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Real estate experts are predicting a deluge of holiday and waterfront properties on the market as the recession starts to bite.
Bernard Hickey, of housing and mortgage website www.interest.co.nz, says some people will try to sell over summer when holiday-makers are about. "A lot of people bought in the past five years with expectations of capital gains and this isn't likely to happen," he said.
"The economics of coastal properties are even more brutal because in cities you can at least usually rent it out to someone."
Mike Beadle, of LJ Hooker's Matarangi office, said they had about 100 listings - 30 of them second homes. He said properties were only selling if people were "extremely realistic about their price".
Whitianga Century 21 manager Des Robinson said his office had about seven baches listed and he expected "a lot more".
"The downturn hasn't gone on long enough for people to get desperate yet. But next year I reckon there will be a lot more on the market if the economy is still down.
"Let's face it, people get rid of luxury items first."
Taupo resident Grant Child is having to sell his four-bedroom house at Pukehina Beach in the Bay of Plenty at auction in November.
"We were trying to leave it as a holiday home, but the economy has got a little bit too tight... we reluctantly have to part with it."
Bayleys director for Taupo and Turangi, Elaine Westerman, said her office was struggling for listings - particularly in top-end waterfront areas - but expected an influx in spring and summer.
She said: "Vendors realise the market is tough at the moment."
One example was the mortgagee sale of a waterfront Taupo property with more than 2ha of parklike grounds, two titles, two large homes, a boatshed and boat ramp.
The property, which sold for more than $6 million three years ago, was passed in at auction last week, with the highest bid $3.75m.
Westerman said there was interest "but not at the $6m level".
