- Foreign buyers are investing in Auckland’s luxury apartments, notably at York House in Parnell.
- Thomas McAlister says a Japanese buyer spent nearly $8m, and an American buyer $5.35m.
- York House offers high-end features and views, attracting both international and local buyers.
Some foreign buyers are bucking the trend of shopping for a mansion or a luxury lodge and have instead put their money into one of Auckland’s newest luxury apartment buildings.
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Thomas McAlister, Colliers’ national director of residential projects, said a Japanese buyer with an Active Investor Plus visa had spent nearly $8 million on a 217sqm sub-penthouse at the soon-to-be finished York House, in Auckland’s Parnell.
And a buyer from America had snapped up a 179sqm apartment in the same development for $5.35m.
York House is due to open at the end of this year and will have views of Rangitoto and the Waitemata Harbour, as well as the CBD and the Auckland Domain.
The interiors of York House have been designed by Amelia Holmes, one of New Zealand’s most sought-after interior designers and stylists. The architect is Monk Mackenzie. Photo / Supplied
Colliers national director of residential projects Thomas McAlister says almost half of the 44 apartments in the development have been sold. Photo / Supplied
The two sub-penthouses bought off-the-plan by the golden visa holders had three bedrooms, three bathrooms, media rooms and a scullery, as well as car parks and large terraces.
McAlister said while locals can be negative about their city, foreigners think highly of Auckland, and these buyers were drawn to York House because of the credentials of those behind the building. The developer, INT.RE Kajima (formally Icon Developments), is working in partnership with Precinct Properties, and is backed by Kajima, a Japanese mega-corp that is tied to some high-profile construction projects.
As of this month, 19 properties have been bought by foreign buyers through the AIP scheme. Thirteen are in Auckland, four in Otago, and one each in Waikato and Hawke’s Bay. US buyers lead the pack, making seven purchases, with Chinese buyers following close behind with five purchases.
McAlister had thought Queenstown would benefit most from the changes to the foreign buyer rules, but visa holders seemed to be targeting Auckland. His American buyer was based in Sydney but was fond of New Zealand and wanted to make Auckland her home, he said.
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McAlister said that for apartment buyers, there were few high-quality choices in Auckland. “The pipeline of high-quality residential apartments in Auckland is so narrow. There really are only a handful of buildings, and some of them are very boutique,” he told OneRoof.
It is not just foreign buyers interested in York House. Almost half of the development’s 44 apartments have been sold, mostly to locals, with a Kiwi buying a sub-penthouse for $6.3m. McAlister said wealthy locals were also showing interest in luxury apartments known as the Domain Collection, in Newmarket, which Colliers is also selling.
“When you look at something like Seascape and what a negative effect that’s had on the development market and on Auckland and all the alarm bells it’s sounded by what’s essentially like a no-name developer, this is the sort of antithesis to that.”
The Seascape is the $300m unfinished residential tower in Auckland CBD that is for sale "as is where is" following the collapse of developer Shundi Customs.
McAlister said Auckland had a lot to offer offshore buyers compared to some parts of the world where there were geopolitical issues and more crime.
New Zealand was seen as having safe legal systems and as an easy place to do business: “It has a lot of virtues that a lot of other parts of the world don’t have. Maybe our little city has more to be proud of than we give it credit for.”
The quality of life was exceptional in Auckland and within easy reach without the downsides of being a massive city, plus the climate was agreeable – people could go out on the water or for a run even in winter. “If you are living in North America or Tokyo and you’re sitting in the middle of winter, it’s bloody freezing. It can be -3 in Tokyo, and it can be -14 in New York.”
Other golden visa applicants were interested in York House as well, and McAlister said buying off-the-plan made the process much easier for offshore buyers, who were generally well-advised with a lawyer or immigration agent often guiding them behind the scenes.
Work on the Seascape apartment tower in Auckland’s CBD stopped in 2024. The tower and other properties owned by developer Shundi Customs are being sold by the receivers. Photo / Jason Oxenham
Sometimes these buyers were not overly emotional about their purchase, with a primary focus on getting their investment allocated, clearing immigration hurdles and then moving quickly to find a home.
Buying off-the-plan meant they were not competing at auctions or with difficult vendors, and with the more sophisticated developments, there was a lot of information so decisions could be made from their desk in Tokyo, Hong Kong, Singapore, Shanghai or New York.
“You can be looking at floor plans, you can be looking at body corporate budgets, you can be looking at fixtures, finishes.”
With Auckland’s chequered history with its older apartments, buyers liked new, and could understand how the building was built and any risks it might carry. “It’s good to see from my perspective, as somebody who works in the sale of new build high-end residential developments, it’s an area of the real estate market that hasn’t been on fire, and it’s good to see a particular group of people interested and committing to it.”
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