Million-dollar homes in region being snapped up
More than a dozen million-dollar homes have been sold in Palmerston North during the first half of this year as demand pushes prices higher and higher.
The Real Estate Institute of New Zealand’s latest million-dollar price report reveals 14 homes were sold for more than $1 million in Palmerston North in the first half of 2019.
Real Estate Institute of New Zealand Manawatu¯ spokesman Andy Stewart said it was a significant shift in the market, when only three years ago it would have taken a year to sell so many houses in that price range.
Before 2015, the city’s real estate agents were having a lucky year if they sold three or four houses for more than $1m, he said.
‘‘But it doesn’t really surprise me... [since] the median house price in the city is $460,000 now.’’
As demand pushed price bands higher and higher, it was only natural for there to be more houses breaking into the top band of the market, he said.
Professionals Group real estate agent Eileen Farquhar said the city was seeing more million-dollar-plus sales than it ever had in her 30-year career.
Sales at that end of the market dried up after the 2008 financial crisis, but by 2016 it had recovered to reach a record of 13 million-dollar houses sold in a year.
Just two years later, the annual sales numbers were consistently doubling that record. There were 24 million-dollar houses sold in the city in 2018.
Curiously, while many house-hunters were drawn to the relative affordability of houses in Palmerston North and Manawatu¯ , almost all of the buyers shelling out more than $1m were locals, she said.
‘‘It’s possibly because they’re the ones with the knowledge of the the market in Palmerston North.
‘‘Most potential out-of-town buyers [at that price-level], particularly the Aucklanders, think our market is a lot smaller than it is.’’
Many came expecting to buy a bargain mansion, but instead found they had to pay more than $1m and decide to look elsewhere, Farquhar said.
Bayleys real estate agent John van Lienen said another big shift was that new builds had started to take over the top end of the market.
Traditionally, the majority of Palmerston North’s highest-selling homes have been character homes in the affluent suburb of Hokowhitu, or on lifestyle blocks.
And although the most expensive of the houses sold in the first six months of the year was a $2.1m home in Takaro, the next two most expensive homes were both on Ihaka St, in Hokowhitu.
The first sold for $1.55m at the end of May, under its September 2018 Quotable Value estimated rateable value of $1.75m.
Down the street, the last of the top three was sold for $1.45m, $500,000 less than its QV estimated rateable value.