According to Kelvin Davidson, the chief property economist of CoreLogic NZ, investors are showing great interest in Hamilton. And why not? The city boasts a diverse and thriving economy that supports property prices.
Despite the pandemic, Hamilton’s property prices have remained relatively stable, with only a 1.3% decline on the quarter and an 8.1% decline for the year. This is in stark contrast to other areas that have experienced significant drops in property prices.
Hamilton’s central location in the North Island, excellent transport links, and proximity to Auckland, New Zealand’s largest city, make it an ideal location for investors seeking rental properties. The city’s strong economy, coupled with its growing population, means that demand for rental properties is likely to remain high.
As more and more investors realise the potential of Hamilton’s property market, it’s no surprise that the city is becoming a hotspot for property investment. So, if you’re considering investing in property, now might be the perfect time to take a closer look at what Hamilton has to offer.
John Kenel
Assured Property
FULL ARTICLE FROM STUFF BELOW:
Hamilton house prices keep dipping but at slower rate than most main centres
By Stephen Ward
Hamilton house prices continued to fall in February, but the rate of decline was less than other main centres, except Christchurch.
Nationally, CoreLogic NZ said the downturn “reaccelerated” with a monthly drop of 1% to an average value of $944,077, the largest monthly decline since October last year, following relatively minor falls in December and January.
However, the latest CoreLogic House Price Index showed a slightly lower than average February drop of 0.8% in Waikato’s biggest market Hamilton to an average value of $827,095.
The quarterly Hamilton fall was 1.3% and the annual decline 8.1%.
On an annual decline basis, Hamilton was again the second lowest of the main centres, with only Christchurch lower at 1.7% down.
That compares to a national annual fall of 8.9%, Wellington 19.7%, Auckland 11%, Dunedin 10.5%, and 9.2% in Tauranga.
CoreLogic’s chief property economist Kelvin Davidson said Wednesday that Hamilton’s slower rate of decline was in part attributable to the fact that city prices hadn’t previously shot up as much in affordability terms as they had in some other centres.
“Affordability didn’t get as stretched in Hamilton as other places relative to incomes.
“Hamilton took a more middle ground.”
He said Hamilton had therefore fared better in the past on that affordability front and the ability of people to service mortgages.
Also, CoreLogic wasn’t seeing any willingness on the part of investors generally to sell up in the city.
“Investors are quite keen on Hamilton.”
Davidson felt the city’s good and diverse underlying economy was another factor supporting city prices.
It was a mixed bag in other less populated parts of the region when it came to annualised shifts, with falls ranging from 6.2% to 0.7% in most districts but gains of 1.6% in Thames-Coromandel and 5.7% in Waitomo.
CoreLogic said a larger drop in home values for February nationally was “unsurprising” and continued a weakening trend evident for the past 12-15 months.
“Despite mortgage rates being at or close to a peak the [Reserve Bank’s] grim outlook for inflation and the economy more broadly was always going to weigh further on property values,” a statement said.
“February’s 50 basis point hike in the official cash rate is also likely to restrain demand.”
