Auckland’s Share of Luxury Property Sales Declines as Regional Markets Surge

Auckland’s ultra-premium property market has faced increasing competition from other regions, with new data revealing a shift in $5 million+ home sales across New Zealand. As high-net-worth buyers diversify their investments, Queenstown and the Bay of Plenty have seen notable growth in luxury property transactions, while Auckland’s share has declined. Recognising the importance of these shifting market dynamics, Impact PR worked with Paterson Luxury Real Estate to provide expert analysis and insights to the media. As a leading PR agency Auckland businesses rely on for strategic storytelling, Impact PR secured widespread coverage across major news platforms, ensuring the data-driven story reached key stakeholders and property investors. This campaign helped highlight the trends shaping New Zealand’s high-end real estate sector, positioning Paterson Luxury as an authority in the market.

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Auckland’s high-end property market is facing increased competition from other regions, with new data showing a shift in ultra-premium ($5 million+) home sales across New Zealand.

An analysis of REINZ figures reveals that in 2024, just 152 properties valued at $5 million or more changed hands nationwide, marking a 55% drop from 2021 levels. Across all price brackets, 72,484 residential properties were sold, a 19% decline from the peak of 2021.

Caleb Paterson of Paterson Luxury Real Estate says that while Auckland has long been the dominant market for high-net-worth homebuyers, its share of luxury transactions is diminishing.

“In 2019, Auckland accounted for 82% of all $5 million+ sales in New Zealand. By 2024, that figure had dropped to 73%, reflecting an increasing appetite for ultra-premium homes outside the city,” he says.

At the same time, Queenstown Lakes has strengthened its foothold in the high-end market. While total property sales in the district fell 13% between 2021 and 2024, sales in the $5 million+ category surged 21% over the same period—including an extraordinary 91% increase between 2023 and 2024.

Auckland’s luxury market, by comparison, saw a 14% decline in $5 million+ sales over the past year, while the Bay of Plenty’s ultra-premium sector has also gained momentum. Despite a 19% reduction in overall property sales since 2020, the number of homes selling for over $5 million in the region climbed 6% over that period, with a 20% jump between 2023 and 2024.

Paterson says the figures suggest a redistribution of wealth within the property sector, with regional hotspots increasingly attracting high-net-worth buyers who might have previously focused on Auckland.

“The ultra-premium market makes up around 1% of total property transactions, but this shift represents a significant migration of wealth away from Auckland, New Zealand’s commercial hub.

“In Queenstown alone, homes worth at least $415 million have been sold in the past six years, with 28% of those sales occurring in the last 12 months. The Bay of Plenty has also seen at least $180 million in luxury property sales over the same period.”

Paterson says while some buyers are moving out of Auckland, others may be overseas investors or high-net-worth individuals from other parts of the country, boosting regional property markets.

Resurgence Expected in Auckland’s Luxury Market

Despite recent declines, Paterson expects Auckland’s high-end property market to stabilise and recover over the coming year, following an extended period of volatility.

“The final quarter of 2024 saw the lowest sales volume for the year, but we are now seeing early signs of a turnaround, particularly in the ultra-premium segment.

“This follows a challenging period where over 40% of multi-million-dollar homes were withdrawn from sale due to a lack of buyer interest. Many of these properties have now returned to the market over summer, with stronger levels of buyer engagement. Every property in our current portfolio has seen an uptick in interest and viewings over the past month,” he says.

Interest Rate Shifts Restore Confidence

Paterson notes that while OCR adjustments have boosted activity in the broader housing market, their influence on luxury property is different.

“Buyers at this price point are less reliant on mortgages, but they still look to interest rates as an economic confidence indicator. The recent adjustments are sending positive signals, and we’re now seeing that translate into increased enquiry and transactions in the top-tier market.”

Concierge Services Driving Off-Market Deals

Paterson Luxury also operates an advocacy service for ultra-high-net-worth clients, sourcing off-market properties that match specific requirements.

“This model is widely used in North America but hasn’t been adopted as extensively in New Zealand. Many of our clients have very particular requirements, whether it’s a helicopter landing pad that won’t disrupt neighbours or space for an indoor horse arena.

“Others are looking for the best house on the street, while some want the worst house they can transform into something exceptional. These buyers are typically willing to pay 10-15% above market value for a property that fits their brief,” he says.