All figures compare March 2019 quarter with March 2018 quarter
Positive price momentum continues in the Upper Hutt Residential property market with values reaching new highs, year on year.
The Upper Hutt Residential market has seen unprecedented value growth over the past 4 years, up a whopping 61%. The March 2019 quarter witnessed the highest residential value on record of $542,500, up a further 10% when compared with the same period a year prior.
Over the March 2019 quarter, sales activity decreased by 15% when compared with the March 2018 quarter. Transactional activity however does look to have found a base of around 200 transactions per quarter.
Residential values across the Wellington region are currently supported by low levels of unemployment, above average net migration levels, a shortage of housing stock and a limited supply of inventory available to the market.
When analysing Upper Hutt residential transactions by differing value bands, an ongoing trend towards increased activity in the upper value bands is evident. Transactions greater than $600K over the year to March 2019 totalled 45%, significantly higher than the 13% share held two years prior. Transactions at the lower end of the market, (less than $400K), on the other hand, have witnessed year on year decreases over the 2017 to 2019 period.
When breaking the Upper Hutt down by suburb, nearly all suburbs have witnessed an increase in value growth when comparing the year to March 2019 with the year to March 2018. The most significant value growth was witnessed in Wallaceville, up 26%, followed by Clouston Park, up 22%. Pinehaven was the only suburb to witness a decrease in value, marginally down just 1%.
Tight market conditions in the Wellington region are well illustrated by the historically low level of inventory, with just 1,086 properties available to the market over the year to March 2019, 52% less than the long term average of 2,249. The total number of weeks it would take to sell down total inventory was just 8 weeks over the same period, well below the long term average of 17 weeks. Available stock is limited, and property that is brought to the market is being quickly absorbed, this is providing a solid foundation for residential value growth.
The construction sectors response to the supply and demand imbalance appears evident when looking at the total number of consents issued in the Upper Hutt City. Over the year to February 2019, 240 residential consents were issued, although 23% less than the prior year, this is the highest number of consents issued since 2008.
The proportion of consents for townhouse accommodation has increased over the year to February 2019, making up 13% of all consents issued. Scope for even further development of higher density housing in the Upper Hutt market remains.