- Matamata's affordable homes are attracting buyers priced out of nearby towns like Cambridge and Hamilton.
- Entry-level homes range from $500,000 to $600,000, with larger homes up to $900,000.
- The town offers good amenities and a strong community spirit, appealing to first-home buyers and investors.
First-home buyers are turning their attention to a rural town close to Sir Peter Jackson's Hobbiton attraction.
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Agents told OneRoof that homes in Matamata were attracting a lot of interest from Kiwis worried about rising prices in Waikato's main centres.
They pointed to the scramble for "affordable" properties at last month's auction event in the town.
The exterior of the George St home had been renovated, but work was still needed inside. Photo / Supplied
Property Brokers Waikato regional manager Chris Moore said entry-level two-bedroom homes in Matamata sold for between $500,000 and $600,000, and were proving a hit with people who had been priced out of the likes of Hamilton and Cambridge.
“That price point is getting harder and harder to find in some of the other areas of the Waikato. I think, for some, Matamata is proving to be quite popular as a starting point.”
Moore said buyers with slightly bigger budgets - between $650,000 and $850,000 - could pick up a nice tidy three-bedroom home in the town.
“You are getting a lot more property for that money in Matamata.
A large family home on Burwood Road, in Matatamata, fetched $775,000 at an auction last month. Photo / Supplied
“It’s just one of those provincial towns that seems big enough to offer all the conveniences, but is still accessible to most [buyers].”
At Property Brokers' auction last month a three-bedroom home on George Street sold for $565,000, a four-bedroom home on Bruwood Road sold for $775,000 and a three-bedroom home on a 4600sqm plot on Te Poi South Road fetched $760,000.
Moore said buyers were a mix of locals and out-of-towners. First-home buyers were out in force but investors were starting to return to the market, which made sense given there was a shortage of rental properties in the town.
“It’s one of those towns where you can still get a reasonable return on investment."
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Harveys agent Jodi Hilliar agreed that first-home buyers were driving much of the market, and were looking for affordable homes.
She believed there was some good buying to be had in the town and she had noticed the prices of brand new homes and older 1960s properties dropping slightly.
Brand new homes had dipped in price this year because there was an oversupply and this had been to the detriment of the 1960s homes, she said.
Hilliar said the price of brand-new three and four-bedroom homes with two-bathrooms in new subdivisions ranged from $790,000 to the $900,000s.
"What last year was $1m and over is now selling for $995,000-$999,000," she said.
Entry-level homes such as this three-bedroom, one-bathroom home at 7 Puriri Place can be picked up for somewhere in the $600,000s. Photo / Supplied
"With all the newer houses [on the market], it’s hard to get a good price for the 1960s houses, which have been our bread and butter for years."
Some owners of these older homes were now having to drop their prices by about $50,000 to compete, she said. One 1960s home that was listed last year with a price indication of early to mid-$600,000s had just been re-listed at $595,000.
Hilliar said well-presented homes were still selling well. "Basically if it doesn’t sell in six weeks, it’s too dear in price."
Matamata Real Estate owner Joanne Morgan said Matamata was attracting out-of-towners because it was still viewed as very affordable.
“Some are downsizing from Cambridge or Tauranga and finding they can get something very reasonable coming to Matamata. Even your Auckland buyer can come down [to Matamata] and buy something very, very nice but way, way cheaper.”
A four-bedroom, one-bathroom brick home at 3 Sylvan Place, in Matamata, is priced at $779,000. Photo / Supplied
She cited as examples an entry-level three-bedroom brick home at 7 Puriri Place, which had an asking price of $680,000; a brand new three-bedroom home at 57 Hampton Terrace, which could be picked up for $785,000; and a four-bedroom home with a double garage at 3 Sylvan Place, which was asking $779,000.
Larger homes with two bathrooms, such as 19 Tawari Street, tended to sell for around $800,000, she said.
She was also selling a large three-bedroom, two-bathroom home on a large 1887sqm section spread over two titles at 27 Ngaio Street with an asking price of $1.4m. The original farmers had developed some of the land and kept one of the sections to build a home for them on it as well as hanging onto the neighbouring section.
https://www.oneroof.co.nz/property/waikato/matamata/27-ngaio-street/3aIWg
Morgan said this was the last property in the subdivision still owned by the original family. She said the new buyer had a lot of options as it could suit retiring farmers who still wanted some land or someone who wanted room for the kids to play and a pool. Alternatively, someone could buy the house on the 1070sqm section and immediately on-sell the 817sqm section.
Morgan raved about the town: “Everybody rallies around for people in Matamata. We’ve got a lot of farming and horse stud people and Matamata just seems to be a really good hub for a lot of people.”
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