Hamilton is New Zealand’s fourth largest city – and the third fastest growing city after Auckland and Pukekohe. It has an estimated population of 160,000 which is expected to grow to 190,000 by 2031 (Stuff, 2018).
Located in the heart of the Waikato, Hamilton is one of New Zealand’s wealthiest regions, responsible for 20% of the country’s total exports. Agriculture, biotechnology, light aviation, transport logistics, science research, education and healthcare lead the Hamilton economy, providing diverse employment opportunities in the city.
“Today’s figures confirm what we all see and know, that Hamilton continues to be a leader in delivering quality, sustainable, growth” says Hamilton’s Mayor Andrew King. “This city is providing employment opportunities as well as housing growth, giving people options”.
Hamilton to Auckland Train Service
The rail service between Hamilton and Auckland is due to start in June 2020.
Urban Development and Transport Minister Phil Twyford said the service is designed to strengthen the connection between Hamilton and Auckland, two of the fastest growing urban areas in New Zealand. The train is designed to give commuters more transport options, he said. “We know more and more people are commuting between Hamilton and Auckland, and this service will give them a real choice between being stuck in traffic or relaxing on the train.”
Two return services will operate each weekday at peak travel times, with one return service on Saturday. The route will start at Frankton in Hamilton, stopping at The Base before going onto Huntly and stopping finally at Papakura (Stuff, 2019).
More people are choosing to commute between Auckland and Hamilton. This development will reduce motorway congestion and will give people a real choice between battling the traffic or a relaxing and faster journey on the train.
Ruakura Port & Logistics Hub
Ruakura intends to become, not only the region’s, but New Zealand’s largest commercial and industrial hub – and it is currently being developed 3kms to the east of Hamilton’s CBD. It is a port with no water, but instead a logistics hub for freight either coming into the country or on its way out. Situated about half-way between the ports of Auckland and Tauranga, the Ruakura site takes advantage of a main railway line running past and the new Waikato Expressway.
The site itself is larger than Auckland’s CBD and has been divided into five integrated zones with the inland port at the heart of the logistics hub. The five zones include the inland port and logistics hub, an industrial park, learning zone with research and educational facilities and adjacent new residential and retail precincts.
It is with no doubt that the port will bring a huge amount of business, jobs and opportunities to the locals of Hamilton.
- 480ha of development land
- 330ha of land for industrial development
- 31ha of land for the inland port
- 100% of land held under single ownership
- 6000-12000 jobs within the precinct
Hamilton is a popular choice for students with more than 40,000 tertiary students at the University of Waikato, The Waikato Institute of Technology (WINTEC) and the Maori tertiary education provider, Te Wananga O Aotearoa.
WINTEC’s student hub is the heart of its city campus, combining the library, student support and IT resources as well as providing a social space for students, staff and visitors.
The city caters for every student’s needs and has a large range of activities for students whilst the campuses have a number of events that involve the students and the community.
Hamilton provides an extensive range of high-quality health services, ranging from primary through to highly specialised tertiary hospital services.
The Waikato District Health Board’s provider of hospital and health services, Health Waikato, is one of New Zealand’s largest in terms of revenue and the types and numbers of services provided.
The Waikato District Health Board provides services for a population of 337,000 people (8% of New Zealand’s population), covers 21,220 square kilometers (8% of New Zealand’s land area) and has a budget of more than $700 million. This makes it one of the largest of New Zealand’s 21 District Health Boards.
Shortage of Property and Rental Demand
The 2019 Waikato Plan housing stocktake identified a shortage in the city of 4000 houses, making up more than half the 7500 housing shortfall across the Waikato region. At the current average of 1200 houses per year, the backlog in supply won’t be met for more than three years.
Hamilton Council’s growth general manager Jen Baird agreed that demand for housing is high. “Absolutely no question. You see it from a real estate market perspective, you see it from competition for rentals and you see it in terms of the need from state and social housing as well.” (Stuff, 2019)
As a result of the property shortage, Hamilton is seeing double figure rent increases. They were up 11 per cent in the 12 months to June, and a 9.8 per cent year-on-year increase in the median rent paid by tenants.
Head of Trade Me rentals Aaron Clancy said the rental market is in a perfect storm – supply is low, demand is high and prices are rising.
In October this year, Trade Me has reported the average asking price in Waikato as rising 7.9 per cent, or $43,000, on the year to September to reach a new high of $597,250.
They reported the average asking price for a Hamilton house now at $630,250, an increase of 8.8 per cent from 2018 (Stuff, 2019).
It is clear that capital gains is another huge advantage to those that are investing in to the Hamilton property market.
For more information about investment properties in Hamilton