Luxury market sees rapid rise throughout pandemic

Luxury properties in New Zealand have been in high demand throughout the pandemic due to low interest rates, high savings rates, a desire for more space, and people spending more time at home.

Ray White chief economist Nerida Conisbee said New Zealand’s had seen a rise in “luxury suburbs” which she considered areas with a median house price over $2 million.

“Ten years ago, New Zealand had just three suburbs with medians over $1 million,” Ms Conisbee said.

“Saint Mary’s Bay was the most expensive with a median of $1.6 million. This was followed by Herne Bay ($1.4 million) and Remuera ($1 million).

“There are now 241 suburbs with medians above this price point and, with more than 10 per cent of suburbs now priced over $1 million, it is no longer such a unique achievement to get to this level.

“There are now 17 suburbs with medians over $2 million.

“Saint Mary’s Bay is still the most expensive but has a median of just under $3.5 million and this is followed by Omaha ($2.8 million) and Kawarau Falls ($2.7 million).

“The top ten most expensive suburbs in New Zealand have seen double digit price growth over the past 12 months.

“Stanley Point has seen the largest increase of just over 56 percent.”

While Saint Mary’s Bay is the most expensive suburb in New Zealand, Ms Conisbee said finding a home there was quite difficult as the suburb was tightly held.

“There have been only 32 sales over $2 million since last September,” she said.

“Over the past 12 months, the suburb that has seen the most $2 million plus house sales has been Remuera, followed by Mount Eden and Epsom.

“For units, Auckland Central tops the list with 218 sales of $1 million plus apartments.”

Remuera saw 470 properties sell for more than $2 million in the 12 months to September 2021.

Ray White Remuera’s top salesperson Steve Koerber said the market had been strong throughout 2021.

“The year started strongly with more sales in the first two quarters than in any of the previous five years,” Mr Koerber said.

“The suburb was coming off a low baseline of previous sales, however, due to a noticeable shortage of stock and a reluctance of homeowners to sell.

“The quarterly rolling median price in January was around $2million. In October it was up to $2.7 million – quite a significant increase.”