Most high-flyers hold on to homes

Rich New Zealanders are holding tight to their flash homes despite the credit crunch putting pressure on cash-strapped investors.

A check with real estate agents dealing in high-end homes revealed there are few bargains to be had in the multi-million-dollar market.

By comparison the Melbourne market has been swamped with expensive homes in exclusive suburbs as wealthy home owners feel the squeeze. Listings for high-end homes have leaped by 24 per cent in Melbourne, compared with the same time last year.

Parnell estate agent Graham Wall who deals in multi-million-dollar homes said Auckland was unlikely to experience the same glut because there were far fewer good properties in the city, nor were there thousands of wealthy young people as in Sydney and Melbourne.

Premium's Penne Milne said she had some high-end clients who were selling their homes to free up capital so they could take on new projects or develop businesses. Prices had dropped and the average sale time had increased from about 30 days to between 80 and 100 days.

To read the full NZ Herald story click here

Posted: 27 Nov 2008

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