High-end homes are proving easier to sell than the bottom end of the market in Masterton and Carterton, agents have told OneRoof. At the same time, falling prices in Wellington are having a knock-on effect in the two towns.
Tremains Real Estate agent Anna Keen says she recently sold a four-bedroom, two-bathroom modern home on a 1.17ha plot of land on Willow Park Drive, in Opaki, Masterton, for $1.6 million – $350,000 above its 2020 RV. “We had multiple offers on that property including people from out of town and people from within the community.”
The high-end sale wasn’t just a one-off, says Keen. “The higher end of the market is moving more easily than the lower end,” she says.
Keen and Bevan Saywell are currently selling another four-bedroom high-end home at 5 Francis Lane, in Masterton, and are expecting multiple offers. “It’s a really unique property with a rural outlook,” says Keen.
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The issue at the lower end, says Keen, is that first-home buyers and investors are thin on the ground. First-home buyers are having well-publicised difficulties in securing finance and investors haven't returned in large numbers since the government’s tax rule changes to interest deducibility and the bright-line test in March 2021. In fact, some investors are selling up, says Keen.
Investment properties that do sell often have extra income potential. An example, says Keen, is a three-bedroom house on Waltons Avenue, in Masterton, which recently sold to a local investor for $516,000 – well above its RV of $425,000 and $166,000 more than what it sold for in 2019. “It has a decent-sized section, at 939sqm, and the people bought that as a rental because it has subdivision potential.”
Agents reported strong interest for this four-bedroom home at 5 Francis Lane, in Masterton. Photo / Supplied
A three-bedroom investment property with development potential on Waltons Avenue, in Masterton, recently sold for $516,000. Photo / Supplied
While property values in both Masterton and Carterton have dropped since market peak at the end of last year, the rate of decline in both districts hasn't been as steep as experienced in the capital or the Hutt Valley, where property values have plunged between 8% and 11% over the quarter.
The latest OneRoof figures show Carterton's average property value slid 3.1% to $850,000 in the three months to the end of August, while the average property value in Masterton dropped 2.7% to $768,000 over the same period.
One of the more unique aspects of the Masterton and Carterton property markets is their linkage to the ups and downs of Wellington, says Property Brokers agent Benn Milne. When Wellington sneezes, Carterton and Masterton get a cold.
“The markets are related," says Milne because of the train line. When buyers are priced out of Wellington, the daily express commuter trains mean they can buy in the Wairarapa and commute to Wellington.
Good homes can sell well above RV, with Milne citing as an example a four-bedroom home on a 1200sqm-plus section on Solway Crescent, in Masterton, which sold for $990,000 – $270,000 above RV.
There were lots of offers submitted for this four-bedroom home on Solway Crescent, in Masterton. Photo / Supplied
“It is a modern big home. We had a few offers on their property ranging from $835,000 – was the lowest – to $960,000. We negotiated up to $990,000.”
When it comes to brand-new homes for sale, Masterton in particular, has a good number of sections and spec-build homes on the market, says Milne.
There are differing views about whether they’re affordable. Keen says talk to a builder and don’t listen to the doom and gloom in the media but Milne says the cost of building has pushed new-builds beyond the reach of most first-home buyers. “You’re talking $200,000 to $300,000 for a section and $500,000 for a house build,” Milne says.
Some first-home buyers are still able to buy existing homes, says Milne. “First-home buyers are a mix of Carterton and Masterton. I’ve just seen the first house priced at $300,000 again in Masterton. It’s been a while since you've seen that.”
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