PHOTO: Caleb Paterson says high end clients want privacy, salt water pools, three entertaining areas, and more. SUPPLIED
Caleb Paterson, a real estate agent catering to the ultra-rich clientele, sheds light on the unique dynamics of buying and selling luxury multimillion-dollar houses in Auckland.
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With the launch of his agency, Paterson Luxury, Paterson reveals that Auckland boasts around 4,500 premium houses valued at $3.5 million or higher, according to data from REINZ. Notably, since the beginning of 2023, the Auckland region has witnessed the sale of 138 opulent residences and mansions, accumulating a staggering value of over $512 million.
In this upper echelon of the market, Paterson emphasizes that the approach to real estate transactions differs significantly from other segments. The discreet nature of many owners, who often possess property portfolios worth hundreds of millions of dollars, is paramount. This discretion is so crucial that Paterson Luxury refrains from displaying any signage on their vehicles.
Paterson explains that luxury home buyers can be divided into two groups. The first group consists of individuals with busy lifestyles who seek turnkey properties, eliminating the need for modifications before moving in. On the other hand, the second group desires to infuse their unique style and personality into the property, investing both time and money to create an exclusive living space. Paterson observes that this trend is particularly prominent among younger buyers.
Among the clients driving demand for modern architecturally designed homes, Paterson notes the influence of Generation X. Industrial aesthetics using materials like steel, often incorporating designs by architects such as Fearon Hay, are highly sought after. The market also favors single-level structures that offer minimalist, low-maintenance living, allowing residents to enjoy the property for an extended period.
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Expansive spaces, a minimum of three entertaining areas, 4-meter stud heights, multiple bathrooms, and ultra-modern kitchens are among the essential features expected by high-end clients. Privacy and outdoor entertaining areas are equally important, along with a shift towards saltwater pools that are heated.
The surge in demand for New Zealand’s most prestigious properties is partially fueled by new migration, with approximately half of the interest coming from international buyers seeking residency in the country. Paterson shares anecdotes of international clients facing challenges in obtaining investor visas but finding success with skilled worker visas, resulting in easier access without the need for large investments or business setups.
In the upper end of the market, there is often a notable discrepancy between the registered valuation (RV) and the actual property value. Paterson explains that owners strategically liquidate properties at apparent losses to seize better investment opportunities elsewhere.
Recognizing the time constraints faced by high net worth individuals, Paterson Luxury has introduced a concierge service. This comprehensive offering assists clients in preparing properties for sale, managing tasks ranging from landscaping and construction to even conceptualizing pool designs.
Despite the evolving landscape, Paterson’s insights paint a vivid picture of the luxury real estate sector in Auckland, where exclusivity, customization, and international buyers play pivotal roles in shaping the market’s dynamics.
SOURCE: STUFF
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