They’re luxurious, aspirational and exclusive, and the market for prime and super prime properties in New Zealand is bustling. Johnny Sinclair, Bayleys National Director of Residential says there’s clear definitions for prime and super prime properties, with each based on a property’s geographic location.

“Outside of Auckland, a prime property is priced at between $3 million and $5 million. To be super prime, it would need to be sold for more than $5 million.”

“In Auckland, a prime property is $5 million to $7.5 million, and a sale of more than $7.5 million is classed as super prime.”

While usually well-capitalised buyers of luxury properties keep the market relatively stable, the latest Bayleys Q3 Super Prime residential market update revealed it wasn’t completely immune to the economic downturn. But with the Reserve Bank lowering interest rates, and economic forecasters predicting a rise in house prices over the next two years, things are starting to turn around.

“We've definitely seen activity pick up, particularly over the last month or so.”

WHO’S BUYING?

With such a high-end price range, who’s in the market for a super prime home?

Sinclair says the pool of buyers is a lot smaller than the mainstream market, but they’re highly engaged.

“There's about 1500 high net worth individuals that have got an asset base over $30 million. They’re people who have done well in property, own their own business or offer professional services, like a lawyer or doctor.”

“This group is made up of both expats, and people residing in New Zealand.”

While out of region and overseas buyers tend to play a greater role in the super prime market, analysis of buying patterns in the Q3 update shows that many are often already living in the local area.

WHAT DO YOU GET WITH A SUPER PRIME PROPERTY?

Sinclair says most super prime properties are found in Auckland and Queenstown, “with some sprinkles of it along the Tauranga and Mt Maunganui waterfront.”

“If there is something worth more than $5 million plus in the regions, we’d generally say it'll be coastal of some sort, lakefront or riverfront. The stats back that up with nearly half of super prime homes sold in the regions during Q3 being located on the water’s edge.”

When it comes to the specs of the house, Sinclair says the majority come with four or more bedrooms.

“You’re likely to find extra features like infrared saunas, or wine cellars too. If you're dealing with successful business people you're looking at a study of some sort as well.” “If you've got a young family, a rumpus room and extra bedrooms are often in demand to create separate areas for kids and parents.”

A sizeable garage is also high on the list of requirements.

“Generally these buyers have more than two cars, so garaging is right up there and it’s usually assumed there’ll be a swimming pool.”

Nearly three quarters of Q3 sales in Auckland came with a pool, while 21 percent across other regions did.

But while pools were extremely popular, tennis courts were harder to come by. Just 13 percent of sales in Auckland, and 4 percent across other regions were sold with the space to hit a few rallies.

Sinclair says those in the market for super prime property are also usually looking for something to properly house or display their passions too.

“There’s a home in Auckland where there was a need for enough wall space to hang $4.5 million dollars worth of artwork.”

“When, when you're getting into super prime, a lot of the time these people will actually buy something that is already 100% complete, but they’ll want to put their own fingerprint on it as well.”

Many of these buyers also have a fine attention to detail, and will often focus on the home’s finishings.

“These buyers know brands, they know quality. There are selling features that they’re aware of that go right through to tapware, sound systems and even air conditioning units.” Sinclair says super prime buyers will often wait months, even years until they find the perfect home with the features they desire.

“They can afford to wait for the right thing to come up. I know of one person who ended up renting a place for two years before he could move into the place he decided to buy.. “Sometimes it takes that amount of time to find the perfect place.”