A luxury waterfront home in a tiny Bay of Plenty town smashed local records when it sold under the hammer for $3.65 million - more than double its $1.57 million CV.
The holiday home at 165 Pohutukawa Avenue, in Ohope, where the median value is $805,000, was in high demand, with six buyers battling at the Ray White auction.
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It was snapped up by an Auckland couple who were originally from the region.
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OneRoof records show that the land sold for just $305,000 in March 2004, with construction work on the stylish four-bedroom home started not long after.
Ray White agent Tony Bonne, who marketed the property, said that buyers heading to Ohope knew it was “definitely paradise”.
He told OneRoof that dream beachfront properties used to sell for around $1 million. "Now you’re expecting $2 million-something, and that’s realistic. This is a very special property and it commanded a strong price because it's a well-designed home with spectacular beach views at a prestigious address in Ohope.”
He added: "We’ve buyers desperately looking for more beachfront, they don’t come up very often.”
Ray White auctioneer Wayne Olver, who called the auction last week, sold four more properties in Ohope, with prices ranging between $480,000 and $1.1 million, all well in excess of vendor expectations.
“Now, along Ocean Road, there are quite a few selling around $1.1 million to $1.2 million,” he said.
Up the coast at Mount Maunganui, holiday homes were also hot property, with two homes on the desirable Marine Parade strip selling for more than $2 million. A three-bedroom apartment at 4/50 Marine Parade sold before it went to auction for $2.625 million, well above its $1.44 million CV, while a four-bedroom townhouse at 199B Marine Parade sold under the hammer for $2.565 million, more half a million dollars above its CV.
4/50 Marine Parade, Mount Maunganui sold for $2.625 million. Photo / Supplied
The 4/50 Marine Parade property had last sold in December 2019 for $2.25 million, but had since been “beautifully refurbished”, said Bayleys agent Kay Ganley, who marketed the home.
“The market is pretty buoyant, there are lots of pre-auction and multi-offers,” she told OneRoof.
“This will be a holiday home for Waikato-based buyers. But we are getting enquiries from young ex-pat families who are looking for beachfront permanent homes around that $4 million to $6 million bracket.”
Simon Anderson, managing director of the Realty Group, said that for the first time in his 20 years in real estate he was seeing equal interest in both first home buyer and investor and the luxury ends of the market.
The townhouse at 199B Marine Parade sold at auction for $2.565 million. Photo / Supplied
“The last three months we’ve had phenomenal interest, a large interest is from the Waikato. They come here for their holidays, they understand the lifestyle and services and understand the limited resource, there’s only a small strip of land and limited availability.”
Anderson said that the combination of cashed-up buyers unable to travel overseas and low interest rates, meant a lot more buyers were turning their eyes to the region.
“The apartment quality is getting better and better, people are used to living in apartments and appreciate the lifestyle.”
Anderson said since Covid-19 there had also been a swing to country and lifestyle properties, where again there are a big number of cashed up buyers. “Spring listings will be the big tell.”
A waterfront property at 223 Oceanbeach Road, which had a rating valuation of $5.24 million, sold earlier this month for an undisclosed sum.
And last month a "pink" beach house on a 1201sqm section at 265 Papamoa Beach Road sold at auction for $3.15 million - almost $1 million above its rating valuation. The property had not been on the market in close to 50 years and was one of last undeveloped large-scale sections fronting Papamoa Beach.
