The number of high-end properties on the market for sale in New Zealand has jumped and while there are buyers looking to spend $5 million-plus on a home, only time will tell whether there are enough of them.
Between November 1, 2023 and February 22, 2024, 300 new residential listings with search prices of $5m and above were published on OneRoof – up 37% year-on-year. Of those, 255 are still on the market, and are vying for attention with the 333 top-end listings that were published before November 1, 2023. While not all the properties are glamorous mansions, they are all properties wanting $5m plus.
Ray White salesperson Steve Koerber said the number of $5m-plus houses for sale in Remuera has tripled since mid-2023 when there were barely any listings. At the time of publishing, there were currently 36 properties in Remuera listed for sale on OneRoof.
He believed sellers were reluctant to put their houses on the market last year because they did not think they would get the price they thought it was worth and wanted to avoid the embarrassment of it not selling.
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“So suddenly this year all that pent-up supply ... there’s a new government, there was that hint of interest rates rising and I think a lot of people in their wisdom or not have decided it’s time to push the button.
“It’s like delay, procrastinate and then bang, a bunch of people have decided now is the time so that’s how we come to this point of more listings in that range than we would have expected.”
Some of those sellers would become the buyers as they looked to move sideways or slightly down or slightly up, he said, while others to a much lesser extent would move in from the fringes or from overseas.
Ray White salesperson Steve Koerber, with wife and colleague Nila, says only time will tell whether there's enough buyers for all the new high-end listings. Photo / Fiona Goodall
Koerber has just conditionally sold a high-end property in one of Remuera’s best streets even before it hit the market to a local family who had been looking to upgrade and move into the coveted grammar school zone.
However, only time would tell whether there are enough of those buyers around to meet the growing supply of properties in the $5m-plus market which includes a four-bedroom, four-bathroom character cottage at 67 Portland Road, in Remuera, that has just hit the market this week.
“There’s been a slight increase [in buyers] but it’s marginal.”
Wellington had also recovered from its listing drought last year.
Lowe & Co has 55% more listings so far this year compared to the same period last year and sales were also up by 38% for that same period.
The lift was across the board, managing director Craig Lowe said, and not specific to the high-end as a result of both sellers and buyers feeling more confident.
A renovated home in Wellington’s prestigious Oriental Bay is on the market with an RV of $5.4m. Photo / Supplied
“Three months before the elections we had a complete dearth of listings – like none at all and that actually ironically led to about a 3% bump in prices and that then led people to see that we were past the bottom and gave them confidence to come out of the woodwork.”
However, he wasn’t expecting big price jumps this year due to interest rates still being high and the Reserve Bank introducing further rules that could restrict buyers.
Bayleys Wellington salesperson Ben Atwill said because there was such a huge stock shortage in the capital last year there was now some pent-up demand.
“People I think are pushing properties onto the market now because of that confidence, but people are buying now because of that confidence. I actually think it’s a nice sweet spot to be honest.”
The $25m penthouses in the billion-dollar Te Taumata Lakeview development, in central Queenstown, are still available in this artist's impression of the planned community. Photo / Supplied
New Zealand Sotheby’s International Realty managing director Mark Harris said there was renewed confidence in the market that was encouraging vendors to list again and as a result would lead to more sales due to buyers now having more choice.
People were ready to buy, but they were taking a cautious approach and were making sure they did all their homework first, he said.
“We are somewhere between FOMO and FOOP.”
The biggest spike in listings in the Southern Lakes was not in the super high-end, $5m-plus market, but in the mid-price range of between $2m and $3m.
A new development in the former Lakeview campground in central Queenstown had already seen good uptake, he said, and $100m worth of property had already sold. Prices start from $750,000 to $25m for a full-floor penthouse and the first stage is due to be completed in 2026.
The most expensive property – a penthouse in Te Taumata Lakeview – is still available, but there are contracts on all the other property types including the half-floor sub-penthouse on the floor below.
CoreLogic chief property economist Kelvin Davidson said the fact prices had risen slightly showed there were buyers. Photo / Peter Meecham
Precision Realty salesperson Di Balich said they were not expecting an oversupply of stock in Omaha because there were always buyers for the high-end holiday homes.
“There might not be as many, but there’s always solid enquiry.”
Balich said there had been an increase in the number of properties for sale this year including several beachfront properties such as 57 Taumata Road and 7 Kutai Lane, in Omaha.
However, she said there was nothing sinister about why people were selling as most were doing it for lifestyle changes or to pursue new interests.
“As the upper end, there’s a lot of complexities we are not privy to. It’s changing lifestyle and changing desires and it could be a certain amount of boredom, they’ve owned a property for a certain amount of time in an area and they want to go to Queenstown or Waiheke or Fiji.”
CoreLogic chief property economist Kelvin Davidson said the fact prices were rising – albeit only slightly – showed people were buying.
“Sellers are a bit more confident they will do a deal, they will get a price they like. They can find the next property – so their confidence level goes up and buyers are a bit more confident interest rates aren’t rising anymore. The sentiment has turned around and they are not so scared about prices falling so they are prepared to commit. For now, I think there’s enough demand to meet the supply.”
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