Property valuation company Quotable Value says Whanganui is now New Zealand's most affordable city, and local real estate agents are rejoicing.

"We are running out of stock, we are running out of houses to sell. Now that's because there are people moving around Whanganui, and there are people moving to Whanganui because they have heard about how good it is," said Ray White Licensee Agent Tim Hocquard.

The average residential property price is just $204,916, up 8.3 per cent in the last 12 months.

Whanganui is even $32,000 cheaper than Invercargill, the country's next most affordable place to live.

But what exactly can you get for your money?

One property currently for sale across the road from the river, is being marketed for $225,000. It's just been renovated, with a large garden and 3 bedrooms.

You could buy a lifestyle block of nearly 2 hectares on the edge of town, for $415,000 with room for sheep and horses.

"I bought an investment property here for a third of what I would have paid in Auckland and half of what I would have paid in Wellington, It's a great place to live," said Jonathan Russell, who lives and works in China.

$559,000 will get you a 3000 square meter house and land package with solar panels and space for 6 cars.

Or you could buy nearly nine hectares of land with a stunning house and pool, for under a million which is the price of a modest townhouse in parts of Auckland.

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"Our company manages just over 500 rental properties, and we only have two currently vacant," said agent Tim Hocquard.

But with the market slowing in Auckland, that trend may not continue in 2017.

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