Record median house price in Northland reaches $481,000

The changes in New Zealand's regional housing markets.

Northland property prices show no signs of abating, with latest figures showing the median house value in the region hitting a record $481,000.

Real Estate Institute New Zealand (REINZ) chief executive Bindi Norwell said Northland, like other regions except Auckland, desperately needed to increase the supply of new homes in order to fill a significant shortage of properties.

Owners holding on to their properties longer and people moving to Northland are contributing to a shortage of houses either for rent or sale.

Northland was one of four regions with a record median price in July, REINZ figures show.

The other regions were Taranaki (15.4 per cent to $375,000), Nelson (15.2 per cent to $547,000) and Marlborough (13.4 per cent to $453,500).

The median price in Northland of $481,000 last month was 5.7 per cent higher than July 2017 when it was $455,000. The increase throughout New Zealand was 6.2 per cent.

Whangārei property values contributed the bulk of the increase in Northland with a year-to-year jump of 6.9 per cent, from $452,000 to $483,000.

Prices in Kaipara, which include Mangawhai, fell 11.5 per cent during that period, down from $520,000 to $460,000.

The Far North saw a modest increase from $455,000 to $470,000.

"The whole Northland region is experiencing an increase in demand because of a lack of inventory, higher demand and affordable houses compared with bigger centres, and Northland's a great place to live in as well,'' Norwell said.

"But the key is to make sure there is enough supply to keep up with the demand, be that through KiwiBuild or from private developers and builders."

The number of houses for sale in Northland last month dropped to 1201 compared with 1296 in July last year.

There was also a drop in the number of houses sold during that period, from 192 to 187.

Kerikeri, in particular, is seeing the highest rise in property prices in Northland.

Median house prices there are creeping towards the $1m mark with population growth, demand for houses, higher building and compliance costs, and a lack of available land being the contributing factors.

The median house price in Kerikeri went up from $690,000 to $700,000, REINZ figures show.

No surprises

Tikipunga hairdresser Ann Stuart has had a few new customers that recently moved into the fastest growing area in Northland. Photo/Imran Ali

Retailers in Tikipunga aren't surprised their suburb is the biggest riser in the latest OneRoof Property Report figures.The median value of properties in Tikipunga, Whangārei's largest residential suburb, grew 4.2 per cent in the second quarter of this year.

The leap in values is reflective of the suburb's popularity with buyers and the range of stock it has on offer.

Ann Stuart, a hairdresser at Shelley's Freestyle Hair Design in Tikipunga, has had a few new customers lately which she said was good for local businesses.

"Much of the population growth has to do with the Totara Grove development which has also pushed up traffic volumes. It will change the demographics of this place."

Stuart said Aucklanders moving north and retirees choosing to build in Tikipunga were also pushing house prices up.

New people moving to Tikipunga and frequenting local businesses were more noticeable in the past 12 months, she said.

The next highest performing residential areas in the region were Dargaville, up 3.6 per cent, Onerahi, up 3.1 per cent, and Whangarei Heads, up 3 per cent.

Most towns in Northland enjoyed a lift in values, two areas experiencing dips over the three months to June 30 were Kaikohe (-2.3 per cent), Kaitaia (-1.2 per cent).

With renewed economic focus on the region and new infrastructure projects planned, it is likely growth will remain steady.

Mangawhai Heads remains the most expensive suburb, with a median value of $852,200 at the end of July.

Top performers
Growth in three months to June 30
Tikipunga 4.2%
Dargaville 3.6%
Onerahi 3.1%
Whangarei Heads 3.0%