Steady she goes

VICKI HOLDER checks out how the market's been behaving in some of the North Island's real estate hotspots.

Healthy activity in the Auckland city residential property market during the holiday period bodes well for another good summer, according to Bayleys' Auckland manager Kirsty Stephenson.

She says three of her city consultants worked non-stop over Christmas and haven't managed to take any days off.

"There were a lot of people from out of town looking to buy," says Stephenson. "People are looking for investments and want to buy in Auckland or they're looking for something for the children for the varsity year. So we've been very busy."

She says the biggest demand has been for homes in the middle market, between $300,000 to $500,000. However, there was also interest from Australians and Britons in the upper end, above $600,000.

"They've all come at Christmas time so we're really lucky to have people to do the job for them."

Properties sold by Bayleys in the holiday period include a $4.5 million property in Remuera, bought by some Australians "who had just popped over for the holidays". Stephenson says: "We were lucky we happened to be 'Johnny on the Spot'."

She says activity during the traditional slow holiday period has been much better than she thought. "I'm very positive about the coming summer season. The phone is ringing hot. And we're talking to some people with some really good stock. I've been surprised it's quite this early. Plus, it's election year, which is always good for real estate. Certainly, going on what's happened so far over Christmas, we've got some good momentum going."

Up in Omaha, the weather might have put a dampener on the beach activity, but not on real estate. Harveys' Michael Dow has also had a great summer. Of 14 new properties that came onto the market in Omaha south, he sold eight sections in eight days. "If I've any left by next week I'd be very surprised. That's fast moving. They have also set a benchmark price-wise, selling for over $300,000 when this time last year they were selling for just over $195,000."

Early January, he also sold a conventional Lockwood on the beachfront with good views for $1.3 million-plus, as well as Jack and Trelise Cooper's modern home for $1,050,000.

Dow says the market seems to be moving up but not as dramatically as this time last year. "But we're still on an upward growth plane. The market is there and when you've got good product, it's going. However, there's still a bit of a gap between vendors' and buyers' expectations. Buyers are not in a feeding frenzy. They're thinking it through. But still, there's very much a shortage of stock."

Up the coast in Warkworth, Allan Myers of Barfoot & Thompson says he doesn't like to overhype the market, but he can't argue with it as things are looking good. His office had a great run-up to Christmas, selling a property in Algies Bay for the highest price ever at $1.815 million. Things went flat between Christmas and New Year but bounced right back in the first week the office was open. "I was really surprised, the level of enquiry was really high. A lot of interest is coming from New Zealanders living here or overseas for top-end properties, especially the million-dollar waterfront properties."

He has been particularly amazed about the levels of enquiry about a $5 million-plus waterfront home in Millon Bay on the Matakana Coast, built by musicians Alannah Currie and Thom Bailey. The five-bedroom home, complete with recording studio, at 222 Whitmore Rd, is going up for international tender, but it has already attracted a lot of interest. Only those people who can prove they have the money to buy are allowed to see the place. Yet Myers took five different groups through in the first two days.

Further north in Kerikeri, there are plenty of lookers but buyers are exercising caution. Harcourts' Kathy Elliot says the market is not as frantic as last year. "They've got more time and are looking at more properties before making a decision. Yet, vendors are getting close to their asking price. We've got some good contracts over the holidays. But they are conditional on due diligence and LIMs. People are deciding to put forward conditional contracts rather than clean offers."

Normally a hot spot for foreign tourists, Kerikeri has not attracted as many Americans this year, says Elliot. "They're balking at the exchange rate. I have one particular chap from the US who is investing in New Zealand property for rentals. When he did his sums he decided it was better to borrow in the US. Foreign buyers aren't as plentiful as in the past, probably because of our strong dollar against the weak American dollar."