It’s certainly been awhile since my last newsletter, my apologies for the lack of communication. Early this year, it became apparent that I needed to have some body maintenance work in the form of a neck disc fusion, this meant I was out of action physically for a few months. I have been back at work since the end of April and certainly it’s been a busy time. Three properties sold during April and the end of May, the beautiful tropical oasis at 186a Kohimarama Road, 39 Norwood Road Bayswater that boasted Riparian Rights and the stunning, sensuous, city house at 4 Ring Terrace St Mary’s Bay, in total over $13 million of sales. I am currently offering a beautiful apartment at 709E Remuera Road, very spacious with over 175 square metres of living and views from the deck of the harbour in a boutique building of only six apartments. This is seriously good buying at $1,350,000.
What is happening at the top end of the residential market?
While there have been some great sales and some record breaking prices, but I predict that we will still see some growth in this segment of the market. The growth in the residential market has risen from the bottom, strongly fuelled by immigration and investment purchasers looking for better returns than a few percent per annum in the bank. While the top end of the residential market has certainly seen some growth, I consider it to be undervalued in comparison to the mid and lower end of the market. With the cost of construction at record levels coupled with the increase in land values the replacement value of these homes far exceeds the current sale value.
I have received a number of calls from purchasers seeking that special home in Remuera, Eastern Bays and across the city to St Mary’s Bay and Herne Bay. Certainly there are genuine buyers trying to upgrade their homes or location and there is a serious shortage of these homes currently on the market. Hence, we are seeing quite a few “off market sales” where agents are approaching homeowners to sell, often achieving premium pricing above current values. This indicates to me that we are on the edge of a lift in the value of premium property. If you are thinking about selling, please let me know, I am happy to just give advice, or keep you up to date with sales in your area.