Hawke's Bay million-dollar property market grows

This home in Endsleigh Drive, Havelock North sold in December, as demand for million-dollar properties in Hawke's Bay grows.
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This home in Endsleigh Drive, Havelock North sold in December, as demand for million-dollar properties in Hawke's Bay grows.

Million-dollar properties in Hawke's Bay are in hot demand, as interest from national and international buyers strengthens, a real estate agent says.

New Zealand Sotheby's International Realty Hawke's Bay managing director Fraser Holland said despite short working days during the holiday period, sales had not slowed.

He had seen significant growth in the million-dollar plus price bracket.

Another home in Havelock North sold in January.
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Another home in Havelock North sold in January.

This reflects the latest from The Real Estate Institute of New Zealand (REINZ), which shows Hawke's Bay, along with other regions around the country, have taken the reigns from Auckland.

Holland believed regional New Zealand was setting the pace for the New Zealand real estate market in terms of market growth, he said.

It was a trend that looked set to continue, as market demand from national and international buyers was at its strongest since he began his business three years ago, Holland said.

He had noticed acceleration in demand resulting to significant sales over the past 18 months, with 57 properties selling above the million dollar mark during this period, he said.

Since 2012, sales figures in higher price brackets continued to grow year on year.

In 2013, 22 residential and lifestyle properties sold over the million dollar mark in Hawke's Bay.

This figure increased to 35 properties in 2014 and further improved to 40 properties in 2015.

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"This growth is predominantly driven by the number of out of region buyers who are looking to purchase their slice of heaven, a change in lifestyle and a better balance in Hawke's Bay," Holland said.

"In fact, local residents make up the minority of our buyers".

In any given month 50 to 60 per cent of buyers were from outside of the region, he said. 

While there was a lot of Aucklanders actively in the market, buyers were also coming from far and wide, with a dozen or so new residents buying high-end properties last year, Holland said.

There was a high likelihood more sales would follow, with an influx of  out-of-town visitors coming into the region for the Tremains Art Deco Festival, he said.

"With an increase of visitors to Hawke's Bay, we are experiencing an increase of enquiry and buying activity in the upper price bracket of the market.

"People are buying properties and often putting them into rentals for a couple of years, just to get in now ahead of the curve.

It definitely is a seller's market at present and looks to continue this way for the near future."

 - Stuff

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