Very hot real estate market on the Coromandel

05 Oct 2021

Very hot real estate market on the Coromandel

Two sets of residential data released last week paint a picture of a very hot real estate market on the Coromandel Peninsula.

First out on Monday, The Corelogic “Mapping the Market” report compared the median house values of suburbs, towns and villages across New Zealand to the median values a year earlier. That was followed by realestate.co.nz releasing their September 2021 report on Friday.

Despite Hahei recording the highest median value on the Coromandel last month of $1,459,750, the highest increase in median value over the course of the past 12 months was recorded in Cooks Beach with an astonishing jump of $358,250 ($960,200 in 2020 to $1,318,450 last month). The median increase in Hahei was $313,450. 

With a median value last month of $1,322,300, Pauanui was the only other town or village on the Coromandel recording a more expensive property market than Cook Beach. The median increase in Paunaui during past 12 months was slightly more than Hahei at $314, 650.

Whitianga recorded a median value last month of $958,400, an increase of $205,850 compared to 12 months earlier. In Matarangi, the median value last month was $1,076,550, an increase of 297,000 on the median value of September 2020.

With a median value of $1,048,650 last month, Tairua saw an increase of $264,350 over the course of the past 12 months. Coromandel Town recorded a median value of $671,600, an increase of $105,800 compared to a year earlier.

Further down the Peninsula, in Thames the median value of all residential properties last month was $672,100 and in Whangamata the value was $1,271,200. The increase in median value in Thames compared to September last year was $151,000 and in Whangamata the increase was $353,600, the second highest increase on the Coromandel.

According to realestate.co.nz, the average asking price for properties on the Coromandel last month was $1,091,043, a decrease of 2.3 percent compared to August this year, but remaining (as it has been for more than a year) the third highest in New Zealand. Only the Central Otago/Lakes region ($1,228,869) and Auckland ($1,196,975) recorded a higher average asking price than the Peninsula. The national average asking price last month was $865,348.

Only 125 properties were for sale on the Coromandel last month, a massive drop of 59.4 percent compared to the same time last year and the highest drop in New Zealand. Nationwide, a drop of 23.7 percent was experienced. 

In terms of new listings, with only 68 new properties listed for sale last month, the Coromandel experienced a drop of 37 percent compared to September last year, second behind Auckland where a drop of 57.9 percent was experienced.

The inventory of listings leaves no doubt that the Coromandel is still in the grip of a very strong sellers’ market. If no new properties come onto the market, it is expected that all stock will be cleared within nine weeks. That is significantly below the Long Term Average (calculated from when realestate.co.nz started to keep residential property records more than 14 years ago) of 114 weeks. The national inventory of listings stood last month at 10 weeks.