PHOTO: Hamilton, New Zealand
Hamilton Residential Property Market Experiences Decreased Listings
Lodge Real Estate Witnesses Rising Demand and Price Pressure
The Hamilton residential property market is witnessing a significant decrease in listings, which is putting pressure on house prices, according to local real estate agency Lodge Real Estate.
As of the beginning of July, the number of properties for sale in Hamilton has dropped to 670, a notable decline from the previous count of over 900 properties just a few months ago.
Hamilton’s Market Reflects Auckland’s Growth
Jeremy O’Rourke, the Managing Director of Lodge Real Estate, highlights that the Hamilton market is closely connected to the Auckland market. Both cities are experiencing an increase in sales and interest, indicating a parallel trend.
Surprisingly, Lodge Real Estate’s website attracts more users from Auckland than any other city, including Hamilton itself. Moreover, Lodge City Rentals reports that almost one-third of their new leases go to out-of-towners, with June’s data reaching 34%. These individuals often rent in Hamilton for a few months to understand the local market before deciding to purchase a property.
Factors Driving Property Demand
Jeremy O’Rourke explains that the demand for properties in Hamilton is also influenced by the attraction of skilled workers to the region. Increased immigration has resulted in migrants entering the market in the mid-to-high price brackets. The north-eastern part of the city, offering new houses and high-quality schools despite a construction slowdown, is particularly sought after.
Furthermore, first home buyers find it relatively easy to secure financing, thereby stimulating the market. Jeremy believes that the market has reached its lowest point and is now on the rise due to the swelling demand. He predicts that by the end of winter, prices will stabilize at a higher bracket, reflecting international trends.
Market Dynamics and Potential Constraints
Lodge Real Estate’s agents observe that well-presented properties are selling competitively as buyers become more confident in the market’s trajectory. However, the main constraint on the market is the limited availability of stock. Many potential vendors are hesitant to sell, opting to pay down debt instead. There is a risk that if they wait too long, a surge of properties may flood the market in spring, reducing competition.
Additionally, with an election approaching in three months, Jeremy anticipates that investors will remain absent from the market until they have more certainty after October 14.