Property prices in Hawke's Bay continue to rise

The property market continues to rise in the Bay with Hastings growth reaching double figures in the last year. Photo/File

Heat from Auckland's previously red-hot market is now being seen in the Bay, with property prices soaring.

According to the latest QV Property Report Napier was leading the pack among the North Island's regional areas, up $24,252 (5.7 per cent) to an estimated median of $449,717 in the three months until the end of July.

Across the year to the end of July Hastings experienced percentage growth in the double digits with prices rising $70,625 (20 per cent) in the last 12 months to $423,750.

Tremains Real Estate managing director Simon Tremain said these figures released yesterday didn't surprise him as Hawke's Bay "was on a roll".

"We are picking up a lot of people from out of town, especially Auckland. Just the other day I was sitting next to a woman who had sold her place in Waiheke - and what she sold it for and could buy here, she bought a new house in Esk Hills and loves it."

Mr Tremain said there was a real flow-on effect and this had been talked about for a while now.

"We don't need a massive proportion of those extra people now coming out of Auckland to make a big difference to our economy. We have a population of about 150,000 and even if that increases by 5 per cent there is a big difference."

Mr Tremain said a lot of people were either setting up businesses here or working remotely.

"Planes going in and out of Hawke's Bay are chocka block and there is never a spare seat. There is a real positive feeling in Hawke's Bay."

Comparatively, the five Auckland regions saw between only 3.7 per cent and 6.1 per cent growth across the same year with Auckland City seeing the largest growth.

QV national spokeswoman Andrea Rush said the cost of a home in main centres like Auckland had now priced many buyers out of the cities and they had looked to the regions as an alternative.

"Also given that properties are much more affordable in the regions, the LVR restrictions and bank lending restrictions do not impact as much in terms of a lower level of finance and deposit needed."

This "rekindled demand" in the regions had driven the growth in regional prices.

The estimated median values, collated by CoreLogic, were reached by calculating a weighted average for the suburb according to the estimated market value of each property.