Luxury coastal purchases on rise

A luxury stone home on 10.3ha at McKenzie Cove, north of Auckland, sold for $6.55 million this month.

This summer is expected to bring a boost in the numbers buying luxurious "lifestyle" properties along the country's northeastern coastline.

Real estate agents have indicated there's growing interest in these coastal homes, some worth millions of dollars.

Real Estate Institute of New Zealand (REINZ) also indicated there had been an increase in coastal property sales, from 81 in the year ending October 2012 to 222 in the same period this year in the east Rodney area and Kaipara District's east coast. It also reported a 21 per cent rise in the median house price over the past three years, from $402,000 in the year to October 2012 to $487,000 in the same period this year.

A luxury stone home on 10.3ha at McKenzie Cove, north of Auckland, sold for $6.55 million this month.

New Zealand Sotheby's International Realty sales associate Ross Hawkins has seen a significant growth in sales in the coastal market. "It is hard to quantify, but just being in this market, people are viewing and buying this year. Previously there were very few viewings in this sector and the offers that did come were not near asking prices, so the deals didn't take place."

Just this month, he said, he'd sold a luxury stone home on 10.3ha in McKenzie Cove, two hours' drive north of Auckland, for $6.55 million. The five-bedroom property has a guest house, four bathrooms and expansive grounds dotted with native plants overlooking the bay, and had been on the market for 17 months.

Mr Hawkins would only say the buyers were from the "Auckland, Northland area".

Within the past six months, he'd sold several multi-million-dollar coastal properties, including Slipper Island in the Coromandel - expected to go for more than $7 million this year - and another that went for $3.62 million on the Hibiscus Coast Highway in Orewa.

"It's a great indicator that the coastal market is heading in the right direction," Mr Hawkins said.

He said many of those who were buying along the coast were "baby boomers" looking to retire in style.

REINZ chief executive Colleen Milne said coastal areas provided a good holiday and lifestyle location.

"With the improvement of telecommunication and broadband services, being able to work from home or from locations such as the beach will be a reality."

A luxury stone home on 10.3ha at McKenzie Cove, north of Auckland, sold for $6.55 million this month.

Luxury Real Estate agent Charlie Brendon-Cook, who deals with properties in the Bay of Islands, said there had been a similar growth in coastal property sales in his area.

"The value of sales this year has already surpassed that of the last financial year and this year isn't finished," Mr Brendon-Cook said. "I do think we are likely to see a good, strong summer."

Mr Brendon-Cook said those who had sold out of the Auckland property market were likely to have more disposable income to buy luxury coastal homes.