Beachfront star performer

In demand: Orewa beach

The outstanding levels of capital appreciation experienced by prime absolute beachfront property can be better appreciated when compared with that of residential land both in coastal areas and regions as a whole.

In Rodney, for example, throughout the 1991-2005, period residential property as a whole has performed well. The value of residential sections in the region have increased by an average of 10.4 per cent per annum compounded.

During the same period the value of residential sections in the coastal suburbs of Omaha and Orewa have shown compound growth averaging 15.2 per cent. Prime beachfront land however has eclipsed both these figures returning an average of 16.9 per cent.

The Bayleys Research index, which has tracked values from 1982, has shown Rodney Beachfront property returning approximately 20 per cent per annum compounded while inflation during the same period has averaged 4.55 per cent.

This  niche type of property continues to drive values upwards with no evidence of the market running out of steam.