… although Kapiti is below the national average.
Figures on the QV site, which is updated monthly, have a 12.4% increase in the whole New Zealand average figure for the year to May 2016, but Kapiti was 8.7%. Wellington city was 11.9%, while Auckland was 15.4%.
That Auckland figure is particularly concerning: if that annual rate continues, 5 years from now house prices there will be double what they are now.
Low interest rates are clearly a big factor. If your mortgage interest rate is only 5% and the property value is going up at 15% then buying a property as an investment is a no-brainer. Even the Wellington net figure looks good; Kapiti not so much — and with the massive subdivisions planned by the likes of the Maypole company, house supply is going to be strong.
Nevertheless, against this is the impact that the Kapiti and Transmission Gully motorways will have on commuting time from Wellington (see earlier). The first is expected to be complete by the end of the year, although the latter is still 4 years away.