For most of last year shortages of houses, and numerous bidders did little to affect prices. But now! Word on the street – valuers, agents, houses getting resold from a year ago – its racing up at 2% a month. Up 15% since October.
Wellington, today. I have no idea what is going to happen this year to prices, but it might be dramatic. By contrast 124 houses available in South Wairarapa, population only 10,000. Wellington is that out of kilter.
Take that, you four wheel drive driving, $100,000 pa salaried, fancy officed, Resource Management Act incanting and District Scheme quoting councils! Permits were 0.28% of the cost of the work! and it probably was better built, too!
I had an hour to fill before a tender closed last week. Cool clear Wellington morning. Getting exercise, and delivering Christmas cards in Pukitero Avenue Northland. Add this view: who could have a better job than me. He he; taken on a phone my daughters would scorn to own! Looks good enough to me!
Yes, the 65 written tenders this Northland Wellington house covered a range of nearly $300,000. We sold it about 50% over the – low- RV of $495,000.
It seems the arrival of some Auckland investors since 1st October deposit changes, has finally made Wellingtonians’ get a bit of confidence in their own housing stock! The shortage of stock & low interest rates may result in some upward prices in the new year: a change to what has been 8 years of virtually no price changes in the region. See graph below.
In the last week I have had three offers from Auckland investors: one has bought this beauty in Thorndon from me. Way over its silly RV of $1,050,000. Yielding over 6%, on a lovely 550 m2 section in a great street in Thorndon ( Burnell Avenue). Bought without physical inspection though the buyer knew the property and carried out full diligence. The other two offers were made sight unseen also. I’ve rarely had even one offer like that in 26 years real estate. A trend or an anomaly?
See it here: Clementine Way: BEO $400,000.
“Wellington offered good opportunities for investors, first home buyers, and people looking to free up cash outside Auckland,” Tony Alexander Chief economist of the BNZ said last week.
“If you gave me $10 million and said go forth and buy a bunch of houses you reckon will produce the best capital gains in the next five years, where would I look? I would sink it into Wellington, Hamilton, Tauranga and a bit in Nelson.”
“The ability to buy a reasonably priced house to raise a family, the fact few head offices are planning to shoot north now, the coming long-term benefits of the Transmission Gully Motorway, IT sector, culture, runway lengthening and the film sector.”
A local Wellington real estate manager Marty Scott said in a newspaper interview:
“Wellington is looking like a good destination for investors in terms of price and yield”. However he questioned if the growth was driven by out of town investors. He believed it was mostly Wellington buyers. “Currently about 15 per cent of buyers were from outside of the capital and about 3 per cent from overseas. In the last 3 months there had been no shift in these numbers”, he said.
Grow Wellington chief executive Gerard Quinn said there were plenty of job opportunities in the capital, particularly in the strong tech sector.
“With a vibrant city, excellent public transport and easily accessible coastline, the Wellington region offers so much more than lower house prices.”
No offers presented till property on market for 7 days. No tenders that sell prior to advertised close date. My employers have mandated these rules for years: seems reasonable in order to work for a vendors best price! Licenced under REAA 2008