The waterfront premium around New Zealand
While sitting on the beach this summer, did you find yourself looking around the nearby waterfront properties and dream? The team at homes.co.nz did too, and unfortunately the value of these homes often comes with a hefty waterfront premium.
It is no surprise that many of NZ’s summer hotspots see some of the largest waterfront premiums. Mount Maunganui tops the list with the median HomesEstimate of properties within 50m of the ocean valued at over $2.3M, almost 150% above the town’s median. Other towns with significant premiums for waterfront properties include Russell in the Bay of Islands and Picton in the Marlborough Sounds. Rotorua beats out Taupo for the biggest lakeside premiums with the median HomesEstimate of properties within 50m of Lake Rotorua being $942k.
Russell also saw the most expensive waterfront sale in 2020 with 49 Okiato Rd selling for $7M in February. The most expensive sale within 100m of the water was 7 Rarere Rd in Hauraki, which sold for $12.25M
There are also 4 suburbs in Auckland that have a waterfront club requiring a $4M entry fee. The median HomeEstimate for properties within 50m of the water in Campbells Bay, Parnell, Milford and Orakei all exceed $4M, with Campbells Bay topping the list with a median HomesEstimate of $5.19M, 166% above the suburbs median of $1.95M.
There were also a few surprises, indicating that being waterfront isn’t everything. Waterfront properties in Wellington’s Roseneath and Seatoun, for example, actually see a waterfront discount. Potential reasons for this include a higher premium being placed on views or the additional upkeep required for waterfront properties.
Another aspect to consider is the ongoing impact of climate change and potential difficulties in insuring waterfront properties. Homes.co.nz recommends you talk with your insurance company if considering a waterfront dream.
Monthly HomesEstimate Property Update
Trends in our Main Cities
We are seeing more of the same this month with the median HomesEstimate continuing to increase right across NZ’s main centres. The median HomesEstimate in Wellington is now $937k (up 18.1% p.a.) and is well on the way to joining Auckland with a median property value exceeding $1M.
READ MORE VIA HOMES.CO.NZ