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Home / Hawkes Bay Today

House prices and job market boom

By Victoria White and Kim Fulton
Hawkes Bay Today·
20 Jan, 2016 11:00 PM4 mins to read

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Paul Whitaker.

Paul Whitaker.

Higher house prices and a booming job market is good news for the region.

The latest December REINZ figures revealed Hawke's Bay had reached a new record median house price, with increased sales, and fewer days to sell.

Jobs in the region were also increasing, with Trade Me listings for Hawke's Bay jobs up 15 per cent in the final quarter of 2015 compared with the 2014 final quarter. Applications per listing had also increased.

Hastings mayor Lawrence Yule said the increased house prices and job market was great for the region.

"We've been through tough times and we've still got to be competitive."

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He said the mainstays of the region, including the food production and agriculture sectors, were in the best state he'd seen for a while.

Napier mayor Bill Dalton said this was reflecting the region's positive stance and attitude.

"To bring people to Hawke's Bay we not only need to create jobs, which we are conscious of and making strategies to do so, but we need to be creating a built environment that makes people who come here feel that Hawke's Bay is home to them."

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Hawke's Bay Chamber of Commerce chief executive Wayne Walford said Hawke's Bay was a great place to be, with great prospects.

"People always say to me I'd love to come live here - it's just a matter of finding a job."

He said maybe now was the time for people to create their own jobs, or try something a bit different.

The increase in job listings at the end of 2015 was mirrored by an increase in median house price, and volume of sales across Hawke's Bay.

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Since December 2014 the median price rose $36,500 with prices in Hastings rising 16 per cent and 15 per cent in Napier.

Property Brokers regional manager Paul Whitaker said it was a "supply and demand game" with supply getting smaller by the day which was adding pressure to the property market.

He said it was always a good thing when more people had equity, as it filtered through to the community and local economy.

Aside from Auckland, Hawke's Bay was the only region with increased sales volumes compared with November, growing by 0.4 per cent.

Sales volumes rose 26 per cent compared with December 2014 with sales rising by 39 per cent in Hawke's Bay, 29 per cent in Napier and 28 per cent in Hastings.

Cox Partners Real Estate managing director Malcolm Cox said the middle and lower end of the market demand continued to be encouraged by low interest rates and incentives for first home buyers.

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"Buyer activity is also being boosted by an increase in the number of city dwellers moving back into the region, and some out of town investors seeking better returns than those available in metropolitan areas."

Harcourts managing director Kaine Wilson said they were seeing triple the inquiries from out-of-towners, noticing a significant increase particularly with Aucklanders.

The difference in the market this year was also seen by Bayleys Havelock North sales manager Daniel Moffitt. He said they were taking 90 per cent of their sales to auction at the moment, whereas in December 2014 they were struggling to recommend people go to auction because of a lack of interested buyers.

Pipeline Recruitment director Ian Beattie said visitors to the region were eyeing up the opportunities, and those on holiday in Hawke's Bay over the Christmas period had been checking out the local job market. He said many were looking to sell their homes in Auckland and move to the region. However, timing determined whether there would be jobs for them.

"In Auckland, there might be 30 or 40 roles at any one time for someone. In the regions, it's often a lot less. So it often is about timing."

That meant people needed to be decisive when the right role became available.

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