A story in the Daily News last week and the NZ Herald last weekend, cites the success and growth of the greater New Plymouth real estate market. We are one of the only areas outside Auckland and Christchurch to have capital gains of over 5% since the height of the previous strong run in 2007. Nelson was the other. I’m not sure about Nelson, but I can give some insight into New Plymouths seemingly amazing figures.
In the ‘flush’ of 2006/7 very good volumes of sales were taking place right across the board. Our first few million dollar sales, and a good strong showing in all the price ranges below that. Volumes were very strong. Over those years averaging 94 sales per month, up to 123 in May 2007. In September 2014 there were 68 sales. 27.7% less. Over 1 quarter of our sales volume has gone. So to get our median up to the present $346,250, we have had an unusual weight of high price sales dragging the median up to 2007 levels. In 2007 there were 27.7%, or 23 sales per month more on average. Those were solid numbers and not distorted so much by the few high prices achieved, as statistics are now in much lighter volumes. Our market suffers from a severe lack of stock. About half the number of properties are available on the market now than in 2007. Don’t get carried away with current price medians, they have little substance in steady volume. It would be fair to say that apart from the very top end in exclusive locations, the value of individual houses in New Plymouth has not exceeded 2007 levels.
John Christiansen
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