Central Hawke's Bay house prices double in 10 years

Waipukurau, the largest town in the Central Hawke's Bay district where house prices have doubled since January 2011. Photo / File

House prices in Central Hawke's Bay have more than doubled in 10 years to an average asking price of $545,967 at the end of 2020.

That represents a 108 per cent increase since January 2011 when the average asking price was $262,321, the second largest jump by a district in New Zealand according to new figures from the Real Estate Institute of NZ.

Asking prices in Kawerau leaped 132 per cent, while Hamilton City was the other district who saw their average double in 10 years with a 102 per cent increase.

Central Hawke's Bay deputy mayor Kelly Annand said the increase is proving rural communities like Central Hawke's Bay are becoming desirable and achievable places to live.

"This has only increased post-Covid and we don't see it ending any time soon with recent growth projections," she said.

"Many houses are priced out of range for people already in our community and the increase is also having a huge impact on the rental market.

'This conversation is one that councils right across New Zealand are facing and need to continue to work in partnership with Government on."

Central Hawke's Bay deputy mayor Kelly Annand said house prices doubling is proof the district is a desirable place to live. Photo / Paul Taylor

The average asking price in Napier increased by 85 per cent from $366,646 to $678,624, while Hastings went up 69 per cent from $434,766 to $735,397.

Wairoa saw prices increase by 52 per cent from $237,792 to $361,561.

OneRoof editor Owen Vaughan said the entire region has been one of the strongest performers in the New Zealand housing market over the last 12 months thanks to extremely intense buyer demand lifting prices.

The OneRoof-Valocity house price index shows the median value in Hawke's Bay to be $640,000.

"That's just been fuelled by low interest rates and buyers really accelerating their plans to get into the housing market," Vaughan said.

"Five years ago, the median value in Hawke's Bay was around about $300,000."

He said while it would be really hard to predict where things will be in another 10 years, people can expect property prices to keep rising over the next six months.

"It's unlikely that interest rates will rise any time soon, they're going to be staying low for the foreseeable future," Vaughan said.

He added the other factor that could ease the situation is housing stock, as there are very few properties on the market at the moment so competition among buyers is high.

"You probably won't see an easing of that pressure until the latter part of this year," Vaughan said.