The New Center Of Real Estate – Kawerau

If you are thinking of Auckland, Queenstown or else Hamilton and Tauranga, they have just been dethroned as the king of real estate.

The most recent hotspot in the real estate industry is the little milling town called Bay of Plenty located in Kawerau. The prices have increased by as much as 41 per cent in just the past year alone.

Based on a 2013 Census, it is hard to pinpoint when this started. The place has only a population of more than 6000 residents and an unemployment rate of 24.7 per cent. Among the occupation that was listed, the most common answer is labourer.

The question now is who are the buyers and why are they investing into Kawerau?

Kawerau is considered as cheap. Despite the fact that the price increase of the property has gone up to 41 per cent the average price is just around $143,000. With this amount of money, an investor will be able to buy a property that has four bedrooms and this is located in the cheaper area of the town.

According to John Friis who is a real estate agent employed by Realtycom and is a local of Kawerau, the buyers are not just investors. There are also retirees as well as semi-retirees. He also said that they are considered the biggest motorhome town in all of New Zealand. Aside from that, there are also many younger generation that are planning to settle in Kawerau and then they will have to commute going to their workplace mostly located in Tauranga, Rotorua and Whakatane.

According to Mr Friis, his agent individually sold around 80 homes in the last year and the figure is supported by the statistics provided by Quotable Value showing 280 residential properties have been sold in just 12 months up until the month of July this year.

One of the buyers is Bill Marshall who recently moved from his place in Tauranga. He sold his house for around $600,000 and he bought a new one in Kawerau for only $225,000 and now he is free from paying the mortgage. For those in Australia and planning to invest in real estate, inquire at Aveling Homes.

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