Auckland wealth effect hits Hamilton
There were 335 homes sold in Hamilton during May, with 59% of those in the under-$400,000 price range.
Hot Topic
Summer features
Lodge Real Estate’s managing director, Jeremy O’Rourke, says Hamilton is seeing greater numbers of Auckland investors jumping into the city’s property market.
“With house prices at an all-time-high in Auckland, owners have a larger asset base to borrow against. We’re seeing them take advantage of this new-found wealth and using borrowed funds to get into property investments here in Hamilton.
“On one hand, this Auckland wealth effect is beneficial for local sellers because Auckland investors are often willing to pay more for Hamilton properties. They perceive them to be a good deal, relative to similar properties in Auckland city.
“However, first home buyers are taking a hiding. It’s that lower end of the market where Auckland investors are competing. And in most cases, they are in a much stronger financial position than first home buyers who typically have limited extra funds to draw upon, which means they can’t be as competitive in an auction or situation where there are multiple offers on the table,” Mr O’Rourke says.
There were 335 homes sold in Hamilton during May, with 59% of those in the under-$400,000 price range.
Chris Hutching
Fri, 19 Jun 2015
Fri, 19 Jun 2015
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Auckland wealth effect hits Hamilton
48637