Welcome to our sample market report from the Team at Williams’ Harvey.

Each report features detailed information, an overview, personalised commentary on topical issues and easy to read graphs showing current movement across all the sectors of the property market. See below a summarised version of the March 2007 Market report.

Market Report - March 2007
Surprisingly, we are already over a quarter of the way through 2007. The year so far, has started off buoyantly with reasonable activity across most sectors of the market place. The property market appears active despite pressure from the Reserve Bank in the form of increased interest rates to quell growing inflation. It remains to be seen whether further interest rate hikes are imposed, as indicated by the Reserve Bank, and whether their desired effect of slowing the property market down, particularly in the residential sector, has an impact. Given this present climate of uncertainty regarding the effects of such economic measures on the property market we would urge our clients to be prudent and seek independent, professional advice when making property related decisions. Please do not hesitate to call the team at Williams’ Harvey for a valuation and for independent expert property advice. Let us take the guesswork out of your property decisions.

Residential

Historical data has shown that throughout 2006 Hawke’s Bay experienced a stable real estate market with a very modest decrease of approximately 3% in the volume of sales compared to sales in 2005. As predicted, the median sale price growth rate slowed with the average median sale price for the 2006-year showing 5% growth over the 2005-year.

In summary it appears 2007 has started strongly with good volumes of sales being recorded for January and February and a fluctuating median sale price which indicates values are stable. In general we expect these market conditions to continue through 2007 which makes for a reasonably stable and positive marketplace.

Commercial

Retail Occupancy Survey
In February 2007 Williams’ Harvey Ltd prepared their latest retail occupancy survey for Hastings and Havelock North. This survey is undertaken at 6 monthly intervals and involves inspecting properties in the main central retail areas of the two towns and recording the vacancy levels by shop number.

In general the retail environment in Hastings City has continued to remain reasonably active over the last two years with vastly reduced vacancy rates throughout the city and with rental levels generally increasing. This can be attributed to a number of new lettings as well as the city’s efforts to create a more attractive retail environment. The side streets and Heretaunga Street, both west and east have been well presented with paved cobblestones and flower beds, which has created an improved overall shopping environment well supported by the public.

Over the years the Havelock North retail environment has continued to be a sought after locality. This looks unlikely to change with the upgraded street environment, cobbled paved area, increased residential activity and with a number of the existing tenants or shop owners having been in residence for some time. Future retail development of commercial land in the village is scarce which has lead to a number of commercial/showroom type developments along Donnelly Street. There is also a new commercial building in the early stages of development on the corner of Napier and Porter Drive.

Rural

The Hawkes Bay pastoral property market has continued to be a buoyant one. Farming conditions remained favourable throughout 2006, although a generally wetter and colder winter than normal continued to delay spring growth, which resulted in difficult stock growing conditions. This was off set with the continuing strength of the New Zealand dollar against world currencies which ensured healthy returns for pastoral farmers through the year. However, the recent sharp fall in lamb prices experienced recently are likely to reduce average incomes by between 7% to 10%.

Lifestyle
The market for well-situated lifestyle properties has remained buoyant, particularly within the environs of Havelock North, Maraekakaho and around Havelock North village. Statistics derived from the Real Estate Institute of New Zealand show lifestyle and horticultural properties sold in the Hawkes Bay district for the six-month period from July to December 2006 totalled 150 with an average sale price of approximately $670,000.

Horticulture
Property utilisation of the Heretaunga Plains continues with the expansion of larger cropping and pip fruit operators. However, this appears to be at the expense of smaller holdings where orchard plantings have been removed and those properties converted to lifestyle entities.

All material and opinions in this newsletter are not market specific and should be used as a guide only. Williams’ Harvey should be consulted before relying on or acting on this information.

The above market report is a summarised version of the March 2007 edition. To view the full March Edition and access other market reports click here, it only takes a couple of seconds to register .