Hamilton Market Update October 2020
It really is impossible to keep up with the fast-paced Hamilton market at present unless you are immersed in it every day. In the last 12 months, Waikato median house prices rose 17.1%, and 4% in the time since lockdown here ended. Record prices have been reached in both the Waikato region and Hamilton city. The median property price in Hamilton is now $636,000. This flies in the face of the doom and gloom predictions of a 10-15% drop in values post lockdown.
“With thousands of New Zealanders returning home as a result of New Zealand’s limited cases of COVID-19, many of these individuals are looking to purchase property for their family to live in which is also likely to have bolstered June’s sales volumes,” points out Bindi Norwell of REINZ.
We are currently incredibly short on listings in Hamilton. Listings tend to be light at this time of year, but especially so at present. This is possibly due to uncertainty around both the global and local economies, as well as the upcoming election.
This lack of stock, as well as low interest rates, and a large pool of first home buyers and investors are all contributing to the continued price growth. Most properties in the affordable price band are going to multi offer, and auction rooms are pumping. This is great if you are selling, however it also bodes well for the strength of the Hamilton market long term.
The rental market continues to remain strong, with a large shortage of properties for rent across all areas of the city. Lodge City Rentals, who have a large portfolio in Hamilton, are recording around 700 enquiries a week from people seeking rentals - however, have less than 50 properties available.
In terms of new developments, the Ruakura inland port is currently under construction. This area will consist of:
- 60ha set aside for a logistics centre, capable of processing 1 million 20ft containers annually. To put this in perspective, Auckland and Tauranga ports collectively process 2.1 million 20ft containers annually
- 262ha set aside for an industrial park
- 108ha set aside for a knowledge and innovation center
- 138ha for residential development
- 3 retail areas
- 10% of the total area to be public open spaces
On the other side of the city, the Amberfield development will see new green areas, shopping areas, 20,000 new homes, as well as a new bridge across the Waikato River.
Having just purchased in Hamilton myself, I believe that now is a great time to buy. Hamilton and the Waikato region have so many strong fundamentals for investment, and the momentum of development here will not stop any time soon.