In this report you will discover the biggest trends in the waterfront property market, plus a range of interesting facts including what regions are seeing the greatest average sale prices across New Zealand.
Wider residential market entering a recovery
Independent forecasters are typically predicting house prices will rise over 2024. Whilst rising interest rates were a key factor during 2022, growing sentiment that long-term rates are peaking is helping to moderate this concern.
Increase in cross-regional activity
Buyers are increasingly looking outside of their local areas, often enabled by post-pandemic remote working trends. Trend is most apparent amongst buyers based in metropolitan Auckland buying outside of their region.
Wide variation in waterfront prices
While trophy homes often come to mind, analysis shows the majority of waterfront property sales involve more mainstream properties – often backing onto smaller rivers, inlets, etc. This is particularly apparent in the Auckland region which had the highest variation in waterfront prices due to many properties being located in lower priced sectors of the market.
Auckland, Bay of Plenty and Otago lead the way
The regions with the most expensive average sale prices for waterfront properties were Auckland, Bay of Plenty and Otago. This is also reflected in the most expensive suburbs being Orakei (Auckland), Wanaka (Otago) and Campbells Bay (Auckland).
Lakeside price premiums beat coastal and riverside
Across NZ the average price premium for lakeside waterfront properties is higher than for coastal or riverside. Lakeside sales were mainly located in Otago, Bay of Plenty and the Waikato. The higher price premium may be influenced by larger average land area and lakeside locations typically being outside of the biggest cities meaning surrounding homes may be cheaper.
Clifftop now a two-step market
Clifftop properties remain in demand for their unencumbered views, but buyers in some regions have become more sensitive to risks around ground conditions. Clifftop properties with resilient engineering remain in strong demand in these regions, but properties without are now facing weaker demand.