Since June 2015, Greytown prices have increased by 25.8 per cent. PHOTO/GETTY IMAGES
Greytown’s property market has made Wairarapa history by clocking in as the first of its towns to reach a median house value of half a million dollars.
National data collected by state-owned Quotable Value shows that the South Wairarapa town has been sitting at over $500,000 since the end of June this year, and it doesn’t appear to be waning.
The median house value increased from $501,200 in June this year to $504,550 at the end of August.
Since June 2015, Greytown prices have increased by 25.8 per cent — more than $100,000 — from $398,300 to $501,200.
It was just above that of Wellington’s Te Aro city centre suburb which had hit $501,100.
The median house price is the midway point of all the houses sold at market price over a set period.
House prices have shot up more than 20 per cent in two years across other Wairarapa towns, the QV Quarterly Analysis figures show.
Featherston has experienced the region’s biggest jump in median price change between June 2015 and June 2017, up 41.4 per cent — from $193,950 to $274,300 – that’s $81,650.
Prices increased slightly to $278,950 in August this year.
Other large median house price increases in the region include Carterton with a 25.9 per cent rise in the two years to June this year, jumping from $271,300 to $341,500.
Martinborough has seen a 23.9 per cent increase over the same period jumping from $363,350 to $450,150.
Masterton, as well as the Lansdowne and Solway areas, have all risen more than 20 per cent in the two-year period.
Masterton has jumped 26 per cent from $225,350 to $284,000, and Lansdowne saw a 24.8 per cent increase from $256,350 to $319,800. Solway jumped 26.2 per cent from $239,350 to $302,100.
Property Brokers Wairarapa manager Guy Mordaunt said buyers would be hard pushed to find a house in Greytown for less than $400,000 now.
“Greytown is trendy, and is very small, and I think the thing with Featherston is that it is on the up so it has new vibes that keeps it going.”
“Greytown is an expensive place but has done huge things for Featherston [prices],” Mr Mordaunt said.
“You can’t afford to buy a property in Upper Hutt, and Greytown and Martinborough, so you have to buy in Featherston.”
Between Wellington and Eketahuna, it was the cheapest place to buy and live in, he said.
Every single house Property Brokers had sold in Featherston in the past year had been to people coming into the region, and about 97 per cent of them were from Wellington, he said.
While it was a positive for the region in terms of population growth and the arrival of new money into the region, the negative side was a decline in the number of rental properties.
The increase in prices was due to supply and demand – the number of houses for sale is so low that there are more buyers competing for a property. This was driving prices up.
“Stock around New Zealand is the lowest it has ever been — that’s keeping the Wairarapa market buoyant,” he said.
QV registered valuer David Cornford said the region, especially South Wairarapa, had seen solid growth over the past six months.
The growth was being driven by a combination of buyers wanting lifestyle change and first home buyers looking for affordable housing.
South Wairarapa towns were key drivers in the region’s buoyant market, he said.