PHOTO: Bindi Norwell, Chief Executive at REINZ
An analysis of some of New Zealand’s most popular holiday hotspots has shown that they have not been immune to the increasing median prices seen in 2020 with some areas increasing more than 50% when compared to the same time last year, according to the latest data from the Real Estate Institute of New Zealand (REINZ), source of the most complete and accurate real estate data in New Zealand.
Akaroa, a popular nearby holiday spot for Christchurch residents, has seen the strongest median price increase for New Zealand holiday hotspots, up 58% year-on-year to $830,000 for the 3 months ending November 2020 (from $525,000 for the 3 months ending November 2019).
Additionally, Waihi Beach, the beachside village destination in the North Island, saw the median price increase 50% year-on-year from $700,000 for the 3 months ending November 2019 to $1,050,000 for the 3 months ending November 2020.
Bindi Norwell, Chief Executive at REINZ says: “Beach destination holidays have always been a significant part of Kiwi culture and this year’s research into holiday hotspot prices show that demand has increased in 2020. This comes as no surprise, considering overseas holidays aren’t an option for many New Zealanders this year, and Kiwis are instead looking to our own shores for a more long-term option.
“Additionally, with the various lockdowns that New Zealanders have experienced this year, we’ve noticed that individuals and families have taken a closer look at their living situations and some have decided that they now have the option to relocate to a beach-side destination and work remotely, or have a secondary/holiday home that they can ‘escape’ to, should we find ourselves in a similar lockdown situation again,” she continues.
However, some holiday hotspots’ median price has decreased, such as Onetangi where prices dropped 17% year-on-year from $1,105,000 for the 3 months ending November 2019 to $921,000 for the 3 months ending November 2020. This is likely due to the fact that many properties on Waiheke have been used as Airbnb properties and these may not have seen the same returns throughout the year, meaning owners are opting to sell instead.
“New Zealand’s most expensive holiday hotspot of Omaha, also saw median prices increase 22% year-on-year to $2,151,000 for the 3 months ending November 2020 (up from $1,765,000 for the 3 months ending November 2019), however, this was down from its peak earlier this year of $2,350,000 for the 3 months ending April 2020,” concludes Norwell.
Sales volumes for Waihi Beach also increased significantly from 14 sales for the 3 months ending November 2019 to 40 sales for the 3 months ending November 2020, further confirming the popularity and demand for property in the white sand destination. Although prices went down in the Waiheke location of Onetangi, sales volumes were up from 7 for the 3 months ending November 2019 to 14 for the 3 months ending November 2020.
|Location||Median price 3ME Nov 2019 ($)||Median price 3ME Nov 2020 ($)||% change||Volume sold 3ME Nov 2019||Volume sold 3ME Nov 2020|