Prices soar in Coromandel
Asking prices for Coromandel properties have risen above $800,000 for the first time, bucking a national trend.
Data released on July 1 from realestate.co.nz suggested that New Zealand’s property market remained buoyant post-Covid-19.
While the national average asking price sat at $727,749 throughout June – 10.4 per cent higher than the same time last year – all-time asking price highs were reached in the Coromandel, Southland, and Hawke’s Bay.
It could likely be because there were not enough properties listed for sale in such a sought-after area, Bayleys Realty spokesperson Chris Gwin said.
‘‘At the moment, there is not a lot of stock and that drives the price point up.
‘‘It’s a premium spot and it’s hard to know what will happen in the short-term.’’
The average asking price in the area rose above $800,000 for the first time to $847,950 – a 14.3 per cent increase on the same time last year and a significant jump on the region’s last recorded high of $786,037 in April 2019.
Gwin said it was too early to tell whether ongoing travel restrictions would turn people’s attention towards buying holiday homes throughout New Zealand, but the return of expats could result in local investments.
‘‘It’s a bit early to say if it’s a trend, but there will have been people who had invested in a holiday home further afield that may now be looking locally, because it is safer and New Zealand has done a pretty good job of managing Covid.
‘‘We will eventually see expats or other New Zealanders moving home that could invest here as well.’’
Gwin said a better indication on Coromandel property trends would present itself in the spring selling season, which kick-starts late-September, early-October.
‘‘The market is good, but the pipeline looks a little bit shorter, because we don’t know whether people will list their properties or not.
‘‘If there’s lots of stock coming to the market, the price point will be harder to maintain,’’ he said.
Meanwhile, in Southland, the average asking price was up 18.4 per cent on the same time last year to $415,094 – tipping over $400,000 for the first time since records began in 2007.
In the Hawke’s Bay, the average asking price hit an alltime high of $609,243 – a marginal increase on May’s high of $606,136 but a reasonable 12.3 per cent increase on June 2019.
‘‘The market is good, but the pipeline looks a little bit shorter, because we don’t know whether people will list their properties or not’’