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South Otago property prices rise 45%

Source: odt.co.nz

South Otago looks to be experiencing a mini property boom, with the latest REINZ monthly property sales figures showing a 45% rise in median sales prices in the district last month, compared with March a year ago.

Clutha Mayor Bryan Cadogan said the rise was evidence of positive growth in South Otago and reflected a renewed vibrancy in the district.

South Otago price rise 45The median sale price in South Otago last month was $196,250, compared with $135,000 a year ago.

The number of sales in South Otago also increased, from 21 to 32.

Mr Cadogan, who has been vocal in a campaign to attract more workers to fill the many job vacancies in the district, said the increase in median prices was an encouraging sign that people were moving into the area.

‘‘If you pick up a magnificent well-paying job, then you have the ability to buy a nice house.''

But he warned if the trend of increasing prices continued, it could raise the question of long-term affordability.

There was a shortage of accommodation in many of the district's towns and it appeared more people were moving to the district.

Dunedin experienced a 9% increase in the median sale price, from $280,000 in March last year to $305,000, with the number of house sales up 33%, from 208 to 277.

North Otago showed a 55% rise in the number of sales in March 2016, compared with a year ago, but the median sale price fell 2.1%, from $215,000 to $212,000.

In the Central Otago Lakes region, the number of sales rose 5%, from 147 to 155, while the median sale price rose 27%, from $555,000 to $702,000.