Property investors keen on ‘The Creek’

A Porirua suburb is being touted as New Zealand’s No 1 property hot spot – but not everyone is rolling out the red carpet for new buyers.

Cannons Creek beat Wellington suburbs Hataitai and Tawa to top Property Investor magazine’s list of leading property growth spots for the past few months.

The looming Transmission Gully motorway and a short commute to Wellington City has Auckland investors eyeing up ‘‘The Creek’’, as it’s known by locals, but Porirua Mayor Nick Leggett says they are not welcome.

‘‘Transmission Gully is adding greatly to property values in the area but we don’t want to see homes going to investors.

‘‘It’s one of the few affordable places left and we want houses going to home buyers who will live in the community.’’

Hamish Timmins, of Leaders Real Estate, said his most recent house sale in Cannons Creek had attracted investor inquiries from both Auckland and Wellington.

‘‘Transmission Gully is coming through the back of here and investors are buying for workers on the motorway.

‘‘’Mum and dad’ investors from Auckland are looking at it as a good way to spend their money, it’s a good investment,’’ Timmins said.

Leaders general sales manager Graham Barr said investors started realising last year that Cannons Creek was the Wellington region’s best-kept secret.

‘‘It’s finally being discovered, and the myth of unaffordable housing has been uncovered.’’

Paula Mac Ewan has lived in her Cannons Creek home for 17 years and doesn’t want out-of-town investors buying up the houses.

‘‘I want an engaged community that invests in our roots and don’t just take advantage of cheap mortgages.

‘‘What better place is there that’s far away enough from the city for the quiet but close enough for the fun?’’

Eastern Ward city councillor Izzy Ford said it was fantastic that the rest of New Zealand had finally recognised the potential of Porirua East.

‘‘It’s definitely the start of the Transmission Gully effect and can only, and hopefully, be positive for us.’’

The suburb emerged victorious when the magazine measured areas’ 12-month growth and compared it with the three months between March and May – then annualised that three-month figure.

It tops the list as investors search outside the Auckland market and first-home buyers look for more affordable places to buy.

QV national spokeswoman Andrea Rush said that based on 11 sales in the past three months, sale prices in the suburb had risen 20 per cent for the year ending July 1.

However, real estate agent and Porirua mayoral candidate Euon Murrell said he believed a few good sales might have skewed the figures.

‘‘I don’t believe we’re looking at the country’s new hot spot. The outside perception is it’s not a nice place to live ... people from outside the area wouldn’t buy their first home there.’’