Northland Residential Property Price Increases Accelerated

February 24, 2017
Northland 2016 data statement

Northland Residential Property Price Increases Accelerated In Last Quarter

The average price being paid for residential property across all of Northland accelerated in the last quarter of 2016 to an all-time high of $554,000.

This brought the average price for the 2016 year up to $483,000, an increase of 23 percent over the previous 12 months.

“Residential property across Northland remained in high demand right up to year end, with prices increasing significantly between September and December,” said Peter Thompson, Managing Director of Barfoot & Thompson.

“This was in direct contrast to Auckland, where prices eased with the approach of year end.

“This price increase had a flow on effect on rents, with the average rent for a three-bedroom home increasing during the year by 9 percent to $354 a week.

“The reverse trend occurred with lifestyle and rural property sales, with the average sales price across the region declining by 27 percent to $417,000.

“A feature of Northland rural sales in the past 12 months has been the increased number of properties coming to market through farmers subdividing small blocks of less productive land off the main farm.

“It has led to more properties coming to market and prices becoming more attractive. In turn there has been a significant increase in buyer interest, and sales numbers for the year increased by 93 percent.

“While lifestyle and rural sales were strong across the entire region, Bream Bay property was in particular demand with sales increasing threefold. We sold more properties in Bream Bay in 2016 than we did for all of Northland, including Bream Bay, in 2015.

“The hot residential property spots in Northland remained Bream Bay, Whangarei City and Kerikeri, and within these locations prices and sales numbers increased greatly over those for the region as a whole.

“The average residential sales price in Bream Bay in 2016 at $699,000 was the highest in the region.

“Kerikeri’s increase to $560,000 was 20 percent and Whangarei City prices increased by 17 percent to $384,000.

“Kerikeri remained the most expensive location to rent a three-bedroom home at $392 a week, an increase in the 12 months of 9 percent. In Whangarei City the average three-bedroom rent also increased by 9 percent to $343 a week.

“The influx of investors who live outside of Northland has led to a 24 percent increase in the number of properties we manage throughout the region.”

Ends

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