Agents say Mangawhai is running out of land, driving up prices for beach-front properties that have development potential.
The town, almost just 90 minutes from Auckland and an hour from Whangarei, is popular with families either looking for a holiday home or a permanent spot by the sea as well as investors who are attracted by the rental yield.
Describing the town as a paradise, Barfoot and Thompson Mangawhai agent Mike Hutton told OneRoof: “It’s crazy here. You can’t even rent a tent. The post-Covid housing market surge has given the regions a taste of what Auckland has long experienced."
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This month, Hutton sold a three-bedroom house on a 9263sqm subdividable section for $2.25 million under the hammer - almost $1 million above its September 2020 rating valuation.
Hutton said that there had been three buyers competing for 73 Old Waipu Road, with bidding starting at a high $1.8 million.
“It was pretty full on as it’s a very desirable property,” he said.
The large freehold section, which currently has a 221sq m single level home and boasts views of the ocean and sand dunes, is zoned for development and could fit at least two more homes.
Hutton said the buyer wanted to stay private but appreciated the development potential of the property as the current vendor was already applying for consents.
Hutton was not surprised the property sold well above the rating valuation as developable land was very desirable in Mangawhai.
“They are getting very thin because we’re running out of land. I sold a bare section by the beach for $1.8 million and it had nothing but a piece of dirt,” he said.
The property at 73 Old Waipu Road boasts 9263sqm of land. Photo/ Supplied
According to the latest OneRoof-Valocity house price index figures, Mangawhai's median property value is just shy $1 million, reflecting the strong demand for property there.
Appetitie for waterfront homes is not just restricted to Kaipara, though. In the Bay of Plenty, coastal properties are also selling well. At auctions this month, several sold for more than $2 million under the hammer.
At Whakamarama, 30 minutes out of Tauranga, a property on 329J Plummers Point Road sold for $2.2 million. The auction was brought forward after a pre-auction offer and the house sold with no other bids on the night.
Sitting on the 1369sq m site just metres from the water, the 2006 house includes a 20m heated pool complex.
329J Plummers Point Road home was sold under the hammer for $2.2 million. Photo / Supplied.
In central Tauranga, a property on 46 Harbour Drive fetched $2.8 million, more than $1 million above its $1.74 million rating valuation.
Bayleys agent Euan Sears, who marketed the property, said there was one active bidder in the auction room, a local who was upgrading property.
"It’s a magnificent view and it’s a beautiful home, this kind rarely comes on the market,” Sears said.
The three-bedroom 285sqm home on the waterfront section overlooks Matakana Island and Mount Maunganui.
In highly desirable downtown Mount a waterfront property just a stone’s throw away from the beach and shops on 34A Pacific Avenue went for $2.35 million at the same auction.
The Bayleys agents marketing the property, Kay and Janelle Ganley, said there were two active bidders in the room with bidding starting from $1.7 million.
Janelle Ganley said the three-bedroom 225sqm home sold to a holiday home buyer.
Tauranga's 46 Harbour Drive was sold for $2.8 million to a local buyer under the hammer. Photo/ Supplied
