Latest REINZ data shows holiday home hotspots have dropped in price

REINZ data shows median house price drop in many holiday hotspots.
REINZ data shows median house price drop in many holiday hotspots. Photo credit: Getty.

While there's plenty to be said for booking a holiday pad or campground by the sea, Kiwis wanting to secure their own slice of holiday paradise may now have a better chance.

According to the Real Estate Institute of New Zealand (REINZ), the median house price within nine holiday destinations dropped by up to 16 percent in the three months to November 2019, compared to the same period in 2018.

Parts of Waiheke Island and Wanaka, where the median house price tips $1 million, have become slightly more affordable, while Pauanui has also taken a knock.

On Waiheke Island, the median price for properties in the popular beach and vineyard spot of Oneroa dropped by 16 percent to $1,100,000 in the three months ending November 2019, compared with $1,307,500 for the same period in 2018. In nearby Onetangi, the median house price dropped to $1,105,000 - a fall of 11 percent. 

Similarly, in the Bay of Island gateway of Paihia, the median house price in the three months to November 2019 fell by 13 percent compared to 2018, to $540,000. Around one-and-a-half hours' drive from Auckland, the median house price in the popular beach destination of Mangawhai Heads dropped by 8 percent to $705,000, and in Pauanui, the median house price dropped by 5 percent, to $769,500. 

Bindi Norwell, chief executive at REINZ, said that despite drops of between 2 and 16 percent in certain places, median prices within Ohope are rolling full-steam ahead, while those in the ever-popular summer hotspots of Omaha and Whangamata are also showing little sign of cooling down.

"Ohope has seen median prices increase by 23 percent from the same time [in 2018], from $676,000 to $831,000," Norwell said.

"Omaha, New Zealand's most expensive holiday hotspot, saw median prices increase by 2 percent to $1,765,000 - up from $1,725,000 compared to the same period in 2018, although still not as high as the record of $1,887,500 for the three months ending March [2019].

"Additionally, Te Anau and Whangamata have both seen double-digit price increases, up 21 percent and 19 percent respectively."

Median house price by area for the three months ending November 2019 / 2018: 

  • Akaroa $675,000 / $695,000, - 3 percent change

  • Hokitika $240,000 / $255,000, - 6 percent change

  • Mangawhai $600,000 / $612,000, - 2 percent change

  • Mangawhai Heads $705,000 / $762,500, - 8 percent change

  • Matarangi $605,000 / $550,000, + 10 percent change

  • Mount Maunganui $750,000 / $710,000, + 6 percent change

  • Ohope $831,000 / $676,000, + 23 percent change

  • Omaha $1,765,000 / $1,725,000, + 2 percent change

  • Oneroa $1,100,000 / $1,307,500, - 16 percent change

  • Onetangi $1,105,000 / $1,240,000, - 11 percent change

  • Paihia $540,000 / $620,000, - 13 percent change

  • Papamoa Beach $715,000 / $685,000, + 4 percent change

  • Pauanui $769,500 / $807,500, - 5 percent change

  • Taupo $450,000 / $420,000, + 7 percent change

  • Te Anau $495,000 / $407,500, + 21 percent change

  • Waihi Beach $774,500 / $767,500, + 1 percent change

  • Waipu $760,000 / $760,000, 0 percent change

  • Wanaka $1,075,000 / $1,157,500, - 7 percent change

  • Whangamata $762,500 / $641,500, + 19 percent change

  • Whitianga $664,000 / $615,000, + 8 percent change.

Source: REINZ median house price data from September to November 2019 / September to November 2018. 

Although REINZ nationwide figures for November show the median house price rose by 8.6 percent nationwide, to $630,000, it also shows there are pockets where prices aren't rising.

People looking for a little peace and quiet away from the rat race may still be able to unearth a property for under $500,000 in places like Te Anau and Taupo - or could re-consider places like Mangawhai Heads, Paihia, Oneroa or Onetangi, where latest data shows that prices have pulled back.

For others wanting fun in the sun in places like Omaha and Whangamata, rising prices may mean they throw in the towel on buying and content themselves with renting or camping for now.

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