Hamilton Property Market

7 key points you need to consider if buying or investing in the Hamilton property market

Ed McKnight

Ed McKnight

Economist, property investor and host of the Property Academy Podcast

Which Hamilton Suburb's House Price Grew the Fastest?

Which Hamilton Suburbs Grow in Value The Fastest? This map lets you find out for yourself. Double click on the map below to zoom in and explore different suburbs.

Each dot represents a different suburb, and the colour of the dot represents how quickly house prices have increased over the past 20+ years.

The redder the dot ... the quicker house prices have grown in that suburb.

Which Hamilton Suburb's Have the Highest Yields?

The country's median gross yield is 3.26%, while the median Hamilton properly achieves a gross yield of 3.36%. This means that Hamilton typically achieves a slightly higher yield compared to other areas of the country.

However, gross yields vary widely depending on which suburb you choose to investigate.

So, which suburbs in the Hamilton property market have the highest gross rental yields?

Navigate the map below to find the suburbs where houses produce the most cash for their investors. The redder the dot...the higher the yield.

Hamilton house prices skyrocketed over the last 20 years. What are the reasons for its success? And how will this impact future prices? Here are 7 crucial insights into the Hamilton property market.

1) Setting the Scene – Hamilton City Has Had Enormous House Price Growth

Hamilton house prices have increased enormously since the turn of the century. The median house price in the average Hamilton suburb increased at 6.87% per year (Jan 2000-Jun 2021). Even the worst performing suburb, Grandview Heights, increased at 6.02% – above the 5% Opes Partners makes its forecasts on.

2) Waikato House Prices Have Also Increased Significantly

In January 1992, the median house price in the Waikato Region was $100,000. In June 2021 this grew to $702,750, or about 6.83% per year. While the Hamilton property market is only one part of this, it is a driving force.

3) Waikato’s Iwi Has The 2nd Highest Level of Assets Under Management – And They Are Backing Property

Waikato-Tainui has almost $1.45 billion assets under management, 52% of which are invested in property. Their active management style has brought new long term infrastructure to the region, including the Te Rapa shopping centre, multiple hotels, and the upcoming Ruakura Inland Port.

4) Waikato Expects To Receive The 3rd Highest Population Growth In The Country Over The Next 20 Years

The Waikato’s population is expected to increase from 467,200 to 548,500 between 2018 and 2038. That’s a 17.40% increase, and only lags behind the Auckland and Canterbury regions. This is one core reason the Waikato ranked so highly in our analysis of NZ property markets.

Projected Regional Population Increases and impact on Hamilton Property Market

5) The New Ruakura Inland Port Is Expected to contribute an additional $5 billion to the economy.

It Is Massive. 480 Hectares Massive.
The Ruakura inland port will be a major contributor to Hamilton City’s economy. It will connect to both the Port of Tauranga (NZ’s largest port) and Ports of Auckland by rail. The port is actively pitching to businesses to move operations to Hamilton, which will attract jobs, spending and housing demand.

6) The Major Benefits of the Waikato Expressway Are Still To Come

The Waikato Expressway is expected to be completed in 2021, shaving 35 minutes off the journey from Tirau to Auckland. This will allow more people to live in the Waikato and commute to Auckland. While seven of the 11 sections of the expressway are already completed, two of the four sections under construction will provide some of the largest benefits. This includes a new motorway running down the east of the city, connecting to the new inland port.

Waikato Expressway and Effect on Hamilton Property Market

7) Waikato is the Most Affordable of the Four Major North Island Regions

The median house price in the Waikato is $538,000, $61,000 cheaper than the Bay of Plenty, almost $100,000 cheaper than Wellington, and over $280,000 cheaper than Auckland. This makes investing in the Waikato an affordable option for investors to get into the market.

My Key Takeaway and Recommendation:

In the past, Hamilton’s story has been one of agriculture. Today it’s a story about infrastructure. Hamilton is uniquely positioned to be the hub of the North Island. The inland port will provide businesses access to 2 million New Zealanders, not just in Auckland, Waikato and the Bay of Plenty, but Taranaki, Manawatu-Whanganui, Hawkes Bay and Gisborne. No longer just the centre of the rural heartland – we’re seeing Hamilton transform to the beating heart of the North Island. Great news for the long term property market in Hamilton City.

Other Property Markets to Look Into

If you found this article useful, then you might also like our analyses on the other property markets in New Zealand. You can read all about the Auckland property market, the Wellington property market and the Christchurch property market by clicking any of the links mentioned here.

Ed McKnight

Ed McKnight

Ed McKnight is the host of the Property Academy Podcast – NZ's #1 business podcast. He is an economist, having studied at the University of Auckland and the University of Waikato. He's a frequent writer for Informed Investor Magazine and has contributed to NewsHub, Stuff, OneRoof and Property Investor Magazine.