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Wealthy buyers are spending money on luxury and lifestyle homes, while overseas travel remains out of reach, realtors say.
While early buyers and investors are heating up the lower end of the real estate market, agents are also reporting emerging demand for high-quality residences and vacation homes with added features.
Bayleys’ Adam Heazlewood said at lunchtime Monday that “I had already achieved two sales today above $ 1.6 million.”
“We are seeing people who normally would have been traveling at this time of year. Instead, they want to improve their homes and are looking for high quality.
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“We would not have seen these buyers a year ago. These properties are trophies. “
One example was Friday’s $ 2.9 million auction for a Richmond Hill home, which set a record for the neighborhood, Heazlewood said.
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Nearly 10,000 properties sold during the month, according to REINZ.
The house was designed by the seller, architect Regan Johnston, and has won several awards.
Heazlewood said that among the cards were ocean views and high-end accessories and finishes.
Agents saw buyers who wanted properties that “fit all the boxes” and weren’t limited by a budget, he said.
Johnston said the price of his home was “within cooee” of what he expected, despite his rating valuation of $ 1.65 million.
High-end architectural design homes could easily sell for $ 1 million above qualifying valuations, which did not measure a home’s quality or attractiveness, Johnston said.
“It costs the same to build a well-planned house or a poorly planned house. Recreational vehicles don’t reflect that. “
In his design practice, Johnston saw an increased demand for “premium locations” as people planned high-value homes or vacation homes.
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Nick Goodall is head of research at real estate analyst CoreLogic.
Other luxury waterfront homes sold in Christchurch this month include one on Taylors Mistake Rd, which sold for $ 2 million, and another in Scarborough Hill in a similar price range.
Harcourts’ agent Jan-Louise Chesmar said the home hunters in the luxury market were coming from Auckland, Queenstown and Wanaka, as well as Christchurch.
“They are looking for quality and good finishes, they are looking for a place with extensive land and views so that they are not blocked.”
Chesmar also saw people buying land to build “really big houses, we’re talking more than $ 5 million or more than $ 6 million.”
Nick Goodall, head of research at real estate analyst CoreLogic, said demand for more expensive homes had recovered more slowly across the country than for cheaper homes.
“Now it is starting to be more competitive than it was.”
Prices had risen more for cheaper homes than for more expensive homes for much of 2020, but that had changed in the past three months, he said.
“The recent recovery has been very notable at the upper end of the Christchurch market.”
Sara Ashcroft of Bayleys said that while fewer buyers in the high-value group meant less price pressure than among first-time buyers, people would still pay a lot for a “very special” property.
Privacy and attractive locations were key requirements, he said.
“It’s the lifestyle, it’s the quality, it’s the complete package. The houses of this level have the luxury that people look for ”.
Ashcroft attributed the trend both to time at home during confinement and a lack of travel options due to Covid.
“People are reconnecting with being home. And they have more disposable income to improve their homes or move to a higher value home. “
Akaroa vacation homes were also proving popular with buyers, he said.
Auctioneer and agent Craig Prier of Ray White Ferrymead said they had yet to see people returning from abroad buying high-end properties.
“It is the local people who are looking to spend the money.”
