The slow period following the GFC, lead to a dramatic shift in market confidence began around July 2014, seeing 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 fortune of Waipukurau, which acts as a service centre to the local rural community, is very much determined by the prosperity of the local farmers. Waipukurau is also seen as a more affordable option for those willing to commute to work in Hastings.
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 and much of it is of a reasonably good standard. This development has given rise to in an oversupply of lifestyle blocks resulting in very competitive prices. This has placed downward pressure on values at the upper end of the value range in Waipukurau.
The effect of Covid19 on the Waipukurau market is, as yet, unclear, however the economic impacts of Covid19 will be widely felt. As a service town for the surrounding farmland, Waipukurau should perform relatively well despite Covid19.
Our valuers are regularly in Central Hawke’s Bay, and are well placed to provide you with expert valuation advice in Waipukurau.