Smart Owners, Smart Buyers, Smart Money

Despite comments this week that “a ‘do-nothing’ sentiment is gripping the property market”,* the upper end of the premium property market is feeling the effects of an improved economy, with smart buyers now snapping up prestigious New Zealand properties, upwards of $3.5 million.

Valuation agency QV’s July index, released yesterday, shows numbers of house sales are down about a third from the same time last year,* but REINZ statistics confirm this is not the case in the top end of the market.

From April to July 2010, a staggering 12 properties on Auckland’s northern slopes – from St Heliers to Westmere – sold for more than $3.5 million, while just five were reported to be sold in the same period last year.** Boutique real estate agency, Kellands, was responsible for one-third of those 2010 sales, including a property in St Heliers that sold for one of the highest prices in Auckland. There were only 19 reported sales above $3.5M in the same suburbs for the whole of the previous year.

Smart money is increasingly being spent in the upper realms of the top end, with Kellands conducting four sales in excess of $3.5M in just four months (April – July), including a coastal property in Matakana.

As shown in the new Kellands Pink Report, it is evident that, throughout the recession, Herne Bay was one of the only suburbs left relatively untouched by sales declines, with 24 sales above $3.5M from 2006 to current.** Kellands conducted four of the six top Herne Bay sales, including the second highest at $9.25M which sold in the peak of the recession in mid 2008.

With 30 years industry experience, Deborah Kelland, Principal of Kellands Real Estate, specialises in the luxury end of the property market and predicts values at the top end will continue to appreciate.

“It’s all about buyers doing their homework and recognising that now is a sensible time to both buy and sell top end property. For the first time, in a long time, it has felt right to spend in this high price bracket – smart buyers have chosen their moment and are now seizing the opportunity presented at the ‘top’ top end.”

While QV predicts the market’s midwinter gloom might continue for a few months yet,* Deborah Kelland says promising sales in the “top” top end look set to continue through spring.

“This year, our wealthiest owners and buyers are appreciating New Zealand’s ‘top’ top end for what it is, and can see the incredible value that New Zealand properties offer, both locally and to offshore buyers. When we compare property prices internationally, even with Australia, it’s clear how much more accessible the prestigious properties are in this country,” says Deborah.