Wellington trends — where is the best place to buy?

Wellington region 2

Posted 22 days ago by Pope & Co. Mortgages

An interesting question around location regularly comes up when speaking with our clients. Everyone wants to know—where is the best place to buy in Wellington?

“The current market is changing but can be very busy in the central Wellington region for quality properties. However, we have noticed more houses entering into 'by negotiation' and not selling at tender, so things could be slowing in the market very slightly," says Craig Pope of Pope & Co Mortgages.

The suburbs in Upper Hutt, Porirua, Wairarapa and Kapiti are still places people with tight budgets are heading to. A few months ago we wrote about 'What will my money get me in the Hutt’ and this is still a popular area for first-home buyers.

According to QV, although first-home buyers (FHBs) still have a decent presence in Wellington city, one clear option for those priced out is to purchase in the Hutt Valley and this is something that’s often heard about anecdotally. The graph below shows the latest home buyer trends from QV.co.nz.

Source. QV.co.nz - April 2019

In the Real Estate Institute of New Zealand's (REINZ) latest monthly report, Mark Coffey, REINZ Regional Director, writes that Wellington experienced an active market in March and also saw a much-needed increase in inventory. However, despite the 6.6% increase of total inventory, the continuation of low stock levels not meeting the market demand has meant many vendors are choosing not to put their property on the market for fear of not finding a new property to buy if they sell first. Issues with insurance and access to finance continue to remain top of mind.

“First-home buyers continue to look for affordable homes in the suburbs, with a surge in Upper Hutt especially. Wellington CBD has a mix of investors and those looking to move to their second home. The city saw another record median price of $773,000 up from $769,000 last month. Vendors’ expectations are high. It is doubtful that Wellington will see any price drop at this stage as there is a lack of land to build on and this will keep the prices and demand high.” Mark Coffey, REINZ Regional Director.

Wellington Region Trends

District

Median Price

Volume Sold

 

March 19

Feb 19

March 18

March 19

Feb 19

March 18

Carterton District

445,000

410,000

420,000

18

19

21

Kapiti Coast District

575,000

580,000

527,000

89

105

115

Lower Hutt City

580,000

595,000

520,000

191

137

166

Masterton District

388,000

365,000

325,000

52

54

68

Porirua City

651,000

668,000

640,000

87

65

81

South Wairarapa District

470,000

501,435

378,500

35

21

20

Upper Hutt City

520,000

600,000

535,000

78

101

86

Wellington City

773,000

769,000

711,000

259

295

344

Wellington Region

620,000

643,500

590,000

809

797

901

 Source:  REINZ Monthly Report April 2019

Trends are only part of the property picture, and the right location and home is very personal to you.  If you’d like to talk more about the pros and cons of buying in specific areas, what we are seeing in the market, and/or mortgage options please give us a call 0800 000 517.

 

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