Coromandel Residential Markets Surging
A surge in sales activity across the Coromandel has driven values upward as market conditions have tightened.
Having fallen sharply following the Global Financial Crisis (GFC) the recent spike in values has seen the area’s median challenging the peak levels witnessed in early 2008.
Activity has been driven predominantly by a sharp increase in Auckland based buyers motivated by a combination of factors. In late 2015 a raft of new regulations, aimed at cooling investor activity within the Auckland region, has resulted in increased activity in other centres, particularly those neighbouring Auckland itself.
Auckland home owners are also benefiting from high levels of equity some of which is being channelled into the purchase of holiday homes.
On the other hand the high cost of Auckland housing is acting as a disincentive to those who are not homeowners and this has led to increasing numbers looking at the lifestyle advantages which other areas can offer them. In addition to Auckland buyers the Coromandel remains popular with overseas purchasers...read more.
The lift in sales activity is well illustrated in the graph above which shows the change in sales volumes recorded within the peninsula’s seven largest markets in 2015 v 2014. Between them they account for approximately 85% of the 1,050 transactions completed in the area in 2015, the 2014 total was 707...read more.
The lift in sales activity has seen stock available to the market shrinking as the number of new listings being introduced has failed to keep pace. Analysis by Realestate.co.nz shows that if no new listings were taken and the current rate of sales continued then the total inventory would sell in just 29 weeks. As recently as December 2014 this figure stood at 111 weeks while in September of 2014 the figure peaked at 182 weeks...read more.
Spotlight on Thames
Thames is the largest of the Coromandel residential markets. In 2015, 252 sales were recorded within the township. When Thames Coast sales are added the total climbs to nearly 300. The area attracts the highest volume of sales due to the fact that it is the largest service centre on the Coromandel offering a wide range of retail amenity and excellent health care facilities based around the town’s hospital...read more.
The Coromandel economy has performed strongly over the last two years. GDP growth in 2015 was 3.2% according to statistics published by Infometrics. While slightly below the national average the improvement from 2013 when growth was just 0.6% is significant...read more.
Retail Sentiment Improving
Pollen Street is Thames’ main retail thoroughfare and provides a wide range of retail amenity. Locally owned businesses dominate the local market, however the local offering is augmented by national brands particularly within the prime strip located between Sealey and Mary Streets...read more.
Auckland Building Boom Boosts Thames Economy
Not only is Auckland’s rapid expansion having a signifi cant impact on the local housing market there are signs that the local
economy is also beginning to benefit...read more.
New Tenancy Lifts Mall Footfall
The recent addition of Lincraft to the tenant mix at Thames’ largest Mall, Goldfi elds, has paid immediate dividends with visitor
numbers rising. Over the opening weekend the numbers were up sharply and while this number has tapered off, numbers
continue to sit at above longer term averages...read more.
Read the full report here