Hawke's Bay Property Market

Is it worth buying a property in Hawke's Bay? Explore the data and find out.

Last updated 27/01/2022

1601614029185

Ed McKnight

Economist, property investor and host of the Property Academy Podcast
Introduction

Looking to Invest or buy a property in the Hawke's Bay?

This article breaks down all the most essential facts about the Hawke's Bay property market.

The Hawke's Bay property market is made up of 4 districts and 36 suburbs. These districts are Hastings, Central Hawke's Bay, Napier and Wairoa.

Median Hawke's Bay House Price

Hawke's Bay Median House Price is $820,000

As at June 2022, the median house price in Hawkes Bay is $690,000. This is up from $270,000 10 years earlier. That means that the median Hawkes Bay property increased in value by 9.84% each year, or $41,315 on average.

The most expensive suburb in Hawkes Bay is Eskdale, which has a median house price of $1,262,350 and is located in Hastings district. That means that Eskdales’ median house price is 182.95% of Hawkes Bay’s median.

The most affordable suburb in Hawkes Bay is Flaxmere, which has a median house price of $533,850 and is located in Hastings district. That means that Flaxmere’s median house price is 77.37% of Hawkes Bay’s median.

Over the last 2 years (Jun 2020 - Jun 2022), Otane had the fastest-growing house prices in all of Hawkes Bay, at 26.53% per year. That is 15.55% faster than the median Hawkes Bay house price over the same time period.

The suburb that grew the slowest over that period was Parkvale, which grew at a rate of 19.31% per year. That’s 8.32% faster than the median Hawkes Bay house price over the same period

Hawke's Bay House Prices Comparison with NZ

Hawke's Bay's Median House Price is 1.54% above its long term average

To give an example of the current position of Hawkes Bay’s median house price relative to the New Zealand house price see below.

On average, over the last 30 and a half years, Hawkes Bay’s median house price has been 79.63% of New Zealand’s median house price.

Assuming the long term fundamentals of either property market have not changed, Hawkes Bay’s median house price should track back to this long term average.

That suggests that when Hawkes Bay’s median house price is below its long term average, there is a buying opportunity. When Hawkes Bay’s median house price is above its long term average, there are buying opportunities in other regions.

As of June 2022, Hawkes Bay’s median house price was 81.18% of New Zealand’s median house price. That is 1.5454% above its long term ratio, which suggests that Hawkes Bay house prices are roughly where they should be over the long term compared to other regions.

Council Breakdown – Over/Undervalued

Where are House Prices Most Over and Undervalued within the Hawkes Bay Region?

This map shows a breakdown of how over or under-valued each council area is right now in the Hawkes Bay property market. These figures are calculated exactly the same way as the graph in the above section.

The Central Hawkes Bay district appears to be the most over-valued. House prices there are about 22.83% above where we would usually expect them to be over the long term.

Wairoa district, on the other hand, appears to be the least over-valued. House prices in this district appear to be only 1.02% above where we would expect them to be.

This means that we've got greater confidence that Wairoa would receive a higher rate of capital growth (house price increases) over the next 5-10 years compared to Central Hawkes Bay.

Affordability

Where Are the Most Affordable Property In Hawkes Bay?

The map below depicts which districts within the Hawkes Bay Region have the most and least affordable house prices (REINZ, December 2021).

The darker the district, the more expensive the average house price for that area...

Napier City is by far the most expensive district within the Hawkes Bay region, with properties reaching an average price of $848,000 (December, 2021).

By comparison, the Wairoa District is the most affordable, with an average house price of just $375,000. That's an enormous $473,000 difference compared to Napier.

Population Growth

Which Part of the Hawkes Bay Gets The Highest Population Growth?

The map below illustrates the projected population growth for each district within the Hawkes Bay Region over the next 25 years (2018 - 2043).

The darker the district, the more the population is predicted to expand in that area...

Over this period, the Hastings district is expected to see the most growth of all the council areas within the region – 7.88% in total.

By contrast, the Wairoa district is expected to shrink by 22.48% over the same timeframe.

Napier Property Market

Napier Property Market

The Napier district is made up of 16 suburbs. The most expensive suburb is Jervoistown, which has a median house price of $1,295,600. While the most affordable suburb is Maraenui, which has a median house price of $571,400.

Over the last 24 months, of all the Napier district suburbs (Jun 2020 - Jun 2022), Maraenui had the fastest-growing house price, at 22.36% per year. That is 11.38% faster than the median Hawkes Bay house price.

The suburb that grew the slowest over that period was Tamatea, which grew at a rate of 18.63% per year. That’s 7.65% faster than the median Hawkes Bay house price

Hastings Property Market

Hastings Property Market

The Hastings district is made up of 16 suburbs. The most expensive suburb is Eskdale, which has a median house price of $1,262,350. While the most affordable suburb is Flaxmere, which has a median house price of $533,850.

Over the last 24 months, of all the Hastings district suburbs (Jun 2020 - Jun 2022), Te Awanga had the fastest-growing house price, at 25.67% per year. That is 14.68% faster than the median Hastings house price.

The suburb that grew the slowest over that period was Parkvale, which grew at a rate of 19.31% per year. That’s 8.32% faster than the median Hawkes Bay house price

Central Hawkes Bay Property Market

Central Hawkes Bay Property Market

The Central Hawkes Bay district is made up of 3 suburbs. The most expensive suburb is Otane, which has a median house price of $734,400. While the most affordable suburb is Waipawa, which has a median house price of $621,900.

Over the last 24 months, of all the Central Hawkes Bay district suburbs (Jun 2020 - Jun 2022), Otane had the fastest-growing house price, at 26.53% per year. That is 15.55% faster than the median Hawkes Bay house price.

The suburb that grew the slowest over that period was Waipukurau, which grew at a rate of 23.48% per year. That’s 12.49% faster than the median Hawkes Bay house price

Wairoa Property Market

Wairoa Property Market

The Wairoa district is made up of 1 suburb, also named Wairoa, which has a median house price of $304,050.

Over the last 2 years (Jun 2020 - Jun 2022) the median Wairoa house value grew by 27.21%, which is 16.22% faster than the median Hawkes Bay house price over the same period.

Other Property Markets

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.

Can Opes Partners help me?

Who are Opes Partners and can they help me?

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1601614029185

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.