An interesting question around location regularly comes up when speaking with our clients. Everyone wants to know—where is the best place to buy in Wellington?
“The current market is changing but can be very busy in the central Wellington region for quality properties. However, we have noticed more houses entering into 'by negotiation' and not selling at tender, so things could be slowing in the market very slightly," says Craig Pope of Pope & Co Mortgages.
The suburbs in Upper Hutt, Porirua, Wairarapa and Kapiti are still places people with tight budgets are heading to. A few months ago we wrote about 'What will my money get me in the Hutt’ and this is still a popular area for first-home buyers.
According to QV, although first-home buyers (FHBs) still have a decent presence in Wellington city, one clear option for those priced out is to purchase in the Hutt Valley and this is something that’s often heard about anecdotally. The graph below shows the latest home buyer trends from QV.co.nz.
Source. QV.co.nz - April 2019
In the Real Estate Institute of New Zealand's (REINZ) latest monthly report, Mark Coffey, REINZ Regional Director, writes that Wellington experienced an active market in March and also saw a much-needed increase in inventory. However, despite the 6.6% increase of total inventory, the continuation of low stock levels not meeting the market demand has meant many vendors are choosing not to put their property on the market for fear of not finding a new property to buy if they sell first. Issues with insurance and access to finance continue to remain top of mind.
“First-home buyers continue to look for affordable homes in the suburbs, with a surge in Upper Hutt especially. Wellington CBD has a mix of investors and those looking to move to their second home. The city saw another record median price of $773,000 up from $769,000 last month. Vendors’ expectations are high. It is doubtful that Wellington will see any price drop at this stage as there is a lack of land to build on and this will keep the prices and demand high.” Mark Coffey, REINZ Regional Director.
Wellington Region Trends
|
District |
Median Price |
Volume Sold |
||||
|
March 19 |
Feb 19 |
March 18 |
March 19 |
Feb 19 |
March 18 |
|
|
Carterton District |
445,000 |
410,000 |
420,000 |
18 |
19 |
21 |
|
Kapiti Coast District |
575,000 |
580,000 |
527,000 |
89 |
105 |
115 |
|
Lower Hutt City |
580,000 |
595,000 |
520,000 |
191 |
137 |
166 |
|
Masterton District |
388,000 |
365,000 |
325,000 |
52 |
54 |
68 |
|
Porirua City |
651,000 |
668,000 |
640,000 |
87 |
65 |
81 |
|
South Wairarapa District |
470,000 |
501,435 |
378,500 |
35 |
21 |
20 |
|
Upper Hutt City |
520,000 |
600,000 |
535,000 |
78 |
101 |
86 |
|
Wellington City |
773,000 |
769,000 |
711,000 |
259 |
295 |
344 |
|
Wellington Region |
620,000 |
643,500 |
590,000 |
809 |
797 |
901 |
Source: REINZ Monthly Report April 2019
Trends are only part of the property picture, and the right location and home is very personal to you. If you’d like to talk more about the pros and cons of buying in specific areas, what we are seeing in the market, and/or mortgage options please give us a call 0800 000 517.