Housing and cycle holidays riding high on the Coast
House prices in parts of the West Coast are through the roof and some cycle trail businesses have reported double the customers since the Covid-19 pandemic began, despite tough times in the glacier country.
West Coast Scenic Waterways owner Cindy Hopper said her accommodation and boat cruise business near Hokitika had experienced ‘‘huge growth’’ in the past year.
Domestic tourists made up about 85 per cent of her customers before the pandemic hit.
‘‘We are probably double what we were before. We have been at capacity and have had to turn people away. November was as busy as March, which is unheard of,’’ she said.
Development West Coast (DWC) chief executive Heath Milne said 25 per cent of international tourists named the Franz Josef and Fox glaciers as the reason they went to New Zealand.
This week DWC and Glacier Country Tourism Group wrote to the Government seeking a rescue package for the glacier region, which has been hard-hit by New Zealand’s ongoing border closures.
The plea followed a report forecasting the region – covering Franz Josef, Fox Glacier, Lake Moeraki, Okarito and Whataroa – could lose 84 per cent of the jobs it had pre-Covid and two-thirds of its businesses by September.
A survey of businesses in Fox and Franz Josef showed 16 had closed down so far and 393 full-time and 125 part-time or casual jobs had been lost.
Another 68 business owners said they would have to close within six months if they did not get Government support.
However, domestic tourists were spending money in other West Coast towns while ticking off cycle trails including the Old Ghost Road and the new Paparoa Track, which had been booked out all summer, Milne said.
According to Ministry of Business, Innovation and Employment figures, tourism spending in Buller grew by five per cent in the first week of February compared to the same week in 2020.
Conversely, spending fell 5.2 per cent in the Grey district and 23.4 per cent in Westland.
Interest in the West Coast Wilderness Trail between Greymouth to Ross had grown in the past year.
Manager Jackie Gurden said about 90 per cent of those riding the trail before Covid-19 were New Zealanders.
The number of people riding the full trail rose 16 per cent in January and February, compared to the year before.
The Mahinapua section was up 34 per cent up on last February and had doubled in January.
She said the number of e-bike riders and riders aged over 70 had gone up by 10 per cent on last year.
‘‘Riders are coming for four days with almost half extending their stay for a further day or two.
‘‘I have also seen a growth in riders in motor homes. These people park up, ride sections of the trail, have a look around, then move to the next location on the trail and do the same thing,’’ she said.
Meanwhile, the West Coast’s housing market – which traditionally lags behind other regions – is booming.
Greymouth real estate agent Deedee Daly said she recently had seven offers at one open home.
‘‘I’ve never seen anything like it before. As soon as we are listing homes we are getting multiple offers on them.
‘‘The demand that we are seeing elsewhere has finally come to the Coast,’’ she said.
Buyers are a mix of locals, returning Coasters and people moving to the Coast for its affordable prices.
Real Estate Institute of New Zealand chief executive Bindi Norwall said the median house price on the West Coast rose 10.6 per cent in January, compared to the same time last year, reaching $260,000.
The West Coast was one of only three regions where it took less than 30 days on average to sell a house in January. The 25-day average was the fastest turnaround the region had experienced in 17 years, Norwall said.
One investment property recently sold for 30 per cent more than what it was valued at.
‘‘It will be interesting to see how things go over the coming months, especially with the offers that have been presented recently. [It’s] something the West Coast is not used to seeing,’’ she said.
‘‘I’ve never seen anything like it before. As soon as we are listing homes we are getting multiple offers on them. The demand that we are seeing elsewhere has finally come to the Coast.’’
Deedee Daly, Greymouth real estate agent