Waikato Property Market

Is it worth buying a property in Waikato? 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 Waikato?

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

The Waikato property market is made up of 10 districts and 98 suburbs. These districts are Hamilton City, Thames-Coromandel, Hauraki, Taupo, Matamata-Piako, Waikato district, Waitomo, South Waikato, Waipa and Otorohanga.

Median Waikato House Price

Waikato's Median House Price is $774,500

As at September 2021, the median house price in Waikato is $774,500. This is up from $350,000 10 years earlier. That means that the median Waikato property increased in value by 8.27% annually, or $42,450 on average.

The most expensive suburb in Waikato is Hahei, which has a median house price of $1,341,350 and is located in Thames-Coromandel District. That means that the Hahei median house price is 1.91x Waikato's median.

The least expensive suburb in Waikato is Te Kuiti, which has a median house price of $335,350 and is located in the Waitomo District. That means that Te Kuiti's median house price is 52.28% cheaper than Waikato's median.

Over the last 21 years (Jan 2000 – June 2021), Raglan had the fastest-growing house prices in all of Waikato, at 8.82% per year. That is 27.84% faster than the median Waikato house price.

The suburb that grew the slowest over that period was Omori, which grew at a rate of 5.60% per year. That’s 18.78% slower than the median Waikato house price.

Waikato House Prices Comparison with NZ

Waikato's Median House Price is 2.56% above its long term average

On average, over the last 28 years, Waikato's median house price has been 88.44% of New Zealand’s median house price.

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

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

As of July 2021, Waikato's median house price for the last 12 months was 91.00% of New Zealand’s median house price. That is 2.56% above its long term ratio, which suggests there may be a buying opportunity outside of the Waikato area.

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 Waikato property market. These figures are calculated exactly the same way as the graph in the above section.

South Waikato district appears to be the most over-valued. House prices there are about 28.51% above where we would usually expect them to be over the long term.

Matamata-Piako district, on the other hand, appears to be slightly under-valued. House prices in this district appear to be 2.89% below where we would expect them to be.

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

Affordability

Where Are the Most Affordable Property In the Waikato?

The map below depicts which districts within the Waikato 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 Thames-Coromandel district is by far the most expensive district within the Waikato region, with properties reaching an average price of $1,084,811 (July 2021).

By comparison, the Waitomo District is the most affordable, with an average house price of just $300,389. That's an enormous $748,422 difference compared to Thames-Coromandel.

Population Growth

Which Part of The Waikato Gets The Highest Population Growth?

The map below illustrates the projected population growth for each district within the Waikato 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 Waikato district is expected to see the most growth of all the council areas within the region – 35.24% in total. (Yes, it's confusing that there is both a Waikato District and a Waikato Region).

By contrast, the Waitomo district is expected to shrink by 10.89% over the same timeframe.

Hamilton City Property Market

Hamilton City Property Market

Hamilton City is made up of 34 suburbs. The most expensive suburb is Harrowfield, which has a median house price of $1,028,650. While the most affordable suburb is Bader, which has a median house price of $561,750.

Over the last 21 years of all Hamilton City suburbs (Jan 2000 – Jun 2021), Fitzroy had the fastest-growing house, at 7.49% per year. That is 9.07% more than the median Waikato house price.

The suburb that grew the slowest over that period was Grandview Heights, which grew at a rate of 6.02% per year. That’s 12.36% slower than the median Waikato house price.

Taupo Property Market

Taupo Property Market

Taupo is made up of 19 suburbs. The most expensive suburb is Wharewaka, which has a median house price of $1,106,150. While the most affordable suburb is Mangakino, which has a median house price of $396,500.

Over the last 21 years of all Taupo suburbs (Jan 2000 – Jun 2021), Tuahara had the fastest-growing house, at 7.29% per year. That is 6.17% faster than the median Waikato house price over the same period.

The suburb that grew the slowest over that period was Omori, which grew at a rate of 5.60% per year. That’s 18.44% slower than the median Waikato house price.

Waipa Property Market

Waipa Property Market

Waipa is made up of 6 suburbs. The most expensive suburb is Cambridge, which has a median house price of $915,000. While the most affordable suburb is Kihikihi, which has a median house price of $593,450.

Over the last 21 years of all Wapia suburbs (Jan 2000 – Jun 2021), Kihikihi had the fastest-growing house, at 8.10% per year. That is 17.84% faster than the median Waikato house price.

The suburb that grew the slowest over that period was Te Awamutu, which grew at a rate of 6.87% per year. That’s 0.03% slower than the median Waikato house price.

Waikato Property Market

Waikato Property Market

Waikato District is made up of 12 suburbs. The most expensive suburb is Buckland, which has a median house price of $846,850. While the most affordable suburb is Meremere, which has a median house price of $389,700.

Over the last 21 years of all Waikato District suburbs (Jan 2000 – Jun 2021), Raglan had the fastest-growing house, at 8.82% per year. That is 28.38% faster than the median Waikato house price over the same period.

The suburb that grew the slowest over that period was Tuakau, which grew at a rate of 6.94% per year. That is just 1.07% faster than the median Waikato house price over the same period.

Thames-Coromandel Property Market

Thames-Coromandel Property Market

Thames-Coromandel is made up of 14 suburbs. The most expensive suburb is Hahei, which has a median house price of $1,341,350. While the most affordable suburb is Thames, which has a median house price of $624,850.

Over the last 21 years of all Thames-Coromandel suburbs (Jan 2000 - Jun 2021), Whangamata had the fastest-growing house, at 8.16% per year. That is 18.78% faster than the median Waikato house price.

The suburb that grew the slowest over that period was Coromandel, which grew at a rate of 6.56% per year. That’s 4.51% slower than the median Waikato house price.

Matamata-Piako Property Market

Matamata-Piako Property Market

Matamata-Piako is made up of 3 suburbs. The most expensive suburb is Morrinsville, which has a median house price of $647,150. While the most affordable suburb is Te Aroha, which has a median house price of $536,000.

Over the last 21 years of all Matamata-Piako suburbs (Jan 2000 – Jun 2021), Te Aroha had the fastest-growing house, at 7.21% per year. That is 4.95% slower than the median Waikato house price.

The suburb that grew the slowest over that period was Matamata, which grew at a rate of 6.63% per year. That’s 3.49% slower than the median Waikato house price.

South Waikato Property Market

South Waikato Property Market

South Waikato is made up of 3 suburbs. The most expensive suburb is Tirau, which has a median house price of $516,650. While the most affordable suburb is Tokoroa, which has a median house price of $357,900.

Over the last 30 months of all South Waikato suburbs (Dec 2018 – Dec 2020), Tokoroa had the fastest-growing house, at 23.86% per year. That is 100.6% faster than the median Waikato house price of this period.

The suburb that grew the slowest over that period was Tirau, which grew at a rate of 11.79% per year. That’s 0.93% slower than the median Waikato house price.

Otorohanga Property Market

Otorohanga Property Market

The Otorohanga District is made up of 1 suburb, also named Otorohanga, which has a median house price of $454,900.

Over the last 30 months the median Otorohanga house value grew by 15.03%, which is 23.6% faster than the median Waikato house price over the same period.

Hauraki Property Market

Hauraki Property Market

Hauraki is made up of 5 suburbs. The most expensive suburb is Ngatea, which has a median house price of $578,000. While the most affordable suburb is Paeroa, which has a median house price of $465,400.

Over the last 30 months of all Hauraki suburbs (Dec 2018- Jun 2021), Waihi had the fastest-growing house, at 10.41% per year. That is 12.50% slower than the median Waikato house price over this time.

The suburb that grew the slowest over that period was Ngatea, which grew at a rate of 8.91% per year. That’s 31.12% slower than the median Waikato house price over this time.

Waitomo Property Market

Waitomo Property Market

The Waitomo District is made up of 1 suburb, Te Kuiti, which has a median house price of $335,350.

Over the last 30 months (Dec 2018 – Jun 2021) the median Te Kuiti house value grew by 17%, which is 42.96% faster than the median Waikato 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.