House prices soar­ing

Taupo & Turangi Weekender - - Front Page - Rachel Can­ning

The Au­gust 2018 fig­ures from Quotable Val­ues show that homes in Taupo¯ are nudg­ing half a mil­lion dol­lars, with the av­er­age cur­rent value sit­ting at $478,529.

In Septem­ber a three-bed­room Taupo¯ home in Hinemoa Ave sold for $432,500. The home has a cur­rent cap­i­tal value of $334,000 and sold for $386,000 in 2016.

There are com­pa­ra­ble house sales in Tu¯rangi, with a three­bed­room home on Poi­haraere St with a cap­i­tal value of $181,000 sell­ing for $228,000 in Septem­ber.

At these prices, The Prop­erty Store gen­eral man­ager Jane Ben­nett says the buy­ers are owner-oc­cu­piers.

“What we are see­ing at The Prop­erty Store is prop­er­ties that have been in the rental pool for some time are chang­ing to owne­roc­cu­pied homes. This is re­duc­ing the rental pool which in turn is help­ing to drive up rental rates.”

Wester­man Prop­erty So­lu­tions Ltd di­rec­tor Ben Wester­man says the Hinemoa Ave prop­erty rep­re­sents a 12 per cent in­crease over a two-year pe­riod, in line with na­tional trends.

“There has cer­tainly been a lift in Auck­land pur­chasers re­lo­cat­ing to our re­gion, but these Auck­land buy­ers only make up ap­prox­i­mately 25 per cent of buy­ers. Lo­cal buy­ers rep­re­sent the ma­jor­ity of house sales in our re­gion,” says Ben. He doesn’t be­lieve the in­crease in house prices has changed the makeup of neigh­bour­hoods, and the mix be­tween ren­ters and owne­roc­cu­piers is still the same, de­spite prices in­creas­ing.

“The re­gion is still des­per­ate for more in­vest­ment prop­er­ties, and it is re­ally tough out there for ten­ants at the mo­ment in terms of choice,” says Ben.

Land­lords are all fac­ing in­creas­ing costs, and this con­trib­utes to ris­ing rents.

The TradeMe prop­erty rental mar­ket shows a sim­i­lar story, with a three-bed­room house on Koha Rd, Taupo¯ fetch­ing $440 weekly rent. Rent for a fourbed­room home in Tu¯rangi’s Te Ran­gi­tau­ta­hanga Rd is $360 per week. Jane says where prop­er­ties have changed hands in the past year or so, the rent is barely enough to cover the mort­gages.

“I would take a guess that rents have gone up in the same man­ner as house prices have gone up, and this is noth­ing new,” says Jane. “If you’re pay­ing $450 a week in rent then you can af­ford a $320,000 mort­gage. How­ever if you can af­ford $450 in rent then you may not want to buy a house that is worth $320,000 — hope­fully you’ve saved a good de­posit,” says Jane.

The Prop­erty Store does not have any prop­er­ties shared by two or more fam­i­lies, how­ever Jane says this doesn’t mean it’s a sce­nario that a land­lord would au­to­mat­i­cally dis­al­low.

“Two fam­i­lies shar­ing a house, would re­ally be a case-by-case sit­u­a­tion.”

Ben says that Wester­man Prop­erty So­lu­tions hasn’t seen any real ev­i­dence of fam­ily shar­ing in rental prop­er­ties, how­ever it is rea­son­ably com­mon for two to three cou­ples to share the rent bur­den.

Peo­ple want­ing to build smaller homes in re­sponse to in­creas­ing build­ing costs can come up against rules that re­quire new homes to be a min­i­mum size. How­ever Ben points to town­house de­vel­op­ments in Wil­liams St and Mo­tu­taiko St that cater to the smaller home, low­main­te­nance mar­ket. He also says there is a mar­ket for re­tirees look­ing for smaller dwellings.

“You just need to look at the Huka Heights area as an ex­am­ple of smaller sites al­low­ing for smaller dwellings.”

He says the cur­rent stock sim­ply isn’t meet­ing de­mand, but with plenty of de­vel­op­ment un­der­way in the Whare­waka area there are signs that sup­ply will in­crease in the short-medium term, which will ease pres­sure on both house and rental prices.

Taupo¯ District Coun­cil, which owns a 180ha block of land be­tween the East Taupo Ar­te­rial high­way and the Waipahihi and Rich­mond Heights area in­tended for hous­ing, has said it has a mas­ter plan for the land which would en­cour­age mixed use and al­low some af­ford­able hous­ing to be built.

Photo / Lau­rilee McMichael

The av­er­age cur­rent value of Taupo¯ homes is creep­ing to­wards the $500,000 mark.

Photo / Lau­rilee McMichael

Ben Wester­man of Wester­man Prop­erty So­lu­tions Ltd says the Taupo¯ re­gion is still des­per­ate for more in­vest­ment prop­er­ties for rental homes.

Newspapers in English

Newspapers from New Zealand

© PressReader. All rights reserved.