Suburbs that beat the recession

Ian Madgwick and his boys, William (L)and Thomas (R) at their new house in Western Springs. Photo / Janna Dixon

They're our hottest suburbs - and proof your property can beat a slump if you buy in the right spot.

Today we reveal the North Island neighbourhoods where house values have performed best since the high point of the last boom in 2007.

A list of the seven most buoyant burbs in Auckland show residents are still in love with city fringe living.

The swathe of suburbs between Mt Eden and Pt Chevalier fill the top six spots, with Hillcrest, on the North Shore, rounding out the list.

The list was compiled by Jonno Ingerson, research director for qv.co.nz, who used recent sale prices to calculate the average percentage change in value by suburb over the past three years.

That percentage grew in Mt Eden, Pt Chevalier, Ponsonby, Grey Lynn, Westmere and Kingsland and remained stable in Hillcrest. Elsewhere it fell.

Realestate.co.nz chief executive Alistair Helm was unsurprised by the results.

He said all seven suburbs were among the most searched-for on his website. They were "lovely locations", with great facilities where prices were driven up by a shortage of listings.

Mt Eden-based Ray White sales manager David Reid said the local market was "crazy", with listings drawing multiple offers.

"It's all about school zones, that's the key. And it's just a really great place to be."

Reid said when people bought into the area they "never leave". Families raised their kids, who go to high-calibre local schools "and then the universities are just down the road".

Helm said it's hard to predict if the top seven suburbs would continue to perform so well.

Factors that can change an area's popularity include changes to district plan zoning or school zones. Improved transport can make other suburbs more desirable.

The best performers outside Auckland provided a tale of two cities: Political powerhouse Wellington and farmer-friendly New Plymouth.

In the capital the average value was above the previous peak in only one suburb: Crofton Downs. But there were four suburbs where average values were within 1 per cent of the previous market peak.

As with Auckland, there was a recovery throughout 2009, and 22 suburbs reached new market highs early last year before losing some of those gains.

New Plymouth boasts several suburbs where average values stayed within 5 per cent of the 2007 boom. Several reached new heights early last year before slipping back.

Western First National real estate company owner Judy Dixon-Hurlstone said major development had made the city "pretty" and residents were riding high on a thriving dairy-driven economy. Ingerson's findings in other regions:

* Northland: Values had dropped considerably from the last market peak. The area west of central Whangarei was the best of a struggling bunch.

* Hamilton: There was no real recovery during 2009 but Riverlea performed best.

* Bay of Plenty: Even the best performing areas are well below peak, with Te Puke coming out on top. Nowhere in the Bay of Plenty reached a new market peak in 2010.

Values in Tauranga didn't recover in 2009. The best performers were Bethlehem and Papamoa Beach.

Lynmore came out on top in Rotorua.

* Hawke's Bay: Napier's Hospital Hill came out on top.

IT'S NOT ALL ABOUT LOCATION WHEN IT COMES TO HOT BUYS

If the country's hottest suburbs are out of reach, don't despair - market-watchers say there are plenty of other places worth your attention.

Aucklanders who can't afford Grey Lynn, Herne Bay or Westmere should check out Western Springs.

"It's the best kept secret," says Ray White agent Lesley Hawes.

Perhaps best of all, a good bungalow costing $1 million in Herne Bay would go for $700,000 in Western Springs.

A few kilometres away, Te Atatu Peninsula is a "special location" with well-priced homes that will only grow in value, says property investment mentor Kieran Trass.

Once dismissed by some as "grotty", the suburb has water on three sides.

A two-bedroom home can be bagged for about $300,000, says Trass.

Anne Duncan Real Estate agent Jamie Morrison recommends New Windsor - between Avondale, Blockhouse Bay, Mt Albert and Owairaka.

You can get a "nice" three-bedroom bungalow for somewhere in the mid-$400,000s and some sections have harbour views.

Property investor Ollie Newland says you'll get "good bang for your buck" at Stonefields, the huge subdivision in the former Mt Wellington quarry.

First-time buyers who want to live on the North Shore shouldn't look past Glenfield, says Ray White agent Darryn Laskey.

A three-bedroom place will cost $350,000 and a "pretty nice home" $400,000.

Laskey says buyers after executive homes should consider Albany, a growth area with a great mall and good schools. Entry level is around $400,000.

There are plenty of options if you're looking further afield.

Euon Murrell, from Tommy's Real Estate in Wellington, says Titahi Bay is a good place to buy. It's close to beaches, 20 minutes from the city and a good three-bedroom home fetches $400,000 to $500,000.

In Taranaki, Bell Block is affordable, says Western First National real estate company owner Judy Dixon-Hurlstone.

It's "nice and quiet" and about to get a new shopping complex. You can get a solid 30-year-old home from $200,000.

Hamilton-based Ray White agent Bobbie Jarvis says buyers should check out Rototuna. There's great schools and big new homes from $400,000.

For first-home buyers, Pukete boasts a shopping complex and affordable older housing from $220,000.

Simon Tremain, principal of Tremain Real Estate in the Hawke's Bay, says Ahuriri, on the port side of Napier Hill, has "tired" homes that could be developed. A two-bedroom cottage fetches about $250,000.

BATTLE FINALLY WON

Andrew Barltrop and partner Tania Chilcott know how popular Mt Eden is - they faced big competition to buy there.

They checked out 100 homes in the central Auckland suburb, went to numerous auctions and frequently came up against a frenzy of bidders.

But they finally secured a four-bedroom art deco gem thanks to Ray White agent Robyn Hoonhout, who put them in touch with a seller who was not publicly listing.

"There was fierce competition out there," says Andrew. "But we kept going until we found the right place."

The couple paid more than $1.1m for their big home, which has a designer garden and internal garage on a sun-drenched 800sqm site.

Chilcott's daughter Sophie, who turns 11 next week, is in a great school and in zone for a premium secondary school further down the track.

Andrew is close to work and relishes a shorter commute than he had when they lived on the North Shore.

"We love Mt Eden and the village feel. There's a sense of community here that you don't get in a lot of other suburbs," said Andrew.

HERNE BAY WITHOUT THE PRICE

Ian Madgwick and his wife Rewa Willis wanted their next house to be in swanky Herne Bay.

But when they found the prices too extreme they bought in nearby Western Springs instead.

"We couldn't be happier, we love living here," says Madgwick.

The couple are in their 30s and have two boys William, 7, and Thomas, 5.

They previously lived in Avondale but Willis said driving the boys to their private school in Remuera became "a bit tedious".

They started house-hunting in Herne Bay last April but found homes of the style they wanted cost about $1.6m. An agent told them they could get the same kind of house for much less in nearby Western Springs.

They paid just over a million for a double-bay three-bedroom villa.

The 700sq m property has two lounges, open-plan living and a detached cottage where the couple can work from home.

They were chuffed to pay under the $1.3m valuation and pleased it takes only 12 minutes to drop their boys off at school.

"In hindsight, I think we did better by buying in Western Springs now for location and price," said Willis.