A place by the sea

Restrictive alert levels, which cut off access to New Zealand’s beaches, lakes and rivers for many Kiwis, are now just a distant memory. Yet, the enduring appeal of waterfront properties continues to underpin market activity, especially as the sector heats up for summer.

The value Kiwis place on a home by the sea has grown in the wake of the pandemic, with a significant rise in enquiry for waterfront listings, including many generated globally from expatriate New Zealanders returning home.

A relatively ‘safe haven’ status, especially amid such global turmoil in all corners of the world, continues to attract new and old residents here. As a result, migration is beginning to contribute again to property market dynamics for the first time in a long time.

These buyers are often well-positioned with foreign equity to explore some of our more expensive waterfront markets. This feature supports recent data from global property consultancy and Bayleys’ strategic partner Knight Frank which found that waterfront property across the Auckland region ranked as netting the second highest premium in the world.

TRUE NORTH

Bayleys salespeople across Northland say pressures of the last few years have given Kiwis plenty of time to think about how and where they want to live for an ultimately enjoyable lifestyle.

This introspection has translated into heightened interest across the lifestyle and waterfront property markets.

Despite more challenging economic conditions, expatriate enquiry for properties across Northland has remained strong. However, salespeople say there is also robust market participation from resident Kiwis seeking aspirational properties as an intergenerational investment.

Despite more challenging economic conditions, expatriate enquiry for properties across Northland has remained strong. However, salespeople say there is also robust market participation from resident Kiwis seeking aspirational properties as an intergenerational investment.

The substantial inflation of asset prices is gradually unwinding, and more locals are using equity gained on existing homes to trade up and take the next step into something with a little more room or a little more lifestyle potential.

The capacity for remote work is another catalyst for Kiwis to explore places previously too far for a commute.

Flexible working environments have seen more workers flex their remote working muscles, taking advantage of the capacity to work from anywhere there’s an internet connection.

This applies to expatriate New Zealanders and those exploring options with a greater acceptance that the post-pandemic world offers new opportunities for home and work.

With more than 3,200 kilometres of coastline and a warm climate, Northland remains a popular region for lifestyle seekers, boasting a spectrum of natural formations and something to suit every waterfront taste.

Whether a rocky headland or a deep-water cove, a sandy bay or mangrove forest, Northland is abundant, and buyers have been increasingly enquiring after properties along Omaha and the Matakana Coast, Mangawhai and Bay of Islands.

HAURAKI CHARM

According to Knight Frank’s International Waterfront Index, waterfront property in Auckland, with sparkling views across the Hauraki Gulf, attracted an average price premium of 76 percent compared to an equivalent home away from the water.

Observers say Auckland’s high ranking comes down to various factors, including a persistently strong appetite for waterfront homes across the region.

Bayleys salespeople say there is a dearth of high-value properties priced within the five-to-ten-million-dollar range, which creates real competition for homes in the upper price brackets.

The limited supply of prestige properties across Auckland in high-value locations such as Castor Bay, Devonport, Waiheke Island, Herne Bay and Bucklands Beach keeps upward pressure on property prices throughout any economic cycle.

Through the global pandemic and extended, successive lockdowns throughout New Zealand, property purchasers have reassessed their lifestyle preferences, and sale results show homes with privacy, green space, and access to lifestyle amenities like maritime facilities attract the most significant attention.

LURE OF THE COROMANDEL

With summer just around the corner, prospective property purchasers are already looking to holiday hot spots for their dream home.

Anecdotal evidence suggests beach-adjacent properties across the Thames-Coromandel district in Waikato are being snapped up quickly, reflected by recent value growth for the locale year-on-year this September.

Anecdotal evidence suggests beach-adjacent properties across the Thames-Coromandel district in Waikato are being snapped up quickly, reflected by recent value growth for the locale year-on-year this September.

Water-focused new developments, particularly those with canal or beach access, continue to sell well, while the classic Kiwi bach is enjoying a revival.

In Hahei recently, Bayleys Whitianga salesperson Lea Jurkovich sold a hillside ‘do up’ at auction for $2.9 million, showing that properties with sea views remain in high demand across the Coromandel.

Purchased by a local buyer as an investment, the property possessed the essential element buyers want, and are willing to pay for, which is a water view.

Salespeople in the region say there’s a nostalgic element at play, too, with Kiwis returning to the beach towns where they holidayed as children and wanting to recreate memories with their own families.

Improving roading connecting and local infrastructure continue to make transit a more viable option, with locations like Thames in Waikato about an hour and a half from Central Auckland – a pretty manageable drive for a weekend stay.

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