mymarket Report How is the market? Lower North Island Summer 2015
The latest property market update for the Lower North Island region. Helping you with your property decisions. mymarket Report Values in the Lower North Island continue a sustained flat period since falling in the wake of the Global Financial Crisis. City, Kapiti Coast and Horowhenua values are up 3% on the same time last year. Growth in South Taranaki, Wanganui and Horowhenua remains conservative. Wanganui has balanced the negative growth it experienced last quarter with modest growth of 0.7%. The market continues to soften in the Wairarapa with a slight downward trend continuing over the past year. Values across the region are still below their previous market peaks, with the exception of Kapiti, where values now sit 1.0% above peak levels. This puts average house values in Kapiti at a record $386k. Optimism in the Kapiti market can in part be attributed to the continued work on the M2PP Expressway. Less congestion and increased safety is seen as favourable by many investors. The area is also becoming increasingly more accessible by air with Air New Zealand adding services in and out of Paraparaumu Airport. House Price Index New Zealand $552k +4.7% +14.0% District $237k -0.4% -1.6% District $262k -2.6% -3.1% New Zealand District District South Wairarapa District City Kapiti Coast District Horowhenua District South Wairarapa District $305k -0.3% -0.3% Wanganui District South Taranaki District 3 Month Value Change City $297k +1.5% +3.9% Kapiti Coast District $386k 1.5% +3.4% 0.4% South Taranaki 0.4% Horowhenua 1.5% Kapiti Coast -0.3% South Wairarapa 0.7% Wanganui 1.5% Palmerston North -0.4% -2.6% < 0 % 0-0.9 % 1-1.9 % 2-2.9 % 3-3.9 % 4-4.9 % Horowhenua District $209k Wanganui District $183k South Taranaki District $187k +0.7% +3.2% +0.6% +2.1% > 5 %
Market Update is the largest town in the Wairarapa and has experienced modest growth since dropping after the 2008 peak. There are four main suburbs in : Kuripuni, Lansdowne, and Solway. The most populated of these suburbs is with 3,317 dwellings. Average values sit in the low $200k margin. The highest values are in Solway, where average values are $235k. Annual change across the region has been variable, and Solway both experienced negative growth. Lansdowne and Kuripuni however both experienced positive growth, but in both suburbs the number was below 1%. The highest price commanded by any property in the past 12 months was in Lansdowne at $592k; nevertheless the upper quartile was significantly lower at $284k suggesting not many sales were made around the half a million dollar mark. A quarter of all buyers in Lansdowne purchased properties for less than $181k. Wairarapa Market Update Growth in the Wairarapa real estate market has been marginal for several years. In the past 12 months, grew by 0.7% and Martinborough by 1.0%. Renowned for its wineries and picturesque small towns, the Wairarapa is popular with younger retirees looking to downshift their lifestyle, and commuters from Wellington looking for more affordable housing. Average house values are higher in Martinborough than in by nearly $100k. Values in both suburbs are now higher than they were prior to the Global Financial Crisis. The highest price paid for a house in Martinborough in the past 12 months was $880k and the median time taken for a house to be sold in the suburb was 85 days. Median rents are $265, up on the same time last year by 8.2%. Kuripuni Landsdowne Solway Martinborough $223k -0.6% -0.9% $263k -0.7% -0.7% Kuripuni $212k -0.8% +0.6% Martinborough $356k +0.3% +1.0% Lansdowne $251k +0.1% Solway $235k -0.5% -1.1%
Horowhenua/Kapiti MarketUpdate Growth in values has been conservative in Levin and Otaki since 2011, with around 3% growth in the past 12 months. Levin is the largest town in the Horowhenua with 6,851 dwellings. Otaki is the fourth largest on the Kapiti Coast with 4,000 dwellings. Otaki is within the reach of commuters from Wellington with a regular train service available. Levin being more closely located to is more likely to attract commuters from there. The average value for a property in Otaki is $253k, one of the lower averages on the Kapiti Coast. Levin holds one of the lower average values in the Horowhenua with an average house price of $202k. Values in both suburbs are below their 2008 peaks; with Otaki 2.8% lower and Levin 14.3% lower. Properties stayed on the market longer in Otaki in the past 12 months at a median 51 days compared to 36 for Levin. Market Update Longer term trends on property values tell a similar story to many other parts of the North Island, with steady but modest growth for several years. There are 14 main suburbs in and many are inhabited by students from Massey University. All suburbs experienced value gains over the last year, with Kelvin Grove seeing the highest gain at 5.2%. Kelvin Grove is the only suburb where values are now higher than they were before the Global Financial Crisis. Other suburbs in the area are all within 4% of the previous peak with the exception of Westbrook which remains around 6% below the peak value. Changes in median rents have also been variable, with Fitzherbert up 14.3% and suburb down 11.5%. Weekly rents now sit at around $300 per week. Otaki Levin Awapuni Palmerston North Kelvin Grove Hokowhitu Otaki $253k +0.1% +2.4% Awapuni $276k +0.8% +1.2% Levin $202k +1.2% +3.2% $290k +1.6% Kelvin Grove $353k +0.8% +5.2% Hokowhitu $390k +0.2% +2.6%
Wanganui Market Update The Wanganui Region has seen slow downward growth since 2008 but has flattened in the last year. Values in all suburbs are still considerably lower than they were before the Global Financial Crisis. Growth in average values has been minimal across Wanganui, with 10 out of 13 suburbs growing by less than 3%. Values in Castlecliff are 26% below their previous peak, while values in Gonville are 20.3% lower. There has been speculation that a glut of Housing NZ houses on the market has been responsible for a slump in sales in some suburbs. Castlecliff, the seaside town a short drive from the city, remained the most affordable suburb with an average value $114k. The average value in Gonville was higher, reaching $137k. In Gonville, $336k was the highest price a property was sold for over the year. 25% of properties sold for over $165k and 25% sold for under $63k. Market Update The second largest town in the Taranaki Region, has seen little change in values in the market across time, with values holding steady at around $230k for the last 8 years. Located in the heart of dairy country, is home to the largest dairy factory in the southern hemisphere. This means the economy of the area is tied closely to dairy prices. The town has experienced 4.4% annual value growth over the past 12 months while the average value for a house is now $235k, just short of the previous peak in 2008. has 3,579 dwellings with a large average land size of 960 square metres. 237 houses were sold over the last year, only two of these at auction suggesting the market is in favour of buyers. The median time for a house to sell in the was 57 days. Castlecliff Wanganui East Springvale Gonville Castlecliff $114k +3.4% -1.2% $235k -0.1% +4.4% Wanganui East $157k +1.0% +1.7% Springvale $226k +0.1% -2.0% Gonville $137k +2.0% +1.3%
If you re looking to sell, buy or rent, we can connect you with your local LJ Hooker office today. mymarket Report Contact Us On: Realty Ltd 111 High Street, P 06 379 6699 F 06 379 6638 carterton@ljh.co.nz Town & Country Real Estate Ltd 238 High Street, P 06 278 9080 F 06 278 9081 hawera@ljh.co.nz McHattie Realty Ltd 105 Chapel Street, P 06 378 8666 F 06 378 2139 masterton@ljh.co.nz Manawatu 1994 Ltd 219 Broadway Avenue, P 06 358 9009 F 06 356 8464 palmerstonnorth@ljh.co.nz Wanganui Rivercity Realty Ltd 25 Victoria Avenue, Wanganui P 06 349 0883 F 06 349 0884 wanganui@ljh.co.nz All LJ Hooker offices are Licensed REAA 2008