House sales double in regions
Houses are changing hands faster in almost every region of New Zealand, new Real Estate Institute data shows.
Comparing the three months to August this year with the same period last year, turnover was up throughout the country.
Waikato had the biggest increase, up 96 per cent, followed by Coromandel at 91 per cent, Northland at 74 per cent and Bay of Plenty at 64 per cent.
For the month, compared to August 2014, Northland’s increase was 96.4 per cent, Hamilton’s was up 108.2 per cent and the wider Waikato/Bay of Plenty region 77.4 per cent. Northland had the biggest price change when comparing the three-month periods, up 10 per cent. Its median price was $323,750 in August.
Real Estate Institute chief executive Colleen Milne said the increase was driven by buyers looking for a different lifestyle.
‘‘Coromandel is opening up as another suburb of Auckland with a two-hour ferry ride to Auckland city. It is a great option for those looking for a quieter lifestyle but with the ability to reach Auckland if need be.
‘‘The Coromandel region is also a popular place for many to holiday and with low interest rates and property values increasing so much in other holiday hot spots, such as Northland, it is reasonable to suggest that many have decided to secure a holiday home in the Coromandel instead.’’
In August, Wairarapa’s sales were up 119 per cent on the same month in 2014. Milne said similar factors were at play there.
‘‘I believe this is a growing trend where people are considering their lifestyle options longterm and for many living outside the main centres is the answer.’’
Hawkes Bay, Wairarapa, Central Otago Lakes, Otago and the West Coast also reported gains.
West Coast sales were up 260 per cent in August compared to the same time the year before. Milne said it was a sign that demand was spilling out from the main centres.
Winter is usually the slowest time of year for sales.
‘‘The difference in sales volumes in particular is quite significant this year,’’ Milne said. ‘‘It will be interesting to see how the upcoming LVR changes and the implementation of the bright-line test impact on our sales volume figures during spring.’’