A historic Bluff Hill property has reportedly sold for $2.225 million, a record price for a residential property in Napier.
The house at 1 France Rd sits high on a knoll with one acre of land (0.47ha) featuring mature trees, a detached cottage and a large swimming pool.
The buyer is a health professional returning to the country after a lengthy career overseas.
The previous owner was pilot Gerald Grocott, who worked for corporate jet-charter service GESL Aviation, owned by Hawke's Bay businessman Graeme Lowe.
Mr Grocott bought the house 10 years ago from Pan Pac Managing Director Doug Ducker for $950,000.
Hawke's Bay Today understands a considerable amount of work has been completed on the property since then.
The property was once owned by the Geddis family, owners of the Daily Telegraph newspaper.
It was sold by Bayleys Real Estate, which would not provide details of the transaction. Mr Grocott also declined to comment.
Andrew White of My Valuer said there had only been two other sales in Napier above $1.5 million.
Last August, 52 Hardinge Rd, Ahuriri, sold for $2,005,000 and, in May 2009, 16 Lincoln Rd, Bluff Hill, sold for $1,975,000.
Mr White said the high end of the residential market had not escaped the downturn in the property market but prices at the top had often met vendor expectations.
"Sellers of high-end property will generally not sell until they achieve their desired price," he said.
"This is why during the depressed market of recent years, the market has still witnessed good price levels. And there were purchasers in the market willing to pay. There are a number of properties on the market that could sell for in excess of $1 million."
The number increased significantly during the property boom in the mid-2000s but were now taking longer to sell, Mr White said.
"Our research has found, based on sales in the million dollar-plus bracket for residential and lifestyle properties since January 2010, it would take approximately 2 years to sell down the existing stock that is being advertised on Trade Me alone."
Purchasers at the high end were not tied to a particular suburb and privacy was also important.
"They are often attracted more by what the property offers from a physical point of view, such as architectural merit, thought of design, scale of home, quality of construction and detail, amenity in terms of internal facilities such as en suites to bedrooms, sculleries in the kitchen," Mr White said.
"Properties that offer elements above a standard home will always sell well, in whatever price bracket and locality."
There were few residential properties in Hawke's Bay worth more than $2 million.
"They are generally located in prime coastal areas, close to Napier or on Napier Hill.
"In Hastings, these properties would be located on the northern slopes of Havelock North," he said.