The Upper Hutt Residential market has experienced an extended period of rapid price rises, reaching a record median value of $507,500 in the June 2018 quarter, up 4% on the prior March 2018 quarter. Values look to have plateaued at elevated levels with provisional statistics for the September quarter, recording a median value of $500,000.
Sales activity remains at heightened levels with a total of 224 sales transacted over the June 2018 quarter, up 3% on the prior quarter.
When smoothing quarterly fluctuations, the 12 month moving average has recorded a steady increase year on year, reaching a median value of $547,250 over the 12 months to August 2018. The rate of price increases since the beginning of the current growth cycle from late 2015, illustrates the increasing attraction of the Upper Hutt area.
Sales within the $400K to $1 million range have recorded the most rapid growth over the past 3 years, moving from 44% of total sales in 2016 to 73% in 2018.
The proportion of sales under $400K on the other hand, continued to decrease, now making up just 26% of all sales over the year to August 2018, compared to 56% in 2016.
Across all analysed Upper Hutt suburbs prices continue to rise. Comparing the year to August 2017 with the year to August 2018 the largest increase in value was witnessed in Kingsley Heights, up 23%, followed by Elderslea and Heretaunga where values increased by 16% each over the same period. In 2018 Mt Marua gained the title as the most expensive suburb in the Upper Hutt, recording a median value of $829,000, followed by Riverstone Terraces holding a median value of $677,500 and Silverstream $615,000.
Residential transactions within the Upper Hutt continue to be dominated by stand alone residential houses, holding a 80% share of all transactions over the year to August 2018. The number of transactions for Units has increased slightly, with an additional 25 units transacted in the year to August 2018.
Total inventory levels in the Wellington residential market are amongst the tightest in the country. The total amount of existing stock on the market in August 2018 was just 982 properties, well below the historical average of 2,310. Assuming no new properties are added to current inventory levels, it would take just 7 weeks to sell down all available stock, versus the long term average of 17 weeks.
The number of new residential building consents in Upper Hutt City has ramped up over the year to August 2018, up 69% compared to the same period in 2017, indicating a response to higher demand in the area. The proportion of consents for townhouse accommodation has increased slightly, now holding a 9% share of all consents, however scope remains in the market for increased numbers of this type of development.
Upper Hutt Residential Hot Spot Map – 6 Months to August 2018