Sentinel, is New Zealand’s tallest and newest NZ$137 million luxury high-rise, and there could be some good deals on re-sales for the smart investor.

Located in Takapuna on Auckland’s North Shore the Sentinel is only recently completed and several cash-strapped purchasers have been forced to forfeit thousands of dollars in deposits because they cannot afford the new units they had contracted to buy.

Presumably these were speculators who got caught: they never intended to settle, but to on-sale the apartment before settlement. Auclands slower property market has seen the end of those quick flicks. Though even owner occupiers who where “down-sizing” from the family mansion may be having trouble selling their current homes in order to settle.

That is a far cry from action in the tower a year ago when a form of opportunistic “futures trading” was taking place on some Sentinel units which were selling more than once, even before the block was finished.

Unit buyers engaged in a flurry of title trading in the hope of making quick money. For example, some units which fetched around $900,000 originally had resold for more than $1 million, the tower’s marketers said last year.

According to their own sales copy:

“Rising above Takapuna Beach, The Sentinel is one of the most luxurious residential apartment towers in New Zealand. This stunning new landmark offers elegantly designed residences with spectacular views. Designed to rival the world’s five-star hotels with amenities and services that are anticipated and met. The Sentinel heralds the arrival of 21st century urban living!”

The appeal of the location is undeniable: the beaches are attractive on the North Shore and unlike most of the CBD high rises, Sentinel was developed to appeal to both owner occupiers and tourists. If you still have your day job then commuting via the Devonport ferry is an attractive option to dealing with Auckland’s notorious traffic congestion.

Several apartments are being advertised for around the $900k mark so it might be time to make a cheeky offer. Or if you want to try before you buy you can rent a 2 bedroom apartment high in the tower for approximately NZ$2000/week

Just released, Mercer’s 2008 Cost of Living Survey makes some interesting reading for those considering a move downunder, that is to Australia or New Zealand.

The Mercer’s survey looks at comparative costs for an expatriate moving to each of 150 world cities. The 2008 survey confirmed Moscow as the world’s most expensive city, the “winner” for three years in a row. Tokyo and London were second and third most expensive respectively The survey is still dominated by Asian and European cities in the top 10 spots but the Australia and Pacific region has been catching up - based, at least in part, on the weakening of the US dollar against most other major currencies.

Sydney is still the most expensive city in Australasia, according to Mercer, and has moved up six spots to 15th place. Comparatively other Australian cities have closed the gap. Melbourne is 36th place, jumping 28 places and Perth has jumped 31 places to reach position 84. Brisbane is at 57th place, up 29 places and Adelaide is 73th- up 23.

New Zealand’s cities remain the less costly option for expatriates, however, with Auckland in 78th place and Wellington in 93.

The survey is comparative based on New York City costs so the drop of the US$ against the Australian and New Zealand dollars has had a significant effect which may not be relevant for locals. The survey was conducted in March 2008 and reported the cost of 200 items such as housing, clothing and food in 143 cities on six continents. The survey only reflects costs not actual incomes in the cities involved either, or the availability of work. It is clear to see the effect of the mining boom on demand and therefore costs on cities such as Brisbane, Perth and to a lesser extent Adelaide.

Looking for a cheaper option? Asunción in Paraguay is the least expensive city in the ranking for the sixth year running.

Photo Credit: Luxury Paris Hotels