10 Reasons to Invest in Real Estate Wanganui in 2022
Whanganui/Wanganui was previously called Petre and is a city in the Manawatū-Whanganui region of New Zealand. It is located at the point where the Whanganui River joins the ocean on the western coastline of the North Island. At the time of writing, it is the 19th most populous urban area in New Zealand and is a region that is rich with history and culture.
So, what makes Whanganui real estate such a good investment over the upcoming year?
1. Real Estate Wanganui: A History of Strong Performance
Historically, the Wanganui real estate market has always performed well. Throughout 2020, a combination of low-interest rates and a reduced supply saw house prices skyrocket. According to the online marketplace and advertising platform, Trade Me Property Wanganui, New Zealand's booming economy generally boosted the regional economies in Manawatū-Whanganui. This region was to thank for the substantial growth in the real estate market in places like Whanganui, Marton, Bulls and Waverley.
Throughout 2021, house prices in Wanganui have been consistently increasing alongside the national average. Gavin Lloyd, Trade Me Property Wanganui Sales Director said while the national median rent saw no month-on-month change in November 2021, there had been an 8% increase when compared with November 2020. Weekly rents in Whanganui increased to $480.
So, what about house prices? From March 2020 to March 2021, house prices in the Manawatū-Whanganui region increased by a whopping 23.7% to $520,000, according to Trade Me research. The upward trends of both rental data and property prices are expected to continue into 2022.
2. A Great Return on Your Investment
The strong performance of the rental and housing markets in Whanganui over recent years are matched by major cities such as Auckland and Wellington, but one thing differs. House prices in Wanganui, while increasing, are no way near the level they are in other major cities, but the rents are comparatively stronger. This means that the rental yield in Whanganui and associated suburbs are much higher than in Auckland and Wellington, making it a great place for investors to invest their capital.
As we know, when it comes to property investment, cash flow is king. Investing in real estate Wanganui means your cash goes further. With strong rental yields and a history of strong performance in the local area, Whanganui is a great place to invest in real estate.
3. Great Potential for Capital Growth
While a steady cash flow certainly is important for real estate Wanganui investors, so is the potential for capital appreciation. The continuing upward trend in house prices in Whanganui means that there has never been a better time to invest in the long term.
Experts say there is minimal risk of house prices dropping any time soon, as many people are moving away from the expensive regions such as Auckland, and turning to more affordable cities like Whanganui.
In December 2020 the region had experienced the second-highest capital growth in New Zealand. Both properties for sale and land for sale can expect to experience significant capital appreciation throughout 2022.
4. A Large Supply of Housing
Contrary to past years, in Whanganui, the supply of properties and farms for sale in the area is now good. Having said that, good real estate is being snapped up very quickly. According to an interview conducted by Trade Me Property Wanganui in February of 2021, most houses for sale in Wanganui are taking between 10 and 15 days to be sold although with more properties for sale now, this could expand and take longer.
A good supply of properties, land and farms for sale means that investors can be sure a great deal will come up for them. Enlisting the help of an experienced real estate Wanganui agent will mean that investors can be the first ones to know when a new listing is available and can get ahead of the game.
5. An Opportunity to Invest in Farms for Sale
Another great reason to invest in real estate Wanganui is the opportunity to invest in farmland. The Whanganui region often has a number of farms for sale, and they represent a great investment for those who enjoy working with livestock and in a rural setting.
Farming communities such as Fordell are popular amongst residents and tourists alike, with numerous historical properties and prestigious farms. Fordell in particular is well-known for its local stock sales and is just 18km from the centre of Whanganui.
In Whanganui, farmhouses and farms for sale can often be purchased for a great price, and are often located on prime local real estate.
6. Land Development and Land for Sale
In addition to the farmland that Whanganui has for sale, there is also plenty of other land for sale in the region. Real estate agents in the local area often have sections and plots of land of all sizes for sale, presenting a great opportunity for property investors and developers.
Depending on whether the land is in the centre of Whanganui or in a more rural setting, the opportunities for land development differ. Land for sale in highly sought-after areas or popular tourist destinations is generally dearer than land on the outskirts of the region, with the exception of farmland.
Land for sale presents property investors with the opportunity to team up with local developers and construction companies to create their investment from scratch and build something that will truly make its mark on the neighbourhood.
7. An Area Popular with Residents and Tourists
Whanganui’s population is continually growing and has seen an increase in population from 45,309 to 48,100 in the last three years, according to Trade Me Property Wanganui. It is very popular with both New Zealanders and international tourists, due to the fact that it is very well-located.
The centre of Whanganui is 90 minutes from Tongariro National Park, a popular destination for skiers and just 50 minutes to Palmerston North. The drive to Wellington is 2.5 hours and to Auckland is 5 hours (or a 1-hour flight).
Real estate Wanganui is affordable and this makes it popular amongst local small businesses, and also bigger businesses moving from major cities such as Wellington. It also makes the region popular amongst residents who have previously lived in the major cities but welcome a change of pace and lifestyle.
Perhaps one of the biggest advantages to local residents living in Whanganui is the fact that it is a ‘ten-minute town’, meaning that all core community facilities and services are accessible within a 10-minute walk or cycle. Whanganui’s popularity with residents means the rental demand and housing market remain strong, which is great news for investors.
Whanganui is also visited by many tourists. With beautiful scenery from Virginia Lake to Bason Botanical Gardens, and of course Whanganui National Park, Whanganui proves to be popular with tourists wanting a relaxing destination. There are many beaches and hiking trails, and an admired opera house.
The growing number of tourists visiting the region means that investors in Whanganui real estate have the ability to diversify their investments, and include real estate such as hotels, restaurants and serviced housing in their portfolios.
8. A City with a Rich History and Culture
Whanganui has a strong cultural focus and a great deal of history. There are several cultural institutions in the centre of the region, including the Sarjeant Gallery, which holds more than 8000 works of 16th – 21st-century art. In addition to this, the region has the Whanganui Regional Museum, the Davis Library, the Alexander Heritage and Research Library, and the Whanganui War Memorial Centre.
There is a vast amount of Māori culture in Whanganui, which is a big influencer of Whanganui cuisine and culture. The world-renowned history makes Whanganui a great place to live and invest. Many local investors enjoy investing in real estate with historical and cultural significance.
9. A Wide Variety of Communities
There is a wide variety of locations in the Whanganui region which presents a wide range of opportunities to both New Zealand and International investors, whether an investor is looking for houses, land or farms for sale.
Communities such as Aramoho, Gonville and Whanganui East are popular with working-class New Zealanders and are currently experiencing increases in property values. The strong levels of employment in the area mean that there is great rental demand.
Suburbs such as Castlecliff, Otamatea, Saint John’s Hill and Westmere are experiencing the greatest increase in house prices, and are some of the most sought-after areas in Whanganui. It is likely that properties in these areas will experience some of the greatest capital growth in 2022.
10. The Whanganui Lifestyle
Many residents of larger cities like Auckland and Wellington are making the transition to an enjoyable lifestyle in Whanganui. The great beaches, culture, art and of course the more affordable housing are persuading New Zealanders to make the change.
According to Trade Me Property Wanganui, a three-bedroom property will cost between $400,000 and $500,000, depending on the location. The same property in Auckland is likely to cost a buyer around $960,000!
Lifestyle property in Wanganui will range from $900,000 to $1.2 million, with a comparable house in Auckland costing upwards of $1.4 million.
With these kinds of differences, it’s easy to see why many New Zealand residents are making the move to Whanganui. The population of the city is growing and the real estate market is booming.
About the Author
Steve Baron is the Founder & CEO of Whanganui Mansions. He is a former successful real estate agent and property investor when based in Auckland and formerly the Managing Director of Baron Marketing Ltd, an advertising company he founded and ran for over 20 years. He is a past mentor for Business Mentors NZ and holds a Bachelor of Arts Degree from the University of Waikato Majoring in Economics & Political Science. He also holds an Honours Degree from Victoria University of Wellington in Political Science. He is a published author of three books and a prominent guest editorialist for newspapers throughout New Zealand. In his spare time, Steve is the Clerk of the Scales for New Zealand Thoroughbred Racing, is a Bridge Grandmaster and enjoys walking, running and cafes.