Commentary
The Hastings property market has experienced highly stable values since the beginning of the global financial crisis in 2007. Valuations dipped in 2008, recovering slightly in 2009 and dipping again in 2010 and 2011 but have now recovered to 2007 levels. Hastings has not seen the value gains experienced on average in Napier.
Demand for four bedroom dwellings is continuing to grow, however in Hastings that demand appears to be satisfied by new builds which are mostly four bedrooms. As such, the average age of four bedroom homes is reducing and quality is improving, resulting in the median price for four bedroom dwellings increasing. Residential property values for two bedroom and three bedroom dwellings have remained flat.
Crosslease property (typically two bedroom residential units on smaller partially shared sections) has experienced a slowly growing discrepancy below freehold values. A discount of around 24% had been the norm, however more recently the discount has grown to over 26%. The crosslease housing stock is ageing and also predominantly being two bedrooms is experiencing reduced demand and increased competition from more modern retirement villages.
