Property prices in North on the rise

Barfoot and Thompson Whangarei branch manager Martin Dear said the market was rising, although the number of sales had not increased much. Photo / Michael Cunningham

Buyers are being asked to fork out more for a house in Northland as asking prices increase, figures show.

Trade Me data showed a 1.5 per cent increase in average asking prices for Northland properties in the three months to January compared with the January 2014 quarter.

The average asking price for a house in the area was $399,350 in last month's quarter. For a small house (1-2 bedrooms) in Northland in the January 2015 quarter, home buyers were looking at about $274,400. The average asking price for a medium sized house (3-4 bedrooms) was $406,600 while $637,300 was the average asking price for a large house (5 plus bedrooms).

Barfoot and Thompson Whangarei branch manager Martin Dear said the market was rising, although the number of sales had not increased much.

"We haven't had a huge increase in volume but it is interesting because, right now, the market seems to be growing considerably.

"There are a lot of foreigners coming in and buying property, although the situation will be different depending on where you look in Northland."

Mr Dear expected price increases to hit Whangarei in the coming months.

"Certainly in Whangarei we are going to see an increase in volumes of sales, which will result in a shortage of listings and an increase in sale prices.

"All my salespeople are so busy with buyers. There are just so many buyers coming into the area from Auckland who are buying up here because they have been pushed out of the Auckland market."

Coastal properties were also in demand, with interest from expatriates returning to New Zealand and retirees.

"There is a lot more confidence in the market."

Nationally, average asking prices for property fell 1.1 per cent last month, compared with December.