Tararua bright spot in house mar­ket

Bush Telegraph - - PROPERTY MARKET - By STEVE CARLE

Lat­est data shows that the value of me­dian house sales in the Tararua dis­trict have in­creased 10.5 per cent over the past year, ris­ing from $163,000 to $180,000.

In­di­vid­ual towns de­vi­ated from this fig­ure, with Eketa¯ huna be­ing the star. There sales val­ues in­creased 30 per cent from me­dian of $153,000 to $199,000 on 17 sales.

Pahiatua and Woodville’s val­ues in­creased by about 16 per cent with Pahiatua’s me­dian house price lift­ing from $174,500 to $202,500 on 102 sales and Woodville up from $163,000 to $191,000 on 57 sales.

“Dan­nevirke bucked the trend with val­ues be­ing fairly flat, sit­ting at $163,000 with 209 prop­er­ties sold,” says John Arends, prin­ci­pal of Prop­erty Bro­kers Pahiatua. “Hous­ing was sell­ing a lot quicker as well. Days on the mar­ket (DOM) vir­tu­ally halved, with the dis­trict av­er­age in Oc­to­ber 2017 be­ing 61 days, drop­ping to just 33 in Oc­to­ber 2018. This is ac­com­pa­nied with a drop in num­bers sold by about 10 per cent, with to­tal res­i­den­tial prop­er­ties sold in the Tararua Dis­trict slip­ping back to 389 in the past year com­pared to 427 the year be­fore.

“This is a re­flec­tion of a gen­eral short­age of res­i­den­tial prop­erty avail­able not just in our re­gion, but in New Zealand as a whole, where de­mand is ex­ceed­ing sup­ply and pres­sure is on for suit­able land and peo­ple to build new homes.

“While the Auck­land mar­ket slows there is anec­do­tal ev­i­dence that the val­ues and cor­re­spond­ing bor­row­ing is be­com­ing un­bear­able for younger cou­ples and there is a drift to the prov­inces to have a cheaper more af­ford­able home and cor­re­spond­ingly bet­ter life­style.

“A re­flec­tion of the in­creased de­mand has seen an un­prece­dented num­ber of new houses be­ing built and sev­eral new sub­di­vi­sions pop­ping up, es­pe­cially in Pahiatua.

The graph pre­pared by Prop­erty Bro­kers shows where buy­ers have come from over the past year, and shows most of them are lo­cals ei­ther up­grad­ing or down­siz­ing.

“While the cities are re­port­ing more prop­er­ties com­ing to the mar­ket, val­ues slip­ping back and tak­ing longer to sell, we are def­i­nitely not see­ing that here,” he said. “De­mand has been pretty strong in the last 12 months in the prop­erty mar­ket,” says Ja­son Hock­ley of QV. “This is down to sup­ply and de­mand — there is not enough sup­ply. Hast­ings, Palmer­ston North and Wan­ganui have the same dy­namic as Tararua Dis­trict. That’s putting pres­sure on set­tle­ments that are close to them as well. “Peo­ple are look­ing fur­ther afield to se­cure a prop­erty to live in or an in­vest­ment to be in the mar­ket play — there’s just lim­ited op­tions for that. Peo­ple can’t find what they want now in the cities, so they look some­where else and get

Tararua is one of the bright spots in the North Is­land in terms of growth’ prop­erty

JA­SON HOCK­LEY, QV

some­thing now.

“Pahiatua has some pretty good move­ment for the av­er­age to above av­er­age con­di­tion prop­er­ties which have risen up to 20 per cent in the last 12 months. A short­age of avail­able “pre­ferred” land means a lot of peo­ple can’t se­cure the land to get what they want and then move for­ward on that.

“It’s half the bat­tle at the mo­ment and ex­plains why there’s quite a strong surge in the peak of where things are — they could pos­si­bly con­tinue for a few months.

“It takes a long time for land to be­come avail­able. In­ter­ests rates are really low — that’s a big one for prop­erty — no signs of that to in­crease in the medium term. Gov­ern­ment has brought in ex­tra tax cred­its, which has brought more money into the mar­ket. That’s ac­tu­ally fu­elled a lit­tle bit of ral­ly­ing in terms of the mar­ket and sales and rentals.

“They all go into the melt­ing pot of the mar­ket. Sup­ply has been drop­ping dra­mat­i­cally. So many mul­ti­ple of­fers are go­ing on a lot of prop­er­ties they look fur­ther afield.

“Tararua is one of the bright spots in the North Is­land in terms of prop­erty growth,” he said.

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