Otaki is stepping in as one of New Zealand's most desired locations when it comes to property investment, according to industry professionals.

The small town, which sits at the northern edge of the Kapiti Coast, has seen a boom in housing sales over the past couple of years, which the New Zealand Institute of Economic Research says will continue to rise.

Tall Poppy Real Estate's Brendon Heenan, who is recognised for selling one out of three houses in the Otaki area, says since work on the imminent MacKays to Peka Peka Expressway started in 2013, houses in Otaki had been snapped up.

Mr Heenan said with just nine residential listings appearing on Trade Me last week, compared with over 200 two years ago, there was a record low number of listings for Otaki.

"With the expressway bringing us closer to Wellington and combining the fact that Otaki is less congested and pretty laid back, people like it as a location."

He said as well as an average three bedroom home being cheaper in Otaki than other parts of the Kapiti Coast, entry homeowners were often paying the same in mortgage repayments in Otaki as they were in rent on other areas of the coast.

According to Mr Heenan, some potential Otaki home buyers' were concerned about commute times.

"But, that's easier to accept if your mortgage is $80,000 to $100,000 less."
Matthew Wyatt, owner of newly developed subdivision Lake Karuwha Estate, was one of a growing number of business minds making the most of Otaki's steady growth in the housing market.

"Otaki is undeniably more affordable to live in than other parts of Kapiti, where subdivision and housing prices have risen," said the Wellington-based developer, who had childhood connections to the coast.

Having spent most of his weekends in Peka Peka as a child, when he played rugby for the Waikanae Rugby Club, Mr Wyatt first recognised the possibilities for Otaki back in 2004.
"The site came up for sale and I could really see the potential for growth.

"The scheme for my subdivision stemmed from Otaki being a nice place to live but not really having a lot of higher end development or housing options."

Since purchasing two sections in 2004 and gaining resource consent for a subdivision in 2007, Mr Wyatt has already sold up to 18 of 20 lots available in Section One of his project.
He has also recently introduced a Stage Two segment, comprising 26 lots, which has transformed the grass block into an area awash with thriving native greenery and bird life, streamside reserves and an award-winning lake.

He said the subdivision has so far attracted people looking for large sections, with many of the residents having planted their own budding gardens.

As well as being in walking distance of Otaki's township, Lake Karuwha Estate has been a popular choice among home buyers for its proximity to local attractions such as the golf course and Otaki beach, while still being nestled away from the busyness of inner town, with no through traffic.

"At the time Stage One was released, the global financial crisis meant we had a more challenging real estate market, but that has very much turned around in recent times.
"Now we're looking at a big increase in demand in the area and so far, the feedback's been very positive."

Otaki MP Nathan Guy agreed there was increasing national interest in Otaki as a location, thanks to the impending expressway project as well as the Transmission Gully motorway, set for completion in 2020.

"These will bring Otaki closer to Wellington and reduced travelling times means more people will consider commuting to Wellington or setting up business here and as a result, they'll have major economic benefits," Mr Guy said.

He said that as well as the new roads attracting more people to live, work and retire in the wider Horowhenua region, improved train services and Air New Zealand flights to Kapiti had also turned home and land buyer's attention to the discreet community location.
"With great beaches, weather and access to the outdoors, Otaki has a huge amount to offer."

Young family the Battens were among a collection of first time homeowners to have bought in Otaki recently, having purchased a central two bedroom home in July, 2012.
"It's a cute little house and we bought it at a pretty desirable price," mother of two Megan Batten said.

"There's no way we could've bought even a section for that in Waikanae or Paraparaumu."
Having shifted back to Waikanae last year to be closer to work and study, the family paid $365 in rent for a home in Waikanae, compared with their combined total of $170 per week for their Otaki home's mortgage, rates and insurance.

"We moved back to Otaki this year because we want to save and renovate the house and eventually sell it.

"When we do, we'll most probably stay in Otaki."

Mr Wyatt, who had gained traction among property seekers for his combined Lake Karuwha Estate land and home build packages, said he looked forward to welcoming more home owners to the subdivision and seeing his predictions unfold.

"Otaki is a little unknown gem," he said.

"It's a good community to live and I think people are starting to realise exactly what it has to offer."