A mere 40 families own 10% of the properties in the beach town of Omaha, according to figures from OneRoof, as the township becomes a magnet for wealthy Aucklanders looking for an attractive place to park their money.
Collectively these properties are worth more than $170 million, with one family’s holding valued in 2017 at more than $25m.
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Omaha's median property value has jumped 24% in the last 12 months to more than $2m, and almost doubled in the last five years, as cashed-up homeowners take advantage of low interest rates to secure a holiday home by the beach.
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The lack of new stock coming to market - at the time of writing there were just four properties for sale on the peninsula - has only put further pressure on prices, with two Omaha baches recently selling for more than $7m.
But some Kiwis aren't satisfied with just one bach.
OneRoof research has found that there are 32 residents who own two properties in the town, and a further seven who own between three and five properties.
And there are 11 properties still in the hands of one of the town’s original developers, former Olympic rower Alistair Dryden.
In the last three years, six Omaha families have purchased a second or third property in the town, with an average sale price of close to $2m.
Omaha agent Di Balich, of Precision Real Estate, told OneRoof that holding on to property in the town was “better than money in the bank”.
Those looking to buy “don’t know what to do with all that money”, she said.
Balich said that the buyers she works with were building a portfolio for their families.
Trelise Cooper's former home is one of the few baches for sale in Omaha. Photo / Supplied
“People are creating a nest egg for future generations. They’ll have a succession plan, and a trust. They’ll say, ‘This bach is for Johnny and this one is for Mary’,” she said.
“I’ve got families up here looking for something close to the beach where they can build a family compound – houses for all the family.
“Off-shore holidays are still problematic at the moment. They don’t need the money so they might as well enjoy it at the beach.”
Famous Omaha residents have included former Prime Minister Sir John Key, fashion designer Trelise Cooper and rich lister Diane Foreman and her TV presenter husband Paul Henry.
Bayleys agent Paul Elsden, who also sells in the town, said that back in 2011 there would have been more than 100 properties on the market, 30 or 40 of those being vacant land.
His records show that 67 houses and 19 sections changed hands last year – all worth $204m - but in the first six month of this year just 18 houses and two sections have sold.
Precision real estate agent Di Balich: “People are creating a nest egg for future generations." Photo / Fiona Goodall
He estimated that the last Omaha “bargain”, a 1980s property that sold in September for $1.1m, would fetch way more than that now.
“$1.5m is getting very rare. It’s a really hard market to appraise,” he said.
Omaha Holiday Homes owner Nicola Hooper said if homeowners weren’t using their bach, they could always rent it out.
“Where else in the world can you get a $6m house on the water for $1000 a night? People want a short walk to the beach, not necessarily a pool, but room for two families together and the kids go off on their bikes.”
Hooper said that some holiday makers were paying $1680 a night for a 10-night stay, but over Easter in lockdown, some were paying up to $2500.
“Families back from overseas negotiated special rates for three or four weeks during Covid. But these people don’t need the rental income.”
