COMMENT: Back in February 2020 I wrote about why house prices are up in the regions. The article focused particularly on four provincial cities – Napier, Nelson, New Plymouth and Invercargill – and talked about why prices in these places have increased so strongly over the past twenty years.
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Just to be clear, regardless of whether you’re in Albany, Akaroa or Ekatahuna, I believe the reducing cost of mortgage interest to be the overwhelming driver of house price inflation over the past few decades - so when I talk about the drivers of growth in the regions I’m referring to “secondary drivers” rather than the primary cause.
And what are those secondary drivers? All four of the cities mentioned above – and, indeed, other cities such as Tauranga, Palmerston North, Timaru and Hamilton - have transformed themselves into desirable places to live with vibrant cultural, entertainment and arts scenes and generally well managed infrastructures. But, for me, the biggest house price drivers after the cost of mortgage interest have been improving transport links and the growing importance of the internet.
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Twelve months on, I’ve put my money where my mouth is and moved to one of those cities - Napier. After almost 20 years in my beloved Auckland, sharing the last four of those between Auckland and my not-so-beloved Wellington, my wife and I have swapped the bright lights of the city for a house 15 minutes north of Napier.
To be fair, the move isn’t quite as dramatic as it sounds. I’m Hawke’s Bay born and bred and spent a decade as an elected councillor on the Napier City Council back in the 1990s, so this is more of a homecoming than a bold new adventure – but it’s been a bit of a culture shock all the same.
Napier, like a lot of regional cities around New Zealand, has become a mini Auckland. Photo / Getty Images
So what have been my most significant observations in the four months that I’ve been back in the Bay? First, the negatives:
1. People walk slowly. And when I say slowly – I mean s l o w l y. Mighty empires have risen and fallen in the time that it takes your average Napier pedestrian to walk down the street. This behaviour also extends to driving in a city where sign-posted speed limits are in no danger of being breached and what we refer to as “nana” driving, in Auckland, would be regarded as unnecessarily reckless!
2. Coin operated, time limited parking meters. To be fair, this may just be a Napier thing, but who still carries coins for parking meters? A credit card option and the ability to park for longer than two hours would bring the CBD into the 21st century.
3. Regional air travel. There’s no way to say this without sounding like a knob – but turbo prop ATR72s are no substitute for the A320 Jets that fly between the main centres. While access to the airport is excellent, the planes themselves are slow, rickety, cramped and an insult to the regional fliers who pay no less for the privilege of travelling in this antiquated way.
And the positives:
1. The lifestyle is outstanding. Contrary to the claims of the haters, Auckland actually offers a very good lifestyle relative to most other international cities, but the lifestyle and amenities offered by regions like Hawke’s Bay is another step up again. I’m not into wine or “boomer” pursuits – but they’re all here if you want them – as are all manner of outdoorsy activities and things to do for the kids and grandkids.
2. The weather is stunning. After four years in Wellington where we suffered from the weather trauma equivalent of PTSD, the weather in the Bay is warm, pleasant and consistent. If the day starts sunny, it stays sunny. Even Auckland can’t claim that.
3. The service is excellent. Understandably, there are significantly fewer retail choices in the Bay than you might expect in the bigger cities. But the standard of service you’ll experience in shops and other businesses is as good as you’ll find anywhere in New Zealand – as is the quality of food and coffee in cafes and restaurants.
4. House prices are (still) lower – but they’re catching up fast – which is good news if you’re looking for good capital growth.
In a very real sense, our regional cities have become “little Aucklands” over the past 20 years – and I mean that in a very positive way. Of course, this will come as no surprise to some Auckland readers - many of whom are either from the regions or from another country. So when I talk about the benefits of moving to the provinces I’m largely preaching to the converted.
For the rest of you, take a look at what you’re missing out on.
- Ashley Church is a property commentator for OneRoof.co.nz. Email him at ashley@nzemail.com
