The surge in Ōtaki house prices continued in February, with
homes.co.nz reporting the estimated median house price to be up $25,000 in the last month to $565,000.
This follows a leap of $20,000 in January, lifting prices by $45,000 in just two months. In February last year, the median house price was $450,000.
In the past three months, prices have shot up 10.9 percent. They’re up 18.7 percent in the past six months, and 25.7 percent up on this time last year.
Local real estate agents don’t see an easing of the trend any time soon. Demand is simply outstripping supply, they say.
“I think the fear of some home owners is that if they sell they won’t have a place to live in,” says Brendon Heenan of Tall Poppy. “So they’re staying put, therefore reducing stock availability. The stock levels in Ōtaki are at a record low.”
About 300 homes in sub-divisions are due to be built in the next three years, which might be expected to dampen house prices. However many sections – including house and land packages – have already been snapped up.
Homes in the currently available sub-divisions are selling at prices between $575,000 and $650,000. Rural blocks of about two hectares (five acres) are going for about $850,000 before building even starts.
“We need even more sections,” Brendon says. “Unfortunately red tape slows their delivery.”
Grant Robertson of First National says house-price rises are driven by many factors at present, including low interest rates, massive stimulation from the Reserve Bank to “ward off” a Covid recession, and 12 years of KiwiSaver account accumulations by young people.
“You can add the ‘one off’ factor of the expressway build, shortening travel times, but equally importantly causing full employment and fat business profits; the special character of Ōtaki; and the return of Kiwis fresh out of quarantine,” Grant says. “It’s almost a perfect storm of positivity. We are firing on all cylinders!”