Buyers are on the hunt again for trophy homes in Auckland's prized Double Grammar Zone, but while the scarcity of new stock is having a positive effect on prices, it is leaving agents and buyers somewhat frustrated.
After a long string of months in which listed homes in Remuera and Epsom struggled to break the $5m barrier, the big money is starting to come back to the market, with recent weeks providing more than a handful of sales of $6m and $7m-plus.
One such sale was of a stylishly renovated five-bedroom house on Remuera Road, which was snapped up last month for $7.75 million after languishing on the market.
Listing agent John Lantz, of Ray White Remuera, said that a recent slew of $10m-plus luxury apartment sales had made buyers realise how much better value the house was.
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“It’s an awesome alternative to an apartment. You get great views, five bedrooms, garaging for four cars, the media room, the gym, the wine room, the swim-up pool, it even has its own lift. Compare that to three bedrooms, two garages and a body corporate.”
Agents OneRoof talked said the top end of the housing market appeared in better shape in June, with more buyers battling over limited stock.
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Barfoot & Thompson Remuera manager Carolyn Vernon said that while the agency’s figures for June showed a lift in the number of $3m-plus properties sold across Auckland in June, the numbers could be better.
“We are having very large numbers through our open homes, especially in the high $1m to $3m range. I am expecting this to translate to the same story of over $3m price range," she said. “However, we all need more listings to confirm that theory.”
While agents are busy appraising properties for listings, many vendors are still pausing. “They’ll get out [on the market] before the election, August and September will be busy before that traditional election pause.”
Vernon said while the market was past the “green shoots” stage, with June activity better than expected, the July school holidays period always goes quiet in the blue-chip suburb because people are away on holiday.
“We’re hoping that we may see the increase all in good time. I 100% think people will be kicking themselves they didn’t buy last year or this year. Remuera property is always going to go up, we ride out the storm.”
The stylishly renovated house on Remuera Road with a swim-up pool, media room, gym, wine room and four-car garaging was pitched as an alternative to luxury apartments. Photo/ Supplied
Four bidders drove the price of a six-bedroom home on Castle Drive, Epsom to $5.86m - $1.61m above CV. Photo / Supplied
Ray White Remuera agent Steve Koerber, whose June $6.41m sale of an immaculately renovated four-bedroom home on Entrican Avenue home was one of the suburb’s highest, said that in the six weeks of the campaign, he was seeing more serious buyers.
“It didn’t sell at auction, but two weeks later the right buyer appeared. There are more people around [in June], and selling for above CV is a strong result,” he said.
“While there might be a dozen or so homes on the market at that price range, the buyers have picked through them all and decided it’s not for them. They’re desperately waiting for something new to come on.”
Bayleys Remuera agent Wei Wei Elder agrees that sparse listings are holding back the market in the top suburbs of both Remuera and neighbouring Epsom.
A six-bedroom Arts and Crafts property she marketed in Castle Drive, Epsom, sold within two weeks of listing for $5.86m. Elder said there were over 70 groups of buyers through the open homes before four bidders drove the price to $1.61m over CV at auction.
“It is one of the top 10 most expensive streets in New Zealand. When the market is down, people buy the big houses, there are not enough listings in that price range.
“They’ll be kicking themselves they didn’t buy this year. It’s a unique, different clientele at this upper end and prices are all trending really strongly above CV, without a doubt,” she said, adding that the percentage above CV for each of the five sales over $5.5m she made in the past 12 months had gotten higher with each sale.
A four-bedroom house on Entrican Avenue, Remuera, sold for $6.41m. Photo / Supplied
A five-bedroom house on Ridings Road, Remuera, sold for well above its $6.2m CV. Photo / Supplied
Apart from the weeks around Auckland’s summer cyclone, Elder said the year had not been quiet, with buyers genuinely looking for houses – albeit with caution around spots that may be prone to flooding or cliff erosion.
She added that while buyers don’t mind a do-up, which in this market means kitchens and bathrooms that may only be 10 years old, a fully done-up property in the latest fashion will get a lot of money.
“It gets a good price, there’s a lot of competition because there’s just not enough stock of that and the buyers are there.
“You have all the flash people, it must have garages for the Ferrari. In the downturn, it’s logical for people to make their finances work to buy now, because once the market turns it will be tough.
“It’s definitely not going down any more, it’s only getting stronger.”
Like Vernon, Elder expects the spring/summer season this year to be the turn in the market. She’s already seeing buyers coming back in from the United Kingdom, Australia, Singapore and Hong Kong, drawn to New Zealand’s safety, the good schools and the water views.
But they need to act fast.
“There are still people looking for a bargain, but they’ll need to keep up with the market. They’re not getting it, then it’ll be gone in three months. You see it, a place that was $5.2m will now be $5.8m,” Elder said.
Bayleys colleague Gary Wallace agreed that while top-end buyer enquiry was good, there were still some price “gaps” between buyer and vendor expectations for top-end places in the $9m to $13m range.
This month Wallace, with wife Vicki and son Sam, closed the deal for overseas-based sellers on a five-bedroom property on Ridings Road, which sold for “well above” its $6.2m CV.
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