Population increase driving demand
House prices across Wairarapa have increased significantly in the past 10 years, according to a Realestate.co.nz report.
Carterton house price houses jumped the most with an 82 per cent increase from $358,184 in 2011 to a massive $652,899 in 2020.
South Wairarapa increased by 75 per cent from $408,832 in 2011 to $713,720 in 2020.
Masterton made an increase of 68 per cent increase from $338,273 to $568,732 in 2020.
Realestate.co.nz spokeswoman Vanessa Taylor said the first five years of the decade had remained relatively steady for house prices but began to increase in 2015.
“Net immigration increased, and so did demand. In the first half of the decade, we actually had negative net migration – meaning more people were leaving New Zealand than coming in.”
Taylor described the market as a double-edged sword, as it was a challenge for first home buyers to enter the market, but those who were already in the market were gaining equity in their homes.
Wairarapa MP Kieran McAnulty said rising house prices and shortage in part stemmed from the rising popularity of Wairarapa, “which is not something we should ever try and stop”.
“People are moving here, our schools are full again, and the pressures that we are feeling are primarily due to an increased population. On the whole, it should be welcomed. For us as a region to thrive,
we need diversity.
“When I was at school here, I specifically remember a social studies project looking at what we would have to do in Wairarapa for an ageing population.
“All the planning at central government level was to do with how to deal with that, but there has been a total flip around.”
Taylor said it was important to remember that property was a spectrum, “it ranges from social housing to smaller family households, to medium family households, to luxury property.”
“To get on the ladder, people often need to reassess what they really need against what they want.”
Taylor said Kiwis tended to adapt quickly and become innovative in the way we invested in property.
Most residential property transactions remained between New Zealand citizens, rather than international investors, against some sensationalised belief, she said.
McAnulty said it was important to continue to encourage young people and professionals to enter the region.
“In many respects, Wairarapa is absolutely thriving, it’s a place to do tertiary education now, and it’s certainly a place to raise a family, but there is always room for improvement.”