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, pushing values disproportionately high. Inevitably as the market cooled investors saw less opportunity for capital growth and largely withdrew from the Flaxmere market. Market values reduced between 2007 and 2010 and have been relatively stable since. The Flaxmere market has been surprisingly resilient to restrictions placed upon low equity lending.

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.

Like other localities, demand for four bedroom dwellings has grown, and now demand a premium around $50,000 on average above three bedroom dwellings. Two bedroom dwellings, sought-after by investors for their high returns, have been adversely affected by reduced investor demand.

Crosslease property in Flaxmere tends to comprise small low quality dwellings which occupy the low price range for Hawke’s Bay. Flaxmere crosslease values have been relatively stable in recent years.

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.