mymarket Report How is the market? Lower North Island Autumn 2016
The latest property market update for the Lower North Island region. Helping you with your property decisions. mymarket Report Median property values in the Lower North Island have picked up this quarter, suggesting increased confidence in the market. A greater number of first time home buyers are active in the market, assisted by historically low interest rates and Kiwisaver funds. Growth at the lower end of the market is causing a roll-up effect in the middle market with home owners selling their first homes and purchasing more expensive properties. With the exception of South Taranaki, values grew between 1.5% and 3.4% across the Lower North Island over the past three months. The market is also strengthening in the Wairarapa, with positive growth in median values following negative growth over the previous quarter. House Price Index New Zealand $556k +0.1% +11.6% District $246k +1.7% +3.4% District $281k +7.9% +4.1% New Zealand District District South Wairarapa District City Kapiti Coast District Horowhenua District South Wairarapa District $320k +2.8% +7.1% Wanganui District South Taranaki District 3 Month Value Change City $304k +1.8% +4.7% Kapiti Coast District $395k 1.5% +4.0% -0.7% South Taranaki 3.4% Wanganui 2.8% Horowhenua 1.5% Kapiti Coast 2.8% South Wairarapa 1.8% Palmerston North 1.7% 7.9% < 0 % 0-0.9 % 1-1.9 % 2-2.9 % 3-3.9 % 4-4.9 % Horowhenua District $217k Wanganui District $191k South Taranaki District $187k +2.8% +3.4% -0.7% +8.0% +5.7% +2.7% > 5 %
Market Update The property market has been flat with very little movement in Kuripuni, Lansdowne, and Solway since 2009. Median values are highest in Lansdowne ($260k), and lowest in Kuripuni ($219k). Median values in these suburbs are still below their previous market peaks, with Solway the closest at just 0.6% below the peak., the largest suburb in the region, saw 191 sales over the past 12 months with just 12% sold by auction, a reflection of the flatter market. The smallest suburb, Kuripuni, saw 38 property sales over the same period. The most expensive house sale in the area over the last year was in Lansdowne ($675k). This is more than twice the upper quartile price, suggesting there were not many sales over the half million dollar mark. The Mymasterton local council campaign that had previously focussed on promoting in the Auckland area, has now shifted focus to Wellington hoping to encourage more people to purchase property in the area. Wairarapa Market Update There is only a 20 minute drive between Martinborough and, but house values are nearly $100k apart. Both towns have seen modest upward value growth over the last three months. In Martinborough, annual median value growth of 3.9% is slightly stronger than the 1.2% recorded in. House values have now exceeded their previous market peaks. Martinborough currently has a median house value of $365,580, 2.9% over the previous peak, and is 4.9% over the peak at $365,580. The gentrification of Martinborough continues to attract young retirees attracted to the relaxed lifestyle, wineries and favorable weather. The average land size is a generous 1536 square metres. 76 properties changed hands in the last 12 months, but no auctions were listed during this time. has quite a different population distribution compared to Wellington. In particular, there are proportionately fewer people in in the 20-40 year age range but a much higher 50+ population. This would suggest that people move into the town to retire, attracted to the cheaper house prices and more relaxed lifestyle. Kuripuni Landsdowne Solway Martinborough $230k +0.5% +2.6% $274k +1.7% +1.2% Kuripuni $219k +1.6% +1.9% Martinborough $367k +0.6% +3.9% Lansdowne $260k +0.5% +2.8% Solway $247k +1.7% +2.6%
Horowhenua/Kapiti MarketUpdate A sustained flat period of growth in Otaki, and slight negative growth in Levin, has been reversed over the past 12 months. In Levin, house values have risen 6% over the year with slightly lower value growth of 5.4% recorded in Otaki. The Horowhenua District Council claims the area is punching above its weight as a significant increase in building consents, rising property values and overall economic growth have been recorded. A 2015 economic report from the council reported positive GDP growth, stronger job output, and increased housing and property activity. The average value for a property in Otaki has increased to $258k, just 0.4% below the previous recorded peak prior to the Global Financial Crisis. In Levin, the average value of $207,650 trails the previous peak by 12%. Market Update property values have seen positive growth over the past year. Awapuni and have moved beyond the previous peak for the first time in the last quarter. Awapuni is now 1.1% over the peak and 0.8%. Values in Kelvin Grove continue to grow and are now 7.8% above their previous peak. Values in Hokowhitu lag behind the previous peak by 0.9%. Median value growth over the past quarter was recorded in all 14 main suburbs of the region, the strongest in Roslyn (1.8%) followed by Kelvin Grove (1.6%). Growth in Hokowhitu and Awapuni was much flatter at 0.2%. The university continues to encourage investors into the rental market as well as relatively strong yields. Median rents in Kelvin Grove increased by 19.2% over the year, where the median weekly rent for a property is now $310. Median weekly rents grew by 13.7% in the year in Hokowhitu, while Awapuni and remained the same as the year before. Otaki Levin Awapuni Palmerston North Kelvin Grove Hokowhitu Otaki $259k +1.5% +5.4% Awapuni $283k +0.2% +3.7% Levin $208k +1.1% +6.0% $297k +0.9% +2.7% Kelvin Grove $361k +1.6% +6.5% Hokowhitu $395k +0.2% +2.2%
Wanganui Market Update After a sustained period of declining values in Castlecliff and Gonville, the market has seen a positive upswing over the last two quarters. This positive value growth has been seen over the entire Wanganui region with the most positive gains seen in Aramoho (3.8%) followed by Gonville (2.9%). Young families taking advantage of Kiwisaver funds are thought to be entering the market while out of town investors are showing interest in the cheaper coastal suburbs. Of the four main suburbs, Springvale has the highest median house values at $231k. In Wanganui East values are $162K, in Gonville they are $143k, and median values at the seaside town of Castlecliff are $117k. Market Update continues to record little change in values across time, with median values sitting at $235k. accommodates the largest dairy factory in the southern hemisphere so the economy is likely to be impacted by lower dairy prices over the next few years. Annual growth is 6% but negative quarterly growth of 1% is possibly a reflection of uncertainty in the dairy sector. has 3,579 dwellings with a large average land size of 960 square metres. 239 houses were sold over the last year, however no properties were listed for auction a reflection of a softer market. Rents are up by 4.2% to a median $250 per week. Springvale recorded the highest number of sales over the past year (130), followed by Wanganui East (116) and Gonville (100). Auction listings in the area are low. Most properties were on the market for around 5-6 months suggesting that competition among buyers is still significantly lower than in metropolitan centres. Castlecliff Wanganui East Springvale Gonville Castlecliff $117k +3.4% +4.1% $235k -0.1% +6.0% Wanganui East $162k +2.4% +4.7% Springvale $231k -1.2% +0.3% Gonville $143k +2.9% +8.0%
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