That was then, this is now
Five years ago, you would be living in the lap of luxury in a $3 million-plus house, but these days what is on offer is a little more modest, finds Miriam Bell.
Paying $3 million-plus for a home would have netted you a mansion five years ago, but these days that price will buy you a little less luxury.
There was an 81.6 per cent increase in the number of homes sold for $3m-plus over the past year, according to the Real Estate Institute’s latest Million Dollar Price report.
Persistently strong housing demand resulted in a year of records and rapid price increases across the country, the institute’s acting chief executive Rowan Dixon says.
This left the national median price at $905,000 in December, while the Auckland region’s median was $1,025,000. And Dixon says the number of homes selling in higher price brackets reflected this.
A total of 1516 $3m-plus homes were sold in the year ending December. But five years ago, far fewer homes were bought in the $3m-plus price bracket.
Analysis from Homes.co.nz shows 344 properties sold for between $3m and $5m over the six months to March 2017, with a median sale price of $3.5m.
Then, a $3m-plus house was likely to be a prestige property in a sought-after suburb, but price increases mean that is not necessarily the case now.
We looked at what some $3m-plus sales five years ago bought you, and what some recent similar price sales buy now.
Five years ago, many of the higher end sales were in lifestyle areas, often with water views. A five-bedroom, three-bathroom home with two car parks in O¯ maha, an exclusive area about an hour’s drive north of Auckland, is a representative example.
It is on a 934-square-metre section, has water views, and is close to the beach and the golf course.
O¯ maha is close to the boutique town of Matakana and its vineyards, and has a golf course. The property sold for $3.1m in October 2016, but Homes.co.nz estimates its value at $5.86m now.
Takapuna on Auckland’s North Shore has long been home to expensive real estate. In
November 2016, a landmark home on the suburb’s Hurstmere Rd with views of the harbour and Rangitoto sold for $3.2m.
Built in the 1940s, the threebedroom, two-bathroom cottagestyle brick property has a 802sqm section. At the time, it was undeveloped but zoned mixed housing urban, so had development potential. It is close to Takapuna beach and the town centre. Homes.co.nz estimates its value at $5.38m now.
Remuera is another elite Auckland suburb, particularly prized for its access to some of the city’s top schools. In March 2017, a five-bedroom, twobathroom character home on Orakei Rd sold for $3.02m.
It is on a 657sqm section, a few minutes’ walk from Remuera village, is elevated and has views towards Rangitoto. The property has a heated pool and off-street parking for five cars.
It also sits in the sought-after double Grammar zone. These days, Homes.co.nz estimates its value at $4.71m.
After Auckland, Queenstown featured the most. A Queenstown Hill home on Edinburgh Dr was built to maximise its location and has views of the Remarkables and Lake Wakatipu from every room.
It is minutes from the centre of Queenstown and the airport, and a 23-minute drive to the
Coronet Peak skifield.
The four-bedroom, 4.5 bathroom property with multiple balconies, outdoor living areas, an outdoor spa, and office space sold for $3.15m in January 2017. Homes.co.nz estimates its value at $5.36m now.
While many of the $3m-plus homes sold these days are highquality residences, the price does not buy quite as much scale or luxury as it once did.
These days, Queenstown has the highest average price in the country at $1.15m, according to CoreLogics’ latest figures. But it is still possible to get a version of the Edinburgh Dr property for around the $3m mark.
A four-bedroom, threebathroom home on Belfast Tce sold for $2.92m in September last year. It is in a prestige street, close to central Queenstown and the airport, and has views of the lake and mountains.
But it is smaller. The house is 229sqm (compared to 363sqm) and it sits on a 353sqm section (compared to 456sqm)., It also has fewer lifestyle features. Homes.co.nz estimates its value to be $3.22m.
The spread of $3m-plus properties around the country has increased. In Wellington, a four-bedroom, three-bathroom house in Mt Victoria sold for $2.9m last May. It is on a 551sqm section and has a sheltered deck and outdoor fireplace, a double garage, views over the city to the harbour, and is a short walk to the inner city and Oriental Bay beach. Homes.co.nz puts its value at $3.32m.
The inner-Auckland suburb of Ponsonby is one of the city’s most desirable areas. But early last year a three-bedroom, onebathroom heritage home on O’Neill St sold for $2.96m.
The house dates from 1870 and still has some original kauri features, but has been modernised. It has a north-facing deck and a fully fenced garden, and views to the Waitakere Ranges from an attic loft.
Unusually for this area, it has off-street parking for three cars. In a prime location just off Ponsonby Rd, Homes.co.nz estimates its value at $3.49m now.
Another contemporary option in Auckland could be a luxury apartment. The DreamSpace complex is on Lake Rd near Takapuna beach and will comprise six premium, ‘‘environmentally focused’’ residences.
Each apartment will have its own floor, title, exclusive features and outdoor living area, and the apartments will range in size from 149sqm to 353sqm. Prices start at $2.9 million, and construction starts this year. They are expected to be ready early next year.