OneRoof: More balance in Whanganui market as property values dip

The Whanganui housing market has slowed to a more balanced pace as values begin to decrease. Photo / Bevan Conley

The heat has gone out of the Whanganui property market, opening more doors to first home buyers, according to the latest OneRoof Property Report.

Whanganui's average property value fell 1.1 per cent over the first quarter of 2022 to $607,000, and fewer sales in the city point to further declines.

Wayne Shum, head researcher for OneRoof's data partner Valocity, said the growth of first home buyers in the market was evident in the latest statistics.

"In the first quarter of 2021, first home buyers in Whanganui represented 29.8 per cent of the housing market. Now they make up 38.8 per cent and the stats for Ruapehu are similar," he said.

The ability to work remotely was an option for more people now and first home buyers were heading for the most affordable areas, Shum said.

According to the report, average property values in Ruapehu, one of the cheapest housing markets in the country, had increased five per cent to $458,000.

Michael Bourne, sales manager for Bayleys Whanganui and Ruapehu, said there was a lot more balance in the local housing market.

"Things are certainly moving away from a sellers' market towards a buyers' market," Bourne said.

"Buyers can take more time before deciding to make an offer because the pressure is no longer so great. Some properties are still attracting a number of offers but we're not seeing the same pressures and first home buyers are certainly evident."

Property Brokers Whanganui manager Ritesh Verma said the Whanganui market was still buoyant although the pace had slowed.

"Now the grunt has gone out of the market it means you might be presenting two offers to a vendor, whereas when things were really going off there might have been seven or eight buyers wanting that property," Verma said.

The average property values for Whanganui include lifestyle properties in Westmere and Brunswick at one end of the spectrum to one-bedroom central apartments at the other.

OneRoof editor Owen Vaughan said property values were predicted to rise again and homeowners should not panic about decreasing values.

"People shouldn't treat the housing market like the stock market," he said.

"While people who bought a property before Covid have made quite a bit of gain, those who have bought in the last two years might be concerned that they will lose money. But now is the time to sit tight, look after the home you own and property values will rise again."

Current average property values for Whanganui are: Brunswick $1,076,000, Kakatahi $496,000, Kai Iwi $935,000, Matahiwi $312,000, Westmere $1,103,000, Pākaraka $741,000, Papaiti $993,000, Kaitoke $970,000, Pūtiki $766,000, Paparangi $333,000, Castlecliff $483,000, Okoia $918,000, Bastia Hill $756,000, Kaiwhaiki $418,000, Marybank $822,000, Fordell $817,000, Mangamahu $607,000, Upokongaro $731,000, Parikino $632,000, Gonville $485,000, Aramoho $539,000, Otamatea $985,000, Springvale $652,000, St John's Hill $762,000, Durie Hill $675,000, Central Whanganui $450,000, Rānana $267,000, Tawhero $591,000, Whanganui East $504,000, Taunoka $116,000, College Estate $671,000.