Agent notes spike in out-of-town buyers from throughout New Zealand
House prices in Tararua have continued to soar – hitting a record high since the government lifted the lockdown in May, according to the Real Estate Institute of New Zealand (REINZ).
The latest data from REINZ revealed that median house prices in Tararua hit a record $300,000 in May, up by 9% from May 2019.
Professionals Pahīatua real estate agent Donna Dewar noted a spike in out-of-town buyers from throughout the country, with many first-home buyers in southern Tararua coming from Manwatū and Palmerston North to seek higher and fast-rising prices in the Tararua Range.
Meanwhile, Property Brokers Dannevirke branch manager Dave Frith told Stuff that most out-of-town buyers in northern Tararua came from large cities who could easily buy a home in the district after selling their property.
Read more: Report reveals increase in investor buying activity
Tararua is not the only area gaining interest from property investors, with one in four real estate agents having seen an increase in investor buying activity across New Zealand this month.
A net 25% of agents noticed a net 16% increase in investors this month compared to May, according to a joint survey from REINZ and independent economist Tony Alexander. A surge in buying activity might have been driven by the hope to get cut-price deals, with 60% of the respondents saying investors were looking for bargains and 64% focusing on record-low interest rates.
“[The figure] was unsurprising, considering the low level of interest rates which investors in bank deposits are currently receiving and the hopes many undoubtedly have to purchase something more cheaply than might have been the case four months ago,” Alexander told Landlords.
