Property prices in the Waikato surf town of Raglan are defying the nationwide market slump, with a “cut-off” A-frame selling under the hammer at the end of last month for $1.38m – more than $500,000 above its RV.
LJ Hooker Raglan salesperson Kyle Leuthart said the result was an impressive, and showed how insulated the coastal town’s property market was.
According to the latest OneRoof-Valocity house price figures, the average property value in Raglan jumped 11.6% ($142,000) to $1.365 million in the three months to the end of June, while the nationwide average property declined 2.9% over the same period.
The “cut-off” A-Frame on Long Street was sold “as is, where is” and came with plans for modern build on the 896sqm section that is within walking distance to the beach. OneRoof records show it last changed hands in 2010 for $480,000.
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Leuthart said the majority of the property’s value was in the land. He noted that while the market had probably peaked at the end of last year, with some homes taking longer to sell, there was still strong demand for the right sort of property.
The price of an entry-level home in Raglan starts at about $700,000, while high-end properties can sell for several millions of dollars.
Leuthart is currently selling a two-bedroom, one-bathroom home at 1 Sunshine Rise for $795,000, and a is taking a luxury three-bedroom, three-bathroom apartment at 4/2 Stewart Street to auction on July 23.
There were just under 60 listings in Raglan on OneRoof at the time of publication, but Leuthart said at least 30% of those are sections, ready-build homes and house and land packages in the new Rangitahi subdivision.
Rangitahi general manager Sam Laity said Rangitahi Peninsula offered a new urban and sustainable neighbourhood in Raglan.
A two-bedroom home at 1 Sunshine Rise, in Raglan, has a price tag of $795,000. Photo / Supplied
A luxury three-bedroom at 4/2 Stewart Street, in Raglan, goes to auction on July 23. Photo / Supplied
The latest stage to be released, called The Landing, is closely connected to the water’s edge and other stages via walking tracks and footpaths.
"The planned facilities in this area include an indoor heated pool and health centre, a daycare, a small selection of retail shops and other community facilities."
There are 26 sections, ranging between 375sq and 892sqm, remaining and prices start from $435,000. Once all stages are completed there will be 550 sections in the subdivision.
Ray White agent Julie Hanna said listings had been tight but more properties were coming to market.
“So, you get three listings then you sell three. They are starting to come on a bit more as opposed to that hot, hot market when the listings were really short,” she said, adding that market conditions were starting to revert to normal.
She said first-home buyers were still finding it hard to get finance. “There are very few properties in the $800,000s or below [price bracket].”
This two-bedroom townhouse at 25J Violet Street, in Raglan, is for sale for $850,000. Photo / Supplied
A colourful three-bedroom home at 5 Simon Road, in Raglan, is for sale for $890,000. Photo / Supplied
Hanna is currently selling 25B Violet Street for $780,000; 25J Violet Street for $850,00; and 5 Simon Road for $8900,00; all of which have appeal to first-home buyers, investors and downsizers, she said.
She recently sold a number of properties in the mid-to-high $1ms, including a waterfront property on Lily Street that sold at auction for $1.58m - the same the price she had appraised it at. There was only one bidder at the early June auction, but she also had several conditional buyers lined up.
Ray White Raglan also sold a three-bedroom, two-bathroom property on Greenslade Road for $1.74m and another on Wallis Street for $1.893m. “In the higher end, a lot of those people aren’t dependent on banks anyway,” Hanna said.
In December, a rare Raglan beachfront property sold sight unseen to Aucklanders for $2.355m, nearly $1m more than its 2020 CV.
Lifestyle properties are also few and far between, and Hanna is about to list a property on Totara Grove, which she believes will sell for around the same price she appraised it at three months ago.
A three-bedroom home on a 9900sqm section at 121 Maungatawhiri Road, in Raglan, has a list price of $2.15m. Photo / Supplied
LJ Hooker is also selling a three-bedroom, two-bathroom lifestyle property at 121 Maungatawhiri Road on a 9900sqm section, which has been described as having the best views over Raglan, for $2.15m.
Those buying include Raglan locals either trading up or down, people relocating from other parts of the Waikato or wanting a beach house close to their farms. There is always interest from Aucklanders too.
“Raglan is popular. It’s still undamaged pretty much. They come for the surf, they come for the café culture and a lot of my buyers say it hasn’t turned into a Whangamata or the Mount. A lot of people prefer the Raglan culture and the lovely community - it’s close to everything,” Hanna said.
“A lot of people would say Raglan has changed since 23 years ago – I’ve seen a little change, but it’s still good old Raglan.”
- Find more properties for sale in Raglan here
