Barfoot & Thompson agent Leila MacDonald just sold an architect-designed four-bedroom home on Rangitoto Avenue, in Auckland's Remuera, for $4.5 million after her vendors decided to accept a pre-auction offer and bring forward their sale. She says sellers at the top end of the property market just want to get on with life.
“Vendors have got two or three other houses. Most of the purchasers think it’s the end of the world, but it's not really, not at all," she said.
“If anything, we’re really short of properties [in Remuera]. Some things haven’t changed at all in the last year. There’s still a big shortage of $5m properties – there are only one or two quietly on the market around that $5m on the south side.
“Ten years ago, we’d have 10 or 12 homes in the Herald on a Saturday, no problem. We haven’t got a quarter of that today.”
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The MacDonalds have closed several big sales in Remuera this year, although confidentiality clauses prevent her from disclosing details.
Leila said indications were that the number of new listings hitting the market in February will be similar to last February’s level, but adds that buyers would be fussier. “Unless it’s got 100% of what they’re looking for, they’re not moving.”
OneRoof analysis of settled residential sales data shows there were 133 $5m-plus transactions in 2022 - a whopping 60% down on the previous year and 36% down on 2020's total.
The total value of $5m-plus sales for 2022 was $913 million - well down on 2021's total of $2.353 billion and 2020's total of $1.413b, although still higher than the yearly totals recorded between 2015 and 2019.
The number of homes selling for $10m above in 2022 was 12, with just one home, in Auckland's Orakei, reaching the $20m mark. In 2021, admittedly a high point for the top end of the market, there were 32 homes that sold for $10m-plus, of which six were in the $20m and above category, with the top sale coming in at $29m in December.
Barfoot & Thompson Remuera agent Leila MacDonald: "There’s still a big shortage of $5m properties." Photo / Supplied
At Bayleys auctions this week, a three-bedroom apartment in Auckland's Parnell sold under the hammer for $6.55m. It was one of the few home in the upper price bracket to close a deal.
Other top end properties - in Herne Bay, Mission Bay, Grey Lynn, Freemans Bay, Mount Eden and Omaha - are now back on the market, mostly for price by negotiation.
Bayleys agent Fleur Denning, who marketed the 311sqm Parnell apartment, told OneRoof it had been popular with downsizers. "It drew exceptional numbers to the open homes and attracted several downsizers from larger properties looking for a substantially sized lock up and leave with a wow factor."
She said that sales activity in Parnell was slower this year. "Last financial year in Parnell there were 16 sales above $5m, with four of those above $10 million. I was involved with three of those sales, two being transacted on market and one off market. From April to November this year there have only been four sales above $5m, with only one above $10m."
As with Remuera, Parnell was suffering from a lack of stock in the upper price brackets. "The list of purchasers I have for high quality properties in $8m-$15m bracket has been growing. Demand can’t be satisfied," Denning said.
The sub-penthouse in the Ford Residences apartment block on Augustus Terrace, in Parnell, Auckland, sold this week for $6m. Photo / Supplied
"With a reduced supply of high end properties on the market it’s not uncommon for us to approach vendors and transact off market sales. Often both parties are happy with long settlements, which works in favour of the vendors as it gives them time to identify their next move."
Bayleys agent Gary Wallace, whose patch covers most of Auckland's prestige suburbs, said he had vendors looking to take their $8m-$10m homes to market in early February. “There's no question about it, they’ll get the same money. People will be falling over themselves to get these houses, as there’s still a shortage in my opinion.”
Last week, Wallace sold, with his wife Vicki and son Andrew, a three-bedroom penthouse on blue-chip Paritai Drive, in Orakei, for $6.7m.
Wallace said that interest for these quality apartments was coming from empty nesters, who were looking to get rid of the big family home and move to single-level living. “People will try to identify their next move before they sell. [Finance] is not an issue - they’re pretty well heeled," he said.
“It’s the old story, although there’s turbulence, people will still make decisions,” he said.
And in the rich-lister beach town of Omaha, Ray White owner Heather Walton said that off-market contracts for $5m-plus properties were still happening.
“There’s a bit of a temperature cool. Buyers don’t want to pay too much because that’s what the media is telling them, but high-end buyers enjoy purchasing off market.
“We know all the buyers, and we’ve got off-market listings on the water that could well break the $9.1m [Omaha] record,” she said, pointing to a property that she is co-listing with Ray White agent Ross Hawkins that could be inked this side of Christmas and another that could fetch more than $5m.
