Lodge Real Estate’s managing director Jeremy O’Rourke says Hamilton’s residential property market experienced strong sales in January and a positive start to the New Year.
The Real Estate Institute of NZ released its residential property data yesterday [15 February] showing there were 156 homes sold in Hamilton during the month. This compares to 141 sold during January 2017.
“Hamilton house sales were strong in January and up on last year. Plus, we’ve also had a good number of quality homes being listed on the market during the month. Strong buyer enquiry has also continued into February.
“While some other city centres are seeing a lull in the market, Hamilton remains relatively buoyant. There’s a lot of confidence in the city’s economy, buyers are seeing value in residential property and there continues to be strong enquiry from people outside the region who are attracted to Hamilton’s lifestyle,” says O’Rourke.
Hamilton’s median house price for January 2018 fell to $500,000 from $565,000 in December 2017. Mr O’Rourke says, “Despite the dip in median since December, we do expect to see Hamilton’s median house price rise steadily throughout the year.
“While our market gains have historically lagged behind Auckland and Tauranga, currently buyers have more confidence in Hamilton as compared to those two competitive markets.”
Mr O’Rourke says Hamilton’s rental market continues to be very tight and unlikely to change this year.
“Residential property investors are currently a net-seller group. Due to a range of factors, they aren’t in the market in force like they were a few years ago. They are off-loading more rental properties than they are buying and that has created a tight supply in a time of high demand.
“Our property management group has less than a 1% vacant rate in rental properties and will only have 140 properties turning over in the next 40 days. I wouldn’t say Hamilton’s rental market has entered a dire situation, but it is incredibly tough to find a quality rental.
“It’s not so much students - who are a big rental group in the city – who will be affected by this squeeze, but rather families looking for three- to four-bedroom homes.”
For the latest REINZ market data for Hamilton, visit www.reinz.co.nz.