Kapiti hotspot for new builds

Craig Pope Mortgage Advice 2 High res3

Posted 46 days ago by Craig Pope

It should come as no surprise that Kapiti is bucking the national building consent trends. In July this year, 34 new homes were given the green light compared to 20 at the same time in 2016—an increase of over 40 percent. Meanwhile, the number of consents across the country only rose by 1.7 per cent.

Alongside Wellington, Kapiti is experiencing year on year growth, and it’s not hard to see why. Major infrastructure like Transmission Gully and the Kapiti Expressway are super charging the region and opening it up like never before. In the year to June, 291 new homes were consented.

Statistics New Zealand has released a nifty new interactive tool that allows us to pinpoint exactly what suburbs are growing across Kapiti. In the year to July, Paraparaumu Central, Otaki and Waikanae West were local hotspots for new homes.

I was not surprised to see Otaki is growing fast—it’s a desirable option particularly for first-home buyers. More land is available there, and in Waikanae, which makes it more economical to build. It’s fantastic to see the range of development that is happening across Kapiti, which had likely been spurred on by the fact we remain a reasonably affordable choice compared to central Wellington.

A few years ago the choice of building over buying wouldn’t have been seen as a viable option. However, tools like the extra HomeStart subsidy and the ability to use KiwiSaver funds towards a deposit, make it more accessible and attractive. One catch for buyers to be aware of is that it can be hard to build within the housing price cap placed on the HomeStart subsidy, which needs to be carefully managed.

While it’s fantastic to see this growth, the big question remains as to how we keep it going. It’s predicted our population will steadily grow from 52,433 to more than 63,000 people by 2043. Along with other essential infrastructure, we will need housing stock to keep pace. As long as enough land continues to be made available, we believe the appetite to build will be healthy.

If you’ve been considering a new build, make time to talk to a trusted mortgage adviser. You can find out what you need to do, and we can walk you through the mortgage and funding process to remove some of the stress that inevitably comes with building a new home.

Contact us to discuss your options.

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