A four-bedroom lakeside home fetched $8.45M last month as the prices of premium Wānaka properties continue to soar.

The property boasts lake views, three lounges, and modern appliances - but isn’t $8.45M still an incredible amount for a residential property without extravagant bells and whistles like pools, theatres or tennis courts? 

Not according to Proppys real estate agency co-founder Hannah Walker: “The emerging super [high] prices in Wanaka for luxury properties is not surprising to me right now. 

“Inflation and higher interest rates may be causing issues for the masses, but at the premium end of the market it is having very little bearing on purchasers’ behaviour.”

The homes.co.nz estimate for the property, while not a consistently reliable benchmark, estimates a value far off the sale price, at around $4.2M.

“In terms of a property like this the value is in the eye of the beholder,” Hannah said.

People are submitting “very big offers” for properties with superb views, locations and building materials, she said. Properties no longer need seclusion, significant acreage, or a series of luxury amenities to sell for many millions.

Real Estate Institute of New Zealand (REINZ) CEO Jen Baird said very deep-pocketed buyers were flocking to this area more than ever for the lifestyle offerings it provided.

Prices and confidence remain strong for these “upper-end, well marketed properties,” she said.

The allure of the area has also insulated Wānaka and its surrounds from the drop in sales prices seen around much of the rest of the country in recent months.

While the year-on-year median price indicated a median price drop of 43.3 percent to $635,000, Jen said much of that could be attributed to the fact there were dozens of sales of the Albert Town Riversides Residences townhouses. Without them, the median price would still sit at $1.22M.

Hannah said she believes the demand, and subsequent high prices, for top-tier properties will continue into the winter months.

“With this also coupled with expats coming in from Australia, Singapore, Hong Kong and the United Kingdom after a long break from the Wānaka market, I believe we will see very strong prices in the higher end of the market with strong demand.”