Millionaires’ Row is now just Main St
Part One
SOURCE NZ Herald
5.00AM Sunday February 10, 2008
By Anna Rushworth
Olly Newland has been a property consultant and investor for 47 years but says ‘a million doesn’t tinkle the teacups’ in today’s Auckland market.
A million-dollar home was once the ultimate symbol of a highly successful life. But times have changed - and the days of landing a massive mansion for a seven-figure sum are long gone.
Twenty years ago the magic million would have secured a grand estate in the heart of the sought-after northern slopes in Auckland’s Remuera.
Now buyers attracted to the suburb are finding the same amount will buy only a basic bungalow or townhouse.
Olly Newland has been a property consultant and investor for 47 years but said “a million doesn’t tinkle the teacups” in today’s Auckland market.
“A million dollars would buy you a very nice house without any super luxuries - above average without being super duper.”
Newland said the market had gone through big changes, even in the past decade.
“Ten years ago it [$1m] would have bought you a major home in the best suburbs, with a pool, the whole lot.
“It probably would have got you five bedrooms at least, and several bathrooms.”
And in the 1980s the same sum “would have bought you a huge home, a mansion”.
David Rainbow, of Bayleys Real Estate, has been selling houses in Remuera for 24 years and thinks you can still buy well on a million dollars. “A million dollars is a lot of money, let’s not lose sight of that fact.
“You would get a nice house for a million dollars, obviously depending where you are.
“You probably would not get a view for a million in Remuera.”
Twenty years ago, Rainbow sold 37 Claude Rd in One Tree Hill for $1.35 million.
The three-storey character home was on the market for the first time and came with tennis court, three bedrooms and a double garage set in just over 0.4ha of grounds.
Ten years later he sold 87 Melanesia Rd in Kohimarama for $1.1m.
The modern home included three bedrooms and a rumpus room. “A million dollars bought you a lot.”
Five years ago Rainbow sold 63 Mt St John Ave in Epsom for $1.2m. The money didn’t go quite as far, although it still bought a “very picturesque” villa with a pool and double garage.
Prices have risen dramatically across Auckland in 30 years. A villa at 10 Wood St, Freemans Bay, sold for $280,500 in 1990, before leaping to $705,000 in 1998 and almost $1.8m in 2006.
Michael Boulgaris has also noticed big changes in the 21 years he’s been selling million-dollar homes in Auckland.
“Back then it was what $5m would buy you today, so it’s swimming pool, tennis court, lovely views. For a million today you’re looking at a very standard three-bedroom bungalow,” he said.
Carl Madsen of Barfoot & Thompson said that $1 million was now the “entrance level” for a house in Auckland’s Herne Bay.