Main centre growth will see more small town commuters
Main centre growth will see more small town commuters, predicts real estate boss
“The latest Quotable Value figures showing house values rising by 5.6% nationwide in the last three months alone - the fastest three-month increase in 12 years – will see many country towns and districts in proximity to New Zealand’s increasingly expensive centres becoming the next hot property,” says Century 21 New Zealand National Manager Geoff Barnett.
“In the last couple of years we’ve seen the halo effect take hold around Auckland with the likes of Hamilton and Tauranga really heating up. My money’s now on the small towns and districts surrounding our main centres being the next to enjoy some good price growth. We’ve had the halo effect around Auckland. The next thing will be the halo effect around our other main centres,” he says.
Mr Barnett has long predicted 2016 will be relatively strong across New Zealand and this is proving to be right when you consider real estate in many of the regions is performing well, interest rates remain low, and Auckland’s relentless population growth continues.
“Across the board we’re now seeing some really strong growth in annual values – with the likes of Auckland (up 16.1% in 12 months), Hamilton (29%), Tauranga (23.6%) Queenstown (25%), and Wellington (12.4%).
“Our capital city is now going pretty well after some quiet years with values for the Wellington region well up. This has been helped by the likes of Auckland property investors switching to Wellington for much better rental yields while also enjoying strong capital gains.”
Mr Barnett says another observation is that Auckland’s outlying areas continue to perform strongly and are increasingly popular.
“Plenty of people are taking advantage of the low interest rates while they last with more and more trading in their central convenience for a bit more time in the car. However, no longer is that mainly an Auckland phenomenon. Expect to see more commuters living outside our other main centres and travelling back and forth every day,” says Mr Barnett.