Far North biggest beneficiary in housing market growth

Far North has seen the biggest jump in house values in the last 12 months, according to Quotable Value. Photo /NZME

The Far North has seen the biggest growth in house prices in Northland in the past 12 months despite speculation the housing market seems to have flattened.

According to the Quotable Value (QV) House Price Index, the average value of properties in the Northland in the 12 months to October this year rose 17.2 per cent - from $359,876 to $421,696.

Next was Kaipara with a 15.8 per cent rise to $505,010 while Whangarei experienced an increase of 9.6 per cent rise with house values going up from $451,874 to $495,464.

However, similar gains were not seen in the three months to October.

There was a 3.9 per cent increase in house values in the Far North, just 0.3 per cent in Whangarei while values dropped in Kaipara by 3.2 per cent.

QV national spokeswoman Andrea Rush said the strong growth in the Far North showedpeople were prepared to spread to areas north of Whangarei as they were priced out of the housing market in bigger cities like Auckland.

"There's a mixture of people looking for job opportunities in areas like Kerikeri which is becoming very popular with overseas migrants, retirees moving to the Bay of Islands and investors," she said.

QV figures show nationwide residential property values for October increased 3.9 per cent over the past year which was the slowest annual rate since June 2012.

There has been a general cooling trend in the growth rate in provincial centres of the North Island that have previously seen very strong value growth, including Kaipara.

Areas that have traditionally been the slowest to see values rise in recent years including the Far North have had big gains.

Bayleys Northland general manager Tony Grindle said the slow growth in areas like Kaipara over the past three months was not surprising.

"Those figures were taken in the quietest and wettest months of the year approaching a general election when people think about an increase or decrease in interest rates post election as well as changes to government policy on the housing front.

"But in October, Bayleys sold more properties than in two months prior to that in Whangarei and Kaipara combined. They included $200,000 lifestyle properties to $1.6 million ones," he said.

Mr Grindle said the current market was strong and sustainable and he expected the listings, which started to increase in the last three weeks, to rise further in summer.

For first-home buyers, he said there were still houses available for under $350,000 in Northland.