Commentary
The Flaxmere property market tends to comprise lower valued homes which provide higher returns to investors. As such the market is more subject to fluctuate with the fortunes of residential property investors.
Investors drove the Flaxmere market during the property boom leading up to the GFC, pushing values disproportionately high. Inevitably as the market cooled investors saw less opportunity for capital growth and largely withdrew from the Flaxmere market. In 2015, as the property market turned, investors returned, together with a greater number of first home buyers assisted by greater access to deposits due to Kiwisaver withdrawals, and record low interest rates. Strong value growth was experienced until the effects of Covid19 in 2020.
Flaxmere is very locational sensitive, with the standard and presentation of housing improving toward the eastern end of the suburb, where values are typically significantly higher. That said, significant efforts have been made over the past decade to improve the appeal of Flaxmere, including new higher quality development to the Eastern fringe of the suburb, with positive flow on effects being experienced across the community.
The effect of Covid19 on the Flaxmere market is, as yet unclear, however the economic impacts of Covid19 will be widely felt and values may fluctuate in the short term.
Our property valuers have a good understanding of the drivers in the Flaxmere market, from location to investment return, and would welcome the opportunity to assist when you next require a valuation in Flaxmere.
