A big piece of Coromandel's finest coastal land viewed as ideal for the development of a retirement village, tourism venture or residential subdivision is being offered for sale next month.
The 21.78-hectare freehold property at 720 Purangi Rd, Cooks Beach, is being jointly marketed for sale by tender closing on October 22 by John Binning, commercial sales and investments broker for Jones Lang LaSalle and Phil Dawson, sales agent for Coromandel-based Richardson Real Estate.
Binning says the area comprises a block zoned "coastal village" with a comprehensive structure plan. It is situated immediately adjacent to the Purangi Estuary within Cooks Beach.
"The property offers considerable development potential as a retirement village, for hospitality purposes or for a tourism-related venture that does not detract from the zoning."
He says the purpose of the Cooks Beach Expansion Site Development Plan is to "provide for subdivision at Cooks Beach that will maintain and enhance the village atmosphere of the Cooks Beach settlement, integrate infrastructure with existing and proposed development, and complement the coastal setting and outstanding natural values of the Purangi Estuary".
Binning says the property could also be developed into estuary frontage sections, reserve frontage sections and other standard residential sections all within walking distance to the estuary and beach. The only buildings on the site are a three-bedroom brick and iron roof dwelling dating back to around 1996 and a toolshed.
"Coastal residential property continues to remain an extremely popular property investment option in the upper North Island market," Binning says. "Like many coastal and resort areas, dwelling and section prices in the Thames-Coromandel area outperformed national prices during the boom years of the last decade. Having fallen back below the national average through 2010-2011, the coastal values in the Coromandel have continued to recover."
Binning says the Coromandel region has some of the lowest levels of property listings and vacant sections compared with existing residences.
"The market for residential properties in the Coromandel is highly seasonal with sales peaking through the summer months as developers and agents time their sales campaigns for periods when there is the highest number of visitors."
Binning says the evidence demonstrates that the Coromandel coastal property market is highly correlated to the success of the Auckland property market.
"As the Auckland market gathers momentum owners looking to purchase holiday accommodation are able to leverage the equity in their homes to make an investment into the Coromandel. Given the 24.7 per cent increase in median prices of the Auckland housing market during the past two years, the outlook for property in the Coromandel remains strong."
Dawson says he has lived in Cooks Beach for 24 years and is expecting strong interest in the Purangi Rd property. "It is one of the most beautiful places in New Zealand ... Because of its natural splendour, we have already experienced huge demand in the area. The Hopper Developments' subdivision of the adjacent land to this property was of a similar size at 225 lots and has completely sold out."
Binning says the Cooks Beach "sub market" reflects a niche market for coastal property. "This relatively small submarket has seen $78 million in transactions since the beginning of 2007, showing that there is considerable liquidity in the market for completed residences and or sections ready for residential development."
Cooks Beach, comprising three kilometres of unspoiled sand and safe waters, is popular with both domestic and overseas tourists.
On the eastern seaboard of the Coromandel, it is just 10 minutes' drive from the tourist attractions of Hot Water Beach, Cathedral Cove and Hahei Beach, and is a short ferry trip from Whitianga township.
What's on offer
The property: 21.78ha of coastal land.
Where: Coromandel Peninsula.
Address: 720 Purangi Rd, Cooks Beach.
Agencies: Jones Lang LaSalle & Richardson Real Estate.
Sales method: Tender closing October 22.