An increase in the sale of rental properties is behind rising house prices in the district.
The latest Quotation Value (QV) house price index shows the average property price in Whangarei increased by 14.6 per cent over the past 12 months, from $341,855 in February last year to $391,863.
Property values in Kaipara also increased over the same period. The district registered a hike of 8.6 per cent — from $345,996 to $375,875 — while values in the Far North rose by 8.2 per cent to $330,904.
Paul Beazley of LJ Hooker Whangarei said the increased sale of rental properties, coupled with an increase in migration, were pushing house prices up in Northland.
"It's true that more people are coming to Whangarei and Northland than those leaving. There's a lot of rental properties that are bought by people who then live in them.