New Zealand\u2019s biggest property traders<\/a>, replied that his team were not pushing prices up.<\/p>\nHe said trading was a risky business and his team ran a constant danger of making a loss if they couldn\u2019t resell the homes for higher prices. <\/p>\n
Hills\u2019 customers have also told the Herald they bought flipped homes from the agency and are happy with the service it gave them.<\/p>\n
Many smaller property investors also view traders positively, believing them to be among the industry\u2019s elite deal makers with a wealth of knowledge that can be shared.<\/p>\n
The differing opinions led the Herald to peer behind the curtain of 71 deals done by Hills Real Estate-linked property traders in recent years. <\/p>\n
We used public records and a list of sold homes from the agency\u2019s website to estimate the gains or losses on each deal.<\/p>\n
![\"Hills]()
Hills Real Estate-linked traders made an estimated $5.4m capital gain by flipping $54m worth of Auckland homes, including an estimated $176,000 gain on this home at 4 Coles Place, Manurewa, which they held for about 22 days. Photo \/ Supplied<\/p>\n
Millions in flipped price gains<\/p>\n
Hills-linked property traders made an estimated $5.4 million gain buying and selling 71 homes in recent years at an average of $76,242 per property, the Herald\u2019s analysis has found.<\/p>\n
The homes were mostly bought and sold in 2021 and 2024.<\/p>\n
That indicates the traders were active during the booming Covid-housing market, before they stepped away in 2022 and 2023, and then jumped back into the market last year.<\/p>\n
In total across the 71 deals, the traders bought homes for an estimated $54m and resold them for just under $60m.<\/p>\n
They successfully resold 61 of the homes for a gain, while making losses on 10.<\/p>\n
The biggest estimated gain was $307,174 in 2021 on a Randwick Park home at 78 Hyperion Drive, while the biggest loss was $66,087 on 12 Pesaro Pl in Clover Park also in 2021.<\/p>\n
The 71 deals include an estimated $1.7m gain in 2024 after the traders bought just over $20m worth of homes and resold them for about $22m.<\/p>\n
The deals also reveal a changing trading pattern.<\/p>\n
Homes flipped in 2021 mostly passed through the ownership of one trading company called Akrish Properties Limited.<\/p>\n
Prakash was listed as that company\u2019s director. It has since been placed into liquidation, with Inland Revenue claiming the company owes $1.8m in taxes. <\/p>\n
Prakash told the Herald the liquidation was caused by a change in the market and there was no risk of this happening with his other companies.<\/p>\n
Homes flipped in 2024, however, have typically been bought by a network of traders working together to put up the purchase costs and share in the profits.<\/p>\n
The capital gains are estimates only<\/p>\n
It is important to note the Herald\u2019s analysis is a best estimate based on public records.<\/p>\n
It is not intended as a definitive statement on the traders\u2019 total gains, profits or financial position.<\/p>\n
These 71 properties were chosen because it\u2019s been possible to confirm they were flipped by Hills-linked traders.<\/p>\n
Each has previously been listed for sale on the Hills Real Estate website and each has passed through ownership of a company with a Hills real estate agent as its director.<\/p>\n
However, these 71 properties are not a complete list – the Hills\u2019 traders have also been involved in other deals. <\/p>\n
The public records also might not capture the full information or rationale behind every deal.<\/p>\n
The homes could have been sold as part of a larger deal involving multiple properties, while off-market prices paid to developers for newbuilds might not be included.<\/p>\n
The estimated gains also do not include all the taxes and costs incurred, nor do they show how profits are divided between investors.<\/p>\n
![\"A]()
A home at 78 Hyperion Drive in Randwick Park is the flipped house that netted the biggest estimated gain of $307,174 from among the 71 Hills Real Estate-linked deals analysed by the Herald. Photo \/ Supplied<\/p>\n
Hills\u2019 trading philosophy<\/p>\n
Prakash told the Herald property trading is a \u201cvery risky\u201d business he doesn\u2019t readily recommend to others.<\/p>\n
Knowledge of the South Auckland market, relationships with real estate agents to help identify home sellers and buyers, and moving fast are all keys to successful deals.<\/p>\n
The aim is to buy the right homes \u2013 typically at prices under $1m \u2013 and then quickly find a new buyer for them before the settlement date arrives.<\/p>\n
Selling before settlement means traders typically only put up a deposit, without also paying so-called holding costs, such as interest rates on a mortgage.<\/p>\n
Back in 2021, it was easier to use this technique to net a profit because Auckland house prices were skyrocketing. <\/p>\n
However, making a profit in 2024 and early 2025, when prices have been growing much slower or have remained flat, has been much harder, Prakash said.<\/p>\n
Prakash and fellow Hills Real Estate agents Artika Prakash and Vashneel Prasad subsequently changed their trading philosophy in 2024.<\/p>\n
That involved teaming up with other investors in a type of trading ecosystem.<\/p>\n
![\"Hills]()
Hills traders made an estimated $195,217 capital gain selling this newbuild at 59 Minhas Road in Papakura. Photo \/ Supplied<\/p>\n
The other investors typically put up the initial investment costs, such as deposits for purchases, Prakash said.<\/p>\n
In return, the Hills team identifies which properties to buy and then pays the investors a guaranteed return or margin based on the gains, he said. <\/p>\n
\u201cWe give them good margins, and we have agreements so it\u2019s no risk for our investors,\u201d he said.<\/p>\n
Sometimes, it\u2019s not possible to on-sell the homes before the settlement date – which is often about three months long – arrives.<\/p>\n
That typically leads the traders to pass ownership of the home to another investor, who takes out a mortgage on the property.<\/p>\n
That investor then holds the home until the Hills traders can find an end buyer. <\/p>\n
The Hills team has to in turn pay a substantial fee to the investor for this service, Prakash said.<\/p>\n
\u201cOnce that happens, it\u2019s a big loss, they will say: \u2018Hey, give us $10,000-$20,000 a month just for holding,\u201d Prakash said.<\/p>\n
The deals can also become complicated.<\/p>\n
![\"Hills]()
Hills Real Estate director Rickhil Prakash said their purchase of 88 Lawrence Crescent in Hill Park did not go well because they discovered there were problems with the home’s roof, which have since been fixed. Photo \/ Supplied<\/p>\n
Some of the flipped homes analysed by the Herald involved trading companies selling the same property to each other up to nine times in quick succession – sometimes on the same day.<\/p>\n
Prakash said the rapid sales and change of ownership was a way to divide the gains between the investors.<\/p>\n
Overall, trading in 2024 had proven difficult and a trader \u201cshould be happy\u201d if they make $10,000 or $20,000 after all the costs, he said.<\/p>\n
\u201cRewards are small after [the] agents\u2019 fee, legal fee and after tax,\u201d he said.<\/p>\n
\u201cYou can lose lots of money if you don\u2019t know the market and network.\u201d<\/p>\n
While he didn\u2019t recommend trading\u2019s high stakes, he was willing to work with and pass on his knowledge to others, he said.<\/p>\n
\u201cSharing is caring,\u201d he said.<\/p>\n
Happy customers?<\/p>\n
Prakash disputed claims his team pushed house prices up.<\/p>\n
Successful flipping required that he find bargains at the \u201cright price\u201d and then sell them at \u201cmarket price\u201d, he said.<\/p>\n
\u201cWe only sell what it\u2019s worth, we can\u2019t sell higher than market price,\u201d he said.<\/p>\n
Those that buy from Hills know they are buying at market price because their banks make them get independent valuations before granting them a mortgage, he said. <\/p>\n
His team always tell – both those they buy from and those they sell to – that their aim is to onsell or flip the homes, he said.<\/p>\n
![\"The]()
The home at 57 Old Barn Rd in Opaheke appears to be the second best deal done by Hills traders with an estimated $245,000 capital gain. Photo \/ Supplied<\/p>\n
Hills\u2019 traders also often take on the most risk in a flip, he claimed.<\/p>\n
That\u2019s because they regularly buy unconditionally at auction.<\/p>\n
Yet when they on-sell, the next buyer nearly always signs a conditional purchase agreement that is dependent on the home being given a green light from pre-purchase building and toxicology reports.<\/p>\n
He pointed to one recent purchase where a home was only found to be contaminated and have building issues as a result of the next buyer\u2019s pre-purchase reports.<\/p>\n
Both the seller and the buyer were the winners from that transaction, Prakash said.<\/p>\n
\u201cLosing side here is us because we have to clean someone else\u2019s mess\u201d before selling it, he said.<\/p>\n
Some families who bought flipped homes from the Hills Real Estate team also told the Herald they were happy.<\/p>\n
Some had sold older homes to Hills in return for getting a \u201cgood\u201d price to buy a newbuild from the company\u2019s trading team.<\/p>\n
![\"The]()
The retro-styled home at 495 Massey Rd in Mangere was bought and sold for a $230,000 estimated capital gain. Photo \/ Supplied<\/p>\n
Others said Hills\u2019 access to a wide variety of homes and network of real estate agents helped them find the perfect property.<\/p>\n
They also said Hills openly told them that its team had recently bought the home and what price they paid for it.<\/p>\n
Regulator\u2019s response<\/p>\n
Real Estate Authority chief executive Belinda Moffat said there was nothing preventing a real estate agent from acting as a property investor or trader, as long as they met certain conditions.<\/p>\n
\u201cWhile on-selling of properties within a short timeframe is not inherently unlawful … [the] REA may have an interest in whether any licensed real estate professionals (licensees) involved in such transactions are meeting their regulatory conduct obligations,\u201d Moffat said.<\/p>\n
\u201cSuch obligations may include disclosure of information about the property that should in fairness be disclosed to the parties, and disclosure of any defects in the property.<\/p>\n
She said other issues could also arise, \u201cincluding compliance with tax legislation and fair trading requirements, which may be addressed by the Inland Revenue Department, and Commerce Commission respectively\u201d.<\/p>\n
However, home buyer Sarah remains unconvinced about the traders\u2019 actions. <\/p>\n
She said she\u2019d spent four months hunting for a house and she believed the volume of flipped house deals was messing with prices.<\/p>\n
\u201cIt\u2019s difficult to trust real estate agents anyway,\u201d she said.<\/p>\n
\u201cAnd this is just adding to the stress of buying a property.\u201d<\/p>\n
Save<\/a>Share this article<\/p>\nReminder, this is a Premium article and requires a subscription to read.<\/p>\n
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