Hamilton’s Property Resilience: a small dip over 2024 with December signaling potential growth and stabilisation for 2025
by: Scott Mears
As we enter 2025, New Zealand's property market presents a complex landscape, with regional variations offering unique opportunities for prospective buyers. Recent data indicates that while major cities like Auckland and Wellington continue to experience declines in property values, Hamilton stands out with a notable uptick in December.
National Property Trends
According to CoreLogic's Home Value Index, December 2024 saw a nationwide median property value decrease of 0.2%, marking the ninth monthly decline since March. Auckland's median property value dropped by 0.4%, and Wellington experienced a 0.8% decline during the same period. These downturns are attributed to factors such as high inventory levels and economic uncertainties, including public sector cuts affecting employment and market confidence.
Hamilton's Resilient Market
In contrast, Hamilton's property market is demonstrating resilience. December data reveals a 1.0% increase in median property values, signaling potential stabilisation of the market and a likely springboard for a growth wave. This positive number is offset by a small -1.4% decline when measured over the past year.
Factors Driving Hamilton's Growth
Several key factors contribute to Hamilton's promising growth in its property market:
- Economic Diversification: Hamilton boasts a robust economy with strengths in agriculture, education and manufacturing, providing a stable foundation for property investment.
- Population Growth: The city is experiencing steady population growth, increasing demand for housing and supporting property value appreciation.
- Infrastructure Development: Ongoing infrastructure projects such as the Peacocke sub-division (which is expected to have 8,000 new houses built and be home to around 20,000 Hamiltonians over the next 30 years), enhance connectivity and livability, making Hamilton an attractive destination for both residents and investors.
Why Invest in Hamilton Now?
Given the current market dynamics, investing in Hamilton's property market in the coming months presents a compelling opportunity:
- Affordability: Compared to Auckland and Wellington, Hamilton offers more affordable property options, allowing investors to enter the market at a lower cost.
- Potential for Capital Gains: With recent upward trends in property values, there is potential for capital appreciation as the market continues to stabilise and grow.
In conclusion, while some of New Zealand's major cities face property value declines, Hamilton's resilient market, economic stability and growth prospects make it an opportune location for property investment in the near future.