The resurgence in the Auckland property market since the country came out of lockdown has resulted in rising house prices and increased competition in the city's auction rooms.
To secure the house they want, some first home buyers are having to stretch beyond their comfort zone and may even be looking in the million-dollar market to secure a home.
But in the West Coast, one of the country’s most affordable regions, those same buyers can snap up a stately mansion or sprawling estate for the same amount of money.
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According to OneRoof figures, the median property value in the West Coast is $240,000 - quite a bit below the median value in Auckland of $920,000.
There's quite a price difference at the top end of the market in both regions: The West Coast's highest settled sale price so far this year is $875,000; Auckland's is $9 million.
West Coast agents say there has been an increase in enquiry from Aucklanders since the Covid-19 crisis began.
This new-build in Fox Glacier has a list price of $1.2 million. Photo / Supplied
Harcourts agent Kevin O’Donnell, who operates in Greymouth, where the median value is $250,000, says he started fielding calls from Auckland buyers when the country went into lockdown at the end of March.
“You can buy three really good homes on the West Coast for the price of an average house in Auckland,” he says.
He says the country's ability to work from home during lockdown has led many to reassess their priorities. “People have come to realise they don’t have to work in Auckland - they can move to somewhere like the West Coast and work remotely.
"There’s no traffic down here, we have wide-open spaces and the cost of living is cheaper than in Auckland,” he adds.
He says one Auckland company had even enquired about buying up 12 newly subdivided sections in Greymouth to build housing for their workers.
"The company is planning a build arrangement with the developer.”
11 Tindale Road, in Greymouth, has a list price of $270,000. Photo / Supplied
The new Greymouth hospital, which opened last week, has the town buzzing, and is expected to lead to an increase in families and young professionals moving to the area for medical jobs.
“The new hospital is bringing doctors, nurses and locums from all over country. The rental market is buoyant right now,” he says.
Property Brokers agent Rob Maskill says Greymouth's property market hasn't been this busy in 20 years, with enquiries up 30 percent on this time last year.
Maskill says he recently sold a home to two Auckland nurses relocating to the West Coast.
“They cannot believe they can get a brand-new house for $500,000 to $600,000 here as they could never afford it in Auckland,” he says.
Typical of the homes on the market in Greymouth is 11 Tindale Road, which has a listing price of $270,000. The three-bedroom character home has an elevated view and ample space.
Since lockdown ended, there has been renewed interest in Greymouth's property market. Photo / Getty Images
Smaller communities are also on buyers' radars.
O’Donnell says: “Punakaikai and Blackball are extremely popular at the moment, with many people enquiring about it because of the nearby Paparoa Track."
He says investors have shown interest in both places, with the aim of renting houses to tourists walking the track.
The popular Paparoa National Park is one of the highlights of the region. Photo / Getty Images
The top end of the West Coast housing market offers some spectacular homes at reasonable prices, at least by Auckland standards. A four-bedroom luxury lodge-style home at 2 Williams Drive, in Fox Glacier, has a list price of $1.2 million, while a six-bedroom home on a 31,990sqm estate in Hokitika has a rating valuation of $860,000.
Buyers are also turning their eyes to towns further south, in Southland, where the median property value for July was $350,000, up 20.7 percent on the same period last year.
Mike McCurdy, managing director of Todd & Co Realty, says buyers can get a “pretty flash home” on a lifestyle block in Southland for less than a million dollars.
North Islanders, particularly Aucklanders, come to the area looking for investment properties, he says.
“Investors from Auckland seem to be picking up the cheapest stuff, slash some paint on and put tenants in it.”
However, it’s rare to have Aucklanders move to Southland for the lifestyle, unless it’s for a job in a farming sector, McCurdy says.
“We don’t see many first home buyers moving down here unless they are moving for a job,” he adds.
