- House prices in Napier’s hill suburbs have dropped since the peak, making it a buyer’s market.
- Buyers have a wide choice, with some properties priced below their 2023 valuations.
- Out-of-town and international buyers are showing interest in larger, character homes.
House prices in Napier’s prestigious hill suburbs have dropped by as much as $300,000 in the last three years, with agents telling OneRoof that buying a heritage mansion in the city has never been easier.
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There are more than 40 homes to choose from in Hospital Hill and Bluff Hill, ranging from cheap do-ups and apartments to grand estates and modern trophy homes.
New Zealand Sotheby’s International Realty agent Vaughan Wilson told OneRoof that it was a buyer’s market in the city, with plenty of opportunities to upgrade.
“100% now is the time to be buying in any sector. It’s not going to be cheaper – this is where it is and it’s only going to get stronger and go up.”
The average property value in Bluff Hill and Hospital Hill has dropped from over $1.2m at market peak to less than $1m, according to the latest OneRoof house price figures, while a browse of properties for sale in both suburbs on OneRoof shows many are priced well below their RV.
The four-bedroom, two-bathroom home on Cobden Lane, would suit families looking to move into popular high school zones. Photo / Supplied
A four-bedroom, two-bathroom family home at 7 Cobden Lane with a large inground pool is, according to its listing, “priced to sell” at $1.199m, well below its 2023 RV of $1.7m.
Another smaller three-bedroom, one-bathroom home at 23 Fitzroy Road is priced slightly below its RV at $810,000, which Wilson said was entry-level for the elevated part of the hills. There were cheaper homes, but they were usually on the flat and in the shade.
Wilson said many of the houses for sale had been owned by families for 10 to 20 years, with vendors looking to downsize. “It’s just timing,” he said.
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The owners of 21 Denholm Road, in Hospital Hill, were selling for exactly that reason, he added.
Premium homes in the suburbs were attracting interest from buyers from Australia, Auckland and Tauranga, as well as local families who wanted to upsize and move into zone for Napier Boys and Napier Girls.
Tremains central regional general manager Stuart Christensen said sales were improving in the suburbs but prices hadn't risen accordingly.
A three-bedroom, one-bathroom character home on Fitzroy Road, in Bluff Hill, has caught the interest of an Australian buyer. Photo / Supplied
A four-bedroom, two-bathroom home on Lighthouse Road, in Bluff Hill, is one of the oldest homes on the established street. Photo / Supplied
“There’s definitely sales happening, so volumes are definitely improving, but prices are still challenging. We are not having an increase in pricing,” he told OneRoof.
Christensen said those looking on the hill had a lot of choice and a range of property types, but the most desirable homes there tended to be the larger elevated properties with sun, views and drive-on access with some flat area.
The higher up the hill, the more desirable it was. “You have got sprinkles of apartments and new homes [at the top of the hill], but predominantly they are more character homes.”
A one-of-a-kind 1950s home on one of the sought-after elevated spots on Lighthouse Road, Bluff Hill, is also looking for a new owner. Photo / Supplied
However, character homes were not for everyone, he said. Those looking to buy them had to consider the cost of upgrading the roof, the wiring, the plumbing, the lining, and the cladding on the outside if it had not already been done.
“If you are fairly heavily geared, the banks are going to want a building report. They are going to be looking at what it is going to cost to do some repairs on it and potentially bring it up to whatever standard you want.”
Sally Jackson, Bayleys Hawke’s Bay general manager of residential sales, said the hill suburbs had shown resilience in current market conditions, citing 10 sales in Bluff Hill in the last three months that ranged from $607,000 for a two-bedroom cottage on Milton Road to $1.69m for a four-bedroom property on Fitzroy Road.
Jackson said buyers were attracted by the heritage charm, elevated views, and proximity to the CBD.
Bayleys agent Kristen Hines is currently marketing one of the oldest homes in Bluff Hill, for $945,000-plus. The property at 8 Lighthouse Road has an RV of $1.06m. Just across the road, Property Brokers agent Shelley Gilmartin is selling a unique 1950s home at 13 Lighthouse Road. The larger five-bedroom, three-bathroom home has an RV of $1.41m.
Former Napier-based Labour MP Stuart Nash still owns a bungalow in Bluff Hill, which he added to the rental pool when it failed to sell after almost eight months on the market.
“The market completely died in October 2023 and 2024. There was the still the odd property that sold, but they were either exceptional or fire sales. So, most people who didn’t really need to sell, even if they wanted to, took their houses off the market,” he told OneRoof.
Nash said the recent falls in interest rates had probably encouraged some vendors to relist their homes this year, adding that he planned to relist his Milton Road home in spring.
And while Bluff Hill had been overtaken by the waterfront suburb of Ahuriri as Napier’s most expensive, it was still a premium family suburb, Nash said, with the type of homes similar to what you’d find in Auckland's Herne Bay, but much cheaper.
“This is old, established Napier. It’s where you get your old trees, your 100-year-old-plus houses, which are well built – a lot of them with views, not all of them – and large sections and very little subdivision.”
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