Last Saturday I was quoted on the front page of the Waikato Times saying it is a ‘Sellers’ market in Hamilton because buyers keep coming and we Real Estate Agents are running out of stock. Normally there are circa 300 sales a month and we should have around 900 properties (3 months supply if you will) ‘on the shelf’; we are edging towards 600 this week, just two months’ supply…
…classic Keynesian economics – low supply + high demand = higher prices.
Today’s figures from QV support my observations (working at the ‘coal face’ as I do); National House price growth in the last 3 months is -0.3% (Auckland -0.9%), while Hamilton is +0.2 overall and a staggering +1.1% in North East Hamilton.
Those thinking of selling can capitalise on the bottleneck and ‘make hay while the sun is shining’, if you are thinking of selling, July is the time in Hamilton.
Where are these buyers coming from? In my own experience meeting buyers (I have 12 Residential and Lifestyle properties on the market this week; another 9 under offer and do ‘Open Homes’ for all of these Saturdays and Sundays and some weekdays) I talk to many ‘Auckland Refugees’ – leaving either because they simply cannot afford to buy in Auckland and are lured by the proximity, lifestyle and opportunities in Hamilton. Other buyers are either relocating from other centres, rationalising their asset base, or choosing to move to or from Lifestyle or Residential (I sell both because there is a lot of ‘cross-pollination’ with families moving in and out of the city as their children’s ages and needs dictate.)
But hang on a minute, if you are investing – then isn’t the North East is the place to put your money?
Yes it is, let me explain why – North East Hamilton Suburbs boast enviable town planning initiatives; cycleways, walkways, green corridors, river walks and excellent connections to Auckland and the city centre. With no less than 5 Decile 10 primary schools (one under construction) and zoning for the new $200M ‘State of the Art’ Junior and Senior High School and Sports Complex families are flocking to buy or rent. It is no surprise that it continues to enjoy the highest capital gain pa in a very fast-growing city that has 2 Inland Ports under construction, an Adventure Park, proposed new Medical School at the University of Waikato, an Airport and the recent injection of a $1b Housing Infrastructure Fund from Central Government. Hamilton is also the new home of the NZ Sevens World Series.
With a population of 165,400, and gross domestic production of $7.8b pa astute investors recognize an excellent opportunity in a city that has seen exponential building growth in the last 2 years. If you are thinking of investing in Hamilton, check out the new Hamilton Invest Portal link for more information: http://hamiltoninvest.co.nz/resources/