Luxury property sales drop by more than 50 percent

New data shows luxury property sales across the country have dropped by more than 50 percent in the last four years.

Statistics from the Real Estate Institute reveal only 152 properties valued at $5 million dollars or more were sold across New Zealand last year - a figure down 55 percent from 2021.

Luxury sales in Auckland dropped by 14 percent in 2024.

Other regions like the Queenstown Lakes District saw a 91 percent increase in sales between 2023 and 2024, and sales in the Bay of Plenty rose 20 percents in the same period.

Paterson Luxury Real Estate's Caleb Paterson said they had seen a number of luxury properties brought onto the market, only to be withdrawn a few months later due to a lack of interest.

"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," he 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.

"If we are seeing signs of an exodus from Auckland or simply a sharp increase in the number of high net worth families populating regional New Zealand from overseas or other parts of the country, a wealth transfer of this level may have repercussions for businesses in all three regions, particularly if it continues on its current trajectory."

Paterson said while the last quarter of 2024 saw the lowest volume of sales, early indications suggest a resurgence of ultra-premium property sales in Auckland.

"Looking at our current listings, every single property has had an increase in engagement and viewing over the past month."