First-time buy­ers flock to area

CHB Mail - - NEWS -

Cen­tral Hawke's Bay con­tin­ues to win with first-time home buy­ers as they look else­where af­ter prop­erty gains in Napier have risen to be com­par­a­tively greater than those in Auck­land.

Lat­est val­u­a­tions from QV (Quotable Value) show Napier val­ues rose 10.3 per cent year on year and by 0.2 per cent over the past three months. The av­er­age value in the city at the end of Oc­to­ber was $515,304.

Mean­while, Hast­ings val­ues rose 6.6 per cent year on year and 1.9 per cent over the past three months. The av­er­age value there is now $465,161.

“The Cen­tral Hawke's Bay has also seen val­ues rise 19.7 per cent year on year al­though they did drop by 5.4 per cent over the past three months and the av­er­age value there is now $340,811,” QV prop­erty con­sul­tant Philippa Pearse said.

“First-home buy­ers are ac­tive in Cen­tral Hawke's Bay, tak­ing ad­van­tage of the Wel­come Home Loans as av­er­age val­ues in Hast­ings and Napier have in­creased above the max­i­mum level for the loans.”

Hous­ing NZ's cri­te­ria for first­time buy­ers to be el­i­gi­ble for Wel­come Home Loans (re­quir­ing just a 10 per cent de­posit for a bank home loan) in Hawke's Bay, lim­its max­i­mum house prices to $400,000 for ex­ist­ing prop­er­ties or $450,000 for new-builds.

Prop­erty Bro­kers re­gional man­ager Guy Mor­daunt said he had not seen any knock-on ef­fects around Wel­come Home Loans in the mar­ket.

“First-home buy­ers are cer­tainly pay­ing more but banks seem to still be lend­ing as long as they can ser­vice the loan.

“Hawke's Bay re­mains very buoy­ant. Be­cause there are still as many prop­er­ties sell­ing as are com­ing to the mar­ket, the de­mand con­tin­ues to out­strip the sup­ply. This makes it dif­fi­cult for buy­ers, cre­at­ing lots of com­pe­ti­tion and keep­ing prices strong.”

Bay­ley's Hawke's Bay op­er­a­tions man­ager Kerry Geange said there was still plenty of ac­tiv­ity in the mar­ket.

“We are see­ing some list­ings in the mar­ket where it does seem the ven­dors are look­ing to achieve a premium price. Can't re­ally blame them for that though — just be­comes a mat­ter of tim­ing and how long they are pre­pared to be pa­tient for that sale. The real fac­tor at the mo­ment is the banks' lend­ing cri­te­ria.

“Cen­tral Hawke's Bay has seen a lot of rel­a­tive growth, both from lo­cals and peo­ple mov­ing in. The life­style mar­ket and sec­tions have been re­ally ac­tive. We are cer­tainly see­ing firsthome buy­ers will­ing to move to the Bay's satel­lite or ‘com­muter' towns out­side of the three main towns.

“It's a bril­liant op­por­tu­nity for these ar­eas and com­mu­ni­ties to re­ally ben­e­fit from this re­cent mar­ket change. We have just this week seen mul­ti­ple strong of­fers on a CHB life­style prop­erty, all of the buy­ers see re­ally good value. This is ex­actly where we would ex­pect things to be, given where we are in the prop­erty cy­cle and given the stage of the price cor­rec­tion we are in.”

Fur­ther anal­y­sis con­ducted by and CoreLogic NZ show all Napier and Hast­ings sub­urbs in­creased in their me­dian value in the 12 months to Oc­to­ber 2018, 45 per cent of which were above the me­dian in­di­vid­ual New Zealand worker's yearly salary of $51,844.

OneRoof ed­i­tor Owen Vaughan said the fig­ures re­flected the surge in Hawke's Bay's hous­ing mar­ket.

“The av­er­age sub­urb gain in the Napier city was $51,986, with Bluff Hill record­ing the high­est dol­lar rise, at $76,050.

“It shows there is still real de­mand out there. Napier is still see­ing hous­ing gains well above those in Auck­land and even Tau­ranga.”

Welling­ton had the big­gest share of sub­urbs earn­ing above the me­dian salary, fol­lowed by Napier.

The coun­try's big­gest earner, by sub­urb, was Saint Marys Bay, in Auck­land, which en­joyed cap­i­tal gain of $119,650.

Prop­er­ties in CHB are sell­ing fast.

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