Tuesday: Million dollar home sales on the rise

Although there was a time when a million dollar home seemed a rarity, the latest figures from the Real Estate Institute of New Zealand reveal homes in this category are on the rise.

In 2012 there was a 36% jump in the sale of homes exceeding $1 million, increasing from 2093 to 2846.

Home sales exceeding a million dollars make up a small minority – 3% – but prices are strong and growing in the Auckland and Canterbury regions.

While million dollar homes are becoming common, getting past the $5 million mark is a hard task even for luxury homes.

Last year there were 17 homes nationwide that sold for over $5 million. Of those, 14 were in Auckland.

Although last week the sale of an Auckland mansion for $8.1 million gave hope for a big year ahead, industry experts said a price tag this high was a rarity. 

Real Estate Institute chief executive Helen O’Sullivan told NBR NZPI sales of that size were few and far between. 

“While the Auckland property market is picking up and we are seeing price increases, this is at the remarkable end of the spectrum.”

Homeowners and Buyers’ Association president John Gray said such a sale was very rare and did not reflect the difficult market.

“Its importance has been overstated. It is one isolated sale in the very upper bracket of the Auckland market.”

“From what we have observed within the upper brackets, the $3 million plus homes have been sluggish.”

The increase in million dollar homes however, has had Ms O’Sullivan rethink how her organisation collects real estate data.

“Previously we counted $1 million plus homes as our highest category. We are rethinking this.”

Waitakere City in Auckland has seen the largest increase of million dollar plus home sales – 58% – as its figures increased from 12 to 19 sales. Auckland City saw the most sales of million dollar homes, with over 56% of the nation’s million dollar home sales.

While Auckland, Christchurch and Queenstown all recorded increases, Wellington, Taupo, Hastings and Rotorua had decreases.