The Future of Property in Kapiti
What's in store for our property market?
This question is top of mind for many Kiwis, as New Zealand begins its recovery from COVID-19.
An hour north of Wellington, the Kāpiti Coast stretches from Paekakariki to Otaki and offers stunning beaches, a warm climate and a relaxed lifestyle. Like other areas, COVID-19 is having an impact on the local property market, however, major infrastructure projects like Transmission Gully and the Kapiti Expressway provide opportunities for growth, connecting it even more closely to Wellington.
We spoke to Brendon Heenan, Business Partner of Tall Poppy Otaki/Horowhenua, for his thoughts on how his region is responding to COVID-19, and what will happen next in the local property market.
Challenges and Opportunities
Brendon says they're getting more inquiries all the time, and viewings being booked - with a particular interest in homes priced between $400,000 to $500,000. As Level 2 approached, interest in homes for properties priced from $650,000 to $750,000 started to pick up and is likely to continue.
Listings are strong, so we may see more stock in our market. The challenges for sellers will be competing with more listings - which possibly offer better value for money.
If there are less buyers in the market then sellers may have to compete more effectively. Buyers will have more choices and potentially less competition in the buying process
He believes the market has essentially been a seller's market for some time now, and the pendulum may be swinging back to the buyer.
"For first home buyers who are employed, the current climate has to be positive for them with more stock, better prices, lower interest rates, and better loan ratios coupled with less competition, which may help offset any loss on their kiwi saver deposit," says Brendon Heenan.
Growth and Resilience
Kapiti is lucky compared to some parts of the county as tourism isn't central to its economic stability.
I believe the infrastructure spent on the highway projects both underway and planned could help our region, work our way through the tough times predicted for New Zealand.
"Going forward, prices may adjust slightly if there is more housing stock and buyers have more choice and less competition. This could mean prices realign slightly or simply level out. We may not see a huge price adjustment because our region still has infrastructure spend on the highway which helps with employment and filters into local businesses. Time will tell," says Brendon Heenan.
Are you looking for expert advice about your next move in Kapiti? You can contact Brendon Heenan or give our friendly team a call on 0800 82 55 76.