As property values soar in Auckland, New Zealand, owners in the city are now searching further afield and investing in properties in other parts of the country.
Developments in Papamoa, a suburb of the sought-after area of Bay of Plenty on North Island, are reporting a building boom fuelled by demand from Auckland-based buyers.
Golden Sands sales and marketing manager Mark Day said he has sold 109 sections had sold since the end of January and 354 sites in the past two years – and at the last count, in November 2014, over 60% of buyers came from Auckland. Average deals were now selling for NZ$460,000 to NZ$480,000 compared to NZ$420,000 to NZ$430,000 about 18 months ago, says Day.
Coast Papamoa Beach director Steve Short has had 23 purchasers of house and land packages since January with 75% coming from of residents of Auckland. Venture Developments spokesman Mark Fraser-Jones said 40% of sales in the last 12 months had been to Auckland purchasers.
Realestate.co.nz chief Brendon Skipper conformed the trend, saying the number of Aucklanders looking at properties in other parts of the country had increased significantly over the year from last May.