If you are a holidaymaker who likes to spend the end-of-the-year break in New Zealand’s popular holiday spots, you’ll have more reason’s to enjoy this year’s break – and that could include buying your dream home, according to one expert.
CoreLogic looked into the home buying activities in some of New Zealand’s key holiday areas, and has offered four observations.
Surprisingly, it suggests that holiday homes don’t necessarily come with a hefty price tag, with many locations recording property values below the national average. Property values in Whitianga were on the average, Waiheke Island and Paihia on the flat values and only Coromandel saw a median property value rise of about $46,000.
“Of course, even if they are starting at “affordable” levels, many of these locations have also become a bit more expensive this year,” CoreLogic senior research analyst Kelvin Davidson explained.
CoreLogic also found that several holiday locations have had active property markets throughout 2018. It suggests that a holiday home, which came into the market over the past year, tends to sell pretty quickly.
The report also shows that gross rental yields tend to be lower in most of these areas, with only Paihia, Tahunanui, and Coromandel notably above the national figure.
“Clearly, the areas we’ve covered here are also residential locations and aren’t just for holidays, with property values and market performance determined by all of the usual year-round supply and demand factors,” Davidson added.
“However, any holiday-makers who were tempted into a property purchase in an area like Tahunanui 12 months ago will have even more reason to enjoy their break a year on.”