One Roof: First home buyers outnumber investors in Whanganui

Castlecliff has been the most popular suburb for recent homebuyers in Whanganui. Photo / Bevan Conley

While the housing market has shifted down a gear elsewhere, the Whanganui market has been relatively active.

That's according to the latest figures from the OneRoof-Valocity House Value Index report.

One Roof editor Owen Vaughn said it appeared that first home buyers were filling a void left by investors when legislative changes were introduced by the Government in March 2021.

The changes mean property investors are no longer able to offset the costs of the interest they pay on loans to purchase residential property as an expense against their taxable income.

"There has been significant activity in Castlecliff, where the average price is $600,000.

"Although house price prices in Whanganui have increased significantly to the tune of around $100,000, that's still considerably lower than other places.

"There has been a lot of growth in the last 12 months."

Vaughn said while the latest figures show an easing of house price growth across most regions, Whanganui prices had continued to grow at a steady pace with a quarter on quarter rate of 4.2 per cent.

In Whanganui and Manawatū the share of purchases by first home buyers over the quarter increased from 34 per cent to 36.6 per cent, while the share of investor purchases dropped from 25.6 per cent to 19.9 per cent.

Vaughn said demand had continued to outpace supply in the wider region, with future stages of development brought forward to meet buyer appetite.

"However, buying activity by first home buyers and investors has slid - which may indicate softer growth ahead."

Vaughn said the quarterly One Roof report due this week would provide a wider picture of the Whanganui housing market.