Some agents working in high-end real estate say international buyers are showing renewed interest in the New Zealand market because they believe the bottom has been reached.
Caleb Paterson, of Paterson Luxury real estate, says while Australians and Singaporeans can buy outside the foreign buyer ban, he is noticing interest from a 50/50 mix of wealthy expats returning home and people who have newly received residency.
Expats from the United Kingdom have been living in smaller houses close to neighbours and want space and privacy when they come home, and new residents have come from around the globe, including Eastern Europe, South Africa and Asia, particularly China.
“The Asian market has definitely come back in the last couple of weeks,” says Paterson.
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“At one of our properties 20 groups were through in the first two weekends of open homes and 17 were Chinese.
“We tend to notice that market comes online hard and fast when they feel that the bottom of the market has happened, and that market is very speculatory and they like to purchase and hold and get the capital growth.”
Paterson, who sells in Coatesville and all around Auckland and beyond, says some buyers at the top end of the market have particular desires for their New Zealand homes and if they can’t get an existing home that suits they may undergo sometimes multi-million-dollar renovations, or decide to build.
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The high-end market is case and taste specific and has become more extravagant, he says. That might include anything from gold taps in the bathroom for one person to state of the art wardrobe security for a $1 million handbag collection for another.
Paterson says he has seen both of these in houses in the $8m to $16m price range, and he’s seen a wine cellar at that $1m price point as well.
There are pools with terraced waterfalls and he’s even seen a kitchen which transforms into a cocktail bar at the push of a button.
Common now are GPS robot lawnmowers that can zip around the lawn and return to a charging station. While they come at different price points, Paterson says he sold a property in Rodney where the new owner traded in a $30,000 drive-on mower for a $45,000 robot mower.
A five-bedroom lifestyle property on Warman Road, in Okura, Auckland, boasts a design by award-winning architect Mark Wilson. Photo / Supplied
Another stunning property, on Myra Evelyn Grove, in Dairy Flat, sold in December 2021 for $6.65m. Photo / Supplied
“In that luxury space I'm seeing pretty much every house wanting to incorporate that into the plans.”
He says there has been a shift among buyers towards newer builds which already have the bells and whistles as 20-year-old properties need work to bring them up to today’s specifications, and stock is low.
He talked of clients who do not want to spend over $20m on a holiday home but who are now looking at building in order to get what they want, which is a modern home with views from all rooms along with the likes of a wine cellar and movie theatre.
“For them to get in the current homes it's not really doable or it's going to cost a lot.”
Paterson says his buyers are global citizens who are not being showy about the luxury they want, it’s just part of their lifestyles. Most are company directors who have been very successful, and he thinks the luxury market will only improve in the coming months.
Ollie Wall, from Wall Real Estate, which also sells at the high end, says there has been a lot of interest from Singapore recently for Waiheke Island properties.
“I think all of a sudden word is out internationally that the bottom has been reached and if you’re thinking of owning land in New Zealand now is probably a pretty good time to acquire it.”
Wall is also seeing strong interest from local buyers, saying a property in Herne Bay in the $6m to $8m range sold recently in a three-week tender process to a local buyer which he says is an indication of where the market is at.
“A few months ago I wouldn't have been confident enough to have a tender for a house at any level to be honest but there was plenty of interest and it sold at tender.”
A five-bedroom home on Sarsfield Street, in Herne Bay, Auckland, in the $6m-$8m range sold recently to a local buyer. Photo / Supplied
He says people at the high end either want to buy a house that is already “absolutely perfect” or a large piece of land in a good position they can build on.
“An average-sized piece of land and an average-size house is staying on the market for a long time but a house that’s perfect will sell quickly and a huge piece of land will also sell pretty quickly.”
Wall, too, expects the luxury market to take off in the coming months: “I think we’ll see a huge increase in the amount of sales coming into spring.”
St Heliers Barfoot & Thompson agent Paul Neshausen thinks there’s a perfect storm of economic conditions for expats combined with the bottom of the market currently driving the top end.
He says while there’s a lot of news about New Zealanders leaving to go to Australia, he is dealing with more wealthy expats returning than he has for a long time and says they are buying.
“They’re coming over here with their US dollar or their pounds or their euro and the FX is particularly favourable at the moment against the New Zealand dollar so they're out there looking for properties.”
These Kiwis may have lived in locations such as Dubai and want those influences in their home, hence a new trend of top-to-toe marble is being seen.
Barfoot & Thompson agent Paul Neshausen: “If you go to Dubai and look at their housing market and their taste, there's marble everywhere.” Photo / Fiona Goodall
“If you go to Dubai and look at their housing market and their taste, there’s marble everywhere; there’s marble floors, there’s marble walls, there’s marble pillars, the kitchen’s marble.
“I’m finding people are taking the trend and wanting to find it here. Good old floorboards and stuff, they are kind of done now and everyone wants marble.”
Neshausen has been into homes that have already been renovated in marble, but if that has not been done buyers will renovate with marble imported from Italy.
OneRoof recently wrote about a $30m mansion in Paritai Drive being sold by luxury agent Michael Boulgaris which has marble walls and floors, among other extravagant luxury.
Boulgaris told OneRoof the owners undertook a five-year renovation but never moved. They gutted the interior, had separate entrances for staff and contractors and a separate catering kitchen that could handle 200 guests.
Some of the light fixtures alone were worth $200,000 and there is even an elevator with a gold-satin finish.
Neshausen says another trend he is seeing is people requiring lots of walls to hang their artworks on, and he says privacy is more important than ever.
He also says after all the weather events in Auckland more scrutiny is being given to long driveways, properties at the bottom of hills and the likes of overland flood paths.
A luxury mansion on Paritai Drive, in Orakei, Auckland, is seeking $30m. Photo / Supplied
Howick-based Bayleys agent Angela Rudling has not noticed an uptick in expats or international buyers, saying the current legislation is challenging for offshore clients to purchase but many Auckland residents have been venturing out to lifestyle and semi-rural properties in the last year.
They like bespoke features ranging from vaulted ceilings, fully customised theatre rooms, extensive underfloor heating and ducted air-conditioning, along with exquisite light fittings and fancy appliances.
Outside, they like floodlight tennis courts, heated swimming pools and large sheds for collectors to store vehicles, and there is the occasional requirement for a helipad.
“Recently, we have been fortunate to be involved in one $20m sale of a fabulous immaculately-presented lifestyle estate, beautifully renovated with a classical American theme, set on approximately 18 acres of waterfront land, with both a tennis court, pool and extensive garaging.
“The grounds were park-like which included a fountain and boasted over 180-degree water views from most rooms.”
Generally, clients requiring this level of home prefer not to build themselves as that is a long and arduous process, she says.
“Except for one stunning new waterfront property built by a well-known local developer most clients we have dealt with recently have a preference to buy existing.”
Rudling says anyone considering selling a $10m property will attract the highest level of international and local buyers – but she says they make up less than 1.5% of their buyers.
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