Kiwi holiday-makers are discovering Taranaki – and then buying houses there.
Taranaki agents say that people who would normally travel overseas, or to Queenstown or Rotorua, are now going off the beaten track and exploring their region.
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And that’s spilled over from the tourism industry to the Taranaki property market, which is now thriving too.
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Local real estate agents say that visitors who had normally bypassed New Plymouth now spend a weekend getaway in the coastal city and like it so much they buy a house and settle in the area.
Ray White New Plymouth principal Jane Simonson and manager Carey Simonson say the region is attracting domestic travellers who then want to live in the area.
Jane says post-Covid they’ve had an influx of out-of-town buyers who have re-assessed their living arrangements during the lockdown.
“People are looking at the regions like Napier, Nelson and New Plymouth because those are places that are stuck out on the limb, and now with travel restrictions[overseas] people are exploring New Zealand cities they haven’t been to for years,” she says.
Auctions in New Plymouth and wider Taranaki have had 100 percent clearance rate. Photo / Getty Images
Being able to work from home has made buyers from Auckland, Christchurch, Tauranga and Waikato to look into Taranaki as it’s more affordable than other areas.
OneRoof data shows the median house value in Taranaki region is $440,000, less than half that of Auckland’s median $930,000, and well down on Wellington’s median value of $715,000.
It’s biggest sale in the last 12 months was $2.47 million, and it has showed a modest 1.5 percent gain in prices since the start of lockdown in the OneRoof Valocity Covid Index.
Taranaki is cheaper, too than the lifestyle province on the east coast that is popular with relocating big city downsizers, Hawkes Bay, which has a median value of $550,000.
Some visitors have travelled to Taranaki for a post-lockdown road trip and decided to get a house and live there, Jane says.
“We had a couple who came here for a mystery weekend and decided to come back, buy a house and live here,” Jane says.
Carey says Kiwis returning to New Zealand are also active. An tiny eco- house at 9 Junction Street in Welbourn sold for just over $535,000 in July, nearly $200,000 over its CV.
The architect-designed house of just 78sqm on a 460sq m site is energy efficient and surrounded by native plants, an orchard and vegetable gardens. After competitive bidding it sold to a couple from Bangkok.
Ray White auctioneer Ben East says Taranaki had a “absolute phenomenal” auction results recently, with 100 per cent clearance rate in all auctions stock.
“There’s no doubt we’re in a seller’s market with virtually all of our auctions attracting multiple buyers, and that’s really driving strong competition for properties.”
An architect-designed eco-house in Junction Street, Welbourn, sold at auction for nearly $200,000 over CV to a couple from Bangkok. Photo / supplied
Economic commentator Tony Alexander says buyers are motivated making Taranaki a seller’s market and the fifth strongest in the country.
However, that has led to a shortage of houses to buy. At the end of August listings in Taranaki were 50 percent down from August 2019, much lower than the decline of just 13 per cent, according to Real Estate Institute of New Zealand figures.
“The buyers are worried about missing out, and they don’t feel like they can wait around and if anything comes on the market.
“They’ll probably pick it up quickly and it explains why 100 percent of agents are saying prices are rising,” Alexander says.
Dean File, general manager for Bayleys Taranaki, says the competition for every type of property in every price bracket due to limited stock available and way too many buyers interested.
File says about 60 percent are local buyers, 30 percent are out of town New Zealanders and remaining 10 percent are ex-pats, particularly from Australia and England.
Many more people are looking for a “green bubble” with plenty of outdoor space.
“They are expressing a lot of interest in residential but especially in lifestyle properties. I think a lot of it is people wanting that perfect green grass of their own and for just over $1m you can get a great lifestyle for your family and your well-being,” File says.
He says that the majority of vendors are getting “champagne prices” for their houses at auction, at or above their dream price they set before the auction.
File says first home buyers are facing tough competition in Taranaki, especially with entry-level home prices being pushed up from $300,00 to over $400,000.
“It’s tough for first home buyers and I sympathise with them but my advice would be to get in a position to make an offer as cleanly as possible with minimal clauses and have your finances approved.”
