Home National housing Wellington tops major centers of property value growth as housing crisis continues

Wellington tops major centers of property value growth as housing crisis continues

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Property price increases in the Wellington area have overtaken other cities, increasing by more than a third according to CoreLogic.

STENT KEVIN

Property price increases in the Wellington area have overtaken other cities, increasing by more than a third according to CoreLogic.

Home buyers in the Wellington area shouldn’t expect much, if at all, of a change from the $ 1million as prices jumped 36.1% in 12 month.

The area topped other major centers in the 12 months leading up to October in the latest CoreLogic report, with the average property value now $ 1,103,600, up from $ 292,501

“In general, there are a lot of buyers and few offers. Whether you want a one bedroom apartment or a lovely home in Kelburn, there isn’t much to choose from, ”said developer Craig Stewart.

Alice O’Styke, agent for Ray White Wellington City, said the increase was due to strong demand at the end of 2020 and the first half of this year.

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In recent months, fewer people have turned up, she said, but even so, demand was not decreasing.

“I think it’s a mix of the market that doesn’t meet sellers’ expectations – they’ve seen these big increases and they’re not ready to respond to the market. There’s also buyer weariness – at the end of the day, people still have to pay those prices and they’re looking at their options more closely.

In Wellington's northern suburbs like Churton Park, house prices are rising by over 40%.

KEVIN STENT / Stuff

In Wellington’s northern suburbs like Churton Park, house prices are rising by over 40%.

Corelogic research director Nick Goodall said things had slowed down somewhat in recent months, but the strength of the Wellington market was supported by “a strong, board-based economy on the back of the government [employment] and the lack of land ”.

The scarcity of green space has been cited as the reason relatively few building permits have been filed in the city of Wellington compared to other centers on the North Island.

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A change in law will allow landowners in Auckland, Hamilton, Wellington and Christchurch to build up to three stories without resource consent (full press conference).

The housing construction shortage is not unique to Wellington, with the government and the national side jointly announcing a plan to tackle the national housing crisis last month. The policy aims to increase housing density, allowing more owners to subdivide their land.

Despite a declining market, demand still exceeded supply where “nine out of 10 homes” were selling, O’Styke said. Trademe Property shows that Wellington, with a population of 215,900, had 515 properties for sale. Hamilton, 178,500, and Tauranga, 155,200, had 611 and 491 homes for sale in their respective markets.

The lack of land for new housing is one of the factors driving up housing prices in the capital.

KEVIN STENT / Stuff

The lack of land for new housing is one of the factors driving up housing prices in the capital.

In the regional market, prices rose 35.7% in the city of Wellington, reaching 40.4 in the northern suburbs. The Lower Hutt market jumped 39% and Upper Hutt by 33.9%. Porirua’s prices increased by 33.4 per shipment. Prices on the Kāpiti coast increased by 39.3 percent.

Average prices in these neighboring areas were all over $ 900,000, with Lower Hutt and Porirua above the $ 1 million mark.

In neighboring Wairarapa, the average increase in value over the past 12 months was over 40 percent, with prices in Carterton up 47.8 percent. Prices on the Kāpiti coast increased by 39.3 percent.

Tauranga, where the average property costs $ 1,091,420, saw the second-highest increase of 35.8%, while values ​​in Auckland rose just over a quarter.

In the South Island, prices in Christchurch and Dunedin increased by 31.9% and 23.2% respectively.


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