House prices in the Canterbury beach town of Akaroa have jumped 58 percent in the last 12 months, new research from the Real Estate Institute of New Zealand shows.
Akaroa's median sale price in the three months to the end of November hit a new high of $830,000, up from $525,000 for the same period last year.
The increase was biggest enjoyed by New Zealand's holiday hotspots this year.
The new figures come as a bach in Akaroa recently sold for $2.4 million - more than $1 million above its 2019 rating valuation and the beach town's highest sale price this year.
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The 1970s three-bedroom home at 113 Beach Road was right on the waterfront and had retained its stylish mid-century characteristics. However, it was lacking a dishwasher.
Bayleys agent Chris Mangels, who brokered the deal for 113 Beach Road, told OneRoof that real estate in Akaroa had been undervalued for some time but increased buyer interest had turned up the heat in the market.
Instead of coming to Akaroa for just a holiday, Christchurch buyers were now relocating to the beach town and working remotely.
“We’ve had about seven sales over $1 million in the last six months and normally we’re lucky to sell one property for over a million,” he said.
“The houses in Akaroa are really cool, they are all very different and there’s a lot of stock that’s 10 years old or less,” he said.
Waihi Beach, at the foot of the Coromandel Peninsula, was the second hottest holiday spot for real estate, with the North Island beach town's median sale price for the three months to the end of November up 50 percent on the same period last year (from $700,000 to $1.05 million).
REINZ chief executive Bindi Norwell told OneRoof that while beach destination holidays had always been a significant part of Kiwi culture, this year the demand had increased due to the overseas travel ban.
“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,” Norwell said.
New Zealand’s most expensive holiday hotspot, Omaha, saw its median sale price rise 22 percent year-on-year from $1.765 million to $2.151 million.
The median sale price in Onetangi, in Waiheke Island, actually dropped 17 percent year-on-year, from $1.105 million to $921,000.
Norwell said this was likely due to the fact that many properties on Waiheke Island had been used as Airbnb properties and that these may not have seen the same returns throughout the year, meaning owners were opting to sell instead.
