Hawkes Bay vol­umes drop while prices con­tinue to rise

Hawke's Bay Today - - Indulge - Mal­colm Cox on Prop­erty

The num­ber of sales in fell by al­most 20% in Septem­ber as the Hawke’s Bay mar­ket con­tin­ues to strug­gle with low list­ing num­bers - there was only a 1% in­crease in new prop­er­ties com­ing to mar­ket since Au­gust. As a re­sult, the num­ber of un­sat­is­fied buy­ers re­mains high.

This ex­cess de­mand has pushed the me­dian price in Napier 18% higher than a year ago. Mul­ti­ple of­fers are of­ten re­ceived for well-pre­sented homes in good lo­ca­tions, and some buy­ers miss out on sev­eral prop­er­ties be­fore fi­nally se­cur­ing one.

Most of the in­ter­est is shown by lo­cals, who know the re­gion and they are in­ter­ested in all price ranges. The big­gest in­crease in turnover is in the $500,000 - $700,000 price range which now ac­counts for al­most 1/3 of all sales.

At the more af­ford­able end of the mar­ket (less than $400,000) which ac­counts for over half the vol­ume of sales, there is an even split be­tween in­vestors and first home buy­ers.

Re­cent falls in mort­gage rates could pro­vide sup­port for the mar­ket, par­tic­u­larly given the tight­ness of the mar­ket in our re­gion. On the other hand, pol­icy changes could en­cour­age in­vestors to con­sider leav­ing the mar­ket.

There is a sense of wari­ness amongst in­vestors af­ter leg­is­la­tion was passed late last year af­fect­ing stan­dards for rental prop­er­ties. There is also the threat of a cap­i­tal gains tax, which is cur­rently un­der re­view by the Tax Work­ing Group.

The for­eign-buyer ban came into ef­fect on Oc­to­ber 22. How­ever, in our area for­eign buy­ers com­prise a very mi­nor share of our over­all buy­ers.

Im­mi­gra­tion flows into the Hawkes Bay ap­pear to be mod­er­at­ing grad­u­ally and the eco­nomic out­look is look­ing a lit­tle less as­sured.

The com­pet­ing forces at play in the mar­ket make it dif­fi­cult to pre­dict what fu­ture months will bring.

For an up-to-date re­port on the lo­cal real es­tate mar­ket please call Cox Part­ners Es­tate Agents on (06) 835-4321 any­time.

Newspapers in English

Newspapers from New Zealand

© PressReader. All rights reserved.