Prices at record high; Otago up 17.2% Guilty of financial register misuse
AUCKLAND: National house prices are at a record high, due partly to the pandemic as sales rally postlockdown, boosted by those looking to upgrade their living spaces as a result of spending more time at home.
Last month’s new national record median of $675,000 is up from $580,000 a year ago and July’s $659,000, according to new data from the Real Estate Institute.
Otago had a 17.2% increase, from $495,000 to $580,000, and Southland prices rose 20.3% from $310,000 to $373,000.
Auckland’s median jumped 16% to $950,000 — a record high — up from $819,000 at the same time last year and up from $918,097 in July.
REINZ chief executive Bindi Norwell said many factors were working together to drive up prices.
‘‘The combination of low interest rates, the removal of loantovalue restrictions, the lack of listings, people’s aspiration to have more space or a bigger backyard, catchup postlockdown and firsttime buyers’ desire to get on to the market have all contributed to the uplift.’’
Every region in the country recorded an annual increase in median house prices last month.
Economists were this year predicting houseprice falls of 6% to 9% by either the end of this year or March next year.
The opposite was happening and Ms Norwell predicted this could continue.
‘‘Unless we see more listings come to the market before Christmas, we may start to see additional pressure on house prices and affordability.’’
The weather would have a big effect on the market.
‘‘It will be interesting to see what happens now that we’re heading into spring, as traditionally sales volumes start to lift as the weather warms up.
‘‘As we’ve already seen, 2020 seems to be defying all predictions and going against all norms at this point in time. However, the full impact of Covid19 may not have been realised yet, particularly in relation to unemployment and the economy.’’
Northland recorded a 16.6% annual price rise to a median price of $590,000, up from $506,000.
Whangarei district hit a median price of $610,000 and Bay of Plenty prices rose 11% annually to a new median of $665,000.
Waikato prices jumped 16.7% to $628,000, up from $538,000 at the same time last year, and the fourth record median price in a row.
Three Waikato districts had record medians: the MatamataPiako district ($587,000), Otorohanga district ($418,500) and Waipa district ($715,000).
ManawatuWhanganui showed a 15.1% price increase to $450,000, up from $391,000 at the same time last year.
Three ManawatuWhanganui districts had record median prices: Tararua ($320,000), Manawatu ($535,000) and Whanganui ($375,000).
Taranaki prices were up 15.3%, from $391,000 to $451,000.
Canterbury prices rose 13%, from $440,000 to $497,000, and two districts within that region set new records — Ashburton at $391,500 and Waimakariri at $515,000.
Auctions were used in 16.1% of sales nationally in August, when 1232 properties were sold, up from 10.6% at the same time last year, when 650 properties were sold via auction.
This was the highest percentage of auctions for August in four years. — The New Zealand Herald
WELLINGTON: A stockbroking company and its New Zealandbased director face significant fines after being found guilty of claiming to be registered on the Financial Service Providers Register.
Pegasus Markets Ltd and Michael Reps were charged by the Financial Markets Authority (FMA) in February 2018 with breaching the Financial Service Providers (Registration and Dispute Resolution) Act (FSP Act).
It was one of only a handful of such prosecutions in the country.
Both defended the allegations but, after a judgealone trial earlier this year in the North Shore District Court, the trading company and Reps were found guilty on all charges.
The FMA said it prosecuted Pegasus Markets and Reps after the company stated on two websites it was registered on the Financial Service Providers Register (FSPR), despite it being deregistered.
Pegasus Markets, which was incorporated in March 2014, was also warned by the New Zealand Companies Office about the misleading statements but failed to remove them.
Judge June Jelas found Pegasus Markets guilty of two charges of breaching section 12 of the FSP Act. The law states noone may purport to be registered on the FSPR unless they are and are also a member of an approved dispute resolution scheme.
Reps, whose residential address is listed as being in Point Wells near Matakana, was also found guilty of knowingly failing to prevent Pegasus Markets from committing an offence under the legislation.
In 2017, the FMA said it would crack down on New Zealand directors who encouraged the misuse of the FSPR, which was established in 2008 and from 2010 required any company or individual providing financial services in New Zealand to be on it.
In a statement yesterday, the government agency said registration on the FSPR did not necessarily mean an entity was regulated by the FMA.
It said individuals and businesses had sought to use registration as a way to establish legitimacy and then target overseas investors, exploiting New Zealand’s reputation.
After the guilty verdicts, Pegasus Markets now faces a maximum fine of $300,000 for each charge, while Reps faces 12 months’ imprisonment and/or a $100,000 fine.
The company and Reps are due to be sentenced in November.
Reps had also fought for continued name suppression in the case, arguing publication of his identity would negatively affect his business and income.
However, an appeal to the High Court was dismissed by Justice Paul Davison in August 2018.
Reps was appointed a director of Pegasus Markets in October 2015. He has previously been the director of about 100 New Zealand companies, more than 20 of which have been deregistered from the register or have made unsuccessful applications to be registered.
Pegasus Markets’ only other director and sole shareholder is Rafael Ruiz Lemonche, whose residential address is in Barcelona, according to Companies Office records.
The company’s registered office is on Dickens St in Napier and listed as the address for Business Results (HB) Ltd, a Hawke’s Bay accounting firm.
Other similar prosecutions the FMA has pursued against businesses or individuals purporting to be registered on the FSPR include Morgan DeVere Corporate Finance Ltd, which was fined $40,000 by the Wellington District Court in June last year.
Morgan DeVere’s New Zealandbased director, former Wellington real estate agent Rene Moorby, also pleaded guilty and was sentenced to 75 hours’ community service for his part in the offending.
In a separate case, South Island businessman Garry James Patterson was prosecuted and sentenced to 200 hours’ community work and three months’ community detention in 2018. — The New Zealand Herald