OneRoof's Property Rich List reveals where the wealthy buy in the Bay of Plenty. Photo / Getty Images
The region's richest are paying about 425 per cent more than the average property value in Tauranga's most expensive suburb, Mount Maunganui, new data shows.
In its annual Property Rich List, OneRoof and its data partner Valocity looked at how the growth of property values has tracked over the past five years within the top 1 per cent of the market.
In Tauranga, Mount Maunganui took the top spot with a 425 per cent - or $7,110,553 - difference between the top 1 per cent and the average property value.
The overall average in the beachside suburb was $1,672,000 but for the top 1 per cent of homes - the most expensive properties - it was $8,782,553.
Matua had the next biggest gap between the top 1 per cent and the average at 307 per cent, followed by Paengaroa with a 297 per cent difference.
In Te Mata, in Coromandel, the difference was 730 per cent, with the average value of the top 1 per cent properties sitting at $8.62m compared to $1.039m for the overall average.
Valocity's head of research James Wilson said in April, rich lister Sir Colin Giltrap soldhis penthouse apartment in Mount Maunganui for $10.2m, smashing the previous $9.5m record for Tauranga's biggest residential property sale.
Wilson said it was often people seeking secondary or holiday accommodation who bought property within the top 1 per cent of the Tauranga, Western Bay and Rotorua markets.
"That differed to larger main centres where there may be a higher proportion of high-end properties that transact differently to the rest of the market around them."
Since 2021, the Bay was only one of four regions - including Hawke's Bay, Marlborough, and Otago - that saw the top 1 per cent outstrip the value growth of the bottom 10 per cent and "bucking the national trend."
"This is potentially due to all areas where the top 1 per cent typically represent luxury properties, often purchased as secondary households by those who live elsewhere."
Wilson said the analysis clearly showed the bottom end of the market had been where demand and price competition have had the biggest impact, lifting the value base up in all regions.
"It will be interesting to see if the trend of high-value stock growing at a faster rate than the average value or the bottom end continues, further revealing that the high end of town is less impacted by current market conditions."
Richard Laery, general manager of New Zealand Sotheby's Tauranga and Coromandel, said Tauranga's "Sunshine Coast" was the best place in the country to work and play but that was also what made it so pricey.
Anywhere beachside on the Mount would require deep pockets of probably $6m or more, but buyers would get a stunning property, Laery said.
"Pretty much a palace but a beach palace ... Lots of glass, lots of light, good garaging, made for sand and sea."
Laery said the Coromandel was another drawcard area for the wealthy.
Waihī Beach was extremely sought after, with some "pretty big" prices being paid there; anything beachfront fetched more than $3m, and some a lot higher, he said.
"All of the Coromandel has gone up in value immensely. It is pretty hard to find somewhere, for example, in Whangamatā for under $2m.
"After Covid people are realising now they can actually work in different places so anything that's got X factor is becoming more sought after."
Property Brokers regional manager for the Bay of Plenty, Simon Short, said the "big" end of the property market would keep growing rapidly because of its desirability and competition.
The type of buyer was also not so influenced by property trends and was more emotively driven, he said.
"The top end of town has a more definitive audience but a competitive one at that.
"If it ticks the boxes they desire, they are prepared to pay a premium for it."
Managing director of the Realty Group Ltd, which operates Eves and Bayleys, Heath Young said well-located and well-presented bluechip properties near water tended to do well in most property markets.
"Since 2020, this market has been strong due to New Zealand being locked down, low-interest rates, buyers securing holiday homes versus travelling internationally and also buyers willing to pay a premium for well-built or renovated property rather than try and build themselves with all the issues impacting on construction over this time.
"Typical buyers have been a huge mix of business owners, farming families, locals and out-of-town and international buyers."
Oliver Road Estate Agents partner Jason Eves said everyone in the region was aware and regularly amazed by the level of activity and values being seen at the Mount.
"It stands to reason that a limited stretch of unique coastline with both ocean and harbour exposures would be on many regional, national, and international buyers' wishlists..."
Eves said the buyers who can afford to pay the high land values of the most desirable locations were capable of and wanted to create special homes that were often personal "projects of passion" and provided high standards of living and prestige.
"As such, we are seeing significant renovations and demolitions or new builds on a regular basis that are employing designs, materials, fits, finishes and fixtures, which make them some of the most expensive property improvements in New Zealand.
"Combine these improvement costs (and the substantial energy, effort, vision, and perhaps risk that has gone into them) with the significant land values and it is no surprise to see what is being spent when they change ownership."
Harcourts Rotorua director Wayne Pamment said the top 1 per cent of the market was performing "incredibly well", particularly in Ōhope Beach.
"We have seen strong demand up until March and April this year for the top 1 per cent.
"We have had some record sales in the Ōhope market up to $4.5m That was unheard of a few years ago. We have hit some new caps.
"We have not seen that horsepower in the market before."
Additional reporting - Catherine Masters
Only sales of listed properties shown
Jul 1, 2021
Marine Parade, Mount Maunganui
$9,525,000
Jun 1, 2021
Oceanbeach Rd, Mount Maunganui
$8,500,000
Feb 1, 2022
Marine Parade, Mount Maunganui
$7,650,000
Sep 1, 2021
Oceanbeach Rd, Mount Maunganui
$6,450,000
Nov 1, 2021
Te Akau Rd, Okere Falls
$4,650,000
Feb 1, 2022
Oceanbeach Rd, Mount Maunganui
$4,650,000
Aug 1, 2021
Oceanbeach Rd, Mount Maunganui
$4,567,890
Aug 1, 2021
Karewa Parade, Papamoa
$4,420,000
Nov 1, 2021
Saint Heliers Place, Papamoa
$4,100,000
Dec 1, 2021
Oceanbeach Rd, Mount Maunganui
$3,675,000
Source: OneRoof/Valocity Property Rich List
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