Development is surging ahead in Carterton with another two subdivisions planned near the centre of town.
The latest subdivisions are being developed by East West Developments and Jennian Homes Wairarapa, who received resource consent for 20 lots and 22 lots respectively on the site of the old showgrounds on Belvedere Rd.
The new subdivisions are just two of several in the town, including a 26-lot subdivision in Hartley Ave, a 74-house subdivision off Brooklyn Rd and progressing subdivisions in Armstrong Ave and Carrington Drive.
Managing director of Jennian Homes Wairarapa Gareth Norris said Carterton was especially popular with people in their 50s, who might be working fewer hours and gearing up for retirement.
"Carterton is a unique proposition in Wairarapa where it's desired by commuters from Wellington. It's more affordable and the train access is a lot easier to get to. It's the balance of those two. It's got that small town appeal of Martinborough and Greytown and it's close to those two -- but its affordability makes Carterton a winner."
The Wellington market was also quite "hot" at the moment, which increased demand in towns like Carterton, Mr Norris said.
Building has yet to begin in the Jennian Homes subdivision, with properties due to be completed over the next several years.
Phillip Adamson, co-director of land development consultants Adamson Shaw, who have worked on the Hartley Ave, Ashmore Park and Armstrong Ave subdivisions, said Carterton was ideal for people looking for "nice new homes at a good level".
"There are a lot of sections being produced. Carterton seems to have captured a reasonable retirement market. It's probably picking up on a market that's after more affordable homes."
It was also popular with buyers who did not want to be based in Masterton but did not want to be too far from Masterton schools.
While many first home buyers were locals, there were also buyers from Auckland, Christchurch and Wellington, he said.
"I think if the city prices continue to rise we will continue to see more Wellington people."
The attitude of the Carterton District Council also made Carterton a good option for developers, Mr Adamson said.
"The district council is very good to work with -- they are very very proactive -- they are very good to deal with. They are very open to considering different options and different engineering solutions and I think the council is very supportive of development.
"Twenty-five years ago it was really stuck in the mud and then they suddenly thought we need people in the town and, since then, they've been very good."
Mr Adamson said he was aware of further developments in the pipeline but could not yet confirm what the details were.
Sam van den Bosch, co-director of Hartley Ave sections developers Bosaap, said publicity over Carterton's rapidly growing population had helped spark subdivision around the town.
"They all seem to think Carterton is the place to be. When we bought, it was not like that, but now they all go for it because the papers say it's the fastest-growing town."
Carterton people were also very loyal to the town and often unwilling to move, he said.
"Ask someone and they will say 'I'm not going out of Carterton'. I think it will grow."
There was already strong interest in the Hartley Ave sections, Mr van den Bosch said.
Work has been completed on the Hartley Ave subdivision with sections now available while work continues on the Ashmore Park development.
Carterton mayor John Booth said development in the town was continuing to boom.
"It's going along really well.
"A lot of it is that a lot of city people want to relocate to a rural type of lifestyle with less pressure but still have that ability to work in Wellington and use the train."
In the three months to December 2015, there were 39 residential house sales in Carterton, with the median sale price rising 2 per cent to $250,000.