Hamilton house prices soar

The city's homes have shot up 31.5 per cent in value since July 2015 and 8.9 per cent in the past three months according to the latest QV statistics

Hamilton house prices have risen faster than anywhere else in the country.

The city's homes have shot up 31.5 per cent in value since July 2015 and 8.9 per cent in the past three months according to the latest QV statistics.  The average value in Hamilton is now $513,094.

Hamilton was the fastest growing city in the world in terms of house prices, Labour's spokesman for housing Phil Twyford says. "In the whole world. We need to do something," Twyford said.  These astronomical figures show that the housing crisis has spread from Auckland to Hamilton.

"It's going to have social implications for Hamilton. Less people will be able to buy, it will push up rent prices, which means less stability, which has other knock-on effects."

The central government needs to step in and build affordable houses and build more state houses instead of selling them off, he said.
"Or else you will see the numbers of homeless in Hamilton rise."

Hamilton was not in crisis mode, it was just a very, very buoyant market, Harcourts Hamilton general manager Brian King.

"Obviously when things are in short supply, the prices rise. That's what's happening with houses in Hamilton," King said.

Properties continued to come on the market and are then quickly bought, he said, justifying his reasoning.

"It's just that people are starting to see Hamilton as a desirable place."  The most notable was the steady stream from the northern neighbours in Auckland, he said.

That may slow down with the Reserve Bank's ruling in July that investors need to have a 40 per cent deposit.  But he was not sure at what point it would level off.

Though King did expect to see increased stock levels come on to the market in spring, as property sales tend to be seasonal.

The property market in Hamilton is unable to keep up with demand, says QV Homevalue Hamilton valuer Stephen Hare.

"We are continuing to see strong demand for properties in the lower value price bracket ($400,000-$600,000) and increasingly strong demand in the high value bracket suburbs such as Flagstaff, Rototuna and Huntington," Hare said.

As a result of the buoyant market, auction is now the preferred mode of selling as vendors try to get the highest price for thier homes, Hare said.

The rapid rise of Hamilton properties is also having a halo effect on the neighbouring towns.

Waikato District values went up by 27.5% year on year and 4.2% over the past three months and Matamata-Piako District up 24.3% year on year and 7.3% over the past three months. "Hamilton home buyers and investors continue to purchase in nearby towns within commuting distance to the city, which is driving values up in places such as Te Awamutu, Morrinsville and Ngaruawahia which are becoming more appealing to first home buyers seeking affordability and close proximity to Hamilton."

Summer coastal hot spot Raglan was also booming, Hare said.

"First home buyers, outside investors, local investors, other locals and holiday home buyers are all vying for properties in the popular coastal town and demand for property there is exceeding supply which is driving values up there.

"Raglan is only 45 minutes' commuting distance to Hamilton, making the coastal community popular for first home buyers, families and retirees wanting the coastal lifestyle, affordability and to commute for work in Hamilton."

From Stuff.co.nz​