Home Real Estate Here’s how high-end real estate is faring in 2022

Here’s how high-end real estate is faring in 2022

by Ozva Admin

The top end of the real estate market has not escaped the downturn unscathed, but activity is steady and prestige properties continue to fetch prices in excess of $10 million, new figures show.

Earlier this week, two listings with record selling prices hit the market, showing confidence in this part of the market.

A listing is a six-bedroom luxury home in Queenstown in a gated community with expansive views of Lake Wakatipu. It is priced at $35 million and could be the most expensive currently listed in New Zealand.

Another is a five-bedroom house in the Bay of Plenty on 14 acres of land, with a putting green, tennis court, infinity pool and sea views of Tauranga Harbour. The owners want “well above $25 million.”

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Agents marketing these properties are optimistic that they will sell.

Figures from the Real Estate Institute show the share of sales over $5 million rose to 0.4% in September from 0.3% in the same period last year.

The institute’s executive director, Jen Baird, says the share of high-end sales continues to rise annually, with the share of sales in the $5 million-plus range at 0.1% a year since 2019.

But, as with other areas of the market, the growth rate has slowed, he says.

This Queenstown house, known as

Supplied

This Queenstown home, known as “Stelvio” after an Italian ski course, is currently listed for $35 million.

“While the price increase may be indicative of inflation, it also suggests that this is a steady segment of the market and current economic pressures have not seen high-end property sales disappear.”

As the market cooled, the number of sales across all price ranges fell, so the rise in the share of sales over $5 million suggests the upper end holds, says research chief of CoreLogic, Nick Goodall.

It’s a very different part of the market, driven by cashed-out “engines” and largely insulated from issues like the cost-of-living crisis, access to credit, and rising interest rates, which affect buyers in the tranches lower prices, he says. .

“There is a part of the population that has done well in recent years, and that is in a position to buy prestigious real estate if the time is right for them, and they see a property that fits their needs.”

There may be fewer buyers at the higher end, but there are also fewer properties for those buyers, and that means luxury homes are still selling even in a quieter market, he says.

So what kind of prices are dominating high-end luxury homes in today’s market?

CoreLogic calculated the figures for liquidated home sales in the 10 months to the end of October to find out this year’s most expensive sales. They found that the top five were all in Auckland, and all were over $12 million.

A five-bedroom house on the city’s prestigious Paritai Drive in Orakei took the top spot, selling for $20 million in May.

A house on Auckland's exclusive Paritai Drive was this year's most expensive sale at $20 million.

Google streetview/Supplied

A house on Auckland’s exclusive Paritai Drive was this year’s most expensive sale at $20 million.

Built in the 1930s but recently renovated, it sits on a 1,289m² property, has sea views, an outdoor pool and spa, and four parking spaces. Its last recorded sale price was $7.3 million in 2015.

The second most expensive sale on the list was a five-bedroom modern house with tropical gardens on Arney Road in Remuera. It was for $16 million in June.

At 1,528 m², the property features an outdoor entertaining area, pool and spa, wine cellar, four parking spaces, and is located in the city’s coveted double grammar zone. It was last sold for $7.2 million in 2015.

A lifestyle property in Warkworth, on the outskirts of Auckland, became the third most expensive sale of the year at $13 million in January.

While there is a four-bedroom home with two parking spaces on-site, it’s the 500,000-square-foot section located right next to the Whangateau Harbor that makes it desirable. It cost $2.5 million when it was last sold in 2006.

A former convent property in Remuera in Auckland was the fourth most expensive sale this year.

Google streetview/Supplied

A former convent property in Remuera in Auckland was the fourth most expensive sale this year.

Rounding out the top five are two other Remuera properties.

One is a former convent, which has several buildings, with a total of 12 rooms, in a section of 2820m². The Victoria Avenue property sold for $12.3 million in July, after selling for $10.7 million in March of last year.

The other is a five-bedroom heritage mansion on Remuera Road, which sold for $12 million in May. It has an area of ​​1774m², has an indoor pool, tennis court, three parking spaces and views of the port.

Peter Thompson, managing director of Auckland’s largest real estate agency, Barfoot & Thompson, says the actual number of sales has slowed in the higher price brackets in recent months.

For example, your agency sold 37 homes for more than $2 million in October, which represents 5.9% of sales for that month, and is the lowest sales figure in the price category in more than two years.

Prices have also come down a bit, but the higher end of the market is unusual because fewer properties are available, so they are in demand when they go on sale, he says.

“The big problem for sellers in this group is whether they sell what there is to buy in turn. Sales often come down to word of mouth, with agents matching buyers to the type of property they are looking for when it comes on the market.”

That means eventual sale prices come back to negotiations, the people involved and their circumstances, and the property’s fixtures, he says.

CoreLogic also identified the most expensive sales this year in Wellington, Christchurch and Queenstown.

A house on Marine Parade was Wellington's most expensive sale this year at $5.9 million.

Google streetview/Supplied

A house on Marine Parade was Wellington’s most expensive sale this year at $5.9 million.

In Wellington, a four-bedroom house on Marine Parade in Seatoun commanded the highest price. While it’s not in a huge section, it’s right on the beach and has ocean views. It sold for $5.9 million in March.

A five-bedroom house on Queen Elizabeth II Drive in Mairehau was Christchurch’s most expensive sale. It’s on a 6,309-square-meter section, has room to park seven cars, and sold for $4.3 million in May.

And Queenstown’s biggest sale was a five-bedroom house in a 16,824m² lifestyle block on Baird Lane, near Lake Hayes. It sold for $9.2 million in July.

The Queenstown market is known for its exclusive luxury properties and last year its most expensive sale reached 18.25 million dollars.

Queenstown is known for its luxury properties.  Twin Peak View earned $17.5 million last year.

SIMON DEVITT

Queenstown is known for its luxury properties. Twin Peak View earned $17.5 million last year.

Queenstown-based New Zealand Sotheby’s International Realty managing director Mark Harris says the area is a desirable lifestyle destination and demand for its high-end real estate remains strong.

While the market isn’t like last year, it’s still quite active, and this year has seen some reasonably big deals, he says.

“Notable sales include four properties that cost more than $7 million and a 18,000-acre alpine resort that sold for more than $34 million. We are also negotiating some expensive sales at the moment.”

He doesn’t think the area’s appeal to high-end buyers will diminish, especially with borders reopening and Australians and expats returning to the market.

Last year’s biggest sale was $22 million for a house in the country’s most expensive suburb, Herne Bay in Auckland, while The rich Anna Mowbray and Ali Williams paid the highest price of 2020 with $24 million for a waterfront property in Auckland’s Westmere.

But these sales are still far from the mark set by the most expensive property ever sold in New Zealand.

That was a clifftop mansion on Auckland’s Paritai Drive, which was developed by former Hanover CFO Mark Hotchin and sold to Chinese-born businessman Deyi Shi for $39 million in 2013.

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