June growth a record breaker
Low housing stock levels are helping fuel the region’s surge in property values.
Manawatu¯ -Whanganui had the second strongest annual growth for property value in the country in June, with an increase of 18.3 per cent to 389, up from an annual increase of 9.8 per cent at the same time last year, according to the Real Estate Institute of New Zealand (REINZ) latest House Price Index (HPI).
Just two months ago the region was the first in the country to go over the 3000-mark in the overall index.
Also in June Palmerston North hit a record median sale price since records began, leaping up to $460,000 in comparison with median Rateable value (RV or GV) of $405,000.
The local market continues to show extremely positive trends, according to the latest data and REINZ Manawatu¯ ambassador Andy Stewart.
In his three decades of real estate in the Manawatu¯ , Stewart says stock levels are at the lowest he can recall.
‘‘The number of buyers is really high and the number of available listings is extremely low, consequently people are fighting over properties and driving the prices up. In Feilding, after an extremely strong sale month of about 40 properties, available stock has now dropped down to about 24.
‘‘In Palmerston North, our volume of sales was down in the month to about 120 because the listings available were down around 160, so it’s all relevant,’’ he explained.
There were 118 residential house sales in Palmerston North during June, similar to the 119 sales in June 2018, but a drop from 136 in May 2019.
‘‘Of the 118 sales, it is interesting to note that only 4 (3 per cent) were under $300,000, and a total of 37 sales (31 per cent) were under $400,000,’’ Stewart said.
There were 37 sales recorded between $400,000 and $500,000 (31 per cent). Forty-four sold above $500,000 (37 per cent), of these, two sales were recorded above $1 million. Two sections sold in June.
Stewart said it was a good month in Ashhurst, too, with six houses sold. ‘‘Two of these sales were high value, one over $500,000 and another over $650,000, showing that the prices in the village are certainly on the rise.’’
Feilding had 41 house sales, up on the 30 sales recorded in May, and the 32 sales recorded in June 2018.
The median sale price increased to $405,000, compared to the median Rateable Value of $270,000.
‘‘Available listings in Feilding decreased substantially to just 25 to 30 on the market; listings are still at an extremely low level given buyer demand in the town,’’ says Stewart.
New records are being forged right across the region, too, says REINZ CEO Bindi Norwell.
‘‘In June, the Manawatu¯ Whanganui market saw a record high median price of $370,000, up 23.3 per cent when compared to the same time last year. The region also had three record median highs in the Palmerston North City District ($460,000), Whanganui District ($295,000) and the Ruapehu District ($300,000).’’
The number of properties sold under $250,000 dropped from 35 per cent to 18 per cent year on year, while the number of listings sold between $250,000 and $750,000, jumped by 17 per cent year on year.
As interest rates fall and the availability of finance increases, more first-home buyers are active in the market, however, they are hampered by the lack of available properties and lower priced properties.
Stewart says all the outlying areas of Palmerston North are attractive to buyers coming into the Manawatu¯ for convenience of travel, value and lifestyle. ‘‘They’re selling up down south – coming up from Wellington, Ka¯ piti – and also coming from the north, with a bit more interest from investors looking at properties in the Manawatu¯ from Auckland.’’