SLICE OF HEAVEN
Prime Waiheke coastal estate goes on the market for the first time in 50 years
The largest parcel of prime New Zealand coastal land in the Auckland region to come to the open market in two decades is now for sale on Waiheke Island, offering a oncein-a-generation opportunity for a buyer to create an uberprivate estate within easy reach of Auckland city.
The almost-300ha landholding surrounding Carey Bay is accessed off Man O’War Bay Rd on the north-eastern side of Waiheke Island.
It includes headlands with uninterrupted Hauraki Gulf views, significant tracts of native bush and extensive frontage to more than five kilometres of coastline from Piemelon Bay in the west to the north-facing white sandy Carey Bay in the east.
Held in 16 titles with numerous prime building sites, the opportunity exists to retain the extremely private existing residence and working farm, or to further develop the comprehensive landholding into a pre-eminent gated farm park, golf course, resort, ecotourism venture or multigenerational residential estate.
There are currently three dwellings on the property, including the original 1880s’ main homestead, which has been extended and upgraded, along with farm buildings. There is approximately 150ha of effective farmland subdivided into paddocks with reticulated stock water currently operated under a grazing lease.
The balance of the land is made up of mature native forest (noted as areas of ecological significance), with regenerating stands of ma¯ nuka and ka¯ nuka and notable wetlands, while the headlands have pre-European significance with open pa¯ sites, terraces, and pits.
The family circumstances of the current owners have changed, necessitating a sale. The property is being sold by way of Expressions of Interest closing 4pm, Thursday, April 8 (unless sold prior).
Bayleys’ managing director Mike Bayley, said Carey Bay is, undoubtedly the most significant holding of coastal New Zealand land to come to the market in more than 20 years.
“A coastal property of this scale, so close to Auckland, is particularly compelling in light of the way 2020 unfolded around the world.
“The pandemic aftermath has seen people recalibrate and reassess many aspects of their lives, which throws this Waiheke property into sharp relief as a safe bolthole and an opportunity to create an enduring family legacy.”
Bayley said the uncertainties that Covid-19 has stirred up has reinforced, for many, the importance of family, a hankering for space and a greater emphasis on wellness and wellbeing.
“A well-resourced buyer could turn this Waiheke property — which is just a
10-minute helicopter flight or
45-minute boat trip from Auckland City — into a private, multi-generational family resort-style estate with individual titles streamlining succession plans and ownership structures. Family members could each have their own dwelling and land parcels without any feeling of encroachment on individual views or access.”
Equally, under the Hauraki Gulf Islands section of the Auckland Unitary Plan, there could be scope for further subdivision or boundary realignment to create an upmarket farm park which could offer significant parcels of land with good separation, views, and accessibility.
“The land’s contour, along with the tracts of mature native forest, provides a natural subdivision for numerous private outlooks amongst the multiple headlands with outstanding sea views and potential build sites,” said Bayley.
“New Zealand has several examples of luxury coastal farm park developments — Cooper and Company’s The Landing, in Purerua Peninsula, Bay of Islands, is one such project that has garnered support from high-net-worth individuals,” said Bayley.
“There is significant private wealth in New Zealand and this property represents an unrivalled opportunity for an ultra-high-net-worthindividual (UHNWI) to acquire this sensitive land and consolidate an enviable intergenerational estate.
“In its Wealth Report 2020, released before the pandemic outbreak, Bayleys global real estate partner Knight Frank estimated that New Zealand had 1812 UHNWI — that is, those individuals with a net worth of more than US$30 million, including their primary residence.
The Carey family from the Scottish fishing town of Arbroath, headed by patriarch and gentleman farmer William Carey, settled on this Waiheke land in 1871, building a home at Wairua Bay — now Carey Bay — in 1886.
They farmed the land, having a herd of shorthorn cattle for dairying and clearing forestry for a firewood business.
The original family owners became renowned for their welcoming hospitality to locals and visitors, with four generations of Careys calling the property “home” before it changed hands 100 years after the initial purchase.
Californians Philip and Diana Goldman bought the property under the name “Fountainhead” in 1971. The couple had some familial connections to New Zealand and businessman Philip, had an astute eye for real estate.
The couple initially split their time between Waiheke and California, until Philip stepped back from the family business in the US and they settled permanently on Waiheke, extending the original Carey homestead with substantial additions made to the 1800s’ dwelling.
According to nephew Hugh Perkins, his Aunt Diana was the keen farmer of the pair, running sheep and buying in genetically superior beef sires from Hawke’s Bay and demonstrating a progressive approach to farming.
The property will now enter a new chapter after being in the custodianship of just two families since 1871.
Mike Bayley said under the terms of New Zealand’s Overseas Investment Office (OIO) legislation, the property is deemed sensitive land, however, given this country’s safe haven status, he expects enquiry and interest from offshore buyers.
“New Zealand’s peaceful and safe reputation, stable government, natural beauty, and lifestyle benefits are very attractive to offshore buyers, however – the thresholds to foreign ownership of land and existing residential properties to those other than New Zealand citizens are extremely high.
“This is particularly so for rural and/or coastal land and an offshore-domiciled buyer would need to satisfy the Government that New Zealand’s national interest would be served and protected by any purchase and/or subsequent development of such land. The OIO bar is set high for a reason, however, due diligence could support potential for a resort, golf course development or other investment pathways that would employ New Zealanders and benefit the country’s tourism credentials and wider economy.”
Bayley said he expects significant interest from local s who will recognise the once-ina-lifetime opportunity to secure a property with this unique coastal scale and character.
The Reserve Bank on February 11 officially required banks to impose a 40% minimum deposit on all new investor borrowers who did not already have finance approved. Can we see any evidence yet of the 40% rule having an impact? Yes.
Each month I ask mortgage advisors around the country what they are seeing in their businesses. Are first home buyers stepping forward or back, are more or fewer investors appearing, plus a few other questions.
The results come out in the mortgages.co.nz & Tony Alexander Mortgage Advisor Survey and the key number of interest to us here is this one. Last week a net 5% of advisors said that they are seeing fewer investors in the market.
This is a turnaround from the net 24% in January who were seeing more investors, and the net 11% in December also seeing more. The peak was 34% in October from 28% in September.
In contrast, a net 19% of advisors last week were still saying that they are seeing more first home buyers, from 33% in January and 13% in December.
The many comments which advisors submitted show that there is still a very high level of demand from investors, even though some have been burned off by the 40% demand. Many people of sufficient means are helping their kids onto the property ladder, with a prevalent view that it is pointless leaving money in the bank going backwards after tax and inflation.
The Government and Reserve Bank can hardly express surprise or concern about the surge in general and investor demand for property when savers are being penalised for not borrowing and buying.
These are early days yet and the next two months will show if the 40% requirement is having any effect beyond knocking a portion of the froth off the top. But the chances are that 40% will not be enough to slow things down to a pace of prices growth deemed acceptable to the government.
Does that mean the Reserve Bank will take the minimum deposit to 50%? They might, but it would not be because of the pace of price rises. Instead they would do it if banks continued to lend large amounts of money to investors. We will have to wait for 2-3 month’s worth of lending data to gauge that. So, any move to 50% is probably something for the second half of this year rather than in the next 2-3 months.
In my monthly survey I also ask advisors what term borrowers are showing the greatest preference for. Finally, we are seeing some people looking beyond the candy of one-year rates at 2.29% and thinking about the growing concerns internationally about rising inflation and the eventual monetary policy tightening cycles to come.
Whereas in January only 9% of advisors said that people were fixing for two years, that proportion rose to 20% this month. That is still very low compared with the 73% saying that the one-year term is most preferred. But that 73% is down from 89% in January and proportions above 80% since August. The peak was 97% in November.
5% of mortgage advisors said people prefer the three-year term to fix their mortgage rate, and just 2% selected five years – my personal favourite.
In New Zealand and around the world currently, inflationary pressures are still very light. But there is pressure on businesses to recover costs associated with supply chain disruptions and high shipping costs, commodity prices are rising firmly and there is talk of a “super-cycle”, and the world is awash with liquidity from central bank bond buying operations.
A year ago, central banks stated they are taking the risk of keeping interest rates too low for too long in order to drive growth to offset the effects of the pandemic, because when inflation appears, they know how to beat it. The new US Treasury Secretary said exactly this three weeks ago. But she did not finish the paragraph. The way central banks will fight inflation when it eventually appears as they intend is higher, then higher interest rates.
Big rises are not imminent. But bank long-term funding costs in some instances have already risen 1% since October and borrowers should not be surprised if very soon we start to see 3-5-year fixed mortgage rates going up.
The Government can hardly express concern about the surge in general and investor demand for property when savers are being penalised for not borrowing and buying.