Earning 38,000 a month! This year's biggest property market winner emerges! Bought for 980,000, sold for NZ$4,150,000!

This year's seller's market: the top 5 most profitable properties revealed, with 4 in Auckland! 

According to CoreLogic's latest Pain & Gain report, 5 transactions generated the biggest profits in this year's property market, making them the market's most profitable winners in 10 years. Of these, 4 were in Auckland, while the other was a property in Christchurch at Fendalton 31 Waiwetu St, which, over 7 years, generated a net profit of NZ$3,170,000 to become this year's most profitable property resale. Calculated monthly over 7 years, the owner's net profit was NZ$380,000 a month. That is already equivalent to the combined annual salaries of two upper-middle-income Auckland households. It is almost inconceivable!

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Records show that the property is in Christchurch's well-known Fendalton area, with good schools nearby and easy access to the central business district and airport. It has also won several architectural design awards, making it highly sought after.

At Auckland auctions this year, two properties on Waiheke Island recorded increases of 296% and 252% respectively, ranking as New Zealand's second- and third-most profitable properties this year.

One property, at 20 Matapana Rd, sold in February for NZ$710. Records show that the owner bought it in 2015 for NZ$2,400,000, yielding a resale profit of NZ$4,700,000 and an increase of 296%. Set on 1217 square metres, it has three bedrooms, three bathrooms, a spa, gym, wine cellar and swimming pool, along with unbeatable sea views over Palm Beach.

The other Waiheke property, at 4 Tiri View Rd, sold in February this year for NZ$4,600,000. The owner bought it in 2016 for NZ$1,825,000, making a net profit of NZ$2,775,000 after 5 years, an increase of 252%. The property occupies approximately 1396 square metres and has three luxurious bedrooms and three bathrooms, overlooking Palm Beach bay.

Two properties in Auckland's Parnell and Remuera recorded increases of 179% and 214% respectively, ranking as this year's fourth- and fifth-most profitable properties.

190 Remuera Rd sold in February for $2.9m more than it cost in 2014.

The Remuera property, at 190 Remuera Rd, is in zone for Auckland's highly regarded Auckland Grammar School and Epsom Girls Grammar School. It sold in February for NZ$5,500,000. The owner bought it in 2014 for NZ$2,565,000, meaning a net profit of NZ$293.5 over 7 years, an increase of 214%. It has 4 bedrooms and 3 bathrooms on 880 square metres, with a beautiful subtropical garden and swimming pool.

The property at 18 Awatea Rd in Parnell sold in May this year for NZ$6,800,000. The owner bought it in 2015 for NZ$3,800,000, making a net profit of NZ$3,000,000 after 6 years, an increase of 179%. Set on 728 square metres, the property has luxury amenities including a heated swimming pool, spa, gym, home cinema and wine cellar.

The resale profit on 18 Awatea Rd in Parnell came to $3m. 

CoreLogic chief property economist Kelvin Davidson said these luxury homes were all in areas popular with New Zealanders, highly sought after for both their natural surroundings and nearby amenities. However, the sale profits also reflected strong property value growth in recent years, particularly in Auckland.

Buying property in New Zealand almost guarantees a profit!

CoreLogic's latest report noted that this year, from month 1 to month 3, the median profit on house sales nationwide was NZ$315,000, up from NZ$291,000 at the end of last year, reaching the highest profit level on record.

This market growth benefited the vast majority of home sellers. The report revealed that the proportion of profitable resales in the first quarter of this year rose from 98.4% at the end of last year to 98.9%, the highest level in 25 years.

CoreLogic chief property economist Kelvin Davidson said these figures showed that the properties sold had recorded average annual price growth of approximately 25%. If the entire property market was rising at a similar pace, a property's location mattered little; the gains came from growth across the market.

Davidson said: “Second-quarter property market data shows that house price growth has slowed in recent months, suggesting the market is starting to cool. However, given the record resale gains in the first quarter, it will be difficult for either high-end or other properties to achieve such strong growth over the next few years. 

Davidson also noted that owner-occupiers were a factor to consider among these highly profitable resales. Owner-occupiers buy and sell in the same market, so their gains on paper usually need to go towards their next property. This also showed that some highly profitable resales involved owner-occupiers rather than speculators.

CoreLogic's latest figures show that, in recent years, buying property in New Zealand has almost guaranteed a profit, with the proportion of profitable housing resales reaching around 98.9%. In other words, almost one hundred per cent of New Zealand properties make a profit on resale. This also reflects that sellers gain the most from reselling after holding their properties for some time. 

These sales also offer a signal about the market, showing that activity is strong across both the high end and the middle and lower price brackets.

The overarching lesson is that patience is key to property investment. New Zealand's property market trends over the past 10 years suggest that price growth and returns will continue for homes held over the long term. Market signals also indicate that the forces driving growth are currently consistent across all price brackets.