Real estate values in New Zealand holiday hotspots are soaring, with prices rising much quicker than many city areas.
Residential property prices in holiday hotspots such as Whitianga, Wanaka, Pāuanui and even rustic Te Anau, an entrance to Fiordland National Park, have all experienced a 50 per cent-plus boom in property prices over the past three years.
Tourism, investment by overseas property investors, and close proximity to the beach are being cited as reasons driving the rapid rises.
Whitianga has seen the median sales price rise to $689,000 for the three months to the end of January, up 65 per cent on the median for the same period in 2015/16.
Wanaka was up 61 per cent to $1.12 million, Te Anau rose 55 per cent to $465,000, and Pāuanui increased by 54 per cent to $789,000, according to data gathered by the Real Estate Institute.
Other holiday hotspots covered by the institute were Omaha, up by 31 per cent, to $1.76 million; Whangamata, 38 per cent, to $662,500; Mt Maunganui, 27 per cent, to $755,500; Papamoa Beach, 22 per cent, to $700,000; and Taupō, up by 35 per cent, to $460,000.
Over the same period for cities and regions, the Auckland region rose 10 per cent, to $850,000; Wellington region, 42 per cent, to $605,000; Dunedin city, 38 per cent, to $421,000; Christchurch, 4 per cent, to $458,000; Tauranga, 27 per cent, to $660,000; and Hamilton, 32 per cent, to $562,500.
New Zealand nationally rose by 24 per cent over the same three-year period.
Institute chief executive Bindi Norwell said: ‘We are continuously seeing values rise in these holiday hotspots with great interest in both the northern beach areas such as Whitianga, and the southern lake townships such as Wanaka.
‘There is continued interest in purchasing a holiday home, especially given the warm weather we have been experiencing.’
According to Norwell, tourism has played a big part in driving demand at the holiday hotspots, with many New Zealand and overseas property investors buying as a good long-term investment.