by Hamiltons house prices present as a bargain if youre an Auckland homeowner, that is.
Tom and Chloe Corkill recently sold their 2½-bedroom Greenlane house for $1.5 million and are now in the market to buy a four- to five-bedroom house and lifestyle block on Hamiltons southern fringe.
The new parents say Hamiltons accessibility to the outdoors and being closer to family made the call to leave the super city an easy one.
And the couple arent alone as real estate agencies field growing inquiries from Auckland homeowners and professionals eyeing a shift south.
READ MORE:* A return visit to Hamilton’s Rimu Street* Pushback against state housing project in Hamilton’s south* New high-end apartments for Hamilton’s CBD
Talk of a possible cooling of Hamiltons housing market is premature, say real estate bosses, given demand for properties continues to outstrip supply.
But whether Hamilton house prices are affordable depends on who you ask.
Housing Minister Megan Woods announces $1b funding to speed up housing development. Video first published in June 2021.
If you ask first-home buyers theyd say definitely not, Bayleys Hamilton branch manager Mike Gascoigne said.
In terms of first-home buyers, its getting to the stage where its quite hard for these people to get into the market unless youve got family helping you out.
Hamiltons average property value now sits at $801,919 a rise of 110 per cent since June 2015 ($381,793). And the time required to save a deposit for a Hamilton property is now 8.9 years, up from 6.7 years (the average for 2004-20), according to analysis by CoreLogic.
Real estate bosses expect Hamilton house price growth to continue through to 2022.
The QV House Price Index shows Hamiltons monthly house price growth eased in May (2.3 per cent) and June (1.2 per cent) but Lodge Real Estate managing director Jeremy ORourke said a severe shortage of Hamilton properties for sale is putting renewed upward pressure on prices.
Were seeing multiple offers on properties which means theres a competitiveness that is actually driving new price highs, ORourke said, adding agents are seeing more well-paid professionals moving to the city.
Low interest rates continue to attract investors into the housing market a phenomenon thats been repeated around the world.
In the United States theyve had the largest price rise across America for 50 years and in Britain theyve had the biggest price rise since 2004. So globally, low interest rates and the security that property brings are prompting new people to invest in housing.
Hamilton real estate agencies have seen strong bidding inside their auction rooms in recent months.
Hamilton Harcourts director Campbell Scott expects house price growth to continue through to 2022 given the demand for city properties.
Until either the demand is severely curbed, maybe by way of interest rate increases or we make it easier for the private sector and the Government to add to supply, not much is going to change, Scott said.
Aucklanders interest in Hamilton property is nothing new, with even house prices in the citys newer suburbs representing a tolerable price bracket for Auckland buyers and investors.
Tom Corkill, who works at a Hamilton law firm, says the citys lifestyle options and its proximity to Auckland appeals to him and wife Chloe.
Scott said building a new home has always been a viable option for a sector of the market, but this has become more challenging given the scarcity of land in the city.
Getting the section is one thing, but getting through the consent process is costly and time-consuming. And now, as a result of Covid supply chain issues, getting labourers and materials and the like to build the houses is almost untenable for some people.
Lugtons managing director Simon Lugton said the supply of properties for sale typically worsens over winter which will put further pressure on house prices.
The citys median house price is expected to reach $800,000 some time this year. Hamiltons median house price was $762,000 as of May this year.
Lugton said he cant see house prices decreasing given the growth Hamilton and Waikato is experiencing.
So many people are moving to this region, theres such a constraint of greenfield developments and infill, theres not enough apartments being built. Were going to be short of housing for some time.
