Property prices are still booming in the right parts of Taranaki. New Plymouth might be suffering the same downward drag on house prices as most New Zealand cities.
But Stratford homeowners have a reason to feel smug on the subject of house prices, because property values there are still going up. The latest QV House Price Index released in June showed declining home values in every one of New Zealand’s ten most populous cities for the May quarter.
However, ten centres bucked the trend and showed growth. Stratford was in third position for that with a 10.2% increase in the three months to the end of May. It was only beaten by Kaikoura at 13.6% and Central Hawke’s Bay at 11%.
The average house price in Stratford District in June was $545,188 according to the index. That compared to $752,824 for New Plymouth District, and $500,777 for South Taranaki.
Start your property search
That's $1m below Auckland's average property value, according OneRoof's latest house price figures.
McDonald Real Estate agent Danny Bates says the demand for Stratford is being driven by new developments in the town, including Stratford District Council-led developments.
Buyers can get into a new home in Stratford significantly cheaper than New Plymouth. “In New Plymouth you might pay $400,000-$500,000 for a section,” says Bates. “In Stratford you’re still looking around $200,000, and the actual build cost is the same.”
Most new homes in the town are detached, and range from $700,000 to $1 million. For existing homes, entry level starts in the mid-$300,000s and stretches up to around $1m.
This five-bedroom home on Rossiter Crescent, in Lynmouth, recently sold at auction for $835,000. Photo / Supplied
A six-bedroom lifestyle property on Brown Road, in Brixton, sold under the hammer in June for $1.5m. Photo / Supplied
In New Plymouth, the absolute bottom of the market starts in the $400,000s, says Bayleys agent Neale Parkinson. But first home buyers should expect to pay from $500,000 unless they can take on a do-up.
“Entry level these days, there's not a great deal under $500,000. There are a few houses that are selling in the $400,000s in New Plymouth, but they tend to be properties that have deferred maintenance or could be quite small,” Parkinson says.
The New Plymouth market isn’t as hot as it was last year, says Parkinson, which means first home buyers are now getting a look in. “There's more choice for buyers and buyers are deliberating more on their buying decisions. The fear of missing out that was prevalent in the market in the latter parts of last year seems to have dissipated,” he says.
Many properties are still selling at auction, but the level of action isn’t as frantic as last year. “To be fair, people are probably making better, more informed decisions because they're not rushing into [purchases]. They’re undertaking better due diligence.” The drop-off in sales volumes in New Plymouth hasn’t been drastic, he adds.
A chalet-style lodge on Pembroke Road, in Stratford, sold for around $1.1m last year. Photo / Supplied
A grand two-storey villa for sale at 3 Puawai Street, in Hawera, South Taranaki. Photo / Supplied
Good homes are still selling. Parkinson cites the recent sale of a five-bedroom family home on 1248sqm section on Rossiter Crescent, in Lynmouth. The property fetched $835,000 under the hammer in April. Parkinson’s colleague Leo Baas sold a six-bedroom lifestyle property on Brown Road, in Brixton, for $1.5m at auction this month with four registered bidders in the auction room.
Sales of properties priced up to $1.5m are going well in New Plymouth, says Parkinson, but the $1.5m-plus market in the city is sluggish. In the past 12 months, there were five sales between $2m and $3m, five between $1.75m and $1.99m and 13 between $1.5m and $1.75m, says Parkinson.
Bates says the most memorable sale for him of the last 12 months was a five-bedroom Grand Designs-style home at the foot of Mount Taranaki. The property sold for around $1.1m and it’s believed that the current owners are thinking of turning it into a visitors’ lodge.
One factor bolstering the region’s property market is that work tends to be plentiful in Taranaki, says First National Taranaki’s Shawn Gibbon. Fonterra has big plants at Eltham and Whareroa, and there are two large meat works at Silver Fern Farms Hawera, and Riverlands Eltham.
A four-bedroom luxury home on Larlin Drive, in Hawera, sold for $1.2m in November last year. Photo / Supplied
The big employers tend to import management from outside the region, which is a boost to the property market, says Gibbon. The ability to work remotely as a result of Covid has also seen an influx of outside buyers. “People can also live in the smaller towns and work from home,” says Gibbon. That realisation has seen an influx of Aucklanders still working for their big city employer, but trading in a $2m home for the equivalent in Taranaki at $600,000, he says.
At the same time, locals have started to accept commuting in the region. “Going back five years, everybody seemed to dread that commute from Stratford to New Plymouth. Now it’s still the same distance, but there are a lot more people that commute to New Plymouth. As a result the surrounding towns have become quite popular.”
Outside of the region’s main centres, house prices tend to start at around $300,000. The highest priced home currently for sale in South Taranaki is a 143-year-old two-storey, six-bedroom villa on Puawai Street, in Hawera. It is being listed with First National and has an RV of $1.485m.
A five-bedroom home on Rata Street, in Hawera, sold for $1.111m. Photo / Supplied
Two homes on one title in Maire Street, Hawera, were picked up for $1.05m. Photo / Supplied
Three of the biggest South Taranaki sales over the past 12 months have been a four-bedroom luxury home on Larlin Drive, in Hawera, which fetched $1.2m; a five-bedroom home on nearby Rata Street, which sold for $1.111m; and two homes on one title in Maire Street, Hawera, which were snapped up for $1.05m.
- Find more properties for sale in Taranaki here.
