Residential property prices in Putaruru have more than doubled since February 2016, so what has driven that change?
In January 2016 as a company, we carried over a hundred listings with the mean price of residential property around $160,000 for a standard three bedroom home in and average area. We sold around 7 properties a month and it took some time for them to sell.
The typical buyer was over 50 and downsizing to free up capital by moving here from Auckland, Tauranga, Hamilton and even Cambridge and Matamata. The town’s population was holding but becoming increasingly elderly.
Prices in Auckland and Hamilton and the surrounding areas were rising and while our prices here were rising, they lagged a bit behind the main centres.
Then in February 2016 the Waikato Expressway (Cambridge by pass) opened. Hamilton was suddenly much closer and at the same time more and more first time buyers were accessing their kiwi savers to use as a deposit for their first home. It quickly became apparent that buying a property in Putaruru cost a fraction of what it cost in Hamilton and first time buyers flocked to buy in our affordable market. Properties sold quickly and most went to multiple offer. By June 2016 we were down to just 7 listings for sale, prices were rising by about $1,000 per week and this continued until October 2018.
During this period new employment opportunities opened, with the Lichfield milk powder drier opening at their dairy factory, a new flour mill in Tirau, Rangiura retirement village and nursing home expanded and lots of new small businesses opened in town.
Our town has changed. Our school rolls are growing, young families have bought their first homes and properties have changed from tenancies to owner occupied. We have a vibrant community with a younger demographic. The council is re-zoning more land for residential development, so this is likely to continue for some time to come. Now the average price for a standard 3 bedroom home is $350,000, still much more affordable than the main centers and Putaruru has welcomed its new residents with enthusiasm. Why not come a join our growing community.