanson $732,500 8 33
Sunnyvale $700,500 8 84
Te Atatu Peninsula $1,039,300 13 37
Te Atatu South $649,000 18 27
Glen Eden $703,500 32 30
New Lynn $685,000 11 23

Capital Gains November 2012 – 2017 Median Prices 

Laingholm                   87.3%

Titirangi                       57.3%

Te Atatu Peninsula    114.7%

Again the official cash rate (OCR) remained the same at 1.75% at the latest reserve bank announcement on the 9th of November 2017. The announcement also indicated that the bank saw little likelihood of change until 2019.

With still very little detail of the new government policies it is very hard to predict property values going forward. The ANZ however do a NZ business confidence survey covering around 700 businesses. Last month this showed the lowest business confidence level since March 2009.

The level is now –39.3, prior to the election it was +18.3. Clearly business is very worried about its ability to trade profitability under the newly elected government with its spend mentality plus its cutting out the planned tax cuts for business and for all employees who generate wealth.

Many of the measures the new coalition government plan to implement such as cuts in migration (serious for horticulture, the building industry and hospitality) will have a negative impact on business and the broader economy. Compare this with overseas trading countries and it is clear why NZ business is not optimistic.

The UK proposes cutting the corporate tax rate from its present 19% to 17% by 2020. Japan is currently planning to cut its corporate tax rate from 30% to 20%. This month USA hope to implement corporate tax cuts from the present 35% to 21%. Our nearest neighbour and largest export market (March 2017 year) Australia is in the process of lowering its corporate tax rate to 25%. New Zealand’s corporate tax rate is currently 28%.

The longer term effect of this could well be a non-competitive business environment in NZ with the resultant loss of exports and falling living standards. Perhaps there will be more policy details next year?!

Do you want to know the value of your property? Its probably worth more than you think. Contact me for a free no obligation value update.

Best wishes,

John Goodrum

Licensee Agent REAA 2008

021945140

thelegendofthewest@gmail.com

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