New Zealand real estate is running hot again, after a cold spell that lasted more than a year. But what is the temperature of the market in New Zealand’s hottest and coldest towns? OneRoof talked to agents and experts to find out if they are feeling the heat or still suffering chills.
Rangiora - New Zealand’s hottest town
Rangiora, in Canterbury, still holds the record for the country’s highest recorded temperature. In 1973, the town sweltering as the gauge hit 42.4 degrees Celsius, but even in recent years the temperature is known to frequently exceed 30 degrees in summer.
House prices in the town have started to warm, with agents telling OneRoof they have been receiving increasing interest from North Island buyers wanting to move south.
Start your property search
Russell Hume, from Total Realty Rangiora, said vendors who were meeting the market were getting good sales, with his office selling around 70 homes a month.
“We’ve been getting some good results in the executive home market. People are coming down from the North Island and Rangiora represents such good value compared to other centres,” he said.
Enquiries were coming from as far away as Tauranga and New Plymouth. “People like the lifestyle here. It is hot but it’s a dry heat not humid and wet like Auckland. People coming from Auckland can be mortgage free in some cases.”
Read more:
- How much will Kiwis be paying for houses in 2050?
- Who's brave enough to buy a mortgagee home sight unseen?
- Block stars lose money on toughest reno project
The average property value in Rangiora in December was $706,000, almost half of Auckland’s average property value, and $70,000 below Christchurch’s, highlighting the town’s attraction to price-conscious buyers.
Hume said he moved from Christchurch city to Rangiora to escape traffic congestion, and get access to the local rivers and the growing number of good cafes and restaurants in the area.
Kristyn Barnett, from Property Brokers Rangiora, said after a quiet winter the Rangiora market was picking up again.
“There seems to be a lot more activity and there are quite a few people coming down from the North Island.”
She said there was increasing activity at open homes, but first-home buyers were still finding it a challenge to get finance at current rates.
“Homes are still tightly held, and our listings are down but there is a lot of interest in the properties that do come to market. I think because of the cost of building has gone up as well and people are more interested in finished home than sections.”
She said Rangiora had an enviable lifestyle.
“We’re so close to the beach and the rivers and Bocky Boo Gelato just opened in town if people are wanting to cool off,” she said.
Lake Tekapo - New Zealand’s coldest
Lake Tekapo, in Mackenzie, Canterbury, is recognised as New Zealand's coldest town. Photo / Getty Images
Tekapo is widely recognised as New Zealand’s coldest town, with temperatures in the lakeside holiday spot frequently falling below zero degrees. But the housing market there is starting to feel the benefits of rebounding tourist numbers, with agents saying the accommodation sector has returned to pre-Covid health.
Steven Howes, of LJ Hooker in Tekapo, said the town’s housing market is largely driven by holiday homeowners and investors wanting to get into the short-term rental market.
“The biggest issue buyers have faced in our area like most is increasing interest rates and finance. In most cases these people are buying a second or third property but as rates start to come back, we expect to see a lot more activity in 2024 when people realise the returns and want a slice of the action.”
Short-term rentals in the area can generate anything between $70,000 to $90,000 per annum, he said, and with tourism rebounding the levels of occupancy were reaching pre-Covid levels.
The Church of the Good Shepherd is one of Lake Tekapo's biggest tourist attractions. Photo / Getty Images
Howes was noticing a shift away from sections and towards finished homes as the cost of new-builds increased, however and there was also a low level of listings available to meet demand, he said.
Bayleys agent Hamish Lane said the numbers still didn’t quite stack up for holiday accommodation investments and banks were still making lending hard.
He was also finding sections in the Station Bay development were reselling as buyers grappled with the reality of rising building costs. “We sold about 30 sections in there and a lot of them have come back on the market because people just can’t afford to build,” said Lane.
Mackenzie District Council have just commissioned a $20,000 investigation into the growing housing crisis in the area that they say is being driven by population growth, especially in Twizel and Tekapo areas, through international migration and tourism.
A four-bedroom home with "forever views" at 6 Pollock Place, in Lake Tekapo, is looking for more than $1.6m. Photo / Supplied
“Another interesting aspect we’re finding is more local businesses are buying their own staff accommodation because it’s so hard to find accommodation. They have skin in the game and they’re buying some beautiful homes.”
According to OneRoof-Valocity figures for December, the town’s average property value grew 1% over the previous three months to $1.074m and is up 13% on pre-Covid values.
Howes, of LJ Hooker, is currently marketing a home at 6 Pollock Place in the coveted Lochinver subdivision seeking enquiries over $1.6m.
“We have some beautiful homes here and they’re designed for the climate. It’s beautiful here all year round, summer or winter,” he said.
- Click here to find more properties for sale
