Hamilton’s housing market is defying the national slowdown, showing modest gains while most centres remain flat. As Jon Rawlinson reports, confidence and affordability are shaping a city quietly finding its stride.
Hamilton looking south from St Andrew’s on the right of the Waikato River to Day’s Park and beyond on the left. Photo: Hamilton and Waikato Tourism.
Average home values across New Zealand continued to soften in the three months ended October, but Hamilton recorded one of the country’s strongest regional performances.
Marshall Wu
The latest Quotable Value (QV) House Price Index shows national values dipped just under one percent in the quarter.
Hamilton posted a modest 0.6 per cent gain – one of the strongest regional performances in the country. It is a small but telling signal in a market still searching for balance.
Prices in Hamilton remain 13.7 per cent below the nationwide peak of January 2022, but momentum is building.
QV Hamilton registered valuer Marshall Wu says overall the residential property market remains subdued, reflecting a soft economy and the highest unemployment rate since 2016.
“Listings have eased slightly, though activity is beginning to lift with the spring market.”
Hamilton’s northeast led the charge (up 2.18 per cent), while its northwest and southwestern areas recorded the city’s only falls, down 1.22 and 0.36 per cent respectively.
REINZ’s Waikato Region trends.
“The recent easing in interest rates has prompted renewed interest from investors and is also offering improved affordability and accessibility to the market for first home buyers,” says Wu.
“First home buyers remain active in the $650,000–$750,000 range.”
Hamilton prices increased to an average of $789,540, up 2.1 per cent year-on-year. Average prices in the city ranged from $660,685 (Hamilton southwest) to just under the million-dollar mark for properties in the city’s northeast at $935,971.
Homes in more affluent areas (in the over $1million bracket) appear to be taking longer to sell.
Across the wider Waikato, values were steady.
Andrea Rush
Thames Coromandel recorded the region’s largest quarterly gain – up 1.87 per cent for the quarter – while Waipā had the largest fall, down 0.93 per cent.
Nationally, the average house price sits at $902,020, unchanged from a year earlier and 13.9 per cent below the January 2022 peak. Most main centres recorded small declines, offset by gains in the South Island and some regional cities.
QV national spokesperson Andrea Rush said Napier, Hamilton and Palmerston North are showing renewed energy as the spring market gains momentum.
The South Island recorded the country’s highest gains, led by Invercargill (up 2.7 per cent), Queenstown (1.4 per cent), Napier (1.2 per cent) and Christchurch (0.4 per cent).
Auckland posted the steepest fall, down 2.2 per cent, with Whangārei and Tauranga both down 1.3 per cent.
Rush expects values to remain relatively stable in the short term followed by gradual growth next year as economic conditions strengthen.
“Listings and buyer activity have lifted this spring, but it hasn’t yet translated into sustained value growth,” she says.
“The market is still finding its footing after a long period of economic uncertainty, with confidence slowly returning as interest rates ease.
“Overall, the market is showing early signs of recovery, but progress remains uneven. While interest rate cuts and easier lending conditions are improving sentiment, high living costs and elevated unemployment are still weighing on household confidence.”
For now, the housing market feels like a ship edging out of harbour – progress is slow, the waters uneven, but the sails are beginning to catch the wind.
Hamilton. Photo: Richie White
Aerial photo of the Ruakura area in Hamilton. Photo: Mike Walen
