New Zealand super prime residential market update

New Zealand's super prime residential market in 60 seconds

Biggest trends

Mainstream market neutral but facing into headwinds

The mainstream market has seen prices tracking sideways across most regions, although the lower South Island has seen some growth. Sales volumes remain reasonable, but elevated supply is keeping pressure off prices. After a confident start to the year, the Middle East crisis and resulting oil shock introduced some hesitation to the market but this is likely to fall away as the conflict resolves.

Super prime market gets a boost from Golden Visas

Whilst the super prime market has largely followed the mainstream market, changes enabling Active Investor Plus visa holders to buy one home above $5 million have added a recent boost to confidence. Local and expat buyers remain the dominant buyer groups across this market, but Golden Visa buyers are now a noticeable buyer group primarily in Auckland and Queenstown-Lakes.

Interest rates still the key influence

Interest rates are now well below recent peaks but have seen some recent volatility due to concerns about inflation. While super prime buyers often have strong equity and are less affected by mainstream affordability issues, many of these buyers also have business interests exposed to borrowing costs and wider economic conditions so are in no way immune to interest rates.

Interesting facts

Some preferences never change

Homes in prestige locations with waterfront positions, water views or mountain outlooks remain at the core of the super prime market. These features are often difficult to replicate and continue to support price premiums, particularly where they are combined with privacy and high-quality homes.

Design varies at the top

Super prime homes vary widely in design, size and features. Homes are generally large, but bedroom and bathroom counts remain at functional level compares with some of the excess seen overseas. While tennis courts and swimming pools are often associated with this market, the data suggests they are far from standard features. Privacy appears to be a more consistent attribute.

Golden Visa buyers hit sensitive land hurdles

As with many buyers in the super prime market, Golden Visa buyers are often attracted to waterfront, coastal and lifestyle properties. These properties can be subject to sensitive land restrictions which may limit or prevent purchases under the scheme. Agents are helping these buyers identify properties with similar lifestyle appeal but fewer hurdles. Some buyers are also pursuing other visas or approvals to support their purchases.

Bayleys defines super prime as residential and lifestyle properties that sold for more than $5.0 million.