Market ‘magnificently strong’

Gains in the Central Hawke's Bay property market have been “magnificently strong” and construction is also going through the roof, according to a new report.

Independent valuers Turley & Co released the study of market data research and original property metrics on Sunday. “The market is happily rocking to a very strong beat, with some residential property values almost doubling in five years,” company director Pat Turley said.

“If you bought a house in CHB around January 2014, the four-year average price uplift to early 2018, from $200,000 to $307,000, would represent a value gain of 54 per cent.

“CHB residential real estate sales averaged $62.2 million per year for the three years 2014-16. In 2017, transactions jumped to $107m, an increase of 72 per cent, while transaction numbers increased 50 per cent.

“All property sales, including commercial-industrial and rural land 2014-16, reflected annually $227 million.

“This compares to total

sales in 2017 of $323m — an increase of 42 per cent.”

Real estate transaction numbers in 2017 increased by 48 per cent, Turley added.

“CHB townships residential section transactions [between] 2014-16, averaged 34 per year. In 2017 transactions totalled 77, up 126 per cent, with an average price of $174,000, a total increase of 114 per cent to $13.4m.”

Turley said there was every indication property values would continue to rise.

“The CHB property economy is magnificently strong in 2018, notwithstanding the demise of the irrigation scheme. CHB has an infectious skip in its step, well-earned for what is a very positive, salt of the earth community.

“The district’s people are significant contributors to the past and future prosperity of Hawke’s Bay.

“Construction activity is going through the roof. Central Hawke’s Bay residential building consents in 2017 totalled $20.5m, a 44 per cent increase on the prior three-year average.”

All consents, including commercial-industrial and rural building, reflected an uplift of 29 per cent to $22.9m.

The traditional mainstay of the CHB economy, pastoral farming, is performing well, with residential sections also being developed at Otane.

The Highlands development in Waipawa — a rural-residential development on the fringes of Waipawa township — had also sold strongly, with 24 of 28 sections sold.

Developers Alistair and Brian Setter were also developing 14 lots at nearby Tapairu Rd, he said.

CHB mayor Alex Walker said there was no indication the district’s rise would be stopping any time soon.

“I can’t see any strong signals why it would slow down right now.

“I think that rural living is very attractive to people right now and CHB offers small-town living in a rural space and people are really starting to appreciate that and see the value of it.”

She said with positive numbers for both jobs and property, it also showed that the district’s economy was diversifying.

“Connectivity is really cornerstone to that.

“People can do any job from anywhere, and so we have professionals and people who are commuting, people who are working remotely who are now becoming a far bigger part of our community.”