Million-dollar house prices spreading north into Lower Hutt following record prices in Wellington

Million-dollar homes are becoming the norm in southern Lower Hutt, hot on the heels of eye-watering prices in the capital.
Five real estate agents told Stuff the million-dollar mark was creeping north as buyers flee Wellington where the median house price reached a record $1.1m last month. Lower Hutts median price also reached a record $839,000.

Professionals Redcoats agent Shane Brockelbank said he and his colleages had sold five properties in excess of $1m in the suburb of Waiwhet in the last fortnight one was a 100 square metre home on Whites Line East with no garage. All the homes are within a kilometre of each other.

Professionals Redcoats/Supplied
This house on Mandel Mews in Waiwhet was one of the properties sold by the Professionals for over $1m.

In 2012 Stuff reported the median price in the suburb was $325,000 the highest price paid for a home then was $585,000, while the cheapest was a $100,000 unit.

* Wellington's median house price soars to $1.1m, while Porirua jumps by $273,000 in one month
* Council-owned property company gives first-home buyers a fighting chance
* Just 154 houses for sale in a city of over 100,000 residents

According to the Real Estate Institute of New Zealand, the median price in Waiwhet in February was $797,000.

CK & Co Realty managing director Diane Cummings said three of the last five houses her company sold last week went for more than a million dollars.

A million used to get you something exceptional; it now gets you an average house.

Professionals real estate agent Shane Brockelbank says most stand-alone houses on a flat section in the southern half of Lower Hutt were now knocking on the door of the $1m mark.

She and Brockelbank said suburbs like those in the eastern bays, Woburn and Central Hutt had routinely seen million-dollar sales in the past but the rest of southern Lower Hutt was now catching up.

Prices were being driven up by house hunters unable to crack the Wellington market.

Were seeing people whove made offers on three or four houses, so they just whack the next one with $40-$50,000 more than they think its worth to nail it down. The problem is it sets a new benchmark for that sort of house in that area, Cummings said.

Professionals Redcoats/Stuff
The value of homes in Waiwhet have skyrocketed, with the median price in the suburb now $797,000. This one on Bell Rd sold for over $1m.

Brockelbank said most stand-alone houses on a flat section in the southern half of the city were now knocking on the door of the $1m mark. The shortage of supply in the housing market meant those prices would likely spread further north, and become more common in the likes of Avalon and Naenae.

Ray White agent Ray Wallace said million-dollar price tags were already moving into the northern part of the city. Hed sold two properties in Tait earlier in the year which reached that mark.

Lou Macdonald, also of Professionals, said another factor driving up prices was the activity of developers following the relaxation of planning rules which allowed the building of higher density housing in more parts of the city.

They were willing to pay top dollar on a section because of the higher returns from the multiple units that could be built on it.


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