The cost of living crisis is squeezing Kiwis at the top end of town, one of Auckland’s leading luxury real estate agents claimed.

Michael Boulgaris tells OneRoof that households in the city’s wealthier enclaves are selling off their jewels, sports cars and designer handbags to pay the bills.

The agent, who sells multi-million-dollar homes in Auckland’s prized double grammar zone, says auction houses were struggling to cope with the volume of luxury goods clients were putting up for sale.

In a newsletter sent out last week, Michael writes: “It’s tough out there and I am not denying the many challenges in real estate while mortgage rates are sky-high, which creates too many hurdles for buyers.

“I spoke to three major NZ auction houses this week. They all say there’s a huge backlog of items for sale, from high-end jewellery to art and furniture. People are selling quickly, reflecting the current economy and cashing out.”

Michael tells OneRoof he tracked all sectors of the luxury market, not just property, and he had seen this behaviour before, after the GFC.

“It’s tough for everyone across the board at the moment. I remember the GFC, when the luxury real estate market just stopped. I don’t believe anything sold over $2 million for six months.

“Now 15 years later, I’ve never seen so many expensive homes on the market. The market slowed down two years ago, but homes put up for sale then are still on the market, so the problems are compounding.”

Michael says he knew of people who were struggling to pay their children’s school fees and credit card bills. Selling items like luxury watches, sports cars and furniture was often easier than selling the family home.

“A lot of things don’t hold their value but sometimes things like high-end jewellery go up. You can sell these items for cash very quickly,” he tells OneRoof.

Dunbar M. Sloane, managing director of New Zealand auction house Dunbar Sloane, tells OneRoof the company was dealing with more items for sale.

Luxury real estate agent Michael Boulgaris: “A lot of things don't hold their value but sometimes things like high-end jewellery go up. You can sell these items for cash very quickly." Photo / Supplied.

“Across the board, the volume coming in for sale has gone up. We’ve seen this in the last few recessions. We’re just flat out at the moment. I’m having to hire more staff,” he says.

“As well as the normal estate [sales], we get people selling high-end jewellery or art or antiques. It’s what happens in recessions. I remember at the time of GFC we had far more stuff coming in too.”

Dunbar says some people were bringing in valuable pieces because they no longer wished to pay the huge insurance premiums or worry about theft.

“They’re getting a bit scared and they are selling their $50,000 ruby or whatever. It becomes a worry in terms of ownership and what it involves, sometimes their kids aren’t up for that,” he says, adding that some of his clients were cashing up and leaving New Zealand.

“It’s for various reasons, not just that they’re desperate for money. Some people decide to go overseas and say, ‘Well, we just not taking anything with us’.”

He added: “Parents pass away and the younger children don’t want their parents’ things. But these aren’t the ones desperate for money. Normally people with fabulous collections have independent wealth,” he says.

Dunbar says that while prices for middle-of-the-market items were dropping as a result of the extra influx of luxury goods, high-end pieces were in demand and commanding top prices.

At last week’s Dunbar Sloane auctions, a buyer paid $140,000 for a rare Patek Philippe Nautilus watch in its original box. Another Nautilus sold for $85,000. Diamond necklaces on the slate fetched between $14,000 and $16,000.

This 1993 Porsche 964 Turbo 3.6 sold for $462,000 at Webb's auctions in May. Photo / Webb’s.

“The money is there for the best art, best jewellery, best watches and best Māori artefacts,” Dunbar tells OneRoof.

Auction houses are taking on more staff to cope with the influx of luxury goods. Photo / Webb’s.

Clients aren’t just selling off the family silver, they are clearing out their wardrobes too. “The volume of people selling handbags has started to pick up,” Dunbar says.

A recent Dunbar Sloane auction saw a black leather Hermès Kelly bag sell for $13,000, below its $16,000-$20,000 estimate, and scarves from Hermès and Chanel sell for around $500.

Caolán McAleer, head of marketing at Webb’s, had noticed a pick-up in the number of luxury fashion goods coming to market, adding that “local fashionistas” were “happy to snap up vintage pieces at a fraction of” what they cost new.

He says that most of the company’s clients kept quiet about their reasons for selling, but notes that some did buy “things as investments for moments like this – to have assets ready to liquidate”.

“Since Covid we have seen a larger volume of clients bidding and buying at auction, although naturally at present we are feeling the same ebbs and flows as traditional retail,” he says.

Caolán says there had been some standout sales in recent months, though. In May, a buyer paid $462,000 for a 1993 Porsche 964 Turbo 3.6, one of only 1437 made. “It is one of the rarest Porsche models produced since the 959, and highly sought after,” Caolán’s catalogue notes.

And this month Webb’s sold a pair of Jessica McCormack diamond earrings for $26,887, a 4.01 carat diamond ring for $34,057 and a rare Hermès Birkin crocodile handbag for $38,240.

Christine Powers, head of Webb’s fine watches and jewels, says there were some big pieces coming to auction that may fetch $20,000 or $30,000, even $40,000.

“Obviously, it’s a bit of a buyer’s market at the minute because there is a bit of a selection,” she says.