Herne Bay has retained its crown as New Zealand’s most expensive residential suburb, with its average property value stretching $700,000 over the last 12 months to $4.187 million.
However, it’s not the country’s most expensive housing market, new OneRoof figures show.
Of the 1000-plus New Zealand suburbs that recorded more than 20 settled sales in the year since March 2021, Speargrass Flat, 15km north of Queenstown, has the highest average property value - $4.845m - and has enjoyed the biggest year on year house price gain - $1.1m.
The suburb sits at the foot of Coronet Peak, is close to the rich-lister golf course Millbrook Resort and Country Club and is home to scores of luxury lodges on large lifestyle sections.
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The $8.25m sale of a four-bedroom architectural-designed home on 4ha on Lower Shotover Road in the suburb in September was Queenstown-Lakes’ highest last year; another neighbouring lifestyle property, on Mooney Road, sold for $5.5m.
And there are other big sales in the area that have yet to settle, some exceeding $10m.
James Wilson, director of valuations at OneRoof’s data partner Valocity, says while many suburbs around New Zealand have enjoyed big year on year increases in their average property value, some, like Speargrass Flat, have done so on a low number of sales.
“Speargrass Flat is the place to be in Queenstown. There’s not too much stock or land available so when they do come to market they tend to sell for high prices. It’s definitely more a luxury location compared to other suburbs.”
This lodge on Lower Shotover Road, in Speargrass Flat, sold for $8.25m last year. Photo / Supplied
A lifestyle property on Mooney Road, in Speargrass Flat, sold for $5.5m. Photo / Supplied
Professionals Real Estate agent Adrian Snow says Speargrass Flat is in the “lifestyle zone” and values have always been high.
“When properties do come to market they are keenly sought and are often purchased in a competitive environment.”
Professionals recently sold a 1ha vacant piece of land in Speargrass Flat for $3.85m, which Snow says is an entry-level price for a section in the suburb.
“If you're going to build on that, you're probably going to be spending another $2m to $4m, so all of a sudden you're talking $5m to $10m to buy and build a new home in the suburb.”
Buyers tend to come from all over New Zealand but a high percentage of buyers come from Auckland and the top half of the North Island.
Often people will build hideaway homes with room for the Range Rover and sometimes the helicopter, and Snow says even 10 acre blocks are becoming hard to find in the area.
Speargrass Flat isn’t the only location to see rapid house price growth in the last 12 months. Thirty-two other suburbs with 20-plus sales in the last year saw their average property value climb by more than $500,000.
Three are in Queenstown Lakes - Arrowtown (up $614,000 to $2.33m), Wanaka (up $565,000 to $2.07m), and Queenstown Hill (up $512,000 to $2.86m) – but the most are in Auckland.
The biggest winners in Auckland are on the urban/rural fringe and are popular in the lifestyle market, a market which has grown since Covid arrived with people who can afford it wanting out of built-up areas and turning to places they can get space and privacy.
Valocity director of valuations James Wilson: “Speargrass Flat is the place to be.” Photo / Fiona Goodall
These include: Totara Park (up $825,000 to $2.8m); Okura Bush (up $771,000 to $3.2m); Paremoremo (up $723,000 to $2.36m); and Whitford (up $721,000 to $3.87m).
Ray White agent Leah Salvesen, who sells in Whitford on the Howick border in east Auckland, says: “I have a couple of properties out there at the moment, one that is headland, a beautiful big piece of land, for development, and the other is a lifestyle home.”
The headland, at 295 Broomfields Road, has a price indicator of $9m.
Marketed as a majestic parcel of headland with a plethora of exciting opportunities for the buyer, the land has uninterrupted sea views, access to the water, and a one-bedroom cottage.
The lifestyle home has had inquiries from overseas with interest level from $6m and above, Salvesen sales.
Billed as Balinese-inspired, this brand new five-bedroom, seven-bathroom home is on more than a hectare of private land with an infinity pool and rural views.
Salvesen says she is getting response for lifestyle blocks from all over Auckland and also from expats in Australia wanting to come home.
For sale: the headland at 295 Broomfields Road, in Whitford, has a price guide of $9m. Photo / Supplied
They want “something on the outskirts that's not too far away from civilization but they want the feeling of space and tranquility, away from city centers.
“I think everybody wanted to just have their own piece of land where if they were going to be on lockdown or if they were going to have to self-isolate at least they would have a lifestyle to do it in rather than being locked in your four walls and your fence.”
A more than $500,000 increase in value growth is significant but partly reflective of scarcity – “when you have a lack of anything obviously you're going to create a higher price.”
Whitford is also accessible with the Pine Harbour ferry and motorways nearby so people can live there but still have jobs in the city or in the eastern suburbs.
