Hawke's Bay's high-end property market is going through the roof as building industry delays make existing homes more attractive for the region's millionaires.
It's caused mammoth local sales recently, including two Havelock North trophy homes selling for $4.5 million each within minutes of each other at a near record-setting auction day.
Bayleys held nine auctions on Friday at its Havelock North office, with seven of those properties selling under the hammer.
It was one of the biggest days on record for the real estate company in Hawke's Bay, with more than $14 million in recorded sales.
Bayleys principal James Macpherson said there was a lot of interest in the two homes, both in Havelock North, on St Andrews Rd and Te Mata Rd.
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"Both had superb locations and had a lot to offer. That is why they were so strongly competed for."
Macpherson said about half a dozen bidders were interested in each of those properties.
"There are not too many residential properties that are $4 million-plus [in Hawke's Bay]."
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Advertise with NZME.The properties sold for $4.425 million (St Andrews Rd) and $4.585 million (Te Mata Rd) to existing Hawke's Bay residents.
Macpherson said in recent months there had been more interest in higher-end properties on the market across the region.
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"We are finding for $2 million upwards and $3 million upward houses - and in this case $4 million upward - there are buyers.
"There could be a number of factors. The cost of building is going up, also the time-lag to build a new property - one has to be patient to build a top-end house now."
The other five properties sold in St Leonards, Clive, Havelock North and Te Awa ranged from $761,000 to $1.24 million.
Property Brokers regional manager Joe Snee said he had seen a similar trend.
He said there was more demand in higher-end houses compared with first-home buyer properties in Hawke's Bay.
"It is definitely a trend we have noticed," he said.
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Advertise with NZME."The first-home buyers have gone quieter versus the higher-end where there are multiple people looking and paying good prices. It is a weird phenomenon."
He said the cost of building had gone up a lot, which could be playing its part, with more people interested in higher-end homes.
"If you are wanting to buy land and build it is going to cost you a truckload more."
It was revealed this week that 36 suburbs in the wider Napier and Hastings region have an average property value over $1 million.
That is up from 13 suburbs just 12 months ago.
