LOCAL HAMILTON REGISTERED VALUERS’ PERSPECTIVE

RESIDENTIAL PROPERTY MARKET – HAMILTON CITY

  • The lack of listings at present is driving up prices.
  • There are presently only approximately 500 dwelling listings which represents 5 to 6 weeks supply.
  • There is strong competition for available properties generally.
  • Few three bedroom dwellings available under $300,000 with the median price now being approximately $449,000.
  • Selling prices have increased approximately 25% over the last 12 months.
  • Generally, the market is very price focused at present with most properties being auctioned.

 

RURAL RESIDENTIAL AND RURAL LIFESTYLE PROPERTY MARKET

  • Good demand across all sectors of this market.
  • Noticeable number of Auckland purchasers.
  • On the fringe of Hamilton City good properties are now in excess of $900,000 with a number in excess of $2,000,000.
  • Demand is particularly high on the northern fringes of the City.
  • There are few vacant rural residential sections available in the market place at present.

 

 COMMERCIAL AND INDUSTRIAL PROPERTY MARKET – HAMILTON CITY

  • Shortage of good quality investment properties in the market place.
  • Strong competition to purchase good properties with demand being fueled by continuing low interest rates.
  • Capitalisation rates for good properties range between 5.5% to 7.5% and for lesser properties the range is 7.5% to 10%.
  • Intending owner-occupiers are active in the market place also due to low interest rates often resulting in mortgage repayments being less than the current market rental for the same property if tenanted.
  • Many Earthquake Prone buildings In the City have now been strengthened and renovated to attract new tenants.  However, there are still difficulties in selling or occupying those which have not been strengthened.
  • Rental levels generally from investment properties have stabilised with fewer landlord incentives being required to obtain a new lease.  However, this is dependent to a large degree on the quality of the space being offered.
  • Properties are now generally being taken to Auction as a means of achieving a sale at the best price.

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