Northland property price increases accelerated in last quarter
The average price for residential property across Northland accelerated in the last quarter of 2016 to an all-time high.
The average price being paid for residential property across all of Northland reached $554,000 in the last quarter of 2016.
This brought the average price for the 2016 year up to $483,000, an increase of 23% over the previous 12 months.
"Residential property across Northland remained in high demand right up to year end, with prices increasing significantly between September and December," said Peter Thompson, Managing Director.
"This was in direct contrast to Auckland, where prices eased with the approach of year end."
"This price increase had a flow on effect on rents, with the average rent for a three-bedroom home increasing during the year by 27% to $417,000.
Farms subdividing land
"A feature of Northland rural sales in the past 12 months has been the increased number of properties coming to market through farmers subdividing small blocks of less productive land off the main farm.
"It has led to more properties coming to market and prices becoming more attractive. In turn, there has been a significant increase in buyer interest, and sales numbers for the year increased by 93%.
Bream Bay in number one spot
"While lifestyle and rural sales were strong across the entire region, Bream Bay property was in particular demand with sales increasing threefold. We sold more properties in Bream Bay in 2016 than we did for all of Northland, including Bream Bay, in 2015.
"The hot residential property spots in Northland remained Bream Bay, Whangarei City and Kerikeri, and within these locations prices and sales numbers increased greatly over those for the region as a whole.
"The average residential sale price in Bream Bay in 2016 at $699,000 was the highest in the region.
Kerikeri most expensive location to rent
"Kerikeri's increase to $560,000 was 20% and Whangarei City prices increased by 17% to $384,000
"Kerikeri remained the most expensive location to rent a three bedroom home at $392 a week, an increase in the 12 months of 9%. In Whagarei City the average three bedroom rent also increased by 9% to $343 a week.
"The influx of investors who live outside of Northland has led to a 24% increase in the number of properties we manage throughout the region."