Holiday home prices drop
Houses in holiday hotspots are more affordable than many parts of the country, new data shows.
The Real Estate Institute (REINZ) has found that, while house prices rose significantly across the country this year, some beach destinations were surprisingly affordable. In fact, they were cheaper than last year.
Median prices in Oneroa, a popular summer hotspot on Waiheke Island, dropped 16 per cent in the last year, from $1.307 million in the three months to November 2018 to $1.1m over the same period this year.
In Paihia, gateway to the Bay of Islands, median prices were 13 per cent cheaper than they were the same time last year, falling to $540,000. Even the South Island’s pricey Wanaka fell 7 per cent from $1,157,500 to 1,075,000.
By comparison, the nationwide median house price rose to $607,500 in October, 8.2 per cent higher than a year earlier.
It was good news for those dreaming of retiring to their favourite retreat, said Bindi Norwell, REINZ’s chief executive.
‘‘Holidaying at the beach continues to be an important part of the Kiwi vernacular and with median prices rising across many parts of the country, many people may have thought that the dream of a holiday home was out of their reach,’’ Norwell said.
‘‘A little bit of shopping around might just mean that a holiday home isn’t as far out of reach as people think.’’
However, some property markets bucked the trend.
Median prices at Ohope, which was named New Zealand’s most loved beach in an AA Poll, jumped 23 per cent from the same time last year, from $676,000 to $831,000. Te Anau and Whangamata also had doubledigit price increases, up 21 per cent to 495,000 and 19 per cent to $762,500.
Ray White Te Anau agent Don McFarlane said the town had become more desirable in the last two or three years as an alternative to Queenstown. New sections that had come on the market had brought a mix of first home buyers, holidaymakers and investors.
‘‘Te Anau itself is still well behind the rest of the Lakes District and there’s a bit of feedback that people are finding it much more affordable than they are around the central Otago area,’’ McFarlane said.
The most expensive holiday hotspot continued to be Omaha, north of Auckland, where median prices inched up 2 per cent to $1,765,000.