Where house prices are rising
If you wanted capital gains in the past year, a cheap part of Rotorua would have been your best bet.
An analysis by Homes.co.nz shows that Fordlands, in Rotorua, had the biggest year-on-year property value increases, with its median price rising from $132,997 in September 2016 to $181,003 this week.
That is an increase in price of 36.1 per cent. Fordlands was named as the country’s most deprived area in an Auckland University study this year.
That was followed by Taumarunui, which saw prices rise from a median $76,515 last year to $103,390 this year, or 35.12 per cent, and Frimley, in Hastings, where prices rose 32.87 per cent from a median $389,243 to $517,187.
‘‘It’s a far cry from the growth rates of 2015, but some suburbs in New Zealand are still going strong,’’ said Homes.co.nz spokesman Jeremy O’Hanlon.
‘‘If you were an investor looking solely at capital gains, you’d be looking in an area that hasn’t had a lot of property growth. Ruapehu district and Hastings stand out.’’
ASB chief economist Nick Tuffley said although prices had cooled in the main centres, they were still increasing in smaller areas as a result of a ‘‘ripple-through’’ effect.
When the bigger areas started to seem not to offer as much value, buyers moved their focus further afield, he said.
‘‘There’s a repricing coming through. One factor that is likely to be at play is that we’ve seen quite strong population pressure.
‘‘There’s a rising tide effect coming through.
‘‘We are seeing price growth generally slow up and down the country but it happens in different stages in different parts of the country.’’
Infometrics forecaster Mieke Welvaert agreed price rises in bigger towns had started to rub off on smaller neighbours.
‘‘Even though house price growth in Hamilton and Tauranga has cooled, houses in these areas are not affordable for everyone.
‘‘We’ve also seen good job growth within areas such as South Waikato and Rotorua which has helped drive up demand for housing in these areas.
‘‘Rotorua also has the added advantage of being commutable to both Tokoroa and the Bay of Plenty.’’