The most expensive suburbs were Langs Beach, Russell (pictured) and Mangawhai Heads.
Northland house prices are finally starting to catch up to the rest of the country, according to a new property report released this week.
The OneRoof Property Report highlighted a range of national property statistics, including the most expensive and cheapest suburbs, the best and worst-performing suburbs and overall latest suburb property values.
Despite a slow start, the report showed Northland was starting to show an upswing in property price growth, similar to what the rest of the country had been experiencing in the last quarter.
OneRoof editor Owen Vaughan said Northland had always had a tendency to lag behind other regions, but the market was on a trajectory heading towards positive growth.
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“Northland has traditionally always been slower, but the pace of decline has now slowed considerably,” Vaughan said.
“In the last couple of weeks, Northland has started to feel the benefit the rest of the market has had due to a lack of stock, which is creating upward pressure on prices.
“It won’t be rampant growth like we saw during the boom, though, and that’s mainly because interest rates are still high, so will provide a natural curb in huge growth in values and prices.”
As of Monday morning, Northland’s property prices had risen to 1 per cent- a marked increase from -0.5 per cent on August 20.
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According to the report, the top settled sales for 2023 (up until end of October 2023) were in the Far North, Whangārei and Kaipara, with the top house selling for $4.1 million in Russell in January.
The next most expensive was a property in Hihi/Mangōnui in March, which sold for $3.87m, followed by a property at One Tree Point which sold for $3.7m and a Mangawhai Heads property that went for $3.65m in January.
In terms of the most expensive suburbs, these were Langs Beach, Russell and Mangawhai Heads, with the average property values coming in at $2,167,000, $1,478,000 and $1,332,000 respectively.
On the other end of the spectrum, Northland’s cheapest suburbs were Kaikohe, with an average property value of $398,000, followed by Kaitāia at $440,000 and Kawakawa at $500,000.
Despite Mangawhai Heads and Russell achieving high property sales in 2023, they also came in as the region’s weakest-performing suburbs, dropping 7.20 per cent and 6 per cent respectively in the past three months.
Kawakawa also took a knock, sinking 4.20 per cent in house prices between August and October.
Three Whangārei suburbs proved to have the strongest house price growth in the last quarter, with a growth of 2.3 per cent in Morningside and Riverside and 2 per cent in Raumanga.
Valocity Global senior research analyst Wayne Shum confirmed the housing market in most places in New Zealand had now hit (or were close to) the bottom, including Northland.
He said while the region as a whole had dropped around $100,000 from its peak of $925,000 in April 2022, it was still out-performing its pre-Covid average price of $614,000 by more than $100,000 ($827,000).
“In Northland it really depends where you are, because places like Whangārei have their own market which is doing well,” Shum said.
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“The Far North is also performing well, but places like Kaipara are still lagging behind.
“The National Government has promised the new highway which will go further north, so the Auckland demand for a bach in Mangawhai or those working in the North Shore commuting once a week to the office will be strong.”
In terms of first-home buyers, Shum said most first-home buyers were already in the market.
He said house price increases plus changes with the incoming Government could make things potentially more difficult.
“The National Government has said they will likely bring back some of their former investment policies, so once investors are back, the market will start to pick up,” Shum said.
“The key issues for Northland is that flooding is definitely still a concern for people, so while there is a sense of a fear of missing out, first-home buyers and buyers in general are being a bit more careful and doing more homework than before.”
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Myjanne Jensen is a part-time reporter for the Northern Advocate. She was previously the editor of the Northland Age, joining NZME in 2021 after moving to the region from Australia.
OneRoof’s latest report sheds light on the state of Rotorua’s property market. Photo / Andrew Warner
Properties across all but one Rotorua suburb have increased in average value over the past three months as realtors express optimism for homebuyers and sellers for 2024.
The value increases in the three months to October 31 range from 2.6 per cent to 5.8 per cent, according to OneRoof’s latest report released today.
The highest lift was in Mangakakahi, where average property values have risen by 5.8 per cent. Koutu and Kawaha Point each have increases of more than 5 per cent in the past quarter as summer interest in lakeside properties rises.
Only Hamurana recorded a drop – 1.2 per cent over the three months.
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All suburbs are up compared to pre-Covid-19, ranging from 5.7 per cent in Koutu to 28.1 per cent in Sunnybrook.
However, average property values in all suburbs are down year-on-year. Rotorua’s most expensive suburb, Humarana, plummeted by more than 10 per cent.
The OneRoof Property Report, with data partner Valocity, shows the average Rotorua property is valued at $743,000, a drop of 2.5 per cent compared to a year ago.
In Hamurana, where the average value is reported at just over $1.2 million, property values have fallen by 10.5 per cent in the year.
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According to OneRoof’s report, Rotorua’s cheapest suburbs have also shown a year-on-year drop in average property value. The biggest change was in Victoria where the value fell by 6.1 per cent to $522,000.
House prices across Rotorua are, however, still 20.7 per cent higher on average than they were before the pandemic.
OneRoof’s report states the average Rotorua property value pre-Covid was $615,000.
One highlight was a property in Rotoiti Forest that sold for $3.435 million in February this year.
Rotorua real estate professionals are now optimistic about the trends to come.
Tremains central region general manager Stuart Christensen said the beginning of this year did not show good market trends and going into winter “had its challenges”.
“Coming out of winter and into spring we’ve seen a lift,” Christensen told the Rotorua Daily Post.
“More buyers have come into the market, which has caused some competition.”
Christensen said Tremains had seen positive trends in the past three months.
“There’s no doubt about it. [For] 2024 there’s a positivity we’re hearing from buyers and future sellers alike. It feels like 2024 is going to be a better year.”
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Christensen did not anticipate the market would “go crazy”.
“But we’re past the bottom of the market,” Christensen said. “If people were waiting for that, we’ve missed it.”
Christensen said there were opportunities for first-home buyers.
“If you’re a first-home buyer, this is your window.”
But Christensen said that window would not be open long as investors were going to return to the market soon.
“It comes down to opportunity but those opportunities can close pretty quickly because more people see them.”
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Realty Group Limited managing director Heath Young said OneRoof’s data was very much aligned with the activity Eves and Bayleys had seen over the past 12 months.
“The property market at the moment is showing real signs of positivity with pricing stabilised and now showing three-month gains.”
Young said Realty Group had seen a “real lift” in new listings over the past two weeks.
“[This] is also a strong signal that the market is returning to normal.”
Young said the data also showed the impact of more first-home buyers being in the market with many of the lower-priced suburbs experiencing the largest gains as there was more competition for the same property.
“This data positively supports both homebuyers and homeowners because it provides a more certain and efficient market, especially with the increased listing activity.”
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What does OneRoof’s report mean for mortgages?
OneRoof editor Owen Vaughan said while property prices in Rotorua did “slide quite a lot” from their peak in January 2022, the property market was “looking up”.
“We’re starting to see a pick-up,” Vaughan said.
“Things are starting to bounce back.”
Vaughan said he expected to see more action around Rotorua’s lakeside suburbs over the summer and into the new year, with more listings expected in January and February 2024.
“It will start to feel like a normal summer market and those tend to do well.”
Vaughan said property prices had slumped but mortgages had gone “sky high” this year.
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“Now you’re looking at mortgages of 7 per cent and above. That has wiped out that sense of affordability because most buyers are curtailed by what they can afford in terms of mortgage.”
However, Vaughan said the slump had meant investors were largely out of the property market, leaving an even playing field for first-home buyers to compete against each other.
“Prices are steadily rising,” Vaughan said.
“So investors might be back on the market sometime soon.”
Vaughan said, for now, he expected buyers to remain “gun-shy”.
“Until people get more certainty around what the market will do, they will want to wait and see.”
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Rotorua’s top property sales in 2023:
- 1349c South Highway 30, Rotoiti Forest, Rotorua. Sold for $3.425m in February. Private deal.
- 139 Lake Rd, Koutu, Rotorua. Sold for $1.9m in March. Private deal.
- 26 Riverlea Downs, Broadlands, Taupō. Sold for $1.825m in May. Private deal.
Maryana Garcia is a regional reporter writing for the Rotorua Daily Post and the Bay of Plenty Times.
Properties across all but four of Tauranga’s suburbs have increased in average value over the past three months. Photo / George Novak
Most suburbs across Tauranga and the Western Bay have increased in average value over the past three months as local realtors express optimism for home buyers and sellers.
The rise comes as the property market begins to show signs of recovery from an overall slump since the Covid-19 pandemic.
A OneRoof Property Report released today with data partner Valocity shows that in the past three months, all but eight suburbs across Tauranga and the Western Bay increased in value. Pukehina’s average property values increased the most, jumping by 5.4 per cent, followed by the Parkvale suburb with 4.3 per cent. Bellevue and Maungatapu also netted increases in value in the 4 per cent range over the period.
The value shifts have prompted optimism among realtors, who have described the current market as a “more even playing field”.
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The report also shows Tauranga’s longer-term property slump continued, with the average property value dropping compared to October 31, 2022.
In Mount Maunganui, where the average property value is reported at just over $1.4 million, property values fell by 8.4 per cent in the year to October 31.
According to OneRoof’s report, Tauranga’s cheapest suburbs have also shown a drop in average value. The biggest change was in Parkvale, where the average fell by 5.2 per cent in the past 12 months to $656,000.
But house prices across Tauranga are still higher than they were before the Covid-19 pandemic.
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Eight suburbs – Katikati, Te Puke, Welcome Bay, Tahawai, Ōmokoroa, Minden, Aongatete and Whakamara – saw drops in average value over the past three months. The biggest difference in the past 12 months was recorded in Katikati, where the average property value fell by 7.6 per cent to $785,000.
However, Pukehina property values were up by 51.3 per cent on pre-Covid times, while the Western Bay district as a whole saw average property values increase compared to before the pandemic.
Real estate agents said the stabilising market was a reason for optimism for both homebuyers and sellers.
Ray White Tauranga and Bayfair director Rodney Fong said prices had stabilised in the past three to six months.
“There is more certainty for sellers as to what they can expect to sell for, in stark contrast to the price declines experienced in 2022.”
Fong said the numbers meant sellers could be cautiously optimistic and promised better value for buyers.
“[It makes for a] more even playing field between buyers and sellers,” Fong said.
“Buyers still have particular needs which are unique to each buyer. For example, living close to schools, family and work.
“A stabilising market should allow all parties more certainty in their planning.”
Fong said he had seen more first-home buyers in the past six months.
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“Investors are still mostly on the sidelines, not active as yet.”
Fong said his advice to buyers and sellers was not to put their lives on hold, waiting for the market to change in their favour.
Realty Group managing director Heath Young said OneRoof’s data was very much aligned with the activity Eves and Bayleys had seen over the last 12 months.
“The property market at the moment is showing real signs of positivity, with pricing stabilised and now showing three-month gains.”
Young said Realty Group had seen a “real lift” in new listings over the past two weeks
“[This] is also a strong signal that the market is returning to normal.”
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Young said the data also showed the impact of more first-home buyers being in the market, with many lower-priced suburbs experiencing the largest gains as there was more competition for the same property.
“This data positively supports both home buyers and homeowners because it provides a more certain and efficient market, especially with the increased listing activity.”
What does OneRoof’s report mean for mortgages?
OneRoof editor Owen Vaughan said Tauranga’s property market was “looking up” after prices did “slide quite a lot” from their peak in January 2022.
“We’re starting to see a pick-up,” Vaughan said.
“Things are starting to bounce back.”
Vaughan said he expected to see more action around the beach suburbs over the summer and heading into the new year, with more listings expected in January and February 2024.
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“It will start to feel like a normal summer market, and those tend to do well.”
Vaughan said property prices had slumped but mortgages had gone “sky-high” this year.
“Now, you’re looking at mortgages of 7 per cent and above. That has wiped out that sense of affordability, because most buyers are curtailed by what they can afford in terms of mortgage.”
However, Vaughan said the slump had meant investors were largely out of the property market, leaving an even playing field for first-home buyers to compete against each other.
“Prices are steadily rising,” Vaughan said.
“So investors might be back on the market sometime soon.”
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Vaughan said for now, he expected buyers to remain “gun-shy”.
“Until people get more certainty around what the market will do, they will want to wait and see.”
Tauranga’s top property sales in 2023:
- 3 Ngarata Avenue, Mount Maunganui, Tauranga. Sold for $6.6m in May 2023. Private deal.
- 472 Joyce Road, Pyes Pa, Tauranga. Sold for $3.765m in January 2023. Private deal.
- 152 Oceanview Road, Mount Maunganui, Tauranga. Sold for $3.675m in February 2023. Listed with Kirsty and Blair Cashmore.
- 117 Maranui Street, Mount Maunganui, Tauranga. Sold for $3.5m in April 2023. Listed with Matt Power.
Maryana Garcia is a regional reporter writing for the Rotorua Daily Post and the Bay of Plenty Times.
Influencer called out over comments about Asian builders, criticism mounts on the Government’s welfare boost and how the country’s tracking 28 days on from Cyclone Gabrielle in the latest New Zealand Herald headlines. Video / NZ Herald
Tauranga’s average property value plunged by nearly $140,000 in the year ending February, OneRoof data shows.
The March property report shows the average value fell $137,762 to $995,667 in the city. In the Western Bay of Plenty the drop was not as steep but still fell by $98,933 to $1,353,800 over the 12-month period.
However, a data analyst said a lack of new housing stock could put the brakes on value declines as listing volumes across the country were falling.
No suburbs increased in value over the previous 12 months.
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However, values in Pyes Pā and Tauriko in Tauranga and Anongatete, Athenree, Ōmokoroa, Pukehina, Te Puke, and Waihī Beach in Western Bay of Plenty had increased in the past three months.
Tremains Bay of Plenty managing director Anton Jones said it was “tough” to get deals over the line.
“Buyers are shying away from properties with problems, consenting issues and leaky buildings given the number that is available. A lot of people are hanging out for the right thing.
“It’s interesting because as soon as the right thing comes out, it seems to be what everyone wants and that property will go pretty well because it’s presented and priced well and have all the boxes ticked.”
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Jones said people with properties on the market for a long time should make sure it was presented nicely and was relatively free of issues.
“That will be the first thing they look at, whether the property has any issues and how easy is that to resolve. Those with more issues tend to stick on the market for longer.”
REINZ regional director Neville Falconer said first-home buyers in Tauranga were beginning to make a comeback and owner-occupiers looking for properties at the top end of the market were showing the most interest.
”Salespeople throughout the Bay of Plenty say that this summer has caused much heartache for many people in the North Island and has impacted the entire country to varying degrees.
“People are now taking a hard look at the vulnerability of their properties in the Bay of Plenty.”
Data taken from the OneRoof-Valocity House Value Index on February 20 showed house values fell 7.7 per cent in Bay of Plenty since the market peak in February last year, but the rate of decline was easing.
The data also showed the number of new properties listed for sale in February down 25.9 per cent in Bay of Plenty year on year.
Head of valuations at Valocity, OneRoof’s data partner, James Wilson said the lack of new housing stock could put the brakes on value declines.
“Bay of Plenty’s average rate of decline appears to have stalled, as has Nelson’s and Southland’s, but not so lucky are Gisborne and Waikato, where the rate of decline has gathered pace in the last three months.
“Sellers, like buyers, are understandably worried about rising interest rates and will be hesitant about selling in the midst of a downturn.
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“The Reserve Bank has warned that monetary conditions will need to tighten further to get inflation back within its target range, and flagged a cash rate peak of 5.5 per cent.”
Wilson said to expect demand to drain from the housing market in the coming months, especially in areas hit hardest by recent extreme weather.
While the shortage of new listings would help prop up values in some areas, the glut of older stock was a concern with buyers likely to see further price declines in areas where there are more homes to choose from.
“Of the 1167 suburbs that recorded 10 or more settled sales in the last 12 months, 84 per cent were down year-on-year, compared to just one suburb a year ago.
Valocity senior researcher Wayne Shum said first-home buyers increased their share of purchases nationally month-on-month from 41.6 per cent in December to 43.3 per cent in January.
Investor purchases in January were up 1.1 per cent on last year at 20.8 per cent.
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Shum said interest rates were the “dominant force” in the market and with the Reserve Bank “laser-focused” on tackling inflation, they would be for the months ahead.
“However, the recent lift in the cash rate seems to have been baked into the major retail bank plans.
“There were no corresponding mortgage rate increases at the time of the Official Cash Rate announcement and the fact that some of the main banks have longer-term rates lower than their shorter-term rates may be a sign that the end of the tightening cycle is near.”
House prices have fallen by an average of $90,000 in parts of New Zealand after a turbulent year in the property market.
That meant homeowners who bought at the height of the property boom in late 2021 could find themselves with mortgages larger than the value of their home, especially in Auckland and Wellington.
But there were also some positives: the fall in prices was allowing more first-home buyers onto the property ladder.
The OneRoof Property Report for 2022, published today, captured the huge market shift during the year and highlighted some risks on the horizon for homeowners.
The housing market went from “fear of missing out” to “fear of overpaying”, Oneroof editor Owen Vaughan said, as a boom which started during Covid gave way to falling prices, tighter lending and uncertainty about the year ahead.
Nationwide, the average property value fell by 8.15 per cent, or nearly $90,000, since a high of $1.1m at the end of February. Values fell in every region except the West Coast.
Homeowners in Wellington and Auckland were worst affected.
The average property value fell 17.7 per cent ($201,818) in the Greater Wellington region since prices peaked in March, with some central suburbs taking a price hit of more than $400,000.
This was largely because of the withdrawal of Auckland investors who had driven much of the inflation since the Covid-19 pandemic.
In Auckland, average property values fell 12 per cent (more than $180,000) since the peak.
James Wilson, head of valuations at Valocity, said the fall in prices in 2022 was the largest since 2010, but had to be seen in context: the boom since Covid was one of the strongest New Zealand had ever experienced, with average growth of 33 per cent nationwide between early 2020 and early 2022.
While the fall in prices may make the market more affordable for some, it raises concerns about negative equity for those who bought at the market’s peak.
“The data shows that the homeowners who purchased in late 2021 and early 2022 are more likely to be in negative equity position now,” Wilson said.
“Investors, those with more than two properties, are likely to be less exposed as a result of the 40 per cent deposit requirements for investment properties.”
Nicki Cruickshank, the principal of Tommy’s real estate in Wellington, said prices went higher than expected in 2021 so the drop this year was to be expected – but she had not expected the turnaround to be so sudden.
“But in the big picture most people own houses for 10 years-plus so overall they’ve still done well.”
Sanjeev Jangra, a Loan Market mortgage adviser who works in Auckland’s south, said interest rate hikes took people by surprise, especially last year’s borrowers who were not expecting them to go so high so fast.
There had been some positives for those wanting to get into the market. Jangra noted a switch in his client base from 40-50 per cent investors to around 80 per cent first-home buyers. Investors did not have enough equity after prices fell 15-20 per cent, he said.
Looking ahead to 2023, Wilson said he expected property values were likely to keep falling but at a slower rate.
A range of factors would have an impact on the market, including reduced sales activity, the election, and the Reserve Bank’s inflation battle.
“Inflation is the elephant in the room and won’t disappear overnight. But while cost of living pressures are reaching across nearly all parts of our daily lives, we’re actually not seeing a significant drop in spending and that’s probably because a lot of people still haven’t had to fix their mortgage at a higher rate,” Wilson said.
“When that happens and those mortgage rates begin to really bite, then spending is likely to dry up. Obviously, that has bigger economic impacts but the key question is: will inflation be tamed by traditional policy or will a hard, economic landing do the job? At this point, a lot of signs point to a harder landing than would be ideal.”
Highs and lows
- Steepest fall from market peak (region): Greater Wellington – down 17.68% ($201,818) from market peak of $1.14m
- Steepest fall from market peak (suburb): Waterloo, in Lower Hutt – down 23.9% ($279,200) from market peak of $1.168m
- Highest average property value: Herne Bay, in Auckland – $3.816m (down 2.3%, $91,000, on the previous year)
- Lowest average property value: Ohai, in Southland – $158,000 (up 28.5%, $35,000, on the previous year)
- Highest 12-month value change: Glenorchy, in Queenstown-Lakes – up 28.9% to $1.446m
- Lowest 12-month value change: Waiwhetu, in Lower Hutt – down 19.7% to $783,000
- Highest five-year value change: Raetihi, in Ruapehu – up 212.3% to $406,000
- Lowest five-year value change: Auckland Central, in Auckland – up 0.3% to $612,000
*Current to the end of October 2022
Top settled sale: Paritai Drive, in Orakei, Auckland. Sold in May 2022 for $20m
This Paratai Drive property in Auckland sold for $20m – the highest price in 2022. Photo / Supplied
Bottom settled sale: Romilly St, in Westport, Buller. Sold in June 2022 for $32,500
This home in Westport sold for $32,500 in June – the lowest house sale in New Zealand in 2022. Photo / Supplied
– by Isaac Davison, NZ Herald