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Home / Northern Advocate

Northland asking prices see fourth highest rise

By Regan Schoultz
Northern Advocate·
10 Dec, 2014 04:10 AM3 mins to read

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Buyers are paying more for homes in Northland. Photo / File

Buyers are paying more for homes in Northland. Photo / File

The average asking price for a Northland home went up by 5.4 per cent in November - well ahead of the national average of 1.9 per cent.

Listing figures showed the average asking price hit $438,377 last month, the fourth highest rise in the country after Central Otago, Waikato and Wairarapa, according to realestate.co.nz.

Principal Realtor at GoodGround, Martin Albrecht, said the market was slowly picking up, particularly around his offices at Waipu.

"The market is steady and it is better than it was at the height of the [global financial crisis].

"We are in the lower North so we are getting spin off from the Auckland market.

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"We are getting a trickle of Aucklanders looking up this way, simply because the differential between prices typically in our area are half the price of anything in Auckland and sometimes less than half.

"There has also been an influx of people buying holiday homes and investment properties."

A report released by TradeMe this week showed the average asking price for a small 1-2 bedroom home in Northland was $293,200.

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For a medium sized 3-4 bedroom house, the average asking price was $397,750 and $639,150 for a larger house with five or more bedrooms.

The average asking price for a New Zealand home broke the $500,000 barrier in November for the first time in market history.

Head of Trade Me Property Nigel Jeffries said the new record high asking prices signalled ongoing confidence in the property market from sellers.

"The November data echoes the lift we saw in October, meaning sellers have continued to raise their price expectations to land at a new high-water mark of $509,750.

"There has been a resounding resurgence in the property market after a pretty subdued winter and that all adds up to good news for sellers and a bitter pill for buyers to swallow. "

Mr Jeffries said only the West Coast had reported a fall in price expectation. Throughout the rest of the country however, price expectation was steadily increasing.

"It comes down to a lack of confidence in employment opportunities in the West Coast. There is not much demand for housing because the job market is small."

Data showed the average asking price for a 1-2 bedroom house countrywide was about $334,700, a 15.4 per cent rise from November 2013.

The average asking price of a medium 3-4 bedroom house was $514,050 which was a 13.2 per cent increase from 2013 while 5+ bedrooms sat at $867,700 apiece.

Overall property prices had increased by 27.6 per cent in the past five years having risen 2.3 per cent in the past month alone.

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