Where house prices are ris­ing

Rotorua Review - - YOUR LOCAL NEWS - SU­SAN ED­MUNDS

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.’’

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