House prices in Wainuiomata up 50 per cent in three years

Tuesday, 5 November 2019

House prices in the once unfashionable suburb of Wainuiomata have hit record levels.

The latest valuations from Quotable Value show the average residential property in Lower Hutt is now worth $657,100, an increase of 30.8 per cent over three years.

Properties in Wainuiomata increased by 53.1 per cent.

The increases will be seen by some city councillors as vindication of their decision to support a radical change to the District Plan.

* New valuations for Christchurch

New houses in Wainuiomata are selling quicker than they can be built. House prices in the Lower Hutt suburb have more than doubled in three years.

* Hutt City tiny house case off to court**

On Monday night councillors agreed to a change the rules around infill housing, apartments and terraced housing.

Although it was argued that it would lead to Lower Hutt looking like Coronation Street, the majority of councillors said that with the city facing a housing crisis, the rules had to change.

Mayor Campbell Barry said the high price of housing was forcing people to live in garages and cars.

He was particularly concerned about young people being priced off the market.

The average house price in Lower Hutt is $657,100.

As well as Wainuiomata, there were big increases in Taita 42.7 per cent and Stokes Valley 39.8 per cent.

The central city, including Boulcott and Woburn, increased by more than 20 per cent.

Across the city, the average price of a residential section went up by 56 percent, to $388,000.

The new valuations will be sent to home owners from November 11, but the new valuations will not have an impact on rates until July 2020. Ratepayers have until December 23 to object to the new valuations.

Real estate agent John Ross said the last time there was such big increases was in 1981, after the market came out of a major slump.

Most new builds in Wainuiomata sell for more than $600,000.

'I remember seeing houses that doubled in price in one year.'

Although the current situation is not as dramatic, he said the increase in Wainuiomata was significant.

'Four years ago you could buy a house in Wainuiomata for $180,000. The bottom end of the Wainuiomata market now is over $400,000.'

Most new builds in Wainuiomata are more than $600,000 and he said that reflects the regional demand for new homes, on good sized sections.

Young people cashing in their Kiwi Saver have been very active in Lower Hutt and that had also driven the increase.

Ross believes that house prices will continue to increase unless the city council does more to encourage greenfield developments.

The recent move to allow more infill housing and apartments, will not meet the demand, he says.

'The city desperately needs greenfield housing and unless we see more, we will continue to see exorbitant increases in house prices.'