House hunters widen search to rural areas
The sale of a Raglan house for $4 million shows that Waikato’s roaring property market is spreading to smaller towns in the region, an real estate agent says.
The sale of the luxury Whale Bay property was one of the highest prices the town has seen, Ray White agent Julie Hanna said.
‘‘That would be a first for Raglan in that price range. It is right on the water. Almost like the break is coming in your front door.’’
An increasing number of properties had sold for about $1m recently, she said.
Hanna said the property was sold to an overseas buyer. She would not disclose its address..
The house features seven bedroom, five bathroom across several levels and an infinity swimming pool. . The Waikato/Bay of Plenty region recorded its fifth record median sale price for 2016, reaching $438,000 in June, according to the latest Real Estate Institute figures.
The number of auctions was up 95 per cent in region compared to June 2015.
The institute’s regional director Philip Searle said demand remained strong and the supply of listings continued to fall away, which was creating more competition for the properties for sale.
The continuing strong rise in median prices was also driving up vendor expectations and making it more difficult for first home buyers, particularly in markets such as Hamilton and Tauranga, Searle said.
QV Hamilton valuer Stephen Hare said Raglan was experiencing an increase in property values similar to the rest of the Waikato district and the Hamilton market.
First home buyers, outside investors, local investors, other locals and holiday home buyers were all competingfor properties.
As a result supply was not keeping up with demand.
‘‘Water front ones in the million dollar price bracket are becoming more common now. We’ve seen a $1.3 million last week.’’
There was a shortage of cheaper houses on the market, which helped to drive up prices, Hanna said.