Auckland's new CVs revealed: Coastal property lags behind city prices

Some believe it will only be a matter of time before would-be property owners will head for more affordable pastures, such as Clark's Beach. Photo / New Zealand Herald / Sarah Ivey

Coastal real estate continues to lag well behind soaring city prices with latest capital value ratings reflecting slow property market trends.

While homeowners in many suburbs face revised capital values of up 50 per cent or higher those living on the city fringes have been delivered more modest increases.

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And those with homes on outlying islands of the Hauraki Gulf have even been delivered the news they face a drop.

Popular seaside holiday spots Leigh and Piha are facing a small three per cent average increase in capital value while those in the Gulf Islands of Rakino, Kawau and Great Barrier Islands face an average decrease of between minus 2 and minus 23 percent.

One real estate agent who has been selling property in southern Auckland coastal areas for more than a decade says the Auckland Council's adjustment seems to accurately reflect the value of home sales in recent months.

But Kim-Maree Osborne is picking it will only be a matter of time before would-be property owners pushed out by crazy central city prices will head for more affordable pastures closer to her quiet Manukau Harbour settlement.

Osborne, who has lived in Waiau Pa for more than 15 years and manages Osborne Realty with her husband, says the average 14 per cent capital value increase matches prices fetched by her agency in recent months.

"Based on our sales we are probably tracking 10 per cent above CV," said Osborne.
Osborne believed many would-be buyers were still in the dark about the southern region's geography and did not realise it was just a 45 minute commute from Clark's Beach into Auckland's central business district.

"The problem is people don't know where we are," she said.

One property her company was marketing was now sitting at nearly $100,000 under its $880,000 CV and still unsold.

But she was optimistic prices for coastal properties would begin to rise.

"I think they will catch up once people see what they can get not far from the central city."

She said coastal properties represented great value for money and perfect for those locked out of the heated Auckland market.

Said Osborne: "I wouldn't go back to Auckland for all the tea in China."