Northland participating in solid house and rental price growth

House prices in Northland are continuing to rise at a time when those for Auckland have started to cool.

"In the three months May to July the average price for homes across Northland increased in value by 14 percent to $422,000 when compared to the average price for the same period last year," said Peter Thompson, Managing Director of Barfoot & Thompson.

"As we head into Spring, the sentiment is that homes in Auckland are close to being fully priced, while in Northland our sales people report that buyers view local property as continuing to represent sound value for money.

"There is strong buyer interest throughout the region, and the number of sales in the past three months is more than 50 percent higher than it was in the corresponding three-month period last year.

"Undoubtedly a good part of that interest is coming from Aucklanders selling up and moving north. Also in the mix are Auckland-based investors looking for opportunities to add to their portfolio, and young and first-time buyers who are not prepared to pay Auckland prices.

"However, there is also strong interest from locals. Rents are rising, with the average rent rise across the region in the past year being 6 percent. The average rent being paid for a three bedroom property is $322 a week.

"Whangarei City and Whangarei District remain the centres of greatest buyer interest, and during the past year sales have increased by a third over those for the corresponding period 12 months ago, and this is double the year-on-year increase in sales number for the Northland Region as a whole.

"The average price for a house in Whangarei City and District in the past 12 months has increased by 10 percent, and now stands at $405,000, with District prices being far higher than those within the City boundary.

"This is in direct contrast to Auckland where, because of commuting times, you pay a premium for being closer to the City centre.

"In the past year the average sales price for Bream Bay homes year-on-year have increased by 12 percent and in Kerikeri by 5 percent.

"Dargaville now offers some of the best value for money homes in Northland, with the average selling price over the past 12 months being a third lower than Whangarei City, and half that for Northland."

For property sold in Waipu, Bream Bay and parts of Whangarei District the average price has increased by 17 percent in the past year, matching the growth rate being seen in the more popular residential areas of Auckland.

Peter Thompson, Managing Director of Barfoot & Thompson

Rental accommodation also rising

"Rental accommodation is also rising, and in the past 12 months Northland rents have on average risen 5.3 percent and the average weekly rent for the region now stands at $316, which is also the average for three bedroom accommodation.

"In Whangarei, medium to high quality rental accommodation remains in short supply, and the average weekly rent is $311, up 4.4 percent in the past year, with the average for a three bedroom home being $308.

"In Kerirkeri rental accommodation attracts a premium, with the average weekly rent for the area having risen 6.7 percent in the last year to $334. However, it is much higher for a three bedroom home, where the average rental is $371, an increase of 11 percent in the past 12 months. For a four bedroom home the average weekly rent is $414, an increase of 9.2 percent."