Matt Ball: NZ Property Investors Federation PR & Advocacy Manager on the property resale profits hitting a decade low

Times are tough for property owners as they see the lowest resale profits in over a decade. 

Cotality’s latest Pain & Gain Report shows 89.4% of homes sold above their purchase price last quarter – the lowest since 2014. 

Christchurch was the most resilient of the main centres, with 4.9% of Q2 resales made at a loss, well below the national average of 10.6%, while Auckland recorded the highest proportion of loss-making sales at 15.9%. 

NZ Property Investors Federation’s Matt Ball told Ryan Bridge this is only a problem for those who are being forced to sell. 

For property investors, he says, unless you bought at the peak and have to sell for some reason, this is just another cycle to ride out. 

LISTEN ABOVE 

See omnystudio.com/listener for privacy information.

Episode Transcript

Speaker 1 (00:00):
Let's look at property. Property owned has seen the lowest
resale profits in over a decade. This is from catality's
latest Pain and Game report. Eighty nine point four percent
of homes sold above their purchase price last quarter. That
is the lowest since twenty fourteen, but still means the
hell of a lot of us are selling and getting
a profit. Well on paper, Matt Ball needs in in.
Property Investors Federation is with us this morning. Matt, Good morning,

(00:23):
morning Ryan. It's interesting when you look at the who's
you know which area is christ Church pretty resilient. Auckland
actually the highest proportion of loss makers.

Speaker 2 (00:33):
Yeah, Auckland's doing it a bit tough at the moment.
And you know, this is really interesting data. This is
hard data based on real sales and real purchases. It's, yeah,
very tough for Auckland. I think a lot of people
here bought at the peak and there may maybe some
people who are being forced to sell when they don't
really want to and they have to take a loss.

Speaker 1 (00:55):
For a property investor, what do you do in a
situation like that? Do you sit on your property for
long longer and hold out and wait?

Speaker 2 (01:02):
Yeah, for a property investor, it doesn't mean a lot,
to be honest, unless you brought it the peak and
you have to sell for some reason, then this is
just another cycle and you ride it out. If you
bought it ten years ago, well it was the COVID
blip that sort of shot the market up, and it
doesn't really matter. Prices went up too far now they're correcting.
You just keep holding your property. It's if you're forced
to sell then that's when it becomes a problem.

Speaker 1 (01:25):
Where are Auckland investors buying right now? Are they buying
in Auckland because prices aren't relatively more know either falling
or stable, or are they looking elsewhere?

Speaker 2 (01:38):
Investors are buying in lots of different locations. So I
was at one of our associations, the Auckland Associations meeting
the other night and people were saying, I've got a
great property in christ Church being a great return. You
guys should head down there and have a look, And
other people were saying different parts of the country. So
in Auckland absolutely, but also right around the country.

Speaker 1 (01:58):
Matt, appreciate your time this morning at Ball New Zealand
Property Visitors Federation. For more from early edition with Ryan Bridge,
listen live to news talks it be from five am weekdays,
or follow the podcast on iHeartRadio