Property prices across Northland have cooled off this winter but the average asking price year-on-year rose 8.7 per cent to hit nearly $545,000.

The Far North tops the region's average asking price, rising nearly $55,000 in just one year to nudge closer to the $600,000 mark.

The Trade Me Property Price Index shows the average asking price in Northland increased 8.7 per cent — from $501,200 in June last year to $544,800 for the same month this year.

Read more: Rents rise again in Northland but expect to cool off
Kerikeri is the place to live but house prices nearing $1m

Advertisement

However, the price remained unchanged from May to June this year.

Head of Trade Me Property, Nigel Jeffries said the New Zealand property market was entering its typical winter slowdown and as temperatures dropped in June, so too did price expectations.

"Traditionally the property market goes into a hibernation period in the cooler months and now is a great time for buyers to make a move if they have the deposit behind them."

The average asking price in the Far North jumped from $535,850 in June last year to $590,000 last month and Jeffries said the price rise reflected the fact more high end properties were coming on to the market.

"The luxury beach houses and high value subdivisions have the effect of shifting the total median price up. There's a trend where people are doing high end, quality houses.

"The benefit of that is it should reduce the impact of rates burden on locals as high end properties are often not owned by locals," he said.

Kerikeri, in particular, has become very attractive and online residential property viewings last month showed it was the preferred place to buy in Northland.

Median house prices in Kerikeri are creeping towards the $1m mark as population growth, demand for houses, higher building and compliance costs, and a lack of available land contribute to high residential property prices.

The asking price for a large house (five or more bedrooms) in Northland last month was $895,850, a medium house (three-four bedrooms) $567,850, and $389,900 for a smaller dwelling.

Jeffries said, despite enjoying healthy growth over the last two years, the Northland's housing market was expected to contract slightly.

He estimates the growth rate over the next 12 months to be between 5 and 8 per cent.

"But there will still be pockets in Northland that will still grow. Whangārei, in particular, has been growing well in the past year and there's no indication that growth will come off significantly."

He said a lot of Trade Me users were looking at houses in the "halo" regions such as Northland, Waikato and Bay of Plenty.

The KiwiBuild project that could likely slow property prices and rental prices did not apply to Northland, he said.