Sharp rise in Northland property values

Average Northland property values increased substantially in February, statistics show, and a senior real estate agent says the trend is likely to continue.

QuotableValue (QV) statistics for February showed the average value for a residential property in Whangarei was $341,855. In the Far North it was $305,841 and $345,996 in Kaipara. That was an increase of 1.9 per cent in Whangarei, 1.1 per cent in the Far North and a 7.3 per cent increase in Kaipara.

Barfoot and Thompson Whangarei branch manager Martin Dear said the property market in Northland was thriving.

"February last year was diabolically different to February this year. It is the best I have seen," he said. "Volume has increased and certainly our volume of sales has picked up. It has been the strongest month we have had in many, many years in terms of number of sales," he said.

"I haven't noticed an increase in values as of yet but I would say, unless the listings increase, we will have a situation where there will be an increase in value.

Nationwide, residential property values for February 2015 increased 6.4 per cent over the past year and 3.1 per cent over the three months to February.

QV national spokesperson Andrea Rush said more couples were choosing to build rather than buy because it was easier to borrow money for a new build.

"The new build market across the country is in high demand, particularly among first home buyers, as the LVR requirement for a 20 per cent deposit does not apply to 'turn key' home," she said.

According to QV, areas close to Auckland had values rise faster than other provincial areas which was most likely due to the "Auckland effect" as buyers looked outside the city for more affordable property.