There are just three "baches" left to buy in one of New Zealand's most in-demand beach suburbs, as wealthy Kiwis spend big on holiday homes.
Home to some of New Zealand's wealthiest families, Omaha, north Auckland, has seen listings all but dry up over the holiday period.
READ MORE: Find out if your suburb is rising or falling
The pressure in the market comes on the back of a significant post-Covid lift in buying activity in the country's traditional bach locations.
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The increased heat in the housing market has been fuelled by low interest rates and buyer demand outstripping supply.
In Omaha, the median property value rose $140,000 in the last 12 months to $1.765 million, according to the latest OneRoof figures, while the jumps in Mt Maunganui and Papamoa Beach were $160,000 and $130,000 respectively.
For those looking to grab a do-up bach at an affordable price, the options may be limited.
OneRoof and its data partner Valocity looked at the four locations and examined the number of pre-1990 build homes that had not changed hands since 2010 to see where potential "do-ups" are.
OneRoof editor Owen Vaughan said: "Kiwis are always on the look-out for a beach bargain, but the chances of getting a do-up bach in the hottest holiday locations are potentially receding.
"The figures also suggest there are big gains to be made by property-owners in these locations."
According to the data, there just 224 homes built before 1990 that had not been sold or resold since 2010 - less than 20 percent of the total number properties in the suburb.
Paul Henry and Diane Foreman sold their bach at 9 Karahu Lane, in Omaha, for a record amount. Photo / Supplied
In Papamoa Beach, there are 902 pre-1990 homes that have not hit the market since 2010 - about 9 percent of total housing stock in the suburb. The situation is better in Mt Maunganui, with 1742 pre-1990 homes out of circulation since 2010 - about 27 percent of total housing stock there.
The value gain for these properties could be huge if they were put up for sale now. In the last 11 years, Omaha's median price has gone from $813,958 to $1.765 million - a difference of almost $1 million.
In Mt Maunganui, typical prices have risen more than $429,000, from $505,900 to $$935,000, and in Papamoa Beach the jump has been $446,000 to $845,000.
Precision Real Estate agent Di Balich, who last year sold Paul Henry and Diane Foreman's luxury Omaha bach for $7.35 million, said that she was down to her last listing at the start of January.
“We were closing sales right up to Christmas Eve in the $3.5 million to $3.75 million price range. These are Kiwis who travel a lot but because of Covid have decided to invest in their own private hotel, many of them have been looking on and off for years.”
Balich said listings were on the market for less than two weeks before being snapped up, often with cash unconditional offers and a backup offer or two.
“I’m getting new listings in the next 10 days but I suspect because of the shortage that they won't hang around," she said.
“It’s embarrassing, there are huge numbers of people looking with budgets ranging from $1 million up to beachfront for $7 million – but no one's letting go."
Balich told OneRoof that even in the “Old Omaha”, properties were tightly held even though demand is building for properties on the water.
307 Oceanbeach Road, in Mount Maunganui, Tauranga, goes to auction on January 22. Photo / Supplied
“It’s a mix of buyers wanting existing houses [to renovate] or bowl and build sites. It’s increasingly hard to find, particularly waterfront, so people pay a premium for the land. The median price is $1.8 million, but we sold waterside just before Christmas for $4.25 million with three keen bidders – so there are two unsatisfied buyers and so much demand.”
She added: “If you look at the history on these properties you will find that they only changed hands after 15 to 20 years of ownership. These are 'heirloom' properties that will be passed on and held for future generations to enjoy and treasure.”
Balich said that vacant waterfront sections at the sandspit point had been snapped up as well, so expected a similar price for her new listing at 261 Omaha Drive.
Bayleys agent Kay Ganley, who operates in Tauranga's beach suburbs, said she was selling two waterfront properties in Mount Maunganui. Both are older buildings, one back from the beach – 307 Oceanbeach Road is a dated 1970s three-bedroom house on 645sqm while 173 Oceanbeach Road is a smartly renovated 1950s four bedroom home on 632sqm.
“They are very few and far between now. People want a property that they can do something with. There are a lot of young families who will invest $1.6 million to $2 million and live in it as it is, then one day renovate or build for another $1 million," she said.
“In May last year we sold 23A Oceanbeach on 607sqm for $1.865 million and they’ll be knocking down to build new. You need upwards of $1.5 million to get close to the beach – or up to $7 million for waterfront.”
Agent Kay Ganley is selling 173 Oceanbeach Road, in Mount Maunganui. Photo / Supplied
Ganley said that with changes in Tauranga's district plan, some larger sites with little old baches closer to the town centre would have new regulations to allow more density.
“We’re really short of stock now, listings are as scarce as hen’s teeth,” she said.
