Elite address club carries $3m price tag

Remuera accounted for 25 per cent of all house sales above $3 million during the past two years. Photo / Janna Dixon

Three million dollars plus is a lot to pay for a home during the uncertainty of a global recession and credit crunch.

But that's what an elite number of homeowners did in Auckland during the past two years.

Since January 2008, 93 home buyers shelled out more than $3 million each for a home in New Zealand's largest city.

Like most other items of expenditure in these economically pressing times, that is significantly down on the previous bullish two-year period between January 2006 and December 2007.

That was the height of the property boom, when more than 200 homes changed hands at this rarified level.

So where is the big money still buying in the midst of recession? Which are Auckland's super-suburbs and how do they rank against one another?

Remuera is undoubtedly the 900-pound gorilla in the premium-price Auckland real estate market. It accounted for 25 per cent of all house sales above $3 million during the past two years.

However only 23 sales at the top level took place in the two-year period, compared to 55 for the previous two years. That is almost a 60 per cent drop.

All of Remuera's northern slopes' streets command premium prices, but homes tucked out of sight off Victoria Ave, Remuera Rd, and Arney Rd, regularly achieve sales of more than $5 million.

Why is it so popular as a home to Auckland's big spenders?

Remuera has many of Auckland's largest and most stately homes. It has an old-money cachet that many find desirable (others do not - they consider it snooty) and many of its homes are discreetly hidden down long driveways providing privacy and security.

The best homes have impressive views across to Rangitoto and Devonport, as well as easy access to the beaches of the Eastern Bays and some of Auckland's best public and private schools, all within 15 minutes of the CBD. It's easy to see the attraction.

Second-placed Herne Bay is probably the stand-out performer as the big-money magnet suburb of the past two years.Although it recorded only 11 $3 million-plus sales, less than half Remuera's tally; its resident population of only 5300, compared to Remuera's 19,700 and proportionately lower housing stock, means Herne Bay is punching well above its weight in real estate terms.

The suburb attracts slightly younger, more urbane, wealthy buyers, who prefer being closer to the CBD, Westhaven Marina and the bars of Ponsonby Rd.

Herne Bay saw the highest single purchase price for the two-year period: $9.25 million for a waterfront property on Marine Parade. Neighbouring suburb St Marys Bay also saw strong activity for its renovated villas and bungalows with spectacular views of the harbour bridge.

St Stephens Ave - home to Prime Minister John Key - and its surrounding tree-lined streets have some of Auckland's finest homes and has attracted the highest prices in Parnell over the past two years. Like Herne Bay, Parnell is a tiny suburb with relatively few homes.

Even in an economic downturn there is no shortage of well-heeled buyers waiting to eagerly claim a Parnell address.

A quarter of the homes sold in the $3 million-plus range were on the North Shore. Takapuna, Devonport, Milford and the cliff-side homes of Hauraki are the favoured suburbs, although Belmont, Mairangi Bay and Castor Bay all saw notable sales.

St Heliers sold fewer high-priced homes compared to the previous period but it is still one of the most sought-after suburbs in Auckland. Cliff Rd demands the highest prices, with its breathtaking views over the harbour and cityscape.

It will surprise no one that Orakei's Paritai Drive features prominently in the uber-price league, but adjoining Karori Cres is less well known and highly favoured by upper-echelon buyers.

The recession has had an effect on house prices across the board, even at the highest levels, with 50 per cent fewer sales compared to the previous two years; but special properties will always sell for special prices, albeit in lower numbers.

Beach-side and cliff-side homes can, and do, attract stratospheric prices. In the past five years more than half the homes that have sold for more than $6 million have been in the Takapuna/Hauraki/Castor Bay area. In 2007 it had one sale of $10 million and one of $11.5 million.

Even Remuera and Herne Bay, can't match that.

* Stephen Hart is the author of Where to Live in Auckland: www.wheretoliveinauckland.co.nz