In the first quarter of 2015, Herne Bay became New Zealand’s very first $2 million-dollar suburb. At the time, an average home in the inner-city Auckland suburb was worth $2,003,300.
It wasn’t the first record Herne Bay had shattered. In 2003, it became the first suburb to crash through, what was back then, the magical $1 million price barrier.
While Auckland values, in general, slid a little in the first three months of 2018, Herne Bay was a notable exception, posting a 2.3 percent increase, with an average median of $2,662,800.
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So what makes Herne Bay so attractive?
Named after a UK seaside resort which once had the second-longest pier in England, Herne Bay was established in the 1850s and was popular with city workers, many of whom commuted to the CBD by boat.
It boasts many grand villas and bungalows, most of which once stood on full sections, but these days the suburb, like the rest of Auckland, has been subdivided and modern homes are common.
Pene Milne, from Sotheby’s International Realty, says much of Herne Bay’s appeal lies in the fact that it is a compact suburb and is close to the water.
“There’s a really nice eclectic mix in terms of who lives there. I think that, often, the homeowners are entrepreneurial, independently successful people who appreciate the advantages of city living.”
Milne says that most of the property in the area is tidy and well-maintained and that there’s a sense that the older homes, in particular, have a natural life-cycle.
“When the next generation comes along and moves in, a new era begins.”
“It’s interesting that every suburb has its own special vibe. Even St Marys Bay which is right next door to Herne Bay somehow feels quite different.”
Milne says that not all the homes in Herne Bay are in the many multi-millions bracket.
“There’s actually quite a mixture there and it’s important to remember that one big sale can affect the average.”
With its excellent schools and other amenities, Herne Bay still seems likely to continue its upward trajectory and looks on-course to be the country’s first $3 million suburb sometime in the not-too-distant future.
