Hawke's Bay Property Market

Is it worth buying a property in Hawke's Bay? Explore the data and find out. Last updated 11th January 2021

Ed McKnight

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 $812,500

As at October 2021, the median house price in Hawke's Bay is $812,500. This is up from $262,500 10 years earlier. That means that the median Hawke's Bay property increased in value by 11.96% each year, or $55,000 on average.

The most expensive suburb in Hawke's Bay is Jervoistown, which has a median house price of $1,167,800 and is located in Napier City. That means that Jervoistown's median house price is 1.59x Hawke's Bay's median.

The least expensive suburb in Hawke's Bay is Wairoa, which has a median house price of $250,700 and is located in Wairoa district. That means that Wairoa's median house price is 65.83% cheaper than Hawke's Bay's median.

Over the last 21 years (Jan 2000 – Sep 2021), Akina had the fastest-growing house prices in all of Hawke's Bay, at 8.75% per year. That is 4.42% faster than the median Hawke's Bay house price.

The suburb that grew the slowest over that period was Greenmeadows, which grew at a rate of 7.20% per year. That’s 13.99% slower than the median Hawke's Bay house price.

Hawke's Bay House Prices Comparison with NZ

Hawke's Bay's Median House Price is 7.14% above its long term average

On average, over the last 28 years, Hawke's Bay's median house price has been 79.29% of New Zealand’s median house price.

Assuming the long term fundamentals of either property market have not changed, Hawke's Bay's median house price should trackback to this long term average.

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

As of July 2021, Hawke's Bay's median house price was 86.43% of New Zealand’s median house price. That is 7.14% above its long term ratio, which suggests there is likely buying opportunities outside of the Hawke's Bay region.

Council Breakdown – Over/Undervalued

Where are House Prices Most Over and Undervalued within the Waikato 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 19.12% above where we would usually expect them to be over the long term.

Wairoa district, on the other hand, appears to be less over-valued. House prices in this district appear to be only 7.75% below 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 (Core Logic, July 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 $796,206 (July 2021).

By comparison, the Wairoa District is the most affordable, with an average house price of just $403,457. That's an enormous $392,749 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

Napier City is made up of 16 suburbs. The most expensive suburb is Jervoistown, which has a median house price of $1,167,800. While the most affordable suburb is Maraenui, which has a median house price of $541,650.

Over the last 24 months of all Napier City suburbs (Sep 2019 – Sep 2021), Maraenui had the fastest-growing house prices, at 23.91% per year. That is 8.77% faster than the median Hawke's Bay house price of this time period.

The suburb that grew the slowest over that period was Bay View, which grew at a rate of 16.03% per year. That’s 27.07% slower than the median Hawke's Bay house price.

Hastings Property Market

Hastings Property Market

Hastings District is made up of 16 suburbs. The most expensive suburb is Havelock North, which has a median house price of $1,077,700 While the most affordable suburb is Flaxmere, which has a median house price of $493,800.

Over the last 24 months of all Hastings District suburbs (Sep 2019 - Sep 2021), Flaxmere had the fastest-growing house prices, at 27.78% per year. That is 26.37% faster than the median Hawke's Bay house price.

The suburb that grew the slowest over that period was Eskdale, which grew at a rate of 12.49% per year. That’s 43.17% slower than the median Hawke's Bay house price.

Central Hawkes Bay Property Market

Central Hawkes Bay Property Market

Central Hawkes Bay is made up of 3 suburbs. The most expensive suburb is Otane, which has a median house price of $627,900. While the most affordable suburb is Waipawa, which has a median house price of $539,700.

Over the last 24 months of all Central Hawke's Bay suburbs (Sep 2019 - Sep 2021), Otane had the fastest-growing house prices, at 24.58% per year. That is 11.85% faster than the median Hawke's Bay house price over the same period.

The suburb that grew the slowest over that period was Waipawa, which grew at a rate of 20.87% per year. That’s 5.03% slower than the median Hawke's 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 $250,700.

Over the last 24 months (Sep 2019 - Sep 2021), the median Wairoa house value grew by 25.96%, which is 18.13% faster than the median Hawke's 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.

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.