New Zealand’s waterfront residential market in 60 seconds

Biggest trends

Wider residential market starting its recovery

Independent forecasts are typically predicting house prices will rise over the next two years. Strong migration and constrained housing supply are likely to continue to drive long-term price growth. In the short-term, price growth has been constrained by the impact of high supply of homes on the market for sale.

Interest rates the one to watch

Commentators typically believe that interest rates have peaked and will reduce over time. Interest rates remain a key pressure point for buyers so the future pathway for rates will likely be the main influence on houseprices in the short-term.

Wide variation in waterfront prices

While trophy homes often come to mind, analysis shows the majority of waterfront property sales involve more mainstream properties – often backing onto smaller rivers, inlets, etc. This is particularly apparent in the Auckland region which had the highest variation in waterfront prices due to many properties being located in lower priced sectors of the market.

Interesting facts

Auckland, Bay of Plenty and Otago lead the way

The regions with the most expensive average sale prices for waterfront properties were Auckland, Bay of Plenty and Otago. This aligns with these regions having generally higher house prices compared with other regions.

Lakeside price premiums beat coastal and riverside

Across NZ the average price premium for lakeside waterfront properties is higher than for coastal or riverside. Lakeside sales were mainly located in Otago, Bay of Plenty and the Waikato. The higher price premium may be influenced by larger average land areas, and the lakeside locations typically being outside of the biggest cities meaning surrounding homes may be cheaper.

Waterfront prices tempered by softer market

Compared with 12 months prior, the average price for waterfront sales and the waterfront price premium have decreased. This is likely due to buyers becoming more price sensitive amidst the softer market and less likely to take on significant additional debt for holiday homes given prevailing interest rates.

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