Ray White Now New Zealand - October Edition - Page 11

“ Small towns in close proximity to Hamilton city continue to perform well and see high demand , including Morrinsville , Te Awamutu , Cambridge and Ngaruawahia , with developers seeing these places as hotspots for development also .”
“ Local agents continue to report a shortage of quality listings across the Waikato with a good level of interest in the properties that are on the market , especially ones with any development potential , or that appeal to first-home buyers ,” Mr Schicker added .
Is all the steam coming out of Rotorua ’ s residential property market ?
House prices in the Sulphur City have increased by an average of just 0.8 per cent over the past three months , down from last month ’ s rolling three-month average of 1.9 per cent , and a significant drop from its peak growth rate of 7.6 per cent back in June .
“ House prices are increasing at a decreasing rate month-on-month ,” local property consultant Derek Turnwald said . “ Although sales remain strong across Rotorua as a whole , much fewer people are attending auctions and open homes , and we ’ re seeing more properties being passed in at auctions now .”
Mr Turnwald said investor activity had also dropped off in recent months in response to LVR changes , the extension of the brightline test , and tax deductibility law changes . “ There hasn ’ t been a noticeable increase in investors selling properties yet . Some may choose to wait a couple of years to dodge being taxed under the new extended brightline period ,” he added .
House prices remain stubbornly hot in New Plymouth , where they have increased by an average of 4.8 per cent in the three months to the end of September .
South Taranaki District has experienced a similarly rapid rate of growth with house prices rising by an average of 4.4 per cent in three months . That figure is slightly down on last month ’ s three-monthly figure of 5.9 per cent .
Over the 12 months to the end of September , house prices have increased by 32.5 per cent in South Taranaki , 29.6 per cent in Stratford , and 27.9 per cent in New Plymouth .