Buyers 'favour home over investment'

The Hawke's Bay lifestyle and affordable housing are tempting some Aucklanders south. Photo / File

Outside investors are not only buying investment properties in Hawke's Bay, but some Aucklanders are also relocating to take advantage of our region's lifestyle, local agents say.

Our big city cousins are being tempted south with the increasing gap between Auckland and Hawke's Bay property prices.

Hawke's Bay houses are more affordable according to the latest Massey University Home Affordability Report, which shows an improvement of 4.6 per cent over the past three months based on regional income levels.

The improved affordability is mainly due to falling mortgage rates and, until recently, static house prices.

However, Real Estate Institute of NZ figures released last month showed that property prices in both Napier and Hastings had risen dramatically in August.

At the time a local agent, Cox Partners director Malcolm Cox, said there was greater turnover in the $200,000 to $300,000 price range, because investors were active, some from outside the region, and competing with first-home buyers taking advantage of government incentives.

Yesterday two top local agents said that, while Aucklanders were not invading the market, more and more were being attracted by the Bay's lifestyle

Tremains Real Estate managing director Simon Tremain said in reality there are a number of Aucklanders in the market but as a percentage they still only account for about 10% of buyers.

"The median gap has just gotten that much bigger and Aucklanders have realised they can buy so much more here in the Bay. They will even take a punt on employment here."

Mr Tremain said he met a family the other day who had recently moved to the Bay from Auckland.

"They had just missed out on their sixth house in Auckland after it sold for a ridiculous price, well above asking. So they packed the family up in the car and moved here."

Mr Tremain said the lifestyle in Hawke's Bay was appealing for retirees or families.

"Now with Jetstar coming to the region it has doubled the accessibility and gives people the option to live here and work in Auckland."

Property Brokers regional manager Paul Whitaker said there was definitely a "heavy migration" coming out of Auckland. "There is a higher level of interest from Auckland but it is only a handful - I'd say 50-60 more out of Auckland than in the past. People are cashing up in Auckland and enjoying a better quality of life down here in the Bay," Mr Whitaker said.