City is becoming more popular in the market than other areas in Waikato
House prices in Hamilton continue to skyrocket as they reached an all-time high in September – with a median price of almost $600,000, according to recent date from the Real Estate Institute of New Zealand (REINZ).
Data showed that the city’s median prices increased by 8.7% – from only $549,000 last year to $597,000 in September 2019. Meanwhile, the median price across the Waikato region is $550,000 – a 5.6% increase from last year.
Neville Falconer, spokesperson for REINZ Waikato/Bay of Plenty, said buyer activity continuously increases due to lower interest rates and lack of capital gains tax.
"Existing homeowners who have had fixed loans at higher rates, where those fixed periods are now starting to wind out, then they are more free to look at shifting their mortgage onto some other property and they have more access to money,” Falconer told Stuff.co.nz.
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Meanwhile, Trade Me revealed that the average asking price in Waikato is now $597,250 while that in Hamilton is $630,250. Property views also increased by 14% in the region and 18% in Hamilton.
However, Falcon said that, while Hamilton may be increasing in popularity in the market, other areas in the region haven’t caught up yet – although the market is still strong overall because “52,000 more people had come into the country this year.”
"Irrespective of interest rates and pricing those people need to live somewhere. That means there is a fundamental support for buying property, so there's no way the markets are going to sit still for some time,” Falconer said.
