Whangarei Market Update - September 2019

by Penny King on Aug 30, 2019
Article appears under: Whangarei, Local Markets

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There have been significant large projects announced in Whangarei over the last year, in addition to the Hundertwasser Art Centre there are plans to bring Cruise ships into the growing Whangarei port, with the first ship to coincide with the opening of the new Art centre. (Read more).

To add to facilities for visitors and for local business a large hotel and conference centre is in the planning phase as are further expansions to port facilities and capacity.

The Whangarei District Council have announced their proposed urban plan changes which see areas of high-density housing being permitted. This plan is under consultation and could take until the end of 2020 to be finalised. There is no doubt however that the council are planning for significant growth. Whangarei is living up to its potential as a commercial hub, assisted in a few key areas by the regional development fund. Being close to Auckland, with tourism business increasing, and these significant investments in infrastructure under development, it is an exciting time in the North.

As with elsewhere in the country the building industry (even putting aside the insulation installers) is extremely busy and most tradesmen are currently indicating around a 6 week delay to start any work. Getting quotes for work is also taking longer than what we are used to in this area. A busy construction sector is in my opinion great news and speaks to growing confidence in the future of this lovely part of New Zealand.

The market in Whangarei is seeing a typical winter reduction in the number of listings. Vendor’s price expectations have risen given the significant gains achieved in recent years and continuing demand in the area is supporting these prices.  Properties in the 400K range are moving fast when they are listed with more expensive listings sitting longer on the market.  

The latest OCR rate announcement and the changes to bank requirements are starting to impact and driving the quick turnover of the lower cost homes. The rental market continues to be challenging for tenants and good for investors with little sign of this easing. Yields remain solid with 6+ % readily available as a shortage of rentals persists. Value add properties continue to be listed and offer great opportunities.

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