Auckland’s dominance in the ultra-premium residential property market is slipping, with high-net-worth home buyers increasingly looking to Queenstown and the Bay of Plenty.

New research based on Real Estate Institute of New Zealand (REINZ) data reveals that only 152 properties valued at $5 million or more were sold across New Zealand in 2024, marking a 55% decline from 2021.

Meanwhile, the overall property market saw 72,484 sales across all price points—down 19% from the 2021 peak.

Luxury real estate agent Caleb Paterson of Paterson Luxury Real Estate says Auckland’s share of this exclusive market has shrunk significantly.

“In 2019, 82% of all $5 million-plus sales happened in Auckland. By 2024, this had dropped to less than 73%,” he says.

While Auckland’s ultra-premium property sales have declined by 14% in the past year, Queenstown has seen a 91% year-on-year increase.

Over the longer term, Queenstown’s $5 million-plus sales rose 21% between 2021 and 2024, despite the district’s total property sales declining 13% over the same period.

The Bay of Plenty’s high-end market has also shown resilience.

“Total sales in the region have fallen 19% since 2020, yet properties in the $5 million-plus bracket have increased by 6%—with a notable 20% lift between 2023 and 2024,” Paterson explains.

These shifts suggest a wealth transfer, with ultra-high-net-worth individuals choosing lifestyle regions over Auckland’s commercial centre.

Despite the downturn in sales, Paterson believes Auckland’s ultra-premium segment is set for a resurgence.

“The last quarter of 2024 had the lowest sales volume of the year, but we’re seeing signs of recovery,” he says.

The recent adjustment of the Official Cash Rate (OCR) has played a role in restoring confidence.

While luxury home buyers are less reliant on borrowing, lower interest rates signal broader economic stability, increasing market engagement.

Paterson notes that the past few years have been challenging for the high-end market.

“At one point, over 40% of multimillion-dollar homes were withdrawn due to lack of interest. But many of these have now reentered the market, and buyer engagement has picked up over summer,” he says.

A growing trend in New Zealand’s luxury property sector is discreet, off-market transactions.

Paterson says his firm offers an advocacy service where they locate homes that meet ultra-high-net-worth buyers’ exacting needs—whether listed for sale or not.

“This service is common in North America but relatively new in New Zealand,” he says.

“Some buyers seek a property with a helicopter landing pad, others want the worst house on the street to transform into the best.

Many will pay 10-15% above market rates to secure a unique property that isn’t advertised.”

While Queenstown and Bay of Plenty have gained momentum in the ultra-premium market, Auckland’s luxury sector may be at a turning point.

With renewed confidence and increased buyer activity, the city could reclaim some of its lost market share in 2025.

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