Residential sales on the rise

Young couples using their Kiwisaver funds to buy into the Whanganui housing market are providing a boost for the market, says a local real estate manager.

Ian Barns, from Bayleys, believes Whanganui has good investment potential for people looking for a home, especially as residential sales continue to rise.

He also noted commercial properties were on the rise as local businesses planned to expand.

This is providing a lift in the market, he said.

The average house value in Whanganui is $191,516, according to the January Quotable Value (QV) House Price Index. Property values rose 5.4 per cent since January 2015, and 4.8 per cent over the last three months of 2015.

Nationwide, values have risen 12.6 per cent over the past year and 0.7 per cent over the past three months. They are now 34.2 per cent above the previous market peak of late 2007. The average value nationwide is now $556,206.

When adjusted for inflation, the nationwide annual increase drops slightly to 12.5 per cent and values are now 14.7 per cent above the 2007 peak.