Taranaki Property Market

Is it worth buying a property in Taranaki? 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 Taranaki?

This article breaks down all the most essential facts about the Taranaki property market.

The Taranaki property market is made up of 3 districts and 36 suburbs. These districts are the New Plymouth, Stratford and South Taranaki.

Median Taranaki House Price

Taranaki’s Median House Price is $535,000

As at September 2021, the median house price in Taranaki is $535,000. This is up from $325,900 10 years earlier. That means that the median Taranaki property increased in value by 5.08% each year.

The most expensive suburb in Taranaki is Oakura, which has a median house price of $1,031,550 and is located in the New Plymouth district. That means that Oakura’s median house price is 1.75x Taranaki’s median.

The least expensive suburb in Taranaki is Patea, which has a median house price of $221,550 and is located in South Taranaki district. That means that Patea’s median house price is 62.36% cheaper than Taranaki’s median.

Over the last 21 years (Jan 2000 – Jun 2021), Strandon had the fastest-growing house prices in all of Taranaki, at 8.65% per year. That is 10.95% faster than the median Taranaki house price over the same period.

The suburb that grew the slowest over that period was Hawera, which grew at a rate of 6.29% per year. That’s 19.35% slower than the median Taranaki house price.

Taranaki House Prices v.s. NZ House Prices

Taranaki’s Median House Price is 1.23% below its long term average

On average, over the last 28 years, Taranaki’s median house price has been 68.8% of New Zealand’s median house price.

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

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

As of June 2021, Taranaki’s median house price for the last 12 months was 67.21% of New Zealand’s median house price. That is 1.59% below its long term ratio, which suggests that Taranaki house prices are where we would expect them to be – over the long term – compared to the rest of the country.

Council Breakdown – Over/Undervalued

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

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

The Stratford district appears to be the most over-valued. House prices there are about 11.31% above where we would usually expect them to be over the long term.

The New-Plymouth district, on the other hand, appears to be slightly under-valued. House prices in this district appear to be 5.67% below where we would expect them to be.

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

Affordability

Where Are the Most Affordable Property In Taranaki?

The map below depicts which districts within the Taranaki 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...

The New-Plymouth district is by far the most expensive district within the Taranaki region, with properties reaching an average price of $633,510 (July 2021).

By comparison, the South Taranaki District is the most affordable, with an average house price of just $373,399. That's an enormous $260,111 difference compared to New-Plymouth.

Population Growth

Which Part of Taranaki Gets The Highest Population Growth?

The map below illustrates the projected population growth for each district within the Taranaki 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 New-Plymouth district is expected to see the most growth of all the council areas within the region – 14.9% in total.

By contrast, the South Taranaki district is expected to shrink by 1.79% over the same timeframe.

New Plymouth Property Market

New Plymouth Property Market

The New Plymouth district is made up of 28 suburbs. The most expensive suburb is Oakura, which has a median house price of $1,031,550. While the most affordable suburb is Waitara, which has a median house price of $423,450.

Over the last 21 years of all New Plymouth district suburbs (Jan 2000 – Jun 2021), Strandon had the fastest-growing house, at 8.65% per year. That is 10.95% faster than the median Taranaki house price.

The suburb that grew the slowest over that period was Merrilands, which grew at a rate of 6.79% per year. That’s 12.91% slower than the median Taranaki house price.

Stratford Property Market

Stratford Property Market

The Stratford district is made up of 1 suburb, also named Stratford, which has a median house price of $420,050.

Over the last 21 years the median Stratford house value grew by 7.82% (Jan 2000 – Jun 2021), which is 0.28% faster than the median Taranaki house price over the same period.

South Taranaki

South Taranaki Property Market

The South Taranaki district is made up of 7 suburbs. The most expensive suburb is Hawera, which has a median house price of $433,900. While the most affordable suburb is Patea, which has a median house price of $221,550.

Over the last 30 months of all South Taranaki district suburbs (Dec 2018 – Jun 2021), Waverly had the fastest-growing house, at 26.91% per year. That is 109% faster than the median Taranaki house price of that time.

The suburb that grew the slowest over the period of Dec 2018 – Jun 2021 was Hawera, which grew at a rate of 19.57% per year. That’s 51.95% faster than the median Taranaki house price of that time.

South Taranaki has experienced substantial house price growth over the last 30 months (Dec 2018 – Jun 2021). The fastest appreciating suburb was Waverley, which grew by 26.91% over the past 2 and a half years. That was closely followed by Normanby, which grew at 25.65%.

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.