Its economy has grown in the past five years
With Wairarapa deemed one of the hidden gems in New Zealand, it is not surprising that it has remained resilient amid the COVID-19 pandemic.
Wairarapa's economy has grown significantly in the past five years, thanks to its high-value domestic tourism and the effect of Wellington's booming economy and housing market. Its improved infrastructure also played a part in the surge in house values, with asking prices in February at RealEstate.co.nz hitting 26.6% compared to the same month last year.
“It's a beautiful spot in the country, and people are discovering that. I think it was undervalued before, and the penny's finally dropped,” said Will Alexander, the general manager for property management at Property Brokers, as reported by Landlords.co.nz.
“With Transmission Gulley about to finish, that will also open up more options. I think we're seeing some speculation in the area, with investors looking to the future and seeing that [Wairarapa] will be more accessible to Wellington.”
Read more: New Zealand most likely to follow US “zoom” trend in property market
Andy Scott, a principal at Professionals Patrick and Scott at Masterton, said first-home buyers are trying to get their hands on more affordable homes that investors might usually buy. However, rising prices remain an obstacle for those seeking to access the First Home Grant.
“The regional price cap of $400,000 for existing properties might once have been ample, but now buyers are struggling to find a house that's within their budget,” Scott said.
“We’re definitely seeing a big increase in enquiries – I don't know how much exactly, but it feels like 30% to 50% more than normal levels and a lot of enquiry from first-home buyers. There's still some enquiry from investors, too. There's been a lot of talk about investors selling up, but I haven't seen any influx of existing rentals coming onto the market.”
