Auckland’s housing market was so fast-paced last year, that Barfoot & Thompson agent Paul Neshausen sold a house in Kohimarama twice in the space of two months.
The circumstances of the first buyer for the upmarket house changed and it sold quickly a second time, Neshausen said. “It sold twice in about two months so that was testament to how hot the market was.”
The “cool house with city views and a swimming pool” fetched $5m the first time around and about 5% more the second time.
Neshausen is gearing up for another busy year, describing last year as “smoking hot”.
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“It was characterized by a lack of good stock and more buyers than sellers. That was the supply-demand dynamic and that really drove the market.
“People haven't been overseas spending the $100,000 they normally spend. I think they have realized this Covid thing is here to stay and so now things that used to be a ‘nice to have’ have moved into the ‘must have’ category.”
On the list is a proper working office away from the children, a home workout space in case lockdowns close the gyms and, last but not least, a wine cellar.
There are plenty of buyers willing to spend to get what they want, he says.
“I've still got about six buyers around the $12m mark who want to buy something in the Bays and there is nothing, so that's the lack of stock thing.”
That’s partly because owners believe Covid is here to stay and are not letting go of their properties, and also because some who want to sell can’t find anything to buy.
The market in Auckland’s Eastern Bays suburbs – Mission Bay, Kohimarama and St Heliers - did slow a bit in December, probably because people were sick of Covid, sick of watching the news – and sick of real estate, he says.
“I think people were just tired, basically. They needed a break, a mental holiday.”
The view across the beach at St Heliers to Rangitoto. Photo / Fiona Goodall
Come February, however, and it’s game on; Neshausen already has 12 listings coming on next month.
“They are all people getting their house ready for that third week of February to get on the market.”
The increase in listings reflects another sign of the times, with some not seeing a need to be in Auckland any more.
“What Covid has done is make them realise they don't have to go to the office every day - in fact, you don't need a city office, you can work from anywhere in the country now.”
People are cashing up to go and live in places like Tauranga and Queenstown with some money in the bank and a great lifestyle.
Developers are another active group in Neshausen’s patch.
With little land available a subdividable or full site is attractive to developers.
“Anything 800sqm-plus is being looked at for two or three new townhouses or terraced housing development.”
An example of what’s on offer is 5 Glen Atkinson Street, an 809sq m section with a four-bedroom house on it being marketed as a prestigious address among stunning $5m homes that offers multiple development options with scope to demolish and build two large single architecturally designed homes or put up multi-level terrace/townhouses.
Over at Ray White, Wayne Maguire is also expecting a big year.
The CEO and auctioneer for Maguires One Team says last year’s buying frenzy and FOMO (fear of missing out) has eased off a tad and the year is heading into something that feels a bit more normal with genuine buyers looking at St Heliers for the lifestyle instead of some buyers last year wanting to buy to make money.
A luxury home with pool on Ronaki Road, Mission Bay sold at the end of last year for almost $7m. Photo / Supplied
“What we are seeing now is the genuine buyer who understands the superior value of lifestyle in St Heliers and they know long-term the value of their asset is always protected.
“They are coming and saying we've either grown up in St Heliers as a kid and now we are going to buy, or, and we're getting a lot of this, we have lived in Remuera or Herne Bay and now we're seeing far better value in St Heliers, we will move to the beach.”
People from suburbs like Ponsonby, Herne Bay and Grey Lynn are thinking they would rather not be snarled up in traffic to get to work and “no one ever sounds stressed out driving time along Tamaki Drive.”
Maguire says a lot of photography has been booked for campaigns with more properties coming to market than usual for this time of year – something he puts down to his agents being on ground and available.
“I've watched over the years and everyone says nothing happens in January - the reason nothing happens in January is all the agents are either overseas or they're away at the beach.
“We’re the ones that lead the market, not the seller or the buyer, so this time around more of my guys - we've already gone through full-blown training sessions and full-blown sales meetings and the agents are back at work earlier.”
This home on Tarawera Terrace sold for $4.1m. Photo / Supplied
His agency finished strongly last year, including a contemporary three bedroom, two bathroom home in Rarangi Road with a $1.28 CV which sold in November for $2.2665 after opening at $1.5m and in nearby Mission Bay, 12B Ronaki Road sold under the hammer for $6.828m, more than $2m over its CV of $4.45m.
The three-level home has views over Mission Bay and Rangitoto.
John Wills, sales manager for Bayleys in St Heliers, says his office’s year is also off with a hiss and a roar.
“Inbound inquiry on existing listings is already starting to happen and pick up so there are a lot of viewings happening on existing properties,” he says.
“In addition to that our guys are doing a number of appraisals, especially in the mid to higher end of the range so appraisal numbers have increased but buyer inquiry is coming in to absolutely match that at the moment.
“It feels like it's going to be a busy year - it feels a bit like the calm before the storm.”
Wills thinks stock will increase this year but that it will be met with by demand and days on the market will remain short.
But the higher interest rates could make people think about their position, he thinks, with some are heading out of Auckland to go and live at the beach.
Six recent sales by Bayleys include three by agent Murray Wallace - 10 Tarawera Terrace sold under the hammer in late 2021 for $4.1m; 337 Riddell Road sold under the hammer in late 2021 for $5.5m and 352 Riddell Road sold for $3.25m.
The other three were sold by David Nightingale - 20a Ashby Ave for $2.105m; 73a Vale Road for $2.64m and 69 Vale Road for $3.5m.
