New Plymouth’s property market is growing

by Roxanne Libatique01 Nov 2019

Quotable Value (QV) has released its property valuations for New Plymouth for this financial year, which was prepared on behalf of the New Plymouth District Council as it prepares to set rates for the 2020/21 financial year.

QV revealed that the average house price in the city has increased 14.8% since 2016, to $493,312 – with the section value increasing 26.2% to $252,029.

Paul McCorry, senior consultant at QV, said New Plymouth’s property market has seen good growth over the last three years – especially in urbanised areas.

“The residential market has seen a similar trajectory to the rest of New Zealand over the last three years, values have steadily risen with historically low mortgage interest rates underpinned by a declining OCR,” McCorry said. “Popular waterfront areas of New Plymouth such as Fitzroy and Oakura have kept pace with average capital values of $692,966 and $855,000 respectively increasing by around 20% on 2016 levels.”

“The lifestyle property market has also benefited from low interest rates and good demand. Values have on average grown by 9.3% over the last three years. The average value of a lifestyle block in New Plymouth is now just under $760,000. Typically in the lifestyle market the lower, more affordable price bracket has seen the greatest lift.”

Read more: Barfoot & Thompson reveals increase in Auckland house sale activity

Commercial capital values also increased 17.1%, with a 28.6% corresponding land value. Meanwhile, industrial property capital values increased 14.2%, with a 26.2% increase in land values.

“Declining investment yields have been a trend over the last few years and whilst rental growth has been modest particularly in commercial property along Devon Street East/West, well presented and well located property, particularly with a solid tenant profile and a good earthquake rating remain very popular,” McCorry said. “We are seeing a significant volume of vacant land purchases in Bell Block and Waiwhakaiho with the ongoing development of good quality industrial property underling the positive sentiment in that segment of the market.”

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