Property values in Whanganui suburbs like Aramoho are increasing due to a high performing housing market.
Photo / Bevan Conley
Property values in Whanganui suburbs like Aramoho are increasing due to a high performing housing market.
Photo / Bevan Conley
Whanganui is currently the North Island centre for property value growth.
OneRoof editor Owen Vaughan said this is good news for existing homeowners and investors.
"Whanganui is one of the last centres to slow down and there is still a high share of affordable properties on the market," he said.
"There are still suburbs in Whanganui where it is cheaper to buy a home than to rent."
Vaughan said the median value of all residential property in Whanganui has jumped by 9.4 per cent in the last quarter, 26.1 per cent in the last year and more than 52 per cent in the last five years.
"However, it is important to put such percentages in context," he said.
"The town's median property value is $290,000, with the lift coming off a very low base of $180,000 five years ago."
Castlecliff is the hottest suburb with an annual change of 37.5 per cent and a median property value of $220,000 followed by Whanganui Central on 33.3 per cent, median value $230,000 and Springvale 26.3 per cent and median value of $360,000.
"Four of the five suburbs that have experienced strongest annual lift in house prices - Castlecliff, Gonville, Whanganui Central and Whanganui East - all have median values of less than $250,000.
"It is clear that the appetite for affordable entry points to the market and high rental returns is driving the growth there."
Vaughan said the downside of the growth is that it is placing a squeeze on the rental market.
"The strong rental returns are of interest to investors and because of the high rental prices, it is cheaper to buy a house than rent one in most suburbs."
The affordable properties are attracting first home buyers, who represent more than 20 per cent of new mortgage registrations in the area.
The suburbs with slowest sales are College Estate with an annual change of 12 per cent and a median value $335,000, Okoia with an annual change of 13 per cent and a median value of $495,000 and Otamatea with an annual change of 13% per cent and median value of $570,000.
A total of 1229 residential Whanganui properties have been sold during the last year at a total value of $322,978,854.
Rangitikei has also experienced a high number of property purchases with 102 in Marton, 28 in Taihape and surrounds, 18 in Bulls, 9 in Hunterville and 3 in Koitiata.
