Figures from the Real Estate Institute of New Zealand (REINZ) have revealed that the Gisborne/Hawke’s Bay region is “continuing to outstrip the rest of the country with the highest annual growth rate in house price values.”
The region posted a 30.7% annual growth rate increase in house prices, ahead of Manawatu/Wanganui and Wellington with a 26.0% increase, according to recent REINZ figures.
Read more: NZ housing market remains red-hot – REINZ
However, Bindi Norwell, chief executive of REINZ, warned that the total pool of properties available for sale in New Zealand “has fallen to record lows applying pressure to house prices especially in regions like Hawke’s Bay.”
“In the last three years, median prices in the Hawke’s Bay have risen from $420,000 in November 2017 now to $692,500 – a 39.4% increase,” said Norwell. “This is in part due to people shifting to the region for lifestyle reasons, but also affordability when compared with markets such as Auckland or Wellington where median prices are significantly higher.”
Consequently, Norwell said that there “has also been a significant increase in demand for properties in Hawke’s Bay and not enough supply to meet demand, therefore putting pressure on house prices.”
REINZ figures showed median house prices in Central Hawke’s Bay for the month of January 2021 were $590,000, up from $390,000 the year before. Napier’s median house prices have risen 30.1% year-on-year to $770,000 while median house prices in Wairoa have risen to $621,000.
“What we’ve seen in the Hawke’s Bay is similar to many parts of the country,” said Norwell. “The fear of future price rises and a fear of missing out lingers deep in buyers’ minds and is impacting people’s buying behaviours. But there are still affordable properties out there for people to choose from – it might just mean living a little further out or adjusting your search criteria slightly.”