New Plymouth possibilities

With the ocean on its doorstep, and the mighty Mount Taranaki rising majestically in the distance, New Plymouth is a city celebrated for its natural beauty. But despite these attractions, the wider Taranaki region hasn’t had a good year when it comes to house prices. As opposed to the vertiginous growth found in other regions, the region as a whole has seen a drop of 2.5% year-on-year to September 2019, with New Plymouth itself rising by just 0.2% according to REINZ data. 

There’s also a storm brewing over changes to short-term accommodation under the city’s wide-reaching Proposed District Plan. Under this plan any property investor who rents their home as short-term holiday accommodation for more than 90 days per year will have to apply for resource consent. This has come about after  pressure from moteliers, who see their business being eaten away by the likes of Airbnb. Needless to say, the city’s property investors are seeing red.

“If this happens the properties will be viewed as commercial and have to meet all the requirements of commercial properties, which will have huge financial impacts on the investors,” says Richard Woodd, president of the Taranaki Property Investors’ Association (TPIA).

“It means that they will be subject to the same rates and regulations as commercial motel and hotel operators.”