The West Auckland beach suburbs devastated by Cyclone Gabrielle earlier this year are in recovery mode, but agents are cautious about the future of the area’s housing market.
Several salespeople told OneRoof that buyers were treating Muriwai and Piha with caution, with transactions in both locations significantly down on the year before.
Bayleys agent Simon Spiller, whose Muriwai home was among the dozens that were red stickered in the aftermath of February’s deadly storm, said: “Since the cyclone we have only had four sales [across all agencies] in the whole of Muriwai.”
Over the same February to September period last year, 11 homes were sold in the suburb and in 2021 the number was 13.
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“Buyers are now questioning whether it’s the right decision to [buy] in Muriwai. They have put their lifestyle aspirations on hold,” Spiller said.
Properties that would normally attract significant buyer interest and sell for a great price are struggling in the current market. “In my 30 years in real estate I’ve never experienced anything like this,” Spiller said.
Spiller said that buyers were still attending open homes, but in smaller numbers and with different expectations. “They’re saying the community doesn’t feel the same. We’ve still got the beach, the gannets, the golf course, and all that lovely, natural stuff, which is untouched. But [Muriwai] has this cloud of grief hanging over it.”
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Spiller said three of four houses that have sold in the suburb since February were bought by locals. “They were pretty sure they were not going back to their original homes,” he said.
The demand for homes among displaced locals has put upwards pressure on prices but this is likely to be short-lived. In August, a lifestyle property on Muriwai Valley Road fetched $1.955 million in August, just above its 2021 CV, and in June a four-bedroom single-level home on Edwin Mitchelson Road sold to Christchurch buyers for $1.35m, again above CV.
Who the buyers will be when life in the suburb returns to normal is not yet clear. “It seems that the younger generation have an appetite for staying in the area but some of your more long-term locals, who have been here 40-odd years, are questioning whether they are going to stay,” Spiller said.
A four-bedroom home on Edwin Mitchelson Road sold for $1.35m in June. Photo / Supplied
Muriwai has long been a popular spot with surfers. Photo / Getty Images
Residential sales in Piha, Karekare, and Bethells Beach have also been impacted by the cyclone. Fewer properties are coming to market, and buyers who are sniffing around are intensely focused on safety and the potential for landslides.
AUT professor in the School of Future Environments John Tookey said the extreme damage at Muriwai and other west coast beaches was due to the “relatively weak, porous rock” in the area. The escarpment rock at Muriwai, in particular, became unstable because of deep moisture penetration, and started to break up.
“Back in the late 1960s substantial slips took place. It was viewed then as being sub-optimal to build. Then gradually over time memories fade,” he said.
“It is going to be an extended period of time until the ground stabilises sufficiently in the worst affected zones.”
Weather events had added an extra hurdle for buyers, who are taking more consideration as to where a home is located, the west coast agent says. “There might be some additional steps in the due diligence process for potential buyers,” he said.
“Certain banks are now requesting building reports and geotechnical assessments, while insurance companies are seeking further [information] regarding land stability. All these are factors which will now affect the Piha/Karekare market.”
Buyers in Piha are intensely focused on safety. Photo / Getty Images
Many homeowners in the beach communities are stuck in limbo, not knowing what they will do. Jacqui Schubert’s home was red-stickered in Muriwai, and is now in the 2-3 category, which means she has to wait and see if there will be a buyout.
Schubert is frustrated that the council won’t release more land for development after buying up ruined properties. The buyouts will reduce the pool of properties available in the community.
Buying in Muriwai is a lifestyle decision, she said, unlike someone buying in west Auckland who might not mind if they end up in Henderson or Massey.
“Muriwai is not really a place that you accidentally end up. The kids have a barefoot lifestyle in Muriwai. They don’t spend their lives on tablets. Everybody knows everybody. We’re all down at the skate park, the dirt bike tracks, walking the trails, or walking our dogs. You could go to Raglan. But you don’t have access to the city jobs,” Schubert said.
“For the people next door to me, that’s broken their hearts. They’re shifting to Australia because they don’t think they can find that lifestyle anywhere here.”
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