Commentary
Following the GFC, property values in Waipawa peaked later than most areas of Hawkes Bay, in 2009, falling in 2010 and remaining flat to 2014. The dramatic shift in market confidence began around July 2014 and led to value growth generally in the order of 10% to 30% per annum depending on locality and price range. This value growth was maintained until the effects of Covid19 in early 2020.
We see the main impetus behind the strong market performance as being value growth in the Hastings market encouraging people to commute for affordable homes, the proceeding extended period of stable values leaving room for some catch up, ongoing historically low interest rate levels making property ownership more affordable and generally good returns on pastoral farms. The residential and lifestyle market perception was firmly expecting values to continue to rise, although this expectation may be beginning to soften.
The decision of the Hawke’s Bay Regional Council not to proceed with the Ruataniwha Water Storage Scheme negatively impacted on optimism in the commercial property market in Central Hawke’s Bay, however the residential market has continued strongly despite this setback.
The Central Hawke’s Bay District Council have been very accepting of small lifestyle developments within Central Hawke’s Bay. A lot of lifestyle development has occurred since the 1990’s, much of which is of good quality. This development has given rise to an oversupply of lifestyle blocks resulting in competitive prices, with a flow on effect being felt on higher value residential property.
The effect of Covid19 on the Waipawa market is, as yet unclear, however the economic impacts of Covid19 will be widely felt. Waipawa is strongly influenced by the local rural economy which should perform well despite Covid19 and cushion Waipawa through this crisis.
Annual median property values in Waipawa align closely with Waipukurau, but are typically around $10,000 lower.
Our valuers are in Central Hawke’s Bay most weeks and know the market well. Please contact Added Valuation for your next registered valuation in Waipawa.
