Property values rise 10% in district

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Property values in the Alexandra-Clyde district have risen 10% or more over the past year as demand outstrips supply, business leaders say.
The prices were higher than those reached during the 2004-06 boom and continued to rise, Alexandra real estate agent Elaine Schuck, principal of LJ Hooker Alexandra, said.
The median price for a house in Alexandra-Clyde was about $310,000 this time last year and was now about $340,000 to $350,000.
The demand for properties had outstripped supply and was largely because of a flowon effect from Queenstown, Wanaka and Cromwell, where prices continued to increase and were higher than in Alexandra-Clyde, Mrs Schuck said.
Demand for houses in the $300,000 to $500,000 bracket — deemed to be ‘‘affordable housing’’ — was greatest, she said. But because that price range was still unaffordable for many, some of those on lower incomes were missing out, she said.
The shortage of properties meant houses were selling extremely quickly, and sections were also in demand, Mrs Schuck said. One trend being noticed was developers buying several sections in a subdivision, which further restricted the market for firsthome owners and ‘‘mum and dad investors’’, she said.
The tight market was also affecting the rental market, and there was a shortage of rental properties. Rents had also increased about 10% since last year, Mrs Schuck said.
An Alexandra-Clyde Business Group spokesman said figures supplied to the group showed 21 sections had been sold in Alexandra-Clyde during the three months to the end of June this year, compared with seven sections sold in the district during the same period last year.
Alexandra developers had reported demand for residential sections as being strong in the two Pines subdivisions — the Thyme Hill subdivision and in Molyneux Estate — as well as in the Molyneux Industrial Estate, the spokesman said.
There was a shortage of sections and houses for sale in Clyde, and also a shortage of lifestyle blocks, and the business group was worried about a shortage of available properties and subdivisible land, he said.
The business group said the increased real estate activity and extra people coming to Alexandra and Clyde, often for lifestyle reasons, was positive for the community and its economy.
‘‘The Alexandra area has become more popular because of its more reasonable property prices compared to Queenstown , Wanaka and Cromwell, and offers great weather and amenities.’’