Editorial: Property surge is good for Bay economy

Andrew Austin, Editor of Hawke's Bay Today.

It is pleasing to see that Hawke's Bay's property surge seems to be continuing.

Latest QV figures show Napier values rose 18.4 per cent year on year and 5.7 per cent over the past three months. The average value in the city is now $449,717 and values are now 32.2 per cent above the previous peak of 2007. In Hastings, the figures show values in the city increased by 20 per cent year on year and 3.7 per cent in the last three months.

Add to this the positive news coming from real estate agents in Wairoa, Central Hawke's Bay and Dannevirke and you will see that home owners have plenty to smile about.

Of course, you always have the other side of the argument, which is that it is becoming harder for new entrants to get into the market. It is an issue that needs to be addressed and the government needs to continue to look at ways of making it easier for youngsters to buy houses across the country.

But this is about our economy and for growth to occur, we do need a strong housing market.

There is no doubt that interest from elsewhere is driving our local market. The slowdown in Auckland seems to be helping us, with a lack of housing stock causing buyers to look elsewhere. Hawke's Bay's good weather and relaxed attitude seems to be attracting people who want a change from the rat race in the big centres.

Another reason is our properties, comparatively speaking, are cheap and can at times be a fraction of what you would pay in Auckland and Wellington.

More flights to Hawke's Bay also mean that people can commute to their high-powered while enjoying the pleasures of living in the Bay.

Long may the sun shine on our property market.