Luxury property sales nationwide have experienced a decline of over 50% during the past four years, new data from the Real Estate Institute has revealed.
Last year, New Zealand saw the sale of 152 properties valued at $5 million or more, marking a decline of 55% compared to the sales in 2021.
In terms of regional trends, Auckland saw a 14% drop in luxury sales in 2024. Meanwhile, Queenstown Lakes District bucked this trend with a notable 91% increase in luxury property sales between 2023 and 2024. The Bay of Plenty also experienced growth, with a 20% rise in luxury property sales during the same period.
“The figures show a considerable shift in regional demand with Queenstown and Bay of Plenty picking up a share of the very top end of the residential market, potentially at the expense of Auckland,“ Paterson Luxury Real Estate’s Caleb Paterson said.
“While the $5 million-plus market makes up only around one percent of the total market, this could represent a noticeable migration of wealth out of the country’s commercial centre,” he added.
According to Paterson, there are indications of either an exodus from Auckland or a significant influx of high-net-worth families into regional New Zealand from abroad or other parts of the country. This substantial wealth transfer could have repercussions for businesses in Auckland, Queenstown, and the Bay of Plenty if it continues at its current pace.
There are also some early signs indicating a potential resurgence in ultra-premium property sales within Auckland, with current listings showing that every single property has experienced an increase in both engagement and viewings over the past month. This suggests that despite previous declines, interest in high-end properties in Auckland may be increasing again.