Feilding overtakes Palmerston North
For the first time, house prices in Feilding have soared above those in Palmerston North.
The significant shift comes as many look further away from the city’s boundaries, where high competition is keeping buyers locked out of the real estate market.
The latest Real Estate Institute of New Zealand figures show the average Feilding house cost $324,120 in March, over $4000 more than the average Palmerston North home.
Institute Manawatu spokesman Andy Stewart said average house prices can vary widely from month to month, but this was the first time in three decades of real estate that Feilding had overtaken its city neighbour.
‘‘I can’t recall it ever being higher than Palmerston North. It shows a significant shift in the market and it is something we’re going to see more of in the years ahead.’’
Stewart said the swap happened quite suddenly last month and would most likely correct itself.
But with buyers still looking to Feilding escape the high competition for houses in Palmerston North, the price gap will continue to narrow.
‘‘Feilding has almost become an extension of Palmerston North in terms of the housing market.’’
That was one reason why residential sales numbers in Feilding this March – 44 – were at the highest level since May 2007, he said.
‘‘I can't recall it ever being higher than Palmerston North. ’’ Andy Stewart
Harcourts Feilding manager Stuart Pescini said it’s been clear for some time that Feilding house prices would catch up with the city.
‘‘[The town’s] market is pretty buoyant at the moment and people are quite happy to commute, so the difference between the two markets has been diminishing over time.’’
Back in March 2007, Palmerston North houses were $32,000 more expensive on average than in Feilding. Five years later, the gap had narrowed to $20,000
Pescini said Palmerston North’s average has tended to be higher, despite the city’s houses stradling a wider price range, because more homes were sold in the top range than in Feilding.
But the number of new houses popping up in the town had rapidly boosted Feilding’s average price.
In the past 12 months, it rose 22.3 per cent, and over 10 years, the town’s average price has gone up 36.5 per cent.
This was double the speed Palmerston North’s prices rose in the same timeframes.
The region overall remains one of the most affordable in New Zealand.
Massey University’s home affordability index finds Manawatu/Whanganui has become more affordable in the past year, with Southland the only region were it was easier to buy.
The report’s author, Associate Professor Graham Squires, told Stuff that in the past year, Manawatu house prices had risen faster than Auckland’s, which could be a sign of capital flowing out of the country’s largest city into the regions.
‘‘It that’s the case, it will be interesting if people discover places like good old Palmy.’’