A basic two-bedroom bach next to one of Auckland's black sand beaches sold last month for more than $1.2m - a sign that first home buyers are spreading out to farthest flung limits of the city.
Bayleys agent Simon Spiller told OneRoof that demand for old school baches in Muriwai, on Auckland's West Coast, has surprised locals, as have the prices buyers are prepared to pay, which can reach as high as $3m.
Muriwai's average property value has jumped 8% ($127,000) in the last three months to $1.707m, while neighbouring Te Henga (Bethells Beach) and Piha have seen value growth of 11.1% ($136,000) and 14.6% ($192,000) over the same period.
“It’s an extraordinary market. It’s taken people a bit longer to get out here and see the growth, but the locals are now going ‘you’re joking’ at the prices.”
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Earlier this month the Spillers sold a four-bedroom home on a 1.7ha lifestyle block on Muriwai Valley Road for $2.52m - more than $1m above CV - and a five-bedroom home on a 5.8ha block on Old North Road, in neighbouring Waimauku, for $3.441m.
“All of a sudden it’s gone boom. These areas are finally being discovered. People like the lifestyle, away from the suburbs, with a bit more space.
“The kids are young and can free-range in the community, grab their surfboard or bike.
“The Auckland money is getting out to the edges our way and prices are moving so quickly. I’ll say to a client we might get $2.8m on a property and it sells for $3m.”
A five-bedroom home in Waimaukau sold for $3.441m this month. Photo / Supplied
In late October, Spiller and his son Cooper brought a two bedroom 1970s bach on Motutara Road to auction, after the vendors accepted a strong pre-auction offer.
“It was partly modernised on on a nice little 809sqm section and had a CV of $930,000. We thought it might get to $1m, but it ended up selling for $1.22m.
“The buyers are a young couple who are moving permanently from the city. They are first home buyers and they will work hard and do it up nicely. It's much better value than a flat in the city."
Spiller is asking for expressions of interest on another classic Muriwai bach on Mututara Road. The two-bedroom 1950s house sits on a generous 1672sqm site but has some classic Muriwai issues.
This two-bedroom bach on Mututara Road sits on a 1672sqm site. Photo / Supplied
“The water tank is half on the neighbour’s site, the garage is half on the road," Spiller said.
“Sometimes these houses built before the 1990s have lots of grief, so we have to give people plenty of time to do due diligence,” he said, adding that buyers looking in the area are after the old-fashioned community feel of the beach-side town as well as the old-fashioned houses, westie quirks and all."
In neighbouring Piha, Ray White agent Ross Hawkins is bringing an original four-bedroom 1950s bach on Marine Parade to auction on December 9. He expects a young family to pick up the house for the next generation.
“The vendors bought the bach 40 years ago from the original owners. It’s never been on the market before. They did replace the long-drop with flushing toilets but otherwise it's in its original state."
Hawkins said that waterfront properties in Piha, Te Henga and Muriwai are all tightly held, but Piha is the most popular because it is closest to Auckland city.
An original 1950s four-bedroom bach on Piha's waterfront Marine Parade will be auctioned December 9. Photo / Supplied
The Marine Parade property has a CV of $1.035m, but Hawkins won’t be drawn on what it is likely to sell for.
“You see these old baches hidden in the hills, these are not Auckland houses by the sea. People often tell me they regret bowling them to build something flash, and then a few years later say ‘why didn’t I just keep the old place? There’s a real emotional attachment out here.”
