A stylish four-bedroom bach in the Coromandel town of Whangamata sold last year for a record-breaking $7.41 million.
The beach-front property, which has a 2020 RV of $5.06m, was bought off market by the owners of the bach next door.
The new purchase gives them a combined land area of more than 2000sqm, a rarity in a town where many of the original quarter acre sections have been subdivided.
The $7.41 million sale price, recorded in June, is the highest for a residential property in Whangamata, eclipsing the previous record, $5.075m paid in 2019 for a Hamptons-style three-bedroom home on an 809sqm waterfront site on Seaview Road.
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Real estate agent Pete Sheppard said competition for beachfront homes in the town was strong.
Sheppard, of Whangamata Real Estate, sold a 1970s bach on Seaview Road in 2019 for $3.7m. That price seemed like a bargain now, he said, with the property’s RV climbing to $4.27m last year.
Shephard said that listings were tight in the town, with only 20-odd properties for sale this summer.
“It’s not an all-time low - at the end of 2020 we only had 15 properties - but three years ago we had 80 to 100 properties on the market at any one time. And after the GFC there were 350.”
High-end holiday town: This beachfront bach sold for $5.075m in 2019. Photo / Supplied
Agent Gordon Turner, who has lived in the town since 1975 and owns First National Pacific Coast, said that the lack of listings would likely lead to more private approaches to owners.
“There’s bugger-all waterfront, so I think we will see more under-the-radar deals like this," he said.
"The neighbours always know someone is selling before the agents do. It's one out of the bag, and to have a double site like this, who knows what that land bank is worth?”
Turner added so far these holidays other buyers have been slow off the mark at open homes.
“It’s the hottest summer. Most people are on the beach, not looking at real estate. With Christmas and New Year falling on the weekend, this weekend [January 8 and 9] will be the real tell for open homes.”
Agents expect an original bach on development land in Achilles Avenue, a few blocks from the beach, to sell for over $2m. Photo / Supplied
Turner told OneRoof that Aucklanders not being able to cross the borders until December 15 slowed the market down. He advised vendors of a 35-year-old cross lease property on Barrowclough Road that had an auction planned for December 11 to instead accept a pre-auction offer of $1.3m.
“It's the best thing they did because there just wasn’t the big boom of Auckland buyers coming into town [after borders opened]. Confidence is somewhat subdued."
An original 1950s two-bedroom bach on Ocean Road sold in November for $1.82m. Photo / Supplied
Turner said November sales were below expectations, and he estimated December figures, due out shortly, would be even lower.
“September, October and November are the premium months for the whole year. They’re down 50%, about the same as 2020, so we’re starting to get a pattern.”
Whangamata Harcourts owner Paul Prouse said that many of the listings for the town were already under contract or in negotiation, with prices all over $1m.
“$1m is the entry point, and that’s for a half site, small house. Anything on a full site is heading towards $2m. The cheapest apartment is $800,000 but they go up to $1.8m.”
A 16-year-old four-bedroom home on Ocean Road fetched $2.2m in December. Photo / Supplied
Prouse said that houses in beach-front streets sell for “north of $3m, even up to $4m or more.”
His agents are marketing a three-bed 1950s bach on a 961sqm site zoned for development site on Achilles Avenue, a couple of blocks from the beach, which is expected to sell for over $2m. Another traditional 1950s two-bedroom bach on a 359sqm cross lease site on Ocean Road, with an RV of $720,000, is expected to fetch over $1m.
“These are people who can’t travel overseas, they’re new to holiday property ownership. There’s a lot of money flooding in.”
He added that while sections on the fringes of the town sell for $400,000 to $500,000 homeowners are facing a wait of two to three years for a builder.
“It’s the biggest challenge for the town. And there’s nothing to rent, as the old baches people used to rent long term don’t meet healthy home standards. It’s a real struggle for cafes and businesses looking for staff.”
