Wealthy Kiwis sell their treasure to stay afloat

A leading luxury real estate agent in Auckland, Michael Boulgaris, has claimed that the cost of living crisis is affecting even the wealthiest residents. He reports that many are selling off luxury items such as jewelry, sports cars, and designer handbags to pay their bills. Auction houses are struggling to manage the volume of luxury goods being sold.

Boulgaris noted that this behavior is similar to what he observed during the Global Financial Crisis (GFC). He stated that the luxury real estate market is currently flooded with expensive homes that have been on the market for years, indicating a compounding problem.

Dunbar M. Sloane, the managing director of New Zealand auction house Dunbar Sloane, confirmed that they are dealing with an increased number of items for sale. Some people are selling valuable items to avoid paying high insurance premiums or worrying about theft.

Despite the influx of luxury goods, high-end pieces are still in demand and commanding high prices. For instance, a rare Patek Philippe Nautilus watch recently sold for $140,000 at a Dunbar Sloane auction.

In addition to luxury items, people are also selling designer clothing and accessories. A recent auction saw a Hermès Kelly bag sell for $13,000, and Hermès and Chanel scarves sell for around $500.

Caolán McAleer, head of marketing at Webb’s, also reported an increase in the number of luxury fashion goods coming to market. He noted that some people buy luxury items as investments to liquidate in times of financial strain.

Christine Powers, head of Webb’s fine watches and jewels, mentioned that some big pieces coming to auction may fetch $20,000 to $40,000. She noted that the current market is favoring buyers due to the wide selection of items available.