Dark side of holiday town life
Golden Bay residents are getting locked out of the housing and rental market as outsiders snap up homes in the popular holiday destination.
Ray White Golden Bay owner Billy Kerrisk said of the 50 properties she had sold this year, only three were to Golden Bay clients.
Most of the sales were of holiday homes with the majority of buyers from Nelson, followed by Christchurch and Wellington. Fewer than 20 sales were to clients who moved into the homes they bought.
Kerrisk said the absentee owners were renting their houses out short term-term or not at all.
‘‘The ripple-on affect this is having on our community is not good. Locals who haven’t got anywhere to live are desperately competing with the outsiders.’’
The property market frenzy meant Kerrisk was getting at least four phone calls a day from buyers outside Golden Bay relaying their ‘‘wish-list’’.
While house listings had dropped, demand had surged, causing prices to soar well above outdated rateable values.
A recent QV report shows median house prices in the Tasman District rose to $475,427 in September – 11.4 per cent higher than the same time last year.
A solo mother, who did not want to be named, said she had moved 12 times in seven years.
‘‘I’m almost ready to give up on this place. People are coming in from the cities to buy houses and squeezing everybody else out.’’
She moved from Wellington with her 4-year-old son to finish her thesis and take a break from busy city life.
Finding long-term accommodation had been tough and was having an effect on her son.
The 11-year-old had emotional ‘‘issues’’ and she had been told it was because they moved around a lot.
‘‘I’m now looking at moving to Palmerston North, where I can actually afford to buy a nice house.’’
Bachcare founder Leslie Preston said the company was experiencing unprecedented growth in Golden Bay.
Most of its clients were holidayhome owners looking to derive income when not using the property for personal use, she said.
‘‘Golden Bay has a strong summer market for short-term rentals. That naturally quietens down during the winter months.’’
It was during these times owners would rent their personal holiday homes out short-term to locals, or not at all.
First National company partner Sharon McConnan said she had also seen a rise in outsiders buying in the area.
Some clients hoped to escape the city, some were investors, and some were Christchurch refugees finally getting their insurance payouts.
People often forgot that Golden Bay had always been a holiday town, McConnan said.
‘‘It’s easy for people to feel begrudgingly of those who buy holiday homes for their own personal use and then rent them out to their family or for short periods.’’