Hot Hamilton property market ignites in neighbouring towns
Hamilton’s residential property boom could soon be coming to a town near you.
That’s the call from local Quotable Value (QV) property consultant Jarrod Hedley, who noted that the average value of a home in Hamilton had increased by 17.46% over the past 12 months to $746,909, pricing many purchasers out of the market altogether.
“As a consequence of Hamilton’s rapidly rising house prices, demand is starting to gather away from the city and more towards regional towns within a daily commute of the city – places like Te Awamutu, Cambridge, Morrinsville and Ngaruawahia in particular.
“Residential developments in these towns have been attracting strong interest from all buyer types, with rental properties also attracting a good level of demand right now.”
A tidy three-bedroom home on a 700 square metre section in Morrinsville recently sold for $620,000, while a modernised three-bedroom villa on a 900 square metre section sold for $640,000 in Te Awamutu – a great deal less than Hamilton’s current average residential house value, showcasing that whilst these have historically been lower value towns, new found demand is pushing values to record highs in local markets also.
“You do have to factor in your commuting time and costs when you move further away from the city, but we are seeing more value in these parts of the Waikato. With the quarter acre dream now a distant memory in most parts of Hamilton, these country towns can usually provide larger section sizes with a good standard of accommodation, for a fraction of the prices seen in Hamilton,” Mr Hedley said.
Hamilton’s hot residential property market has been stoked by record-low interest rates, high demand and a low volume of housing stock – all factors that Mr Hedley said will continue to be monitored closely by prudent purchasers and lenders, as the above mentioned fuel continues to burn early into 2021.
“The government looks set to ramp up its efforts to tackle affordability later this year – that and any further outbreaks of Covid-19 in the community could potentially cool things down a bit. But with housing stock still low across the Waikato as well as the current negative economic outlook not being as significant as previously forecasted, continued demand may outweigh any possible crash or slowing of the market.
“But if last year taught us anything at all, it’s that anything can happen, so watch this space.”