Since Covid-19 changed the housing market, a luxury lodge on Waiheke sold to a Hong Kong New Zealand family for $8.6 million; an architectural country estate in rural Wakatipu Basin, Queenstown was snapped up post-lockdown by an Auckland family for $6 million; and a large beach-front property outside of Matakana, north of Auckland, sold for $5.5 million.
Lifestyle properties are now getting their time in the sun as city-based and overseas Kiwis look for the good life.
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After sales slumped to just 197 in May, the number of lifestyle properties sold around New Zealand jumped to 913 in July, according to figures released by the Real Estate Institute of New Zealand.
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In the three months since lockdown, sales volumes hit 1956, higher than the same three months last year. Around Auckland’s fringes, sales were up by 38 on last July quarter. Not surprisingly, lifestyle properties in Otago recorded the most substantial decrease, a drop of 32 sales compared to last year.
One of Harcourts top lifestyle property agents, Simone du Bernard, says that the lifestyle market always follows residential with about a three-month lag, so now properties are selling so fast she has around half the number for sale that she usually has at this time of year.
She said buyers who had moved to Auckland fringe suburbs like Millwater are now looking to go further out to the country. “We’ll be hectic as we come into the spring surge.”
Bayleys agent Kellie Bissett, who specialises in $3 million to $6 million properties around Matakana, says many of her sales are off-market, particularly if the property has a special aspect or feature.
67 Point Wells Road, Point Wells, sold for $625,000 above its CV. Photo / Supplied
“It’s incredible. This winter has been busier than previous years, bigger than summer even. It’s an all-time high,” she says, adding that there is a real lack of stock.
Since lockdown, Bissett has closed on a $5.5 million deal for a 4.5ha beachfront property at 188 Whitmore Road, Buckleton Beach, and another stylish Hamptons-style home on 2,072sqm at 67 Point Wells Road, Point Wells, that got $2.3 million under the hammer, $625,000 over CV.
But such auction sales are increasingly rare, says Bayleys auctioneer Sam Steele as pre-auction offers for lifestlye properties are “flooding in” so that they often don’t make it to auction.
“People are scrambling to secure something,” he says.
Precision agent Nicky White, who specialises in lifestyle properties in Coatesville and Riverhead, on Auckland's northern fringe, says that overseas buyers, after months of long-distance virtual tours, are now prepared to close the deal.
“There’s definitely a rise in interest. They see these lifestyle properties as a safe haven and what’s happening here is giving buyers confidence,” she says.
She says the demand is for properties in all price points, from $1.5 million right through to $6 million.
5 Korimako Lane, in Dalefield, Queenstown, sold for $6 million to an Auckland buyer. Photo / Supplied
“This is by far the most buoyant winter in four years, both with the number of sales and the prices. People have realised they don’t need to consider a commute as they work from home more," adding that she is in confidential negotiations with overseas buyers, many of whom are planning returns to New Zealand next year.
Bayleys agent Simon Spiller, who specialises in Auckland’s west coast beaches and country properties, says that some of his buyers are looking for sheds and facilities so they can quit industrial leases closer to town and bring their businesses with them.
He says that even though there is a shortage of stock to sell, vendors still need to meet the market price or their property won’t sell.
In South Auckland, around Karaka, Ramarama and townships close to the southern motorway, Barfoot & Thompson lifestyle specialist Scott McElinney says that he’s seen a big increase in demand, especially as buyers realise the region’s prices are better value than the city or north.
“You get so much more value for your money here," he says.
“Families are looking for lifestyle so they can be part of country communities. The country schools are less populated, there’s community support with calf club or ag days, shuttles to good private schools.”
McElhinney says that Covid has amplified the need for a lifestyle with more outdoor space and nice work-from-home environments, with the chance for a more sustainable lifestyle where they can grow their own produce and graze animals for food.
He also points to a massive growth in housing in the area that gives downsizers the option of smaller houses and less land, but still in a country environment.
“There’s phenomenal growth, we can’t keep up with demand.”
