21st Jun 2011, 10:09am

LOCAL HAMILTON REGISTERED VALUERS’ PERSPECTIVE

RESIDENTIAL PROPERTY MARKET – HAMILTON CITY

• Hamilton City current listings around 1100 sufficient at this stage.
• Most activity from first home buyers in $250,000-$350,000 price range.
• Above $700,000 at top end of market not many listings and few sales.
• Demand in the mid price range $450,000 to $650,000 steady.
• Open home attendance is generally up.
• The odd investor is active but requires good location and reasonable quality property.
• Steady demand for sections up to $230,000 mainly from builders as they perceive a shortage in the near future.

RURAL RESIDENTIAL AND RURAL LIFESTYLE PROPERTY MARKET

• Demand for farmlets and rural residential steady across the market range.
• Little interest in vacant Hamilton rural residential sections in all price ranges.
• Most purchaser interest in rural lifestyle within the $370,000 to $450,000 price range.
• Rural residential existing properties are still more cost efficient to purchase rather than to build equivalent new.

COMMERCIAL AND INDUSTRIAL PROPERTY MARKET – HAMILTON CITY

• Some sales activity in the City, good medium to higher price range showing capitalisation rates mainly between 7.5% to 8.5%. 
• Good interest in small suburban retail properties both from investors and intending owner-occupiers in the capitalisation rate range of 6% to 7%.
• Landlords of previously vacant premises appear to be meeting the market by accepting historically lower rentals with incentives being paid.  
• Retail vacancy rates appear to be decreasing slightly in the CBD but there are still pockets hard to lease such as in Alexandra Street.