{"id":35806,"date":"2021-11-30T07:56:01","date_gmt":"2021-11-29T18:56:01","guid":{"rendered":"https:\/\/propertynoise.co.nz\/au\/?p=35806"},"modified":"2024-03-01T20:40:47","modified_gmt":"2024-03-01T07:40:47","slug":"new-zealands-luxury-market-sees-rapid-rise-throughout-pandemic","status":"publish","type":"post","link":"https:\/\/propertynoise.co.nz\/au\/new-zealands-luxury-market-sees-rapid-rise-throughout-pandemic\/","title":{"rendered":"New Zealand’s luxury market sees rapid rise throughout pandemic"},"content":{"rendered":"

PHOTO: Ray White chief economist Nerida Conisbee<\/strong><\/p>\n

Luxury properties in New Zealand<\/a> have been in high demand throughout the pandemic due to low interest rates, high savings rates, a desire for more space, and people spending more time at home.<\/p>\n

Ray White chief economist Nerida Conisbee said New Zealand\u2019s had seen a rise in \u201cluxury suburbs\u201d which she considered areas with a median house price over $2 million.<\/p>\n

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\u201cTen years ago, New Zealand had just three suburbs with medians over $1 million,\u201d Ms Conisbee said.<\/p>\n

\u201cSaint Mary\u2019s Bay was the most expensive with a median of $1.6 million. This was followed by Herne Bay ($1.4 million) and Remuera ($1 million).<\/p>\n

\u201cThere are now 241 suburbs with medians above this price point and, with more than 10 per cent of suburbs now priced over $1 million, it is no longer such a unique achievement to get to this level.<\/p>\n

\u201cThere are now 17 suburbs with medians over $2 million.<\/p>\n

\u201cSaint Mary\u2019s Bay is still the most expensive but has a median of just under $3.5 million and this is followed by Omaha ($2.8 million) and Kawarau Falls ($2.7 million).<\/p>\n

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\u201cThe top ten most expensive suburbs in New Zealand have seen double digit price growth over the past 12 months.<\/p>\n

\u201cStanley Point has seen the largest increase of just over 56 percent.\u201d\u00a0<\/p>\n

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While Saint Mary\u2019s Bay is the most expensive suburb in New Zealand, Ms Conisbee said finding a home there was quite difficult as the suburb was tightly held.<\/p>\n

\u201cThere have been only 32 sales over $2 million since last September,\u201d she said.<\/p>\n

\u201cOver the past 12 months, the suburb that has seen the most $2 million plus house sales has been Remuera, followed by Mount Eden and Epsom.<\/p>\n

\u201cFor units, Auckland Central tops the list with 218 sales of $1 million plus apartments.\u201d<\/p>\n

Remuera saw 470 properties sell for more than $2 million in the 12 months to September 2021.<\/p>\n

Ray White Remuera’s top salesperson Steve Koerber said the market had been strong throughout 2021.<\/p>\n

\u201cThe year started strongly with more sales in the first two quarters than in any of the previous five years,\u201d Mr Koerber said.<\/p>\n

\u201cThe suburb was coming off a low baseline of previous sales, however, due to a noticeable shortage of stock and a reluctance of homeowners to sell.<\/p>\n

\u201cThe quarterly rolling median price in January was around $2million.\u00a0 In October it was up to $2.7 million – quite a significant increase.\u201d<\/p>\n

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Mr Koerber said demand for luxury houses had remained steady throughout the pandemic.<\/p>\n

\u201cSupply remains a problem and currently, there are fewer than five homes openly advertised in the $10m plus range,\u201d he said.<\/p>\n

\u201cA recent Ray White Remuera listing that transacted in that range sold after multiple offers from multiple parties.<\/p>\n

\u201cAround 30 per cent of buyers are moving within the suburb and trading up.<\/p>\n

\u201cThere has been strong demand from buyers moving to be closer to local high decile schools and more up-trade activity than usual.<\/p>\n

\u201cWe have also noticed a trend whereby people definitely are seeking separate spaces within a home for working and studying at home.\u201d<\/p>\n

With lockdowns weighing heavy upon those living alone, Mr Koerber said many sellers in the Remuera area throughout the pandemic had been senior citizens.<\/p>\n

\u201cRetirement villages have longer waiting lists and a higher percentage of Remuera sellers in 2021 have been senior citizens,\u201d he said.<\/p>\n

\u201cThere has also been an increase in the number of people selling to work from home in more affordable regional locations.\u201d<\/p>\n

Ms Conisbee said the outlook for New Zealand\u2019s luxury housing market showed little sign of slowing down.<\/p>\n

\u201cHouse prices in New Zealand undertook a surprise surge in October, after seeing only modest growth in previous months,\u201d she said.<\/p>\n

\u201cDespite some major changes to financial regulation and an interest rate rise, it appears that the market is yet to run out of steam.<\/p>\n

\u201cIf you were hoping to find a bargain mansion in Saint Mary\u2019s Bay or a luxury apartment in Parnell you may be out of luck.\u201d<\/p>\n

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