Sunday, 05 July 2020

WHITIANGA WEATHER

Coromandel’s four-bedroom homes come at a premium

House prices are one of the measures many homeowners will be watching over the coming weeks as the economy continues to digest the impacts of Covid-19.

But with still a great deal of uncertainty about how the property market will react over the coming months, it’s anticipated that many homeowners may favour renovations over a sale, at least in the short-term.

Recent data released from realestate.co.nz suggested that adding an additional bedroom could boost the value of your home by hundreds of thousands of dollars.

“On the Coromandel, vendors on average asked $365,225 more for a four-bedroom home than a three bedroom. Asking prices for a three-bedroom house in May were at $760,720 whereas a four-bedroom home was commanding $1,125,944,” the property website stated.

However, the data does not take into account other factors such as location, section size or the age and condition of a property. Many of the Coromandel’s four-bedroom homes are newer and located in prime holiday hotspots where prices are already higher than in other parts of the Peninsula.

According to the figures released last week, the difference between a one-bedroom and a two-bedroom house was on average $97,688, while the jump from a two-bedroom to a three-bedroom was $113,532. Crucially, the numbers are based on asking prices and not sale prices.

For May 2020, realestate.co.nz says the average asking price for a one-bedroom home on the Coromandel was $549,500, while $647,188 was being sought for a two-bedroom. The Coromandel sample included 45 three-bedroom and 18 four-bedroom houses and was 80 percent truncated, meaning any big outliers were removed so as not to disproportionately distort the averages.

The comparison between the numbers of bedrooms also fluctuated wildly across the country. In the Wairarapa, for example, the difference between a three-bedroom and a four-bedroom was almost double, $552,755 v $1,001,944, while in Gisborne the average price of a three-bedroom at $528,111 was actually slightly more than for than a four-bedroom home, which commanded $515,000.

While realestate.co.nz suggested this indicated three-bedroom homes were in greater demand, it also points to fact that there are many other things in play when it comes to determining values.  “There are many factors involved with renovating your property, so make sure you do your research around what properties are selling for in your area before embarking on your journey,” says Vanessa Taylor, spokesperson for realestate.co.nz. On the Coromandel, that means noting values in your specific locality, with considerable variance in prices across the Peninsula.

The numbers also revealed that the Coromandel was the third most expensive place in New Zealand for purchasing a four-bedroom house, behind Central Otago/The Lakes district where the average price was $1,257,014 and Auckland at $1,168,170.

Pictured: Cook Drive, Whitianga from the air on Saturday last week.

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