The country’s only billion-dollar suburb does not show any signs of slowing down as the property market emerges from lockdown.
In 2017, at the height of the market, Auckland’s Remuera property sales totalled $1.04 billion, making it the country’s first billion-dollar suburb, according to research from OneRoof and its data partner Valocity.
That dropped back to $781 million in 2018, as the number of properties dropped to 362 properties, down from 451 in 2017. The number of sales was 662 in 2015.
But despite the two-month of minimal to no sales during the lockdown and Level 3 restrictions in April and May, there are signs the blue-chip suburb might regain its billion-dollar status.
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Ray White real estate agent Steen Nielsen is confident it will, as evidenced by June’s record-breaking sales for his office.
Ray White Remuera, owned by Megan Jaffe, made a record $102.5 million in sales in June, their personal-best.
“If we’re doing over $102 million a month in just our office, when you consider all other offices, we’re definitely on track to break the billion mark, aren’t we?"
There are more buyers than sellers in the suburb at the moment and that competition pushes up the sale price, Nielsen says.
“During the GFC in 2009 the Remuera market did not drop a lot, compared to other places around New Zealand. We’re in the big and safe market to invest your savings in, as you’re not getting anything in the bank anymore.”
More investors are entering the Remuera market and they’re stretching their budget too with all investment properties selling above their CV, Nielsen adds.
“We can certainly see more investors across different price ranges in the area after the change in LVR rules."
Expats request Remuera
Also selling luxury properties in and around the suburb, agent Ollie Wall says his clients who are expats returning to New Zealand specifically request family homes in Remuera.
Expats want to give their kids the life they had growing up in Remuera and are going back to the area to recreate their cwn childhoods from 30 years ago.
"For wealthy bankers who have been living in London, it means having a nice backyard, a swimming pool, a private school and all those luxuries. They want their kids to go to the same private school, run around in the same park and give their kids what they were lucky to have,” Wall says.
Compared to previous years, the drive to return home by expats has been huge in 2020, as New Zealand was one of the first to become Covid-19 free.
Walls, who sold the most expensive house in Remuera for $25.5 million at the end of 2017, says that billion-dollar year was made up of one-off huge sales, which he identifies as outliers.
His biggest sale in Remuera so far this year was a $10 million property. He says he wouldn’t be surprised if the suburb returned to its billion-dollar status.
“Traditionally, it’s known for being a luxurious suburb and it will do very well post-lockdown. Kiwis coming back home want to live in a good suburb that they trust and know and Remuera is the pinnacle of that,” Wall adds.
No winter slowdown this year
Bayleys Remuera office sold 54 properties last month, with average sale price going up 17 per cent.
Residential manager Rachel Dovey says that June, typically the slowest month in Remuera, has become the busiest time for real estate. She is expecting that to continue in July, due to pent up demand.
“Normally these two months are quite slow because people in the area make the most of school holidays to fly off-shore or go the South Island to ski. But because of lockdown, the general business activity has been moved along, which translated into fantastic June.
“And July is looking great too.”
Dovey says buyer enquiries for Remuera homes are mainly from locals, but about 10 percent are expats mainly from Hong Kong, Singapore and London.
“On any given day we might have a few enquiries but not on this level. Our fast Covid-19 recovery has certainly heightened the interest.”
Born, raised and retired in Remuera
However, to keep up with buyers’ demand and maintain the high-volume sales, Remuera needs more stock, Dovey adds.
Homes in the suburb are tightly held, and agents reckon if you’re born in Remuera, you’re likely to retire there.
“It relies on people exiting very large homes and downsizing into quality luxury apartments to create the movement in order to reach that billion-dollar,” Dovey says.
The suburb is not age-specific with everything from a variety of early-childhood education centres, through to great schools, as well as retirement accommodation.
That means that at all price points, there are keen buyers.
Barfoot and Thompson's Remuera branch manager, Carolyn Vernon, says listings in the $2 million and under mark have been getting multiple pre-auction offers post-lockdown from families and investors keen to get into the area.
To keep up with the demand, the office is working with a few developers who are building two-bedroom terrace houses and luxury apartments.
“The higher price range house owners are happy to stay where they are but for people to get into $4 million to $6 million market, other people need to move on and downsize.”
While June and July have picked up in sales, Vernon expects even more new listing come up after the September elections.
“The election generally tends to hold the market up and we have a lot of people waiting to come into the market in late September or October.”
