Top luxury homes sell for under CV

The house at 3 Wairangi St Herne Bay.

High-end properties outside Auckland being advertised well below valuation

A luxury waterfront Herne Bay home has sold for $800,000 less than its dated valuation.

Houses under the $2 million mark have been selling for tens of thousands more than their council value, but the market remains tight at the top end.

The stucco mansion at 3 Wairangi St, Herne Bay, parallel to the country's most expensive street, Cremorne St, sold for $10.7 million. Its value was set at $11.5 million in July 2011 when prices were at a lull. But the sale price has still made it one of the most expensive sales to date.

Built in 1980, the main house features four bedrooms, three bathrooms and has a floor of 695sq m and sits on a north-facing 2048sq m section.

It was designed by Pete Bossley, who is known for leading the design of Te Papa museum.

Barfoot & Thompson real estate agent Allie Chen said the new owner, who was originally from China but had lived in the country for a number of years, wanted a home where he could retire with his family.

When asked about the property going below CV, she said: "It is quite reasonable. The purchaser wouldn't pay more than CV ... and these kind of upper level, high-end properties, not many people can afford. It's difficult to find the right buyer. But you just need to have one right person. I think it was about the right price."

The vendor, who was "quite happy" with the price, had lived in the home for 10 years, having purchased the property for $7.2 million in 2003.

Homes out of Auckland are being advertised for below their CVs. A home on the Papamoa beachfront is asking $3.2 million, but has a valuation of $3.61 million - 11 per cent below CV.

The five-bedroom, two-bathroom solid concrete construction house has a 490sq m floor and sits on 2140sq m. According to the marketing material the property has a clean surveyor's report and a LIM available showing there are no weathertightness issues and the house is in very good condition.

Meanwhile, new Harcourts real estate figures show the average sale price for Auckland and Northland combined reached a record high of $698,832 in March. That was up 12 per cent on the same time last year and was a 9 per cent jump on February.

Chief executive Hayden Duncan said: "It is very evident buyers are no longer hesitating about entering the market, despite LVR restrictions and rising interest rates.

"There is an understanding that the market is likely to remain heated and prices will continue to rise for some time yet, as our growing population is not yet adequately catered for with new housing construction."