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Bargain hunters have a golden chance to grab a piece of coastal paradise among the celebrities of Omaha in New Zealand...

At least 17 properties are being put on the auction block next Sunday, and up to 90 more are advertised for sale, amid rumours tough economic conditions are prompting wealthy owners to sell off second homes and sections.

Omaha, about an hour's drive northeast of Auckland, is a holiday playground for Prime Minister John Key, fashion designer Trelise Cooper and Dean Barker, among others.

Reaction to the sell-off could indicate whether it has retained its allure as one of New Zealand's most upmarket beach resorts.

Mark Macky, Director of Bayleys North Auckland, which opened an office in Omaha two weeks ago, has heard speculation about the resort's future, but said it was not borne out by facts.

He described Omaha as a "wealthy" market, and with the "who's who of Auckland" owning homes there, public interest was always high.

But he said the number of properties on the market represented only six per cent of the resort's total.

That isn't a lot. We have more buyers than sellers at the moment."

Macky said Omaha was not immune to the recession, prices were on a "downward trend" and sales volumes had slumped.

Only about nine sections sold last year, compared to more than 50 in 2007.

Macky accepted that if people were under financial pressure, second homes were often the first assets to be sold.

"But we are not expecting a wave of mortgagee sales. I think it's complete hype."

Michael Dow from Omaha Beach Real Estate said the "perception" of greater movement in the area may be down to adverts for his company's auction next Sunday.

"There are in fact no more properties available for market in the whole of Omaha than there was a year ago."

The resort is a work in progress. Homes are still being built, the first shop and real estate office opened just after New Year, and a restaurant is still at the planning stage.

But the difference between the northern and Southern ends of the spit is striking.

The more established northern end, where Key has a holiday home, is like many other coastal settlements, with plenty of modest 70s and 80s-era houses and mature tree cover. There appears to be little property for sale there.

The Southern end is a different story. Huge, architecturally-designed homes, some of them resembling severe concrete bunkers, are separated by manicured lawns and empty sections, sprouting plantations of For Sale signs.

It can be hot and glaring in the midday sun, with little shelter from the recently planted trees.

But the beach is glorious and, according to one new homeowner gutting enormous snapper outside their "bach", the fishing is great.

Trish Smith moved into her new home in December after shopping around for six months.

"We were surprised, we found that people were sticking to their prices. All the land agents said that was the case. Finally we managed to find a place in our price range."

Dow denied cash-strapped developers were behind the sales of sections, pointing out almost all the properties were individually owned.

"The only likely downsellers are young couples who purchased sections at the Southern end when interest rates were around seven per cent, which then moved to 10 per cent."

Asked if he expected bargains, Dow said he believed vendors would be "more realistic" about buyers' market expectations. But, unlike Macky, he said prices had not fallen, despite a "substantial drop" in sales.

Source: NZ Herald