Whangarei house prices up 10% in past year, according to QV

Whangarei house prices increased 10 per cent in 12 months, the latest QV report has found.

The average residential property value in Whangarei is now $509,857.

The nationwide average value is now $671,531. When adjusted for inflation, the nationwide annual increase drops slightly to 4.7 per cent.

Senior consultant at QV in Whangarei Thomas Ujder said that over the past year the Whangarei market has been positively affected by the Auckland market, which grew to an unaffordable level.

Read more: House prices cool off but not in provinces
Far North paradise for sale includes farm and five beaches

Whangarei in the past three years has experienced positive capital growth in the residential property market, Ujder said.

"Year-end 2016 the Whangarei district experienced 20 per cent growth, with the year-end 2015 recording 14 per cent capital growth.

"It's interesting to note the drop in sales volume over the past year in comparison to 2015 and 2016, with a considerable decrease of 40 per cent. If low sales volumes continue, we will likely see little capital growth moving forward," Ujder said.

"We do note that the second half of the year increased at a lesser rate as the Auckland market further slowed.

"The change in Government might have also been a contributing factor."

Ujder said that with rental demand still strong and comparatively affordable houses when measured against other regions, the low to mid end of the residential market should continue to remain positive.

But remote and high valued properties might move comparatively slowly, with signs of less activity in the Whangarei residential market.