There were only eight house sales in Remuera last month, OneRoof can reveal.
The prestige Auckland suburb, which is home to some of the country's most expensive homes, suffered a near-collapse in its housing market following the extreme weather events that rocked much of the country late January and early February.
Agents confirmed to OneRoof the drop in sales, highlighting the challenges that sellers were facing in the suburb but also signs that the market was picking up for March.
The eight Remuera sales – which cover both settled and unsettled transactions – represent a 69% drop on February last year, when 26 properties were sold, and a 86% drop on February 2021.
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The February sales tally was also 61% on January's total and nearly 80% below the five-year average.
In the last five years, Remuera has recorded around $1 billion worth of real estate sales annually, but the abysmal start to this year means Remuera could fall well short of that target. OneRoof understands the total value of Remuera sales for February was just over $16 million - a third of January's total.
Among the eight February sales were three properties that sold under the hammer, including a three-bedroom home on Koraha Street, which fetched $1.445m; a three-bedroom cottage on Mainston Road, which sold for $1.648m and whose listing highlighted “motivated sellers with movers booked”; and a 1990s do-up on Benson Road, which sold for $3.511m, more than half-a-million dollars above the reserve.
Separate figures from OneRoof also show a drop in fresh stock in the suburb. The number of new listings for Remuera last month was 43, up from 15 the month before, but down 29% on February 2022.
The drop in Remuera sales mirrors falls in other suburbs across Auckland and the rest of New Zealand, but what makes the Remuera figures stand out is the fact that the suburb has largely weathered previous market downturns, due to the underlying demand for homes in the prized double grammar school zone, in which much of Remuera sits.
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Wayne Shum, senior research analyst at OneRoof’s data partner, Valocity, said the drop in sales was a reflection of the overall change in the housing market, with suburbs average property value down 12% year-on-year.
The last time Remuera felt the slump, he said, was in 2019. “But back then, interest rates were below 4%, now they’re 6% or 7%, and houses cost a lot more so you’re borrowing a lot more money.”
Ray White Remuera agent Steve Koerber said while sales were low in February, the market is now starting to improve. “We’re already seeing a bit of a pick up in March. Listings are coming through but not in the volume that we would have expected – or as an agent community that we’d liked,” he said.
He said there is price pressure on vendors, who need to move, to purchase their next house, but many were delaying listing, waiting for signs of green shoots, and not moving unless they had to – and buyers sensed this.
“Buyers are saying to me ‘this offer is going to be low because we feel that [even] at this lower amount, prices will go backwards for the rest of the year’,” he said.
This large home on Benson Road, in Remuera, Auckland, sold for $3.511 million last month. Photo / Supplied
A house on Koraha Street, in Remuera, fetched $1.445m at auction last month. Photo / Supplied
One listing that Koerber and wife Nila are pitching hard at those bargain hunters is for a pair of properties on Ladies Mile, which will be auctioned on March 16 with a declared reserve of under $2m. The listing boldly states the vendor is prepared to take a $600,000 loss on his December 2021 purchase.
“It's hard to believe such an opportunity could exist in the Remuera property market, but it’s still not getting the traction from the bargain hunters that we thought," Koerber said.
Barfoot & Thompson Remuera branch manager Carolyn Vernon said that an improvement in the weather was already bringing in more new property listings.
“We have plenty of people curious about the current value of their properties, with many appraisals being undertaken in February that have not yet come to market,” she said.
“While January and February were definitely quieter than previous years, there is a feeling out there that people are tired of being on hold and want to progress their life plans.”
She said her office has already made conditional sales and seen some good auction results this month, including a pre-auction sale in the weekend.
100A-100B Ladies Mile, in Remuera, Auckland, goes to auction later this month with a declared reserve of below $2m. Photo / Supplied
Bayleys agent Gary Wallace: "We’re seeing a lot of quality listings come on." Photo / Fiona Goodall
Barfoot & Thompson auctioneer Murray Smith told OneRoof that in the last couple of weeks there had been a pick up in the number of bidders in the auction room, albeit two to three weeks later than the usual start of the year.
“Owners are accepting where things are at. March numbers are definitely stronger, people have had time to take stock, there seems to be a lot more enthusiasm. Already this week we’ve had three deals come together after auction for Remuera properties, at prices between $2m and $4m.
“There are more buyers ready to commit. We’re not at 2021 levels, but forward bookings are a lot stronger.”
Bayleys agent Gary Wallace put the February lull down the extreme weather events. The floods and storms in Auckland had delayed the listing of new properties, but his segment of the market hadn’t been as affected.
“Personally we’re seeing a lot of quality listings come on, it’s very busy,” he said.
“Buyers of a property are thinking 10 years out. This is a moment in time, but long term they are thinking about the life stage they’re at and buying a property that their family can enjoy for the next 10 years.”
Bayleys Remuera general manager Scott Kirk was similarly upbeat. He said that new listings and open home attendance were up in March across all price points in the suburb.
Importantly, he said, vendors now understood that values have dropped – finally catching up with buyers who already knew this last year.
“At $5m-plus, buyers are generally making decisions for a lifestyle, they're just picking their times to buy. For example, some people can afford to settle on a new apartment without selling their family home,” he said.
“What will impact transactions is that people need to see the available choice for buying, a bit of supply of properties, before they are going to list. There’s a great array of properties that will stimulate activity.”
- Click here to find more properties for sale in Remuera
