Luxury homes are in high demand and buyers need to be canny if they want to get their hands on one. So say agents who cater to the rich and famous.
Gavin Lloyd, managing director of projects at New Zealand Sotheby’s International Realty, has had four luxury apartments sell in the past three months.
Lloyd is not at liberty yet to name the buildings they were in, but all four were in Auckland’s city fringe and were sold off the plans. Two were in the $7 million to $8m price range while the others were priced at $10.5m and $11m respectively.
Even in 2022, against the backdrop of a slowdown in the wider housing market, Kiwis with money to burn are struggling to find their dream properties. Lloyd recommends serious buyers do three things:
Start your property search
1. Be clear on what you’re looking for
“Buyers should be very prescriptive about what they are searching for and communicate that. Even writing down all the must haves and giving that to the agents so the agents can nail the brief,” Lloyd says. Some of those requirements can be location, views, entertainment rooms, security etc.
New Zealand Sotheby’s International Realty Gavin Lloyd says a lot top-end homes aren’t advertised. Photo / Fiona Goodall
2. Talk to the right people
“Search with those [real estate] brands that really specialise in that luxury market and try to develop strong relationships with the agents. If you're going to an open home that might not suit you, don't just walk out the front door. Talk to the agent.”
3. Consider getting buyer’s agent
“A lot of these high-end properties around New Zealand aren’t advertised. A buyer’s agent can work on your behalf and unearth houses that are not listed – often through relationships and business connections. Using an agent to perform that search can open doors. If the houses are listed, everyone’s there.”
Barfoot & Thompson agent Paul Neshausen, who specialises in high-end properties in Auckland’s Eastern Bays, says that off market deals are common in the $10m-plus market.
“At the top end, a third of properties are either sold off market or a buyer gets the opportunity to purchase before the rest of the market finds out about it,” he says.
“If you hear early enough, then you can align the sale of your house, your financing if you need it, your due diligence and your building report, etc.” Once advertised, the other buyers probably have weeks to do their homework. Making an early offer gives buyers time to get their ducks in a row, says Neshausen.
Barfoot & Thompson’s Paul Neshausen says he can think of eight buyers with $12m budgets who are looking for a new home. Photo / Fiona Goodall
“There are quite a few people looking for something in the $12m price range. I can think of eight who have that budget and are currently looking.”
Buyers need to understand what they want and articulate that to the agent," says Neshausen. They often say they want clifftop, with a view. But when it comes down to it, they also want a host of other features such as a movie room for the kids, swimming pool, gym, wine cellar. If an agent knows what the requirements are, their job is more straightforward.
Herne Bay-based agent Martin Dobson, from Kellands Real Estate, agrees that there are currently a good number of buyers in the market for high-end properties. “My view is you have to remember the unique properties don’t come up very often and they are a long-term proposition . If it works for you and you can afford it, you are better off just jumping on it. There are others buyers out there - that’s the reality.”
