Entry level prices in Waikato’s most expensive suburb have dropped 10%-15% in the last 12 months, with buyers now able to get a foothold in Tamahere for less than $2 million – although the bargains may not be around for long.
A surge in listings at the start of the year had pulled down prices in the exclusive lifestyle neighbourhood between Hamilton and Cambridge.
Bayleys agent Angel Finnigan said at the peak of the market, listings levels had shrunk to single figures. Now there were more than 40 properties in Tamahere for sale.
She said buyers could get a modern four-bedroom, two-bathroom home on about 5000sqm for around $1.7m.
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“There’s some really good options under $2m at the moment and that’s probably just a reflection of the market.”
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Finnigan is looking for $1.75m for a four-bedroom, two-bathroom home at 3 Vintners Lane and $1.899m for a slightly older home with a swimming pool at 37 Koppens Road.
Both properties would have commanded more than $2m at the height of the market, she said.
The homes achieving the higher price tags are bigger with more standout features. One such property is 9 Acacia Grove, which has an asking price of $3.899m. The five-bedroom luxury home sits on 8726sqm and comes with automated gates, a saltwater swimming pool, a flat lawn for tennis, a fountain, triple garaging, and a shed.
Tamahere is popular with Hamilton’s doctors and surgeons. It’s in zone for several popular schools and is within commuting distance of Hamilton’s hospital, CBD and airport.
A luxury five-bedroom at 9 Acacia Grove, in Tamahere, is priced at $3.899m and has all the extras including a saltwater pool, grass tennis court, automatic gates and water fountain. Photo / Supplied
A renovated 1970s four-bedroom, three-bathroom home on sought-after Newell Road, in Tamahere, has an asking price of $1.799m. Photo / Supplied
OneRoof reported last year that the suburb was attracting buyers from Auckland but Finnigan said interest from that quarter had waned this year, although she had noted a pick-up in overall activity in the last fortnight.
“There’s been a definite change in the last two weeks. Open homes are busier, lots more enquiry, people making decisions and that’s probably a reflection of when the market moves, it moves quite quickly and it only needs a slight adjustment in interest rates for people to have the confidence to get on with it.
“There’s some really good buying around at the moment, but probably not in a few months, I reckon.”
Harcourts agent Adam Flegg said prices had dropped by about 10%. Older homes could now be picked up for around $1.7m to $1.8m, while newer homes started from $1.9m.
A renovated 1970s four-bedroom, three-bathroom home at 277a Newell Road has an asking price of $1.799m, while a five-bedroom, two-bathroom home at 38 Devine Road recently had its price adjusted to $1.89m. The houses closer to the school and the Tamahere hub were more sought-after, he said.
Flegg believed the next move for house prices in the area would be upwards. He said once the interest rate drops filtered through, then they would be back dealing with multi-offers again.
“The buyers have had the pleasure of being the ones in charge, whereas I think it’s going to start to turn around the other way around.”
He said there was more choice because stock levels had accumulated as some houses had been sitting on the market for about 10 months. Some were under contract, but subject to house sales.
A six-bedroom, three-bathroom home on Birchwood Lane, in Tamahere, sold for $2.1m within 13 days of hitting the market. Photo / Supplied
A home and income property at 803E Bruntwood Road can be picked up for under $2m. Photo / Supplied
Lugtons agent Richard Hartles agreed prices had eased in Tamahere.
“The rest of the New Zealand market is feeling the pinch, and Tamahere is no different. The average home is taking 40% longer to sell, sitting at 130 days (YTD), versus 81 days in 2023.”
The increased supply meant buyers had more choice, he said. However, well-presented, well-promoted homes with a balanced value price point were still selling, he said, pointing to a six-bedroom, three-bathroom home on Birchwood Lane that sold within 13 days of hitting the market for $2.1m
“Even with the market downturn, there is still heightened buyer demand for this premium location.”
Lodge salesperson Angela Sanson said people with big budgets to spend on properties in Tamahere were choosey and expected houses to be perfect. “They are really particular about what they buy at that level, if it’s not perfect they won’t go into it,” she said.
“The houses that are moving are beautifully finished. If you are spending that amount of money, you don’t want to buy a project.”
She said many of the lower-price properties were older and needed makeovers. “I’ve seen a few properties selling well under their valuations. Buyers really strike a bargain if it’s not fully refurbished.”
Sanson said not many of the houses for sale in the suburb could be classed as lifestyle properties, mostly because the land they sat on was relatively small in size.
“A lot of properties out there are groomed landscaping – clipped lawns, beautiful grass. The one we are selling has a couple of acres designed for someone that wants a little tiny farm-type atmosphere.”
She’s referring to the six-bedroom, three-bathroom residence with a separate two-bedroom, one-bathroom home at 803E Bruntwood Road. It is also for sale for $1.999m and sits on 8090sqm – enough space for a few animals.
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