Late Cycle Growth in Kapiti Coast & Horowhenua

The Kapiti Coast and Horowhenua regions are sandwiched between Wellington and Palmerston North on the west coast of the North Island. In Kapiti the drawcard is the seaside living, quaint towns and remote lifestyle with easy access to Wellington; and in Horowhenua the focus is more on farming, small town living and the rural lifestyle.

Both areas are experiencing growth late in the property cycle, as the high prices and shortages in Wellington and Palmerston North push city goers further afield to find more affordable accommodation. As such, a shortage of listings is now the story for both regions, particularly in the larger towns, such as Levin, Kapiti and Paraparaumu.

There are two major infrastructure developments that have had and are still having a positive impact on real estate prices in the Kapiti Coast – they are the completed Expressway which cuts down the commute time to Wellington; and Transmission Gully, due to be completed in 2020.

The Expressway initially caused a spike in prices overnight when it was announced, says Paraparaumu Professionals’ Stu Dunn. This was because Wellingtonians who wished to enjoy the seaside area and could now commute easily into work, flocked to buy houses in the area.