Real estate expert lists several factors that are driving the city's growth
Whanganui is on a roll as house prices continue to rise this year, challenging the myth that the city is a “zombie town.”
According to the Real Estate Institute of New Zealand (REINZ), median house prices across the country rocketed through another record high of $597,000 this year – and Manawatu-Whanganui led the charge with the biggest increase, as median house prices in the area jumped from $320,000 to $397,000.
Ritesh Verma, agent at Property Brokers, said there were several factors that drove the city’s growth – including low interest rates and population growth.
“Low interest rates meant ‘money's cheap as anything’ and population growth was creating demand,” Verma told Stuff.co.nz – adding that out-of-town or overseas buyers are looking into higher-end properties in the city.
“But they're looking to move here, it's not an investment. We've been dealing with $900,000 to $1 million buyers all looking to move here.”
Read more: House price increase could prompt RBNZ to rethink further OCR cuts
Jonathan Sykes, from Whanganui Council’s economic development agency, confirmed that the city’s population increased 7.5% over the past five years while consumer spending also increased 5.5%.
“It's a clear sign that there's confidence in the local economy,” Sykes told Stuff.co.nz.
Meanwhile, the city’s median time to sell was 25 days compared to the country’s median of 35 days – making it the lowest in the country.
Verma said buyers were becoming more pressured to act quickly as agents start getting offers for properties and houses in the city for $10,000 to $30,000 above asking prices.
"People are kicking themselves saying, I should have just paid an extra $5,000 seven months ago because now that house is worth an extra $20,000,” he said. "They're not haggling over a thousand dollars anymore, they're just saying; look just get it done."
