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HB house price gap closing

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  • HB house price gap closing

    HB house price gap closing


    The property price gap between Napier and Hastings is closing while first-home buyers seek more value for their money.

    The June property value statistics from Quotable Value (QV) Limited recorded an increase in property value growth of 6.9 per cent for Hastings and 2.9 per cent for Napier.

    The QV report said the average sale price for a home in Hastings increased from $303,387 in May to $311,126 in June. Napier is still ahead in the average sale price stakes, on $330,841, just a slight increase from May's $330,341.

    Tremain's Real Estate principal, Simon Tremain, said Hastings has become an attractive market for first-home buyers over the past four to five years.

    "Hastings and Havelock North prices are catching up to Napier and Taradale and that's why we are seeing greater growth in Hastings," he said.

    "For a three-bedroom bungalow in Hastings you could get that 20 percent lower than in Napier.

    "People realise there's better value for their money in Hastings." While the property price gap was closing, it might never be on par, he said.

    "Napier is still perceived as a slightly better area ... but the price gap may close a little bit more," Mr Tremain said.

    The volume of sales in Napier and Hastings had slowed, indicative of the winter months and a reflection of the market nationwide.

    "The market is still strong but the volume of sales is back compared to last year," Mr Tremain said.

    The QV report said that nationally property prices sped up again over June, rising 12.2 percent on an annual basis. The average national sale price was $378,672.

    QV calculates values over the June quarter and compares them with the same period last year. It said the growth rate was up from 11.1 percent reported in May.

    All main urban areas reported higher growth in values compared with last month. Auckland City grew by 9.9 percent, up from 7.5 percent in May. Hamilton prices grew 13.3 percent (compared with 11.8 percent), Wellington was up 14.5 percent (13.3 percent) and Christchurch 13.4 percent (12.4 percent).

    Values in Dunedin also increased at a very healthy rate of 11.4 percent in the past year (8.7 percent).

    "There's one way to find out if a man is honest-ask him. If he says 'yes,' you know he is a crook." Groucho Marx