Sophie Ryan is online editor for the Business Herald

Revealed: Auckland is world's hottest luxury property market

This luxurious Herne Bay home sold for $24 million last year. Photo / Supplied
This luxurious Herne Bay home sold for $24 million last year. Photo / Supplied

The world's "hottest" city for luxury real estate is Auckland, according to international real estate house Christie's.

Its latest luxury property report sees Auckland jump ahead of Toronto, Sydney and San Francisco as the world's fastest growing property market for houses that surpass $1 million.

Christie's report said Auckland has posted an "incredible" 63 per cent growth in sales over $1 million, which they attributed to "strong international and local demand".

The report described Auckland as "one of the world's most attractive property markets for overseas buyers".

New Zealand has an "open door" housing policy, Christie's said, and the lack of capital gains tax or visa requirements for buying had added to the demand.

"The government introduced measures to curb speculation in Auckland's booming housing market last year [including] a requirement for non-resident overseas buyers to apply for a government identification number for tax purposes. Over 1000 foreigners applied for this identification in the first three months of 2016."

Last year's top ranking market was Toronto, which ranked second this year.

Auckland was among the cities deemed "comeback markets" by Christie's after experiencing a period of little growth.

Christie's, which is represented by Bayleys Real Estate in New Zealand, said this was fuelled by positive economic growth and immigration.

The phenomenon of "comeback markets" wasn't limited to Auckland, Christie's said.

"High-end property markets in coastal communities are also witnessing this phenomenon. New Zealand's North Island northeastern coastline has seen an influx of city dwellers who are purchasing luxury coastal properties after selling a high-value Auckland home. Million dollar plus home sales in the area have almost tripled over the past three years."

The report is the results of a survey of real estate specialists in more than 100 property markets across the globe. Christie's said there is a great range for what the starting price for "luxury" property is in different markets.

"Brokers reported luxury prices range from under US$1 million in Palm Springs to US$10 million in Monaco. The starting benchmark for a "luxury" home around the world varies considerably, and has shifted significantly in recent years thanks to exchange rate movements. The average starting price for a "luxury" property worldwide is US$2.2 million," the report said.

- NZ Herald

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