Hamilton on the move
A rapidly growing population means Hamilton is still a fantastic location to invest in despite a recent softening of the market.
Over the past 18 months Hamilton has seen unprecedented growth in house values – hitting a high of around 25% growth in the year to October last year, when the average house value peaked at $537,000, according to CoreLogic data. This means an average capital gain of $108,000 – but it’s come back 1% since – a drop of around $5,000.
Auckland investors made up 18% of buyers before the introduction of 60% loan-to-value ratios (LVRs) late last year - that number has dropped to 10%. The higher Hamilton values seem to have subdued Auckland investor activity in the market alongside investors’ curbed ability to secure lending. Correspondingly house prices haven’t been as well supported across the board.
But Lodge Real Estate branch manager Richard Lindsay says he has seen a return of Auckland buyers back in Hamilton over the past few weeks.
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