Taranaki Property Market Attracts Out-of-Town Buyers and Investors, Forecasted Growth in 2024

Date Published: 5 January 2024

Key Facts

• Taranaki has seen an increase in out-of-town enquiries and investor interest in the property market.
• Bayleys Taranaki reported that 26% of their buyers last year were from outside the region.
• The median house price in Taranaki in November 2023 was $565,000, down 8.9% from 2022.
• Westpac Bank economists predict house prices could rise by nearly 8% in 2024.
• The busiest segments of the market are homes priced between $525,000 and $650,000, and those over $1 million.
• High interest rates are deterring some from looking to upsize their homes.
• Real estate agencies have reported increased interest and activity in the region.
• The value of homes in Taranaki, compared to larger cities, is attracting more buyers.
• Investors are returning to the market, possibly due to changes in government policies regarding interest deductibility.

Article Summary

Taranaki’s property market is becoming increasingly attractive to out-of-town purchasers and investors. Bayleys Taranaki noted that a significant 26% of their buyers in the previous year were from outside the region — a trend expected to continue. The regional property market, according to reports, is particularly active in two segments: homes between $525,000 and $650,000, and those priced over $1 million.

However, Taranaki’s average house price, which was $565,000 in November 2023—8.9% less than in 2022—may rise, with Westpac Bank economists estimating an almost 8% increase over 2024. Despite this possible price increase, high interest rates are currently discouraging people from upsizing their homes, as managing finances becomes more difficult.

Despite these challenges, real estate agencies across Taranaki have reported a consistent surge in activity, interest and enquiries regarding property viewings and sales, including from international prospective buyers. This interest is particularly noticeable in smaller towns around the mountain like Stratford, Hāwera, and Opunake. The comparative value of houses in Taranaki versus larger cities seems to be a contributing factor.

Additionally, investors have begun to return to the property market. The Taranaki Property Investors’ Association Inc suggests this may be due to changes in government policy around interest deductibility, which National has pledged to phase in over time, beginning with a 60% deduction in 2023/24. Thus, current conditions in Taranaki seem to favour buyers, particularly cash buyers, and local investors.

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