Published on: 2019-09-16

Developers fuelling growth in Hamilton residential sector

Developers fuelling growth in Hamilton residential sector

Lodge Real Estate Managing Director Jeremy O’Rourke says, heightened sales of development property around Hamilton is one factor fuelling residential growth in the city.

“Two big properties in Rototuna have recently sold to residential developers, one property for around $9 million and the other for around $6 million.  This will serve to continue the rapid trend of Hamilton spreading north.

“However, many developers are having to extend their construction horizons as they await roading upgrades and other infrastructure development to occur around their properties.  But these sales signal further growth to come in that burgeoning suburb.”

O’Rourke also says commercial properties, including office space, in the North City development going in near the Hamilton Christian School and Rototuna high school is leasing very quickly.

“At retail space around $400 per square metre, this new commercial space is considered premium.  However, businesses are leasing off plans and it’s moving quickly.  This commercial centre is set for completion in [September] 2020,” says O’Rourke.

Hamilton’s central business district is also seeing heightened residential sales activity.

“This past month we’ve seen multiple offers on many properties and that includes everything from leaky homes to executive apartments. 

“One development that is getting a huge amount of interest even before properties are on the market is the Hills Village in Hamilton East, which is the former Hill Labs building being developed by Stark Property. 

“This property is going to set a standard for premium apartment living that we have never seen before in Hamilton with apartments, terraced housing and mixed purpose living altogether in one space.  Hamiltonians are certainly embracing the concept,” explains O’Rourke.

The Hills Village properties are expected to go on the market around October.

According to the Real Estate Institute of New Zealand (REINZ) statistics released today for August 2019, Hamilton’s median house price dipped slightly to $575,000 in August from $585,000 in July.

Sales volumes decreased slightly to 280 homes sold throughout the city in August from 286 in July.

“We expect sales volumes to increase for September as we’ve seen an influx of homes coming onto the market following the Official Cash Rate, and subsequent interest rates, drop last month. 

“The only exception is that first home sellers and investors are not selling as many properties at the moment, therefore we expect residential housing prices in Hamilton to rachet up in the near term,” says O’Rourke.

For the latest REINZ market data for Hamilton, visit www.reinz.co.nz.