Cooler on the waterfront

If you had invested $100,000 in a beachfront property around the Coromandel Peninsula, Orewa, Omaha or on parts of Waiheke Island 21 years ago, your good fortune today would be worth around $3.86 million.

Statistics show those properties have enjoyed annual compound price growth of around 19 per cent since 1982 - an extraordinary rate that has made some people very rich and turned family baches and coastal farms into priceless assets.

Not surprisingly, the same sector has been the star performer in the present residential property boom: thousands of New Zealand property owners with wide sea views (and, perhaps, the right to step from lawn to sand) are sitting on gold mines.

While first-home buyers frown at surging prices in cities and towns, the country's coast is now well out of the grasp of ordinary New Zealanders looking for more than a sneak peek of the sea, certainly in the prime areas within reasonable reach of Auckland.

But there were signs this week that the relentless march in waterfront property prices may be slowing.

Just as the residential boom seems to be losing a little steam in the face of looming interest rate rises and lower immigration, the waterfront sector looks to be heading towards a quieter phase.

A Bayleys auction of prime "waterfront" properties in Auckland on Tuesday seemed to suggest that buyers are becoming more cautious about the value of seaside land and homes.

Either that or property owners are pushing their luck by pitching reserve prices out of touch with the market.

Of the 29 properties listed - all elaborately marketed - just four sold under the hammer, and none seemed to fetch much above reserve. A further sale was completed on auction night.

No bids at all were received on eight lots, and of the remaining 16 properties passed in, just four appeared reasonably close to a sale.

Some of those may have resulted in subsequent agreements, but prices are unlikely to have met vendors' initial expectations.

The auctioneers were at pains to point out there was plenty of "conditional interest" (as opposed to the unconditional demands of an auction) on a number of the properties.

But the lack of action - a clear sign of a market slowdown - meant they were regularly forced to begin the bidding themselves on behalf of owners.

The properties on offer stretched from the Far North, through the Bay of Islands, Auckland, Coromandel Peninsula and the Bay of Plenty to the Marlborough Sounds.

These are the properties with the golden beachfront tag and what happened to them:

9 Woods Rd South, Waitete Bay (north of Coromandel town): Comfortable beachfront bach on 1778 sq m section with wide views of the bay. Bidding opened at $300,000. Sold at $680,000 (with reserve apparently around the $650,000 level).

"St Helier", 65 Lincoln Rd, Mangawhai Heads: Substantial double-storey "bach" with wide water frontage on 3210 sq m section. Bidding opened at $1 million and property passed in at $1.9 million. Property sold after negotiations during the evening. Price not disclosed.

Putiki Bay Vineyard, Vintage Lane, Waiheke Island: Vineyard with wide Hauraki Gulf views, stretching over 4.2ha, with total of 14,000 vines. Beachfront building site ready for home. Bidding opened by auctioneer at $3 million, and property passed in at $3.55 million.

50 Cheltenham Rd, Devonport: Imposing home on the beach with wide water views. No bid received.

22 Burford Place, Howick: Substantial (six-bedroom) modern home with wide gulf views from 1270 sq m section. Bidding opened at $3 million and property passed in at $3.2 million.

Dryden Bay, Marlborough Sounds: three houses on 2.5ha site running to the water's edge, with deep-water jetty, at the entrance to Endeavour Inlet. No bid received.

15 Jolyn Place, Howick: Five-bedroom clifftop home, with self-contained two-bedroom flat on 2168 sq m section and wide-ranging gulf views. Auctioneer opened bidding at $1.4 million and the property was passed in at $1.5 million.

Te Wahapu Lodge, 3 Payne Brown Way, Russell: Grand old homestead with self-contained cottage (operating as a bed and breakfast) on water's edge. On a 8973 sq m section with riparian rights. Bidding opened at $1.3 million and the property was passed in at $1.525 million.

1 Manawaora Rd, Dicks Bay (Russell): Modern home on half share of 6.94ha, metres from the high tide mark. Bidding opened at $400,000. Property passed in at $550,000.

Leadlight Bay, Waikino (across from the Opua marina, Bay of Islands): 4ha block of waterfront land with wide views, plus half-share of jetty. Auctioneer opened bidding at $670,000. Property passed in with no further bid.

27 Gilberd Place, Torbay: Five-bedroom clifftop home with 270-degree harbour and gulf views. Auctioneer suggested an opening bid of $1.75 million, but no interest from the floor and the property was passed in.

30 Thompson Rd, Waiotahi Beach (near Opotiki): Villa on 8.6ha of elevated land with wide ocean views. Bidding opened at $2 million. Property passed in at $2.1 million.

Hot Water Beach Rd, Hot Water Beach (Coromandel Peninsula): Three beachfront sections on the site of the former camping ground. Bidding began on lot 9 (1020 sq m), which opened at $400,000 and was passed in ("not far away", said the auctioneer) at $860,000. Lot 15 (970 sq m) opened at $600,000 and was passed in at $810,000. Lot 7 (1030 sq m) opened at $600,000 and sold for $755,000.

331 Onemana Drive, Onemana Beach (north of Whangamata): Elevated section overlooking beach and bay. Bidding opened at $200,000 and property sold for $320,000 (after the auctioneer checked with the vendor, suggesting the final price was a little short of the reserve).

333 Onemana Drive, Onemana Beach: Holiday home with wide beach and bay views. Bidding opened at $210,000 and property sold at $340,000 (apparently just over the reserve).

3A Ngapara St, Red Beach, Whangaparaoa Peninsula: Modern three-bedroom home on rear beachfront site (no views, but just metres to the beach). Bidding opened by auctioneer at $475,000 and property sold at $612,500 (perhaps $10,000 over the reserve).

3 Ngapara St, Red Beach: Beachfront townhouse with wide beach and sea views. Bidding opened at $900,000 and the property was passed in at $1.05 million.

2203 State Highway 2, Pukehina, Bay of Plenty: 92ha farm with uninterrupted sea views and including 700m stretch touching sandy beach. Auctioneer opened bidding at $2.5 million and the property was passed in at $3.36 million.

Rangitane Loop Rd, Kerikeri: Modern home with wide views of the Kerikeri Inlet. Auctioneer opened bidding at $700,000 and the property was passed in at $810,000 ("We're not far away," said the auctioneer).

Rockell Rd, Whananaki, Northland: Substantial home high above a sandy beach with 180-degree ocean views. Bidding opened at $600,000 and the property was passed in at $1.325 million.

465 Leigh Rd, Lews Bay, Big Omaha: Big home on 4456 sq m waterfront site. Sandy beach and uninterrupted sea view. Bidding opened at $1 million and the property was passed in at $1.4 million.

Moir Point Rd, Mangawhai Heads: Private 3000 sq m section with wide harbour and ocean views. No bid.

Beach Rd, Tauranga Bay, Northland: Two homes, operated as boutique accommodation, high up overlooking the bay and ocean. No bid.

20 Sir George Back St, Opua, Bay of Islands: Two modern furnished apartments with elevated wide views of the harbour. No bid.

1 Marine Pde, Piha: Waterfront beach house in bush setting with wide views of the beach and Lion Rock. No bid.