House shopping? $1 million required for prime real estate in Hawke's Bay

Million dollar residential sales in Hawke's Bay have nearly quadrupled in the past six years, according to a real estate agency.

Sotheby's International Realty Hawke's Bay managing director Fraser Holland says as house prices have risen, $1 million is no longer the barrier it was in the region.

"We started our business in 2012 and at that time there were only 18 residential sales above the $1m mark.

"In 2018, the number was well in excess of 65."

Currently on the market for $1.1 million is this 56 Dartmoor, Puketapu property. Photo / Supplied

The suburbs of Ahuriri, Bluff Hill, Taradale, Greenmeadows, Havelock North were now consistently delivering million-dollar properties, Holland said.

"The values being established now are the new normal."

Havelock North, in particular, was experiencing growth in high-end sales, because of supply and demand economics, he said.

"There is a decrease in supply in the Havelock North market compared to Napier."

On the market for just under the $1 million mark is this 64 Simla Ave, Havelock North, property.

There had also been a change in the split of local buyers and out-of-the-region buyers for $1m-plus properties, Holland said.

Where it was once unusual to find a Hawke's Bay buyer (for $1m-plus properties), sales were now split "50/50" between locals and outsiders, he said.

Havelock North was the only area pushing back against this, he said.

"There are more outside of the region purchases in Havelock North than there are in Napier.

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"Havelock North has its own brand, excellent private schooling and is attractive to people from Auckland."

Ray White Hawke's Bay managing director Elanor MacDonald said sales and listings between $950,000 and $1,100,000 were still unusual in both of the Twin Cities.

"In the last six months there has been, on average, one residential house sold per month in both Napier and Hastings at around the million-dollar level.

This property at 29 Duart Rd, Havelock North sold for $1.25 million in January 2019.

"All of the sales in Hastings were in Havelock North . "

This Napier property at 9 Cobden Crescent, Bluff Hill, sold for $1.15 million in February 2019.

The highest price sale in Hastings was mid $900,000s and there have only been two in the past six month, both in Inglis Place, Mahora, she says.

"Some of the new builds we have coming in Frimley are getting up there [$1m] now.

"The only properties I am aware breaking the million have had substantial land areas or more than one house."