When studying the latest Property Pricing statistics from QV for the 2016 year some items are fairly surprising.
Kawerau, in the Bay of Plenty, has seen the biggest growth in average property prices during 2016. The growth in Kawerau, was 60.2% to bring the average house price to $176,324. This is by far the biggest growth region in the Country.
South Waikato, is a district in the Waikato Region, sustained the second largest average property price growth in the country, rising 32.4% to have an average house price of $184,672. This doesn't surprise me too much.
Queenstown Lakes, an Otago district is of course admired by many, this region sustained the third largest average property growth in 2016, rising 31.6% to have an average house price of a staggering $1,022,214.
The top two are inland districts fairly close to Central North island, both regions rely heavily on industry such as Forestry and Farming. These industries are struggling in most cases, so what makes them have so much growth?
I know the South Waikato Region fairly well personally, it's not far from where I am located and have spent time in this region. Whilst I was there the signs of this was already starting to appear, Aucklanders cashing in their Auckland properties, settling into the likes of Tokoroa, Tirau, Putaruru or even a lifestyle block, and buying a campervan and a boat. This, of course, is increasing their lifestyle. Allowing them to travel and see the country they may not have been able to do in Auckland. It would also allow them to settle into a quieter environment and have money in the bank in many instances. Many of the properties there being purchased were tenanted properties, and therefore tieing up the rental market too. Property listings have fallen dramatically in this region in the last few years.
I presume Kawerau is fairly similar. The affordable housing attracting people to purchase properties there.
The only region to suffer a decline in the average property prices was Buller, which fell 1.9%, to have an average house price of $185,826.
The Christchurch market appears to have cooled. With the largest average property growth on the Banks Peninsula, seeing just 4.8% growth to have an average house price of $513,275
The Wellington region seen more Growth in 2016 than Auckland, in the Property Growth.
Some of these statistics are fairly surprising and others not so.
Published By D Blair, Hamilton. Based on statistics supplied by QV.