Hawkes Bay Market Update - August 2019

by Lauren Worsley on Aug 08, 2019
Article appears under: Hawkes Bay, About Property Investment, Investment Strategy, Local Markets

Always sunny here in the Bays and the world of property investment seems to be no different. While there is a typical seasonal lull in the number of properties on the market at the moment, our clients are still securing some great deals.

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The word on the ground is that the rental shortage is getting worse and new rentals attract at least 15-20 enquiries in the first hour of being listed.

Rents in Flaxmere increased 17% last year and Flaxmere was named as New Zealand's 4th fastest growing in value suburb over the last 18 months. A few years ago it was considered for hardened investors only but now its first home-buyer-ville. As an ex-Aucklander, it all seems a bit deja-vu to me. I'm thinking Otara and Manurewa pre 2007. Can any of you remember when Otara houses cost $168K and yielded 10%? Now you're grateful if you can squeeze a 5.5-6% yield in those areas and the first home buyers are lining up.

Flaxmere has already said goodbye to the heady days of 10% yields my friends - but come on down and secure yourself a solid 7-8% currently and you may even be able to subdivide or add a relocatable at a later date. Can't promise the same this time next year though so don't wait!