Going ... going ... still going

The couple from Auckland were on a Saturday drive, with an eye out for a beach house. To start with they were going to Waiheke but, remembering those good old days at Whangamata, they had a last-minute change of plan and headed south.

The real estate flags signalling auction day grabbed their attention, and they joined the 60 or 70 people milling around the offices of Whangamata Real Estate.

An hour or so later, they were on their way, for the first time ... to see the house they had just bought.

It's a story that more easily fits into the boom-time of 2006 when the country was going bananas about coastal property. Yet it happened less than a month ago, in the middle of a price slump that has shaved tens of thousands of dollars from beach houses throughout the North Island.

The couple saw a bargain and bought without looking. The modest little bach at 311A Hetherington Rd, close to the marina, went for $235,000.

And all the signs are the Aucklanders got a good buy - $35,000 below the July 2006 CV and $10,000 less that it last sold for in December 2004. The lot was one of 12 Whangamata properties listed that day, 10 of which are shown here (above). Nine are still on the market, though one is under offer.

Sue Hunt, owner of Whangamata Real Estate, says the big auction, which also included houses at nearby Whiritoa, presented a mix of new listings and property that had sat around for a little while.

"It was the first time we'd had an auction on such a scale, and I think it's fair to say people here aren't as accustomed to auctions as they are in, say, Auckland," she says.

"So there was a little caution. But we thought it went really well, with lots of positive feedback, plenty of follow-up inquiries and an understanding from vendors that their properties need to be well-priced to draw interest."

Hunt says the demand sparked by lack of supply in Auckland is the opposite in her market.

Her estimate is that Whangamata prices are back 10 to 15 per cent on their peaks, though she agrees that a reluctance to sell too cheaply may mask a greater decline.

In the meantime, volume has picked up, with 18 sales this October compared to 13 in 2008. But most sales are in the "cheapie" bracket under $400,000, and there's very limited interest in more exclusive homes.

Hunt is confident the town, like other coastal areas, is working its way through a trough and that the good times will return.

"The beach, the marina, the relaxed feel of the place, the blend of Kiwi baches and more modern homes, the cafes ... why wouldn't you want a holiday home here?"