Buyers are still comfortable plunking down $3 million or more for a bach as shown by busy holiday weekend auctions in the Coromandel and beach towns north of Auckland.
But there’s been a bit more hesitancy among buyers in the lower price brackets – in towns like Whangamata that means $1m or more.
North of Auckland, a keen buyer pre-empted an auction on a smartly presented three-bedroom 1960s house on a 1169sqm site on Grand View Road above Matheson Bay beach, about 15 minutes north of Matakana, near Leigh. The property sold under the hammer for its pre-auction offer of $3m, nearly $2m above its $1.05m 2017 CV.
Bayleys Matakana agent Kellie Bissett, who marketed the property, said the $3m offer was an “excellent result”.
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“It’s a highly desirable area and it has always attracted buyers with only about half a dozen properties located right by the sea,” she said.
The vendors had paid $1.97m in 2020 and renovated the dwelling before selling less than two years later.
A house overlooking the ocean at Beverly Terrace, in Whangamata, sold at auction for $3.015m. Photo / Supplied
On the Coromandel Peninsula, a generous four-bedroom 1980s brick and tile house on a desirable 790sqm corner section on The Esplanade, Whitianga, fetched $3.05m just after auction last week.
Bayleys agent Bev Calder, who marketed the harbour view property with Sheree Henderson as suitable for development or land-banking as well as family living, was unable to release buyer details.
But at the same auction, the pair of agents had six bidders competing for a five-bedroom property on a 2832sqm lifestyle site 10 minutes out of Whitianga, which sold under the hammer for $2m.
“There was huge interest from people looking for [a] permanent home as well as holiday-home buyers,” Calder said.
“We’ve been busy since Coromandel came out of the first lockdown. We’ve seen growth in the number of properties coming to market. But I don’t think we’ll see more price increases.”
Calder and Henderson also sold a smart six-bedroom house on the cul-de-sac of School House Lane in Whitianga for more than $2m. A four-bedroom house on Centennial Drive in the town went for $1.2m.
A brick and tile house on a corner site in Whitianga sold under the hammer for $3.05m. Photo / Supplied
Further down the coast in Whangamata, a brand-new five-bedroom Hamptons-style house on Barbara Avenue sold for $2.9m, as four bidders competed for the builder’s house.
Whangamata Real Estate agent Pete Sheppard, who marketed the property with Colin Thompson and Chris Speedy, said that the auction price matched buyer feedback on the house, which sat on a small 290sqm site with no water views.
Buyers were prepared to spend more than $3m for a tidy three-bedroom 1980s house on Beverly Terrace for its wide sea views.
“There were four or five bidders, with two going strong to the end. It’s a mix of buyers from Auckland, Hamilton and Tauranga that we’re seeing at the moment,” Sheppard said.
“We sold two at auction that anniversary weekend, another two the next day and the fifth is under contract.
A brand-new house on Barbara Avenue, Whangamata, sold for $2.9m over Auckland Anniversary weekend. Photo / Supplied
“But Waitangi weekend was quieter. We’re definitely seeing the effects of the CCCFA. It’s pretty much taken out everyone who is reliant on the bank for finance. Some buyers are waiting three weeks to hear [from the bank] and that’s taking them out of auctions.”
Sheppard is currently getting interest for what he reckons is the most affordable property in Whangamata, a two-bedroom house on a tiny 299sqm freehold site on Rangi Avenue which is looking for offers over $875,000.
Whangamata Ray White sold three properties under the hammer on Waitangi weekend with another three back on the market with prices between $1.37m and $1.625m.
Principal Reuben van Dorsten said that only one bidder for each of the three properties, which sold for between $1m and $1.45m, was a direct result of the tougher borrowing rules.
Six bidders competed for a lifestyle property 10 minutes out of Whitianga that sold for $2m. Photo / Supplied
“If the rules are having an effect in Auckland, then it filters to Whangamata. And there’s a lot of chat about it being a buyer’s market, so buyers are taking note of that – it's really affecting properties at that $1.2m and above.”
Van Dorsten said that really good properties for $3m or more – close to the beach or in good positions – were still getting market attention.
“We’re getting really strong engagement, people looking online, so it’s a matter of whether they’ll be ready to buy.
“Economists like Tony Alexander are saying people have gone from FOMO to FOOP – fear of over-paying, so that suggests there might be a cap.”
Buyers are also chasing land. In Matarangi, the Coromandel beach town 30 minutes north of Whitianga, developers Winton have sold 72 sections in their Beaches development this summer.
Development manager Finn Tearney said properties sold for an average price of $520,000 and just ten out of the 271 sections were left for sale.
- Additional reporting by Daria Kuprienko
