The Kapiti Coast’s residential property market continues to shine with sales activity and price growth well above the national average. Buyer confidence remains strong and we expect current buoyant conditions to remain for the rest of the year.
The Kapiti Coast has experienced rapid value growth over 2017, up 16% from the prior year and reached the highest median value on record of $522,500 over the December 2017 quarter.
The election and subsequent change in government causing uncertainty in the market was reflected in the decrease in transaction counts over the September 2017 quarter. Sales activity however bounced back by 25% to above previous levels over the December 2017 quarter.
The Kapiti Coast’s proximity to Wellington has been significantly enhanced through a number of infrastructure investments including the construction of the Mackays to Peka Peka Expressway, Transmission Gully and Kapiti Expressway. The District is becoming increasingly attractive to Wellington buyers who can purchase a more affordable property outside of Wellington and commute in a reasonable time.
Proportionate shares of differing price brackets within the Kapiti Coast over the past 3 years reflects ongoing demand and the consequent lift in values witnessed. Transactions to occur for under $400K have shown a year-on-year decrease since 2015. The $400K to $1M price bracket on the other hand continues to grow and now represents 73% of all transactions.
Tight conditions within the Wellington market are illustrated by the amount of property available to sell holding at historically low levels. Currently, existing stock would sell down in just 7 weeks, significantly below the long term average of 18 weeks. These tight conditions are also apparent in the Kapiti Coast’s market which is attracting greater buyer interest due to the lower entry point and attractive access to new expressways which provide making daily commuting to central Wellington possible.
Detached dwellings continue to dominate construction activity within the Kapiti Coast making up 84% of all consents issued over 2017. The 13% increase in overall consent numbers in 2017 follows a 30% increase on the year prior. Scope remains in the market for higher density housing options as a way to keep up with the pent up demand in the district.
Amongst the most active and valuable suburbs within Kapiti Coast is Peka Peka which is most tightly held and highest value suburb with a median value of $715,000 and just 4 sales over the 2017 year. Sales activity is most prominent in Paraparaumu and Paraparaumu Beach where 187 and 185 transactions respectively took place.
SALES HOT SPOTS – Kapiti Coast Residential Sale Prices 2017 HY 2