Shaun Paterson: On the recent property boom in the Coromandel

A property boom in the Coromandel.

OneRoof figures show demand for properties in the area is up 113 percent on last year

Bayleys Coromandel General Manager Shaun Paterson told Mike Hosking it's a huge shift and the OCR cut is a huge part of the change.

He says potential buyers have been waiting in the wings waiting for something to bring confidence.

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Episode Transcript

Speaker 1 (00:00):
A little bit of housing talk for you. Are we
seeing life in the housing market? Does it spring? Is
that the Reserve Bank the mortgage rate cuts in the
Corimental one roof September outlook tells us demands increase one
hundred and thirteen percent year on year. General manager of
Bailey's Corimental, Shawn Patterson's will the Shawn very good morning
to you.

Speaker 2 (00:18):
Morning, Mike.

Speaker 1 (00:19):
How are you very well? Indeed? Thank you? So how's
this manifesting itself? I mean, does this off a very
very low and quiet base and so suddenly you're busy
or you run off your feet?

Speaker 2 (00:27):
Now, you're absolutely right. I mean we're coming from a
pretty low base there, Mike. You've got to turn around.
And although we don't like to dwell on it, think
about where we were a year ago, post storms and
no road roads in and things like that, which are
certainly making us an outlier. But that said, Mike, there's
definitely been a drastic change since aid OCR reduction. So
one roof absolutely right that we have seen a drastic

(00:50):
change off that low base, and I think that's been driven,
you know, really by a lot of cashed up people
who have been waiting nervously in the wings for a
bit of confidence and perhaps has just given them a
bit of confidence they need to make the leap and
get rid of that fear of overpaying.

Speaker 1 (01:05):
Is this all from people out of town or is
it people within the market swapping houses?

Speaker 2 (01:11):
A little bit of a mixture though. Seventy four percent
of our buyers last year and the Coramandel came from
outside the region, so that's quite normal for us. I'd
say the biggest group that we're seeing at the moment
is a continuation of people relocating from the city and
making permanent relocations. And Mike, I'm a big believer that
that's still you know, the trend of people looking for

(01:34):
a better work life balance and looking to locations like ours,
you know, where they can find a bit of lifestyle.

Speaker 1 (01:41):
Saw a big jump in business confidence last week round
the whole country, not just the Coramandel. And you've seen
the Central Bank, the Reserve Bank move. How much weight
do you place on just these individual, little small movements.
Are people desperate to feel better?

Speaker 2 (01:56):
Yeah? They are, Mike. I think everyone's looking for that,
everyone looking for that little silver lining, and absolutely you
know that everyone's been watching that. Obviously, are and It's
been talked about a lot, and you know, it certainly
had that impact on confidence that we hoped it would have.

Speaker 1 (02:13):
Yeah, what's your sense of spring and summer? Does it
take off or is it a slow burn?

Speaker 2 (02:19):
Well, what we've got at the moment is a whole
lot of inquiry, Mike, and it's starting to transact into deals,
you know. I mean we would usually, although we're not
as seasonal as we used to be, we would usually
see July and August being our quietest two months of
the year. And you know, year to date, July and
August have been our biggest months of the year. So

(02:40):
that's certainly showing that some of that confidence is turning
into transactions. And spring, spring in the back end of
summer are usually have to selling seasons. So I'd hope
that this confidence would continue and we'd see some more
stock traded because I think the the other key part
in our market at the moment, of course, like like
a lot of places around the country, as we've collected

(03:03):
a lot of stock while have been up, and there's
a lot of choice out there for buyers at the moment,
and you know, there's a lot of stock to be absorbed,
so it's going to take some serious gross in that
demand curve to absorb some of that stock before we
see any sort of impact on pricing good stuff.

Speaker 1 (03:22):
I hope it goes well for you, mate, Sean Patterson,
who's the general manager of Bailey's and the Currimental. For
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