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Forget Auckland’s high prices – it’s Kawerau homeowners who have seen the largest property value growth in five years in the country, reveals a new report from CoreLogic.
The City of Bay of Plenty saw a 200.7 percent increase in values during the period. That equates to tripling its price and brought the median value to $ 316,678 in November 2020.
But it was Outer Kaiti in Gisborne that saw the biggest 12-month change in median values, according to CoreLogic’s Best of the Best report. It saw a 39.7 percent increase, leaving its median value at $ 335,900.
The report, which looks at prices and growth in New Zealand’s suburbs and identifies the top performers, also shows an increase in the number of suburbs with a median value of $ 1 million.
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Auckland now has 117 over $ 1 million suburbs, while Wellington has 12, Christchurch has four, and Tauranga has just joined the club, with Mount Maunganui reaching the milestone.
Kelvin Davidson, a senior property economist at CoreLogic, said the data confirmed the strength of the post-Covid rally across the country.
Forty-six suburbs have seen their median value rise by at least $ 100,000 in the past year, 33 of them in Auckland.
This, along with the number of suburbs that now have median values of more than $ 1 million, highlights the upward momentum of the market, Davidson said.
“That kind of growth certainly didn’t seem likely in April and May, when sales activity collapsed and prices looked fragile.
“However, the increase in median property values for 2020 as a whole could be in the neighborhood of nine to 10 percent. It’s quite remarkable when compared to some forecasts made during the lockdown that prices could fall 15-20 percent. “
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CoreLogic’s Kelvin Davidson says there is strong bullish momentum in the housing market.
The heat of the real estate market extends beyond the main centers, as evidenced by the results of value growth in Kawerau and Gisborne.
While Outer Kaiti ranked first in the mid-value growth stakes over the past year, there were five Gisborne suburbs on that top 10 list in particular.
Those suburbs were Tamarau (growth of 38.1%), Kaiti (growth of 32.9%), Te Hapara (growth of 28.1%) and Mangapapa (growth of 27.6%).
The Gisborne market has been performing particularly well lately and Ray White Gisborne owner Shelley Donaldson said CoreLogic data confirmed its strength.
The market was being driven by increasing numbers of people returning and moving to Gisborne, but Gisborne had always been popular with first-time home buyers and investors, he said.
“Competition between these groups of buyers, combined with low levels of housing stocks on the market, are contributing to the market heat.”
Vivienne Haldane / Things
The Gisborne real estate market is doing particularly well this year.
There was little development and subdivisions in Gisborne, and until some new building came along to ease the pressure, the market was unlikely to cool down, Donaldson added.
Meanwhile, CoreLogic data also showed that Auckland’s Herne Bay still has the highest median value in the country ($ 2,681,650), and that an Auckland property sold for the highest price of the year ($ 12,250,000). ).
Runanga in Greymouth had the lowest median value ($ 150,950), while Lake Hayes in Queenstown had the smallest value change in 12 months (-10.9 percent) and Avonhead in Christchurch had the smallest value change in five years (-0.3 percent).
Davidson said that as long as Covid continued to be managed successfully, it was difficult to see the housing market seriously deviate from its current course in 2021.
While resetting LVRs might freeze some investors, he didn’t think it would change the rules of the game, as the key drivers of low mortgage rates and a shortage of quotes remained.
“For property values, it would not be a surprise to see another increase in the 5-10 percent range next year. However, 2020 has taught us that nothing can be taken for granted, and there will certainly be plenty of twists and turns in store for 2021. “
