Coromandel property rides Covid wave with average asking prices topping Auckland
Christel Yardley / Stuff
Northern estate agent John Hunt thinks the area is still riding the Covid wave.
Coromandel overtook Auckland as the second most expensive place to buy.
New data released by realestate.co.nz shows the popular holiday destination has an average asking price of $1.3 million, up 13.6% from last month.
As New Zealand as a whole has started to see a slight decline in housing prices, Realestate.co.nz spokeswoman Vanessa Williams said Coromandel has overtaken Auckland – at $1.1million .
Local agents believe the ‘insane’ prices are due to more Aucklanders settling in the area permanently and a lack of housing stock and development, which means some beachfront properties cost $6 million.
And that’s unlikely to subside anytime soon.
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Northern estate agent John Hunt sold this property in Hahei, Coromandel for $5.3 million.
“Coromandel hit a 15-year high, overtaking Auckland as the second most expensive place to buy property,” Williams said.
“But Central Otago/Lakes District still holds the top spot at $1,428,349.”
This is compared to the national average asking price of $942,961 – up 4.2% from July 2021, but down from the asking price of $1 million in January.
North Coromandel estate agent John Hunt believes the area is still riding the Covid wave.
“Covid has done Coromandel’s housing market big favors,” Hunt said.
“It made a lot of Aucklanders realize that they could leave the city and be safe outside their Auckland walls.”
An estate agent in Thames-Coromandel for nearly 25 years, Hunt has never seen such demand and interest from permanent residents.
Places such as Whitianga, Cooks Beach, Hahei, Whenuakite, Coroglen and Kūaotunu are the most popular with Auckland shoppers.
“I’ve always said that Coromandel, and Whitianga in particular, is the Queenstown of the North Island and it certainly is.
“We have been number two on Trip Advisor for several years behind Queenstown.
“We’re only two hours from the main hubs and we have an airport with an airline establishing itself, so it won’t be slowing down any time soon.”
While home prices along the peninsula aren’t expected to fall anytime soon, the rate at which they’re selling has slowed, Hunt said.
A year ago homes in high demand areas such as Whitianga would have sold out within days to a week, but it is no longer uncommon now for properties to remain on the market for months.
This is not due to a lack of interest, but because properties in Tauranga, Hamilton and Auckland are taking longer to sell, he said.
Harcourts Pauanui and Whangamatā agent Alyce Rowe, however, believe the average price has recently been inflated by a number of “insane” beach house sales.
In July, she said a property on the beachfront in Whangamatā sold for around $6.6 million and another in Paunanui sold for $5.1 million.
This is also in addition to a number of waterway and canal sales – starting at $3 million.
“It’s amazing, but beachfront properties don’t come on the market very often, so if you get a few sales like that, it drives up the average price a lot,” Rowe said.
Housing shortages along the Coromandel were also driving up prices, she said.
Data from Realestate.co.nz shows that 274 houses were built in Coromandel last year, compared to 10,626 in Auckland and 2,200 in Waikato.
“The demand for real estate is higher than the stock we have and that’s because development is really difficult.”