Family homes with room for kids to play and space to park the car appear to be popular with Wellington property buyers, but apartment owners are struggling to sell.
Houses priced at $400,000-$600,000 are becoming more keenly sought, according to real estate agents.
In Wellington last month, 735 houses were sold – up from 573 a year earlier – according to Real Estate Institute data, as mortgage rates fell to record lows. However, the median price reduced to $368,750 from $375,000.
Harcourts Team Wellington spokesman Marty Scott said his agency noted a 22.2 per cent rise in sales of Wellington homes last month compared with the same month last year.
"The three-bedroom bungalow in reasonable condition with parking always sells well. There was quite a lift in the sales volumes last month. That's been driven by the attractive interest rates, with people converting paying rent into building equity in a home."
Real Estate Institute Wellington spokesman Euon Murrell said the biggest change in the market lately was an increase in activity in the $400,000-$600,000 price range.
That amount of cash can get a variety of properties in the Wellington region.
Properties listed in that range on website RealEstate.co.nz include a four-bedroom, three-bathroom house in Porirua, a four-bedroom property in Johnsonville, a two-bedroom character cottage at Eastbourne or a three-bedroom townhouse in Thorndon.
Despite sales picking up for more substantial homes, the Wellington apartment market is stagnant.
"There is quite a supply of apartments on the market," Scott said – about 400 – but only 40 to 50 sold in a typical month.
- © Fairfax NZ News