Tararua bright spot in house market
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
“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.