Owning a slice of coastal paradise is part of the New Zealand dream but while many areas are now well out of reach for most Kiwis there are still a few affordable boltholes.
Real estate agents in most coastal areas say sales throughout 2023 are well down as coastal markets follow the national sales trend, but coastal property in most areas has experienced smaller overall losses in value during the downturn.
Wayne Shum, senior research analyst at Valocity, OneRoof’s data partner, said the outstanding coastal performer for 2023 was Omaha, which has experienced consistent growth since 2019 and is listed among New Zealand’s most expensive suburbs, with an average property value of $2.88 million.
It has seen a clutch of big sales this year, including Sir John Key’s former beach house, which was snapped up for well above its CV of $5.4m, and two neighbouring baches, which were bought on the same day for a combined total of more than $11m.
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At the other end of the scale were places like Te Kao in the Far North, Hokitika in West Coast, and Puponga in Tasman where Kiwis may still be able to get a foothold in the bach market. Te Kao had the nation’s lowest median value in September this year at $416,600, followed by Hokitika on $423,700 and Puponga at $575,800.
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Shum said coastal properties have generally held their value throughout the downturn, and larger generational properties were still commanding huge fees, if they were ever listed, but he believed in the current market many people were opting for an overseas holiday rather than putting a 10-year holiday budget into a deposit on a bach.
Heather Walton, principal at Ray White Omaha and Matakana, said properties in her patch were still commanding a premium.
“We’re an hour from Auckland and New Zealand’s answer to the Yarra Valley with Matakana down the road for shopping and vineyards.”
Ray White Omaha and Matakana principal Heather Walton: "We're New Zealand’s answer to the Yarra Valley." Photo / Fiona Goodall
She said terrible weather and economic uncertainty had led to more listings, but good properties were still selling.
She is marketing the former Bachelor NZ mansion at 410 Pukapuka Road, in Mahurangi West, which comes with its own boat pontoon, helicopter pad and breathtaking sea and rural views.
“Places like the Coromandel are much harder to get to and it’s a straight easy drive to get here,” said Walton.
Shum said locations like Hahei in the Coromandel had also maintained their worth with limited availability while areas like Cooks Beach saw more fluctuations due to increased development.
Keith Goodall, from Richardsons Matarangi, said sales across the Coromandel have been slow but there were positive signs. A property on Kawhero Drive, in Kuaotunu, was under contract within one week of being listed in November but properties in the over $1 million category were still taking a lot of work.
The Omaha beach house once owned by Sir John Key sold in November for an undisclosed amount. Photo / Supplied
Paulette Tainsh, from Harcourts Cooks Beach, said there were more listings coming but road closures and atrocious weather had taken its toll on the Coromandel market. The median sales price was $1.38m in September, down from a peak of between $1.5m and $1.6m at the end of last year. In Cooks Beach the median sale price dropped from a peak of $1.9m to $1.7m over the same period.
“It’s certainly not racing away but it is getting better. We initially did see declines through March, April and May 2023 comparative to the previous year, with the SH25a road closure. We’re now telling everyone State Highway 25a is open on December 20 and the Coromandel is open for business,” Tainsh said.
Buyers looking for more affordable options need to know where to look.
Pauline Cox, from Property Brokers Hokitika, said prices in her patch sat around $300,000, with buyers snapping up not just baches but permanent places to live in.
“People can come to Hokitika and buy the same house they had or better and put money in the bank. There are beaches, biking and tramping and it’s more relaxed.”
She has just sold an 85-hectare block of native bush for $200,000 on Whataroa Gorge Road. She was also marketing a quintessential Kiwi bach across the road from Hokitika Beach at 259 Revell Street, which is looking for offers over $420,000.
Cheaper end of the spectrum: 259 Revell Street, in Hokitika, Westland, is looking for offers over $420,000. Photo / Supplied
“There’s not many places in New Zealand you can still buy on the beach for that value,” said Cox.
In the Far North, Tom Rutherford, of Harcourts Bay of Islands, said the market had stalled. Agents had been selling 130 to 180 residential houses per month and they were now selling between 20 and 40, he said. They had also noticed a shift from people buying traditional holiday homes to primary residences.
“We are still getting people wanting to buy property where they come to New Zealand in three-to-six-month stints, but there are also more people looking for a primary residence, running a business from home or one person commuting.”
While anything beach front was still commanding seven figures there were still some more affordable options available including sections on the Karikari Peninsula for between $160,000 and $400,000. The median sales price in Karikari was $760,000 in September.
Rutherford said there were also sections at Ahipara for $200,000 to $350,000 but that still required building which at current building costs and mortgage interest rates put the dream out of reach for many.
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