Since Covid struck last year, house sales in the beach-side suburbs of East Auckland have been one of the city’s quiet success stories.
According to the latest OneRoof house price index, property values in Eastern Beach, Half Moon Bay, Mellons Bay, Farm Cove, Cockle Bay and Bucklands Beach have grown between 27% and 30% in the last 12 months, putting them on par with hot central city suburbs such Waterview and Point Chevalier.
READ MORE: Find out if your suburb is rising or falling
Harcourts Howick agent Karl Vermeulen is not surprised the beach suburbs are getting the attention.
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“To be honest, I wonder why people go centrally. We have a lot of attractions here, it's very family oriented and there's good schooling,” he says.
“In fact the other day I was showing beachfront properties to buyers from central Auckland who wanted a holiday home here. They didn’t want the hassle of driving to Omaha or Coromandel. For high $1 million they could fish off the front deck.”
Vermeulen says this is the strongest market he’s seen in his 23-year real estate career as more buyers head east from other bays suburbs like Kohimarama, Mission Bay and Glendowie.
“We’re good value compared to central Auckland, where waterfront is $3 million to $5 million. Here they can start at $1.5 million to $2 million at the lower end, although they can go up pretty high. We've had the odd $10 million listing, but sales of $3 million to $5 million are more frequent.”
A beachfront house at 38 The Esplanade, in Eastern Beach, billed has having development potential, sold for $3.735 million. Photo / Supplied
The biggest problem at the moment is lack of listings. “We’re rapidly running out. If you look at auctions, there are usually four to six bidders, and a really big auction can attract 20 or more,” Vermeulen says.
“People are sick of missing out. I’ve seen under-bidders in tears they’ve missed out on three or four auctions. We sold 11 properties in 14 days. If you’ve got a listing, it’s just out the door.”
Bayleys Howick agent Angela Rudling says that demand is high for coastal homes. “We’re getting waterfront hunters from other areas wanting better value, or downsizers from the Whitford lifestyle blocks wanting something more manageable. These are high net worth people. Coastal is the attraction.”
Rudling says that new listings are pounced on as soon as they go live.
“Even in non-waterfront Sunnyhills or Farm Cove, there’s not much under $1.8 million while in Bucklands Beach you're lucky to get a home for under $2 million.”
A house with a pool at 20 Bramley Drive, in Farm Cove, sold at auction for $3.69 million. Photo / Supplied
Although transport links to the CBD are not as developed as they are in other parts of the city, commute times and the lack of transport infrastructure are sticking points for buyers, with many working in nearby Manukau or at the airport.
Rudling says: “We don’t see the commute [as a problem], we see it as an advantage. We’re living a lovely life here. Half Moon Bay has the ferry into the city and younger residents use the Panmure station to get the train into university.”
Bayleys Howick branch manager Sam Rosenberg says buyers are finally seeing the value of the eastern beach suburbs.
“We’re playing catch-up. I can’t understand why [interest] in this part of Auckland has taken a while to get up to levels seen in other places. We’re breaking records and doing very good numbers on sales above $2 million.”
Regular ferries from Half Moon Bay to the city have enhanced the appeal of Auckland's eastern beach suburbs. Photo / Getty Images
Ray White Half Moon Bay agent Kevin Marginson, who sold 12 properties last month for prices between $1.2 million and $3.5 million, says big sales are no longer the exception.
“It used to be a big hurrah, but now we just move on. Those $3 million prices are mainly from developers who can replace a couple of old homes with six or more, all in zone for Macleans College.”
He says downsizers, many of them cashing out of the big family home of 30 years or more, can use the $2 million-plus proceeds to buy a smart new $1.3 million townhouse and use the rest for an investment property.
“They don’t need the banks to help them - it’s all cash. They’re just interested in $600 a week return on their money, and they wouldn’t get that in the bank.”
Harcourts’ Vermeulen agrees that the biggest shift in the beach suburbs and the adjacent hinterland of Pakuranga and Botany Downs has been the surge in demand for big sites with development potential.
“You can fit say three townhouses or if it’s zoned, seven or eight townhouses. There’s definitely a market for high quality townhouses with four or five bedrooms in the $1.8 million to $2.5 million price range.
“You’ll see a lot coming on stream for Pakuranga.”
