Property investors drawn to allure of a home by the water

By ANNE GIBSON

New Zealand's low exchange rate is helping to fuel waterfront property investment, says Bayleys Real Estate, which has just released its largest waterfront sales magazine.

Gerald Rundle, of Bayleys Research, says a combination of influences make beachfront, lakefront and riverside real estate particularly appealing:

* The international influence, and particularly the relatively low exchange rate, makes our waterfront land and homes cheap by overseas standards.

* Many expatriate New Zealanders want to buy waterfront property as an investment or for a holiday, or with a view to living there eventually.

* Many New Zealanders want waterfront property as a weekend retreat from the city. "The therapeutic qualities of ocean beaches, lakes or rivers are deemed an attractive drawcard and demand for properties on or close to the water is particularly strong," says Rundle.

* Proximity of waterfront properties in main cities is important. People consider it acceptable to drive for up to 2 1/2 hours to get to their weekend retreats, so property within that range is in great demand.

* Improved roading and infrastructure make access to waterfront properties easier than it was more than a decade ago. This has changed the boundaries of travelling time and further enhanced the attractiveness of waterfront living.

* Better sewage systems, street lighting and more convenience stores at seaside resorts make them more attractive and lay the foundations for more permanent coastal living.

The factors combine to restrict opportunities for buyers to find waterfront properties.

"Many properties are locked up in family trusts and unlikely to be offered for sale," says Rundle.

" Others are rarely offered to the market and when they are, they tend to sell quickly."

Bayleys' 150-page magazine features 94 waterfront properties in New Zealand and the South Pacific, ranging in price from $500,000 to more than $10 million.

Bayleys Waterfront NZ