Did you know that the hottest property market in the world is Hong Kong? Why is that? Well, it all has to do with location.
Geographically, it is locked in between a harbour and mountains which creates a fundamental problem. Land scarcity and when land is scarce and in high demand, it creates a high-value region.
If we asked you what city in New Zealand sounds the most similar, what would you say? If you guessed Wellington, you would be right as it dons a very similar landscape of the city being locked in between a harbour and mountains.
As a result, we are presented with a special opportunity in Wellington and we strongly believe it will be one of the hottest property markets in the globe in the future. This is the time to secure your spot in what will be an exclusive list.
It is no secret that the New Zealand property market has been on a downturn for some time now. While some city’s have taken less of a hit than others, it seems that we may be approaching an upturn in the market. The Capital has had a hard time with this, but here is why we are confident we will see a Wellington housing correction.
Wellington is the second most populous city in the country with over 500,000 residents in the wider region with this number expected to grow. As such, there will be a greater need for housing, and as we all know, when demand increases it drives up price. In Wellington, most of our developments are in Lower Hutt which is the second most affordable district in the region.
As with many things in life the usual cycle that things tend to follow is that of highs and lows. The same is true for the housing market. A notable median house price historic peak in both Lower and Upper Hutt occurred at the end of 2007 and beginning of 2008 respectively. Expectedly, both districts saw subsequent crashes that matched the prices from three years prior. Since then there has been a steady net increase in median prices with small peaks and troughs along the way. However, the general trend was upwards.
Recently, the most major peak has occurred at the start of 2022 before we began to see the downturn we are currently in. As history always seems to repeat itself, we will undoubtedly see the Wellington housing correction. When exactly is anyones guess, but it is certainly approaching.
So what does this mean for first home buyers and investors alike? Because the value of property will begin to rise (likely to historical levels), we have confidence that home owners should see capital gains on their purchases.
We firmly believe in the Wellington market and all of the families that call it home. Many people have sentimental pride in this area and we want to see it continue to flourish. To take a look at our current developments in Wellington, click HERE