The post-Covid property market boom has created New Zealand’s first $3 million suburb.
The median property value in Herne Bay hit $3.005 million this month, new figures from OneRoof.co.nz show.
House prices in the elite waterfront suburb jumped more than half a million dollars in the last 12 months.
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Figures published in tomorrow’s OneRoof Property Report show there are now 17 Auckland suburbs with median property values of $2 million-plus, up from four a year ago.
Herne Bay - home to some of the most expensive real estate in the country – is in a league of its own but neighbouring St Marys Bay could be the next to join it in the $3 million club, with its median value up $470,000 in the last 12 months to $2.71 million.
Owen Vaughan, editor of OneRoof.co.nz, said Herne Bay’s $3 million record illustrated the heat in the housing market.
“Herne Bay made history in 2004 when it became the first $1 million suburb. The jump to $2 million took 11 years but the leap to $3 million happened in almost half that time. What’s amazing is that most of that growth took place in the last year, fuelled by low interest rates and an almost insatiable appetite for property at the top end of the market,” Vaughan said.
Herne Bay has seen some big sales post-Covid, more than half a dozen of which have been for over $6 million. The top settled sale price was $8 million for a landmark heritage property in near original condition at 15 Hamilton Road.
That price lags far behind the country’s highest settled sale price post-Covid: $24 million for a property in neighbouring Westmere bought by Zuru co-founder Anna Mowbray and former-All Black Ali Williams in August.
However, OneRoof understands that a sale is in play in Herne Bay that could match it.
19A Masons Avenue, in Herne Bay, fetched $6.9 million in October. Photo / Supplied
Kellands agent Martin Dobson, whose $6.9 million price for 19A Masons Avenue, in Herne Bay, in October was the suburb’s next highest settled sale price post-Covid, told OneRoof that there was strong demand among buyers at the top end of the market.
“Herne Bay’s got good primary schools and quite a few properties have water views or are waterfront. It has good access to the beaches, and proximity to the bridge or water to get to your holiday homes up north.”
Unlimited Potential agent Patrick McCarthy, who sold a house at 17 Marine Parade, in Herne Bay, in November for $6.75 million, said he had noticed a drift to the suburb by buyers attracted by the restaurants and shops of nearby Ponsonby Road and Jervois Roads.
“You don’t get that buzz in Remuera Road.”
17 Marine Parade sold for $6.75 million in November. Photo / Supplied
He said property values in the suburb would keep going up because there were so few properties coming to market.
“There are some years where places just don’t come to market. Covid disrupted things and people are protecting their assets,” he said
McCarthy has just three listings in the suburb, all in a boutique apartment development at 113 Jervois Road. The three apartments for sale have asking prices of between $3.65 million and $3.95 million (the penthouse, which sold last year, had an asking price of just under $8 million).
“People coming from the eastern suburbs have to get their heads around that prices are higher on average in Herne Bay. And when they go up, they really go up,” McCarthy said.
James Wilson, director of valuation at OneRoof’s data partner Valocity, said: “The absolute dearth of listings is because the Herne Bay socio economic group who can’t travel abroad are doing the huge renovations instead.
“There’s lots of building action, but a lull in the mega-mansions hitting the market. Once those great renovations come to market, that high value stock will push prices further up.”
Bought by a local Kiwi family at auction for $3.457 million, 25 Hector Street. Photo / Supplied
Interest in Herne Bay is not just restricted to buyers from Remuera and other high value suburbs. Expats have their eyes on Herne Bay too. This week Bayleys agent Blair Haddow sold a property at 25 Hector Street on the southern side of the suburb for $3.457 million to a Kiwi family who had just returned from Hong Kong. They beat five other bidders in the auction room.
“They all have $3 million-plus budgets. A listing I’ve got at 26 John Street has already had four private viewings and a pre-auction offer on the first day and its first open home isn’t until this weekend. People just hold on to their houses - the well-heeled are not moving out of the area.”
As for when Herne Bay breaks the $4 million barrier, Haddow gives it two years.
