Experts predict foreign interest
Secluded Central Hawke’s Bay mansion on market for first time will be offered for sale by tender in March
Astunning hidden mansion in Central Hawke’s Bay is on the market for the first time, with experts predicting buyer interest will likely come from overseas or the elite of New Zealand society.
The property, marketed by Bayleys and described in its Oneroof listing as “beyond the extraordinary” will be sold by tender in March.
Completed in the mid-2000s and described as a ‘private and secluded sanctuary’, the eight bathroom, eight bedroom home also has six car parks.
Located on a road off State Highway 50, the sprawling freehold home comes with a substantial amount of land — nearly 25 hectares.
But it’s the size of its “grand primary residence” that sets it apart — the buildings’ footprint covers 2292sq m, enough room to fit 45 small apartments of 50sq m each.
Designed by renowned RomanianKiwi architect Paris Magdalinos, it also features guest accommodation, and a leisure/entertaining wing.
The address and asking price have been kept private.
James Wilson, head of valuations at Valocity, said properties of the multimillion-dollar price tag that this would command were “very scarce” in New Zealand.
Global factors, such as the conflict in Ukraine, would impact buying plans for the likeliest buyers — cashed-up foreigners, he said.
“You do get some local wealthy [prospective] buyers, but it’s commonly the domain of the overseas buyer, at that price point anyway.”
Since 2018, foreign citizens cannot buy an existing house or land in Aotearoa unless they get Overseas Investment Office approval.
Bureaucracy “won’t deter a serious buyer” though, he said.
Wilson said there had been “significant demand” for secluded lifestyle properties since the Covid-19 pandemic started, but current economic headwinds like the increased official cash rate “point to a subdued market”.
According to the Real Estate Institute of New Zealand, October’s median house prices for all of Hawke’s Bay sit at $730,000, down 11.0 per cent5 from a year ago.
But Hastings District (including Central Hawke’s Bay) had a slower decline of 8.5 per cent over the same period.
Valocity’s data shows sales for all types of Hawke’s Bay properties have fallen over the past year.
In Q4 last year, 61 lifestyle properties were sold, declining to 30 in Q2 this year.
The 6157 lifestyle properties in Hawke’s Bay make up about 10 per cent of the region’s housing stock.
Wilson said there was hope we would be talking about the “flat” property market at next year’s election, rather than a “declining” one.