Region on the Rise: Auckland’s South-East

The relaxed, rolling hills of Auckland’s south-east ticks many boxes for vendors at the high end of the market. Here, Carolyn Hanson, co-owner of the New Zealand Sotheby’s International Realty South-East Auckland office, looks at why the region is emerging as a prime location for luxury rural properties.

There’s a lot to love about the area located southeast of New Zealand’s largest city. Just a 30-35 minute drive from downtown Auckland, areas like Clevedon, Whitford, and Maraetai offer a distinct appeal. With expansive land, scenic landscapes, and access to the coast, these suburbs have become increasingly popular for those seeking tranquillity without sacrificing proximity to the city.

The ferry from Pine Harbour allows commuters to be in downtown Auckland in as little as 35 minutes.

Increasing demand and a changing market

In recent years, we have seen increasing interest from high-net-worth individuals looking for privacy, space, and exclusivity. The global pandemic reshaped property markets worldwide, and as a result, rural regions like South-East Auckland have seen a surge in interest among affluent domestic and international buyers.

It is a location that offers a rare combination of luxury living, city connection and rural charm. Buyers come in search of lifestyle properties and private retreats that will allow them to remain connected to the Auckland CBD.

We also see buyers looking for landholdings large enough to pursue equestrian interests, vineyards or farming. 

Rising demand has inevitably led to property price increases in the region. Over the past few years, prices have grown steadily. These properties, with their larger land holdings and unique appeal, have outpaced urban luxury counterparts in terms of value growth.

We expect this trend to continue as supply remains limited and interest in lifestyle properties shows no sign of slowing down.

In September this year, we saw the largest number of international property seekers searching online in over 12 months.

Those searching from Australia were up 35% year-on-year. Property seekers from the United States increased by 16%, and traffic from the UK was up 25% compared to the same time last year. We can assume that there would be plenty of expats within these figures looking to make the move back home. 

The appeal of the South-East

As a result of the area’s appeal, it’s no surprise we’re faced with a supply challenge. With much of the land in the area zoned for agricultural use or protected by environmental laws, there is only so much residential land available. Those lucky enough to secure a property here can be reassured they have made a solid investment. Limited land means these areas will only become more desirable in the future.

The recent sale of a Clifton Road Peninsula property, managed by our NZSIR South-East Auckland office, gives an indication of the growing interest in what the southeast has to offer.

This exceptional 5-hectare estate sold for $6.9M—$1.8M above its CV. With its prestigious address, stunning sea views, and beautifully designed architectural home, this property highlights the area's appeal and signals a return to the vibrant market conditions we observed two years ago.

Market outlook

Overall, we are seeing the high-end rural property market in South-East Auckland flourishing. Driven by increasing demand from both local and international buyers, this market offers a unique proposition. 

Across New Zealand, there has been a healthy lift in buyer activity following the recent OCR cut and a possible 50-basis-point cut coming on November 27th. With online searches and demand for NZ property on the rise, we anticipate things will turn towards more of a vendors' market later this year and early 2025.

With increased activity in the market, we’re seeing auctions making a comeback, a trend we expect to continue into the high season.

For properties in the $4M-plus range, we’re also seeing a rise in international tenders. This reflects both growing international interest and strong competition for premium properties.

As more people seek to escape the urban lifestyle, South-East Auckland’s rural luxury properties stand out as an attractive offering for those in search of space and serenity. Limited availability of land and infrastructure considerations will continue to shape its growth in the coming years.