Tide turning on coastal property prices

By ANNE BESTON

The booming coastal property market may be slowing but sought-after spots are still attracting record prices.

A plain, one-bedroom bach 30km northeast of Whangarei at Tutukaka sold for between $900,000 and $1 million this week and a vacant section at a former holiday park went under the hammer for $755,000.

However, two other sections at the Hot Water Beach subdivision on the Coromandel Peninsula were passed in, despite bids of more than $800,000.

Hot Water Beach Holiday Park, on the peninsula's east coast, was closed by owner Geoff Wolfe this year, one of a number of camping grounds and holiday parks to be turned into exclusive subdivisions.

Overall the market for prime waterfront appeared to be "tightening", said Bayleys Real Estate spokesman Neil Prentice.

"There have been more listings the last two to three months, so buyers have a wider selection of properties than they previously had."

But a number of properties at the Bayleys auction failed to reach the asking price, including a spacious villa on Cheltenham Beach - which failed to attract any bids - and a 4.2ha vineyard on Waiheke Island.

Premium Real Estate chief executive Brian Guy, whose company sold $55 million of property during September, said things could well be slowing down.

"That it's taking a little bit longer than it was could well be the case, but we're still getting good results up to about $2.5 million. After that it just takes a bit more time," he said.

Unrealistic expectations of waterfront property owners were driving away buyers, said one agent.

John O'Brien of Bayleys said vendors had become "completely unrealistic" about prices they could achieve.

"Waterfront property is an emotive thing and people put a premium on it, but right now some owners are putting too high a premium on the properties so prices have reached a plateau," he said.

Mr O'Brien was involved in the sale of a 6ha block of land 400m from the waterfront at Huia this week, which sold at auction for $857,000, in line with expectations, he said.

He predicted in the Weekend Herald last month that the farmland would sell for more than $800,000. The land was owned by the late pioneering farmer Glover Page, whose will deemed that most of the proceeds be donated to charity.

Mr O'Brien said the auction drew strong bidding and although the property was zoned to be subdivided into nine lots, the Auckland buyers wanted to keep the land intact and build only one house there.

Meanwhile a block of land at one of the Coromandel Peninsula's most beautiful beaches is hurriedly being sold off by mortgagee sale.

The bush-covered 30ha block at New Chums beach, which lies over a headland at the northern end of Whangapoua Beach, is for sale through an international tender that closes in a week. The tender opened only last month and the property has had little marketing.

Residents say there are concerns have continued over the possible development at the beach.

Whangapoua Ratepayers Group spokesman Richard Jarman said that approaches to Thames Coromandel District Mayor Chris Lux and Conservation Minister Chris Carter for public money had met with little enthusiasm. "I think it might be in the too-hard basket."

- additional reporting Anne Gibson