Harcourts New Zealand CEO Bryan Thomson is predicting “solidity” in the New Zealand residential real estate market next year and improvement in both the coastal and rural segments after a varied year in 2009.

“While compared to the dark days of 2008 there has been significant improvement in the residential real estate market in the main centres this year, in other locations and segments of the market things have continued to be challenging,” Mr Thomson says.

“In the major metropolitan centres there has been a marked increase in the volume of house sales and prices have been positively impacted in recent months by the imbalance between supply and demand, but overall sales numbers in most locations remain below historic averages.

“For example in provincial centres the market has not seen as much buoyancy as the big cities, partially because the rural economy has slowed and as a consequence of the financial environment, property investors appear to have been more cautious about provincial locations, while the volume of farm sales has dropped right off and demand for coastal property has been low too,” he says.

“In 2010 however I believe that in addition to ongoing solidity in the residential marketplace in the main centres there will be an improvement in the provinces too, all stimulated by attractive floating mortgage interest rates, far better than predicted unemployment figures and positive immigration.

“Improvement in dairy farm income should have a positive impact on provincial areas too and see farm sales start to improve as well, meanwhile we also expect to see more activity in coastal areas in 2010, with the easing economic situation helping renew interest in baches and sections in coastal locations.”

Rural Property Focus – NZ, Summer 09-10

“On a local, national and international level, Harcourts has been keeping ahead of the challenges and maximising the opportunities presented by the 2008/2009 market by building on the strength of its people through the tools, support and training we provide them,” Mr Green said.

According to Mr Green, one of the main focuses for Harcourts International this year has been growing the strength, reach and size of its teams, together with the professional resources available to its people, and the organisation has succeeded in all three goals.

“The organisation has definitely grown in size, adding five new offices in Victoria, five in New Zealand, five in Queensland and six new offices in New South Wales over the past few months,” he said.

Mr Green said that feedback from new Business Owners was that they chose to join Harcourts due to the organisation’s commitment to continuous development of service and support to clients and its own people.

“Harcourts offers clients specialist divisions, global marketing opportunities and the latest cutting edge technology, together with teams who live locally and possess strong local market knowledge,” Mr Green said.

“I have always been a firm believer that a tighter economy separates the average performers in any industry from the very best. The fact that Harcourts has continued to grow in size has demonstrated to us that we are able to offer what both the market and those within the industry need in the current economy,” he said.

Harcourts is New Zealand’s largest and Australia’s fastest growing real estate group. Founded in New Zealand in 1888, the operation expanded into Australia in 1997. Currently there are over 600 offices in Australia, New Zealand, China, South Africa, Singapore, Zambia, Indonesia and Fiji.

Harcourts has four key factors which have contributed greatly to its ongoing success – the strength of the Harcourts brand, superior business and information systems, proven marketing tools and strategies plus incredibly talented, skilled and committed people.

Harcourts is also the exclusive South Pacific member of Leading Real Estate companies of the world™. This is the world’s largest Real Estate network with over 5,500 offices and 160,000 sales consultants operating in 25 countries.

Based in the Harcourts Glenview office operated by Monarch Real Estate, Mr Cosgrave has been in real estate for more than 16 years and won dozens of local, regional and national awards based on his sales success.

On Friday he was honoured by senior management from Harcourts International and Harcourts New Zealand along with members of the Harcourts Hamilton team at an event where he was presented with a special pin commemorating the $500 million in settled sales he has achieved in his career to date.

Shaun Cosgrave with (from left) Harcourts International Executive Director Paul Wright, Harcourts International Managing Director Mike Green and Harcourts New Zealand CEO Bryan Thomson.

Renowned as a hard-working, high-volume realtor, Mr Cosgrave was named Number One Sales Consultant in Harcourts’ inaugural international awards in 2007 and earlier this year was named Harcourts New Zealand’s Top Rural Sales Consultant for 2008/09, fifth overall in New Zealand and eighth internationally – just two years after switching from the residential to rural/lifestyle property market .

Mr Cosgrave says he is proud of his latest achievement, which reflects his love of the real estate industry and many years of hard work and good customer service.

Harcourts New Zealand CEO Bryan Thomson says Mr Cosgrave is an exceptional real estate professional.

“A name synonymous with real estate in the Waikato, Shaun is a highly skilled and experienced real estate professional who puts in an immense amount of time and effort on his clients’ behalf and consistently achieves phenomenal success.

“To have settled $500 million in property sales is an outstanding achievement which Shaun can be immensely proud of.”

Brian King, the General Manager of Harcourts Hamilton franchise Monarch Real Estate, says Mr Cosgrave has a legendary work ethic and thoroughly deserves all the accolades and success.

“To have achieved $500 million in settled sales is superb, particularly given the median price of houses in the Hamilton suburbs Shaun has focused on for most of his career.”

Established in Wellington in 1888 Harcourts is New Zealand’s largest real estate group with approximately 180 offices nationwide, around 1700 sales consultants (including approximately 130 rural and/or lifestyle specialists) and a growing property management team. In total Harcourts has more than 600 offices and 4000 property professionals in nine countries.

Harcourts’ August figures show spring came early to much of the New Zealand real estate market, but it’s too early to talk about another housing boom, according to Harcourts New Zealand CEO Bryan Thomson.

According to the final, audited August figures of New Zealand’s largest real estate group, Harcourts’ sales consultants completed a national average of approximately 47% more written sales last month than in August 2008, with a total of 2030 written sales making it the second highest amount since November 2007, Mr Thomson says.

Commenting in the latest Harcourts MarketWatch newsletter he says the largest increase occurred in the group’s Northern region (which includes Auckland) where the volume of written sales last month was a significant 78% ahead of August 2008 and in addition the average sale price was up 11% on the same month last year.

“In three of Harcourts’ other regions there was also an increase in written sales last month when compared with August 2008, with our South Island Provincial region being the only exception.”

Harcourts’ figures show more properties came onto the market last month than in August 2008 but Mr Thomson says the total volume of property on hand remains limited and in some regions the slow rural market is continuing to impact on average sale prices. 

“While confidence in the market appears to have returned we have to be mindful of the fact that the numbers we are seeing this year are being compared to the historically low numbers of 2008.  If you look further back in time our national sales numbers remain 25% below the peak of August 2005.

“So, while the market is more positive and active and the lower number of listings we have seen over winter has created competition and helped to stabilise prices in many locations it’s too soon to be talking about another ‘housing market boom’,” Mr Thomson says.

“Notwithstanding that, serious buyers are taking action now while asking prices and mortgage interest rates are more attractive and smart sellers are seizing the opportunity to list their property before more stock comes onto the market and balances out the current situation.”

For more information see Harcourts MarketWatch newsletter (attached).
Harcourts NZ Marketwatch September09

Business Owner Tony Jenkins, who himself recently received The Australasian Real Estate Agency Best Practice Award for 2009 at an awards function organised by Best Practice to honour “the Australian and New Zealand real estate industry’s true heroes”, says he is thrilled his two Southland offices have been the first in New Zealand to gain this independent endorsement.

“Accreditation is only awarded to an agency which has a written Guarantee of Service and through an independent audit process is found to comply with top 10% levels of performance in four key categories, so it’s a significant achievement and one the teams in those offices and I are delighted about.”

Mr Jenkins, a former award-winning sales consultant who is now the majority shareholder in eight Harcourts offices in the South Island, explains that the four areas audited were: customer service; standards of professional conduct and ethical behaviour; employee training and support; and business management.
 
“It’s a great feeling to know that the things I’ve focused on, originally in Southland and more recently in the other offices I’m now involved in, have been recognised as being industry-leading in terms of best-practice.” 

Harcourts New Zealand CEO Bryan Thomson says the best practice accreditation is a testament to the efforts of Mr Jenkins and the Harcourts Invercargill and Gore teams.
 
“This accreditation provides independent verification of the calibre of those operations and the service they are delivering to their customers. It’s an achievement they should be very proud of.”

Mr Jenkins says he aiming to seek best practice accreditation for all of the offices in his group in future.

“I’ve always been proactive about ensuring my offices are operating to the highest standards, and that’s going to be more important than ever under the new Real Estate Act.”