We do like to be beside the seaside
If the summer weather has prompted you to think about a shift to the beach, you’ll need to be prepared to pay. New data from Homes.co.nz shows that there is a price premium for waterfront properties throughout the country.
The highest is in Gisborne, where the median value of properties within 100 metres of the ocean is estimated by Homes.co.nz to be $1.31 million, 275 per cent higher than the town’s median value of $350,000.
A property on Grey St, Gisborne sold for $1.9m in April.
Papamoa had the next biggest premium, with waterfront houses 173 per cent more expensive, and New Plymouth 134 per cent.
Paekakariki had the biggest premium of the Wellington region, at 21.5 per cent. In Auckland, Waiuku came in at 10.6 per cent. In Queenstown, waterfront properties were 15.7 per cent more expensive.
The most expensive waterfront sale of the year so far has been in Omaha, north of Auckland, where a Taumata Rd house sold for $7.225m.
‘‘The median value of homes close to the water exceeds $1m in 15 New Zealand towns,’’ said chief data scientist Tom Lintern.
‘‘Although the most expensive waterfront sales continue to be in Auckland, the price premium of waterfront homes is highest in holiday hotspots where people are likely looking for the dream seaside retreat.’’
The sale closest to the sea was one in Moana Rd, Plimmerton, just 6.7 metres from the water.
Another in Paremata was 7.8 metres away.
Infometrics chief forecaster Gareth Kiernan said there were already isolated instances where such waterfront proximity was a problem such as in Granity or Haumoana, where a coastal property reportedly recently sold for $25,000 less than the owners paid in 1997.
‘‘If climate and sea level predictions are correct then areas such as Petone or South Dunedin are going to become increasingly uninsurable and, presumably, uninhabitable.
‘‘Rather than waterfront property, a view of the water from a suitably elevated site might become more preferable over time.’’
He said it would probably take a lack of insurance to turn buyer demand.
But real estate salesperson and commentator Alistair Helm said there would probably always be demand for waterfront properties.
‘‘As a function of availability they will always be limited in number – people have always loved to view the ocean added to which the view can never be interrupted by developers or neighbours,’’ he said.
‘‘However, rising sea levels and global climate issues leading to storms, sea surges, tsunamis and the ensuing insurance impact and cost could be a factor in seeing prices come under pressure.
‘‘Global climate issues . . . and the ensuing insurance impact and cost could be a factor in seeing prices come under pressure.’’
‘‘I judge that the former appeal issues will always see waterfront as premium overriding the latter issues.’’
Real Estate Institute chief executive Bindi Norwell agreed homes by the sea would continue to be sought-after.
Earlier data showed even just a view of the water would add a premium to prices.
In Auckland, the median Homes.co.nz estimated value for a house with a water view was $466,000 more than for houses without a view.
In Christchurch, a water view added $276,000 and in Wellington, $242,000.
‘‘If people can’t afford the view, then being within a few minutes walking distance to the beach is always going to be a great re-sale opportunity.’’