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Property prices in Mahurangi continue to climb, on the back of strong demand and shrinking supply.
Bayleys researcher Goran Ujdur spoke at a function at the Bayleys Warkworth headquarters on July 6.
He said prices would probably continue to increase for another two years on the back of a strong economy, high migration numbers and a lack of housing supply.
Warkworth was well placed to be a major growth area, with the motorway extension and growth enabled by the Unitary Plan, he said.
Prices in Warkworth had increased by 21 per cent in the past year, up to $687,500, while the number of properties on the market was declining rapidly. In North Rodney, volumes were 40 per cent lower than in May last year. In Auckland, the number of listings was half the historic average of 10,000 a month.
The trend was likely to continue for the next two years, unless there was a global shock, Mr Ujdur said.
The NZ economy was one of the best performers in the OECD, increasing at 2.8 per cent. This was on the back of record tourist numbers, a booming construction and manufacturing and growth in primary industries (excluding dairy).
Population growth had also been at the highest rate in 42 years – the average growth rate has been 14,000 a year over that period, whereas the population grew by 64,000 in the last 12 months. The majority of the growth was coming from immigration from China and India, and returning Kiwis.
Chinese international investment in property was also growing rapidly and NZ was one of the most popular property markets.
External risks to the economy were causing some concern, with the ‘Brexit’ vote causing instability and the ‘Donald Trump-factor’ creating uncertainty ahead of the US election.
Conversely, there had been an increase in interest in NZ property from UK and US buyers.
