The number of homes in Auckland that have sold for more than $1 million in the past 12 months has increased by 29 percent over sales for the previous 12-month period.
For the 12 months ending February 2012, the City’s leading real estate company Barfoot & Thompson sold 676 homes for more than $1 million compared to 526 for the 12-months ending February 2011.
The same trend is evident for homes sold for between $2million and $3 million, with 64 being sold in the last 12 months, an increase of 36 percent.
“Significant factors contributing to the increase in million dollar homes are the investment owners are making in upgrading and modernising properties, and new homes that are being built targeting the top end of the market,” said Peter Thompson, Managing Director of Barfoot & Thompson.
“It is not solely down to prices increasing.
“Greater interest in the high end of the market is coming through a combination of returning expats, new arrivals to Auckland looking in this price category and a growing number of locals prepared to invest that level of money in the right home for them.
“The trend towards selling for more than a million dollars is particularly noticeable in the suburbs that surround the central business district, and along the eastern beaches.”
Mr Thompson said there was a steady market in homes that sell in the $3 million to $4 million category, with 20 being sold over the past two years, along with 10 in the $5 million and over category.
He said that in the first two months of 2012 the trend for high value sales showed no sign of slowing, with 81 homes selling for more than $1 million compared to 50 for the comparative period 12-months earlier.
“You have to go back to the peak selling year of 2007 to find more $1 million homes sold in the first two months of a new year.”
Mr Thompson said the suburbs with the highest percentage of sales over a million dollars were Herne Bay (where 64% of the company’s sales were in excess of $1 million), Epsom (46 percent), Devonport (43 percent), St Mary’s Bay (42 percent), Remuera (40 percent) and St Heliers (38 percent).