Hamilton's housing market shows signs of pressure from Auckland buyers

Hamilton's housing market has come under pressure as elevated Auckland house prices push buyers to look outside the supercity.

Lodge Real Estate's managing director Jeremy O'Rourke said the increase in pressure on the Hamilton housing market is reflective of people searching outside of Auckland.

"It is a good market, people from Auckland are coming down to live and invest. We are seeing Aucklanders who see the value in the Hamilton market and move here either to commute to Auckland for work or to shift their work down here," said Mr O'Rourke.

"There are a number of jobs which are now capable of being done remotely and we are meeting people in this position who have chosen Hamilton instead of Auckland as a place to live.

"Migrants are starting to move out of Auckland, we are becoming a destination of choice for a lot of them. It's a reflective of how good the city is and it's attracting people to it. [They] are recognising that the cost of housing in Hamilton affords them a much better lifestyle than in Auckland."

He said buyers are in competition for properties now, "For the most part, vendors taking quality properties to auction are experiencing the benefits of this competition first-hand."

Homes listed for sale during February were the highest in 12 months according to realestate.co.nz, with 322 new residential properties listed, 62 per cent higher than February 2014.

A Lodge Real Estate report showed 31 per cent of homes were selling in the $300,000 to $400,000 price bracket.

However, Mr O'Rourke said total Hamilton housing stock dropped three per cent between January and February, with total stocks are down 16 per cent as compared to one year ago. "The market is out-buying listings, with 308 sales occurring during February." Mr O'Rourke said prices are currently stable but Hamilton could see an increase if the gap between listings and buyer demand continues.

Harcourts Hamilton director Brian King said prices are steady and current listings are fulfilling buyer demand, "I feel [good sales] will continue. [We could see an] increase in prices if stock numbers come down, but at the moment there are some good listings coming into the market that is satisfying needs."

Mr King said the Auckland market has helped increase Hamilton's popularity.

"People working in the South Auckland areas see it's more desirable to drive to South Auckland from Hamilton [than across Auckland city]. We are also seeing investor numbers coming in from outside of Hamilton.

"We are seeing new people coming into the city...that will help with the growth which is a good thing."

He said house prices are steady and the market is being driven from the bottom, with buyers seeking entry level house prices, but as demand grows, so will house prices.

Stonewood Waikato general manager Murray Dawson said new build houses are going steadily and said there are many people moving in to provincial Waikato - areas such as Te Awamutu and Morrinsville.

"[A year ago] there were a few people coming into provincial Waikato, selling in Auckland and coming down to the outskirts of Hamilton."

He said there are still areas in Hamilton to build on and the inland port at Ruakura is bringing more work into the city.

"People are coming here for work. [It's] only to an hour to both ports so [the inland port is] a big logistics centre. And Te Rapa is growing."