Aucklanders snapping up coastal property

Baby-boomer Aucklanders are snapping up coastal property around the North Island, leaving slim pickings for those looking for a traditional beachside bach.

Real estate agents in top holiday spots say "boomers" looking to secure their retirement are even starting to rival overseas investors in their passion for buying desirable land.

In the ever-popular Coromandel, demand for prime coastal land was "exceptionally good", said Richardson real estate agent Kim Radick.

Coastal sections range from $475,000 to $650,000. Even the most basic coastal home can go for almost $1 million.

The traditional Kiwi bach and sleep-out at Otautu Bay pictured above is in a prime beachfront position. The 824sq m section is ripe for redevelopment, with panoramic sea and island views. And it could be yours for the bargain price of $960,000.

"In the last month or so [activity] has kicked in quite nicely, making it quite buoyant for the coming summer, which is great news," said Radick. "The negativity coming out of [Reserve Bank Governor] Alan Bollard, for example, doesn't seem to be scaring the second-home buyer that much."

Northland real estate agent Barry Joblin agreed. "A lot of people think if they're sitting on good [coastal] property then the money is better off than in any bank or any other investment."

Real Estate Institute head, Murray Cleland, told the Herald On Sunday that the day of the rustic bargain bach might be nearing an end and buyers were having to travel further afield to secure their dream holiday property.

Proximity to big cities such as Auckland has always been a big drawcard and is fuelling the boom in some coastal developments.

However, agents have also reported some buyers shunning properties within "the commuter belt".

Barry Joblin, owner of The Professionals Glenbarry branch in Whangarei, said the average price of holiday homes in his area was around $500,000, almost $200,000 more than the national median of $313,000 for a house.

Buyers wanting waterfront property in Northland should expect to pay $1 million he said, while harbourside homes were around $100,000 to $200,000 cheaper.

Buyer inquiries for coastal property were picking up, Joblin said.

"We haven't got enough of them - if we had more we could sell more. We are getting a few overseas people and we're certainly getting returning Kiwis, but the main driving force is baby-boomer Aucklanders."

At the southern end of Kaipara Harbour, Shelly Beach - just 60 minutes' drive northwest of Auckland - has taken off.

Waterfront sections were selling for an average of $300,000, said Century 21 agent Rex Keane. "There are still a few old-style baches but they're harder to come by."

In Tupare, to the south, sections with a minimum size of 1ha (2.5 acres) start at $359,000, but include access to a community centre, tennis court, equestrian facilities, boat ramp and jetty.

In Port Waikato, on the west coast south of Auckland, real estate agents report it is mostly baby-boomers who have been buying properties over the past 12 months.

"We must be one of the few places where you still have the original, really old baches," said sales agent Val New, of LJ Hooker Tuakau. Prices had risen dramatically, with homes now ranging from about $240,000 to $450,000.

"The area hasn't been spoiled commercially; there's no shops other than a takeaway and dairy/post office," she said.

The Real Estate Institute expects buyer confidence to be affected by the Reserve Bank's review of the official cash rate this Thursday. Many pundits expect the OCR will go up.