The opening of the Puhoi to Warkworth motorway has sparked an immediate surge in demand for multi-million dollar properties north of Auckland, according to an industry expert.
The 18.5 kilometre stretch of motorway which opened last month, has reduced travel times by around 11 minutes off the drive north for about 35,000 vehicles a day.
According to new REINZ figures, in the past three months, there have been 11 sales of more than $2 million in the popular coastal holiday home region (Omaha, Point Wells, Tawharanui Peninsula, Matakana, Snells Beach, Sandspit, Ti Point, Leigh and Pakiri).
The July data also shows properties over $2m in the region sold 24 per cent above their CV, compared to 10 per cent above CV in the month prior.
Caleb Paterson of real estate agency Paterson Luxury, says within a fortnight of the highway opening, they recorded a significant lift in off-season buyer enquiry for holiday homes in the area.
He says they have had an influx of buyers with budgets up to $30 million approach them and believes that the new roading infrastructure could see property prices in the area increase by 15-20 per cent over the coming two years.
“What we saw over the first two weekends of the motorway opening to the public was a trial period where potential buyers drove north from Auckland along the new motorway to understand the impact on traffic flows and travel times.
“Feedback from this buyer group is that they want to be able to put their kids in the car after work on a Friday and be at the beach within an hour, it’s the Kiwiana dream, and now the northern corridor has opened, it’s becoming more of a reality.
“The opening of the motorway has also expanded the distance buyers are prepared to travel North – which will have flow-on benefits for property values in areas like Leigh, Mangawhai, Ti Point, Pakiri and Langs Beach, which were previously beyond the desired driving range for many buyers.
“While 10-15 minutes in time savings doesn’t sound like a lot, the consistency in travel time and the reduction in congestion over the summer period is really what these buyers are looking for.
“There is growing confidence in the market at the moment and with improved accessibility the northern region is going to continue to boom within the next 12-18 months,” he says.
Caleb says growth in the Auckland region holiday home market is driven by returning expats and locals.
“Interestingly a lot of the buyers in the Omaha/Leigh area are expats coming back to NZ, rather than offshore buyers and we haven’t had a lot of interest from international or foreign investment in these regions.
“These buyers are really looking for the trifecta, that is a property in Auckland city, the bach up north and a bolthole in the South Island.
“Traditionally down south the interest has been in Queenstown, but we are now seeing a lot of growth in Arrowtown and that’s going to be the next big one. Wanaka has also been a bit of a sleeping giant, but I think that will pick up too.
“High-end properties are in heavy demand including those with large blocks of land which have premium features like vineyards – we have had several land parcels valued at $20 million and $10 million respectively.
“We are also seeing a significant number of empty nesters heading north or those with corporate jobs who can work from there and/or commute.
“The empty nesters are selling the big Auckland residence, diversifying their portfolio and investing in a beautiful home up north. They might add a commercial property or a rental or two as well as some investments to spread their portfolio for retirement,” he says.
Caleb says a key factor is outdoor entertaining and this takes precedence over the pool in Omaha as these buyers are often beachfront.
He says they are looking for expansive outdoor areas to enjoy with extended family and friends.
“At the higher end of the market they still want sea views, those with budgets under $2 million just want proximity to the sea.
“There is significant demand for modern houses and there is simply not enough of them.
“One property which sold for $10 million was purchased by a family who intends to build three separate dwellings for family members so each generation can have their own spot,” he says.
Caleb says in contrast Queenstown is experiencing heavy demand from high-net-worth individuals from Australia and Singapore, with the area recording the second-highest regional median price increase across New Zealand last month.
He has just viewed one property that is coming to market later this year. This is a 700 sqm new home in Tawharanui Peninsula which is expected to reach over $15 million.
“The newly completed home with eight car garaging is set on top of the hill with sweeping views out over the bay. There is also over 40ha of land, providing privacy and future potential to subdivide for extended family,” he says.
He says in this segment of the market, where budgets can be upwards of $30 million, these properties tend to be weekend bach, rather than a permanent home.
“We have also just listed twenty-five $500,000 sections in Waipu These provide an entry point at the lower end of the market.
“Our advice to anyone who considering buying property North of Auckland is to progress this quickly, before the coming summer – when we expect prices in the region will start to lift significantly,” he says.
