WHANGAREI AND NORTHLAND NEW ZEALAND

Known for its beautiful beaches and lifestyle offerings, Northland is becoming an increasingly popular destination to settle. Since COVID-19 opened the door to increased workplace flexibility, the region has seen an influx of new families moving to the area, taking advantage of the region’s growth including new housing developments and increased employment opportunities.

Owner occupiers and those looking to retire dominate the buyer pool. Northland has overtaken popular retirement regions Tauranga and Mount Maunganui — which are now too expensive for some — thanks to its relative affordability and the lifestyle on offer.

In July, Northland’s median price increased 3.6% year-on-year to $725,000. Northland was also the top performing region in terms of year-on-year movement on the REINZ House Price Index (HPI).

First home buyers and investors due to make a comeback

Like in many regions across New Zealand, first home buyers backed away from the market due to tightened lending criteria, rising interest rates, cost of living, and general uncertainty. As tweaks to the CCCFA in July loosened the rules around lending, Northland began to see buyer confidence return to the market.

With stock levels on the rise — up 117.0% on this time last year — first home buyers are starting to see the light at the end of the tunnel — backed by more choice in their price range. However, pre-approvals remain a challenge for this buyer group. For example, some properties in this price bracket can have consent issues if anything is identified in the building report, making it difficult to secure finance. This is not because of their ability to borrow, but rather the property not being up to the bank’s lending standard.

Investors have also shied away from the market, resulting in a rental shortage. Many first home buyers are choosing to rent for longer to save a larger deposit, meaning demand for rentals is high, and the need for more investors is crucial.

Northland salespeople say investors will soon realise the opportunities in the market and are hopeful there will be an increase in those looking to purchase.

Room for growth

Whangarei District Council announced its new growth strategy late last year. The district has seen its population surge over the past ten years, resulting in a range of quality house and land packages available in subdivisions near the east coast and surroundings of Whangarei.

A rich, natural environment and flourishing economy have contributed to the pace of growth. Current subdivisions in Whangarei include Parklands Estate, Riversong, The James and The Landing in One Tree Point.

Bream Bay, Ruakaka, Waipu and Kerikeri also have housing developments underway. Mangawhai is seeing significant growth and development. A newly crafted Mangawhai Point will see 40 residential sites across eight hectares, situated at the tip of the peninsula. The subdivision has attracted buyers far and wide due to idealistic lifestyle offerings, including its water’s edge location. 10 | REINZ Monthly Property Report

Aucklanders have shown particular interest in these housing developments, with many no longer tied down to a central city job, but instead able to work from home.

Quieter towns like Dargaville have also seen growth, offering a slower pace of living close to the beach and more affordability than other areas in Northland. Agents expect more enquiry to occur as we head into spring.

A sparked interest in commercial and industrial sector

Over the past year, confidence in the commercial and industrial sector has peaked in Whangarei and areas further up north. It is seen as an area for growth and development. Northland agents say there are upsides and downsides to this.

Marsden Point oil refinery is set to close after a strategic review, which has left people concerned about job losses and the impact on the regional economy.

There has also been a push for the deep-water port (Northport) at Marsden Point to take containers full time to relieve Auckland. In March 2022, Northport announced its process to become recognised as a container ship port. Northland agents say that if this goes ahead, surrounding areas such as Bream Bay, One Tree Point, Ruakaka, and Waipu will thrive.

As well as Northport’s expansion, other projects in the pipeline to stimulate a boost in Northland’s economy include the $240 million dry dock, the relocation of the New Zealand Navy base from Devonport to Whangarei, and significantly improved rail infrastructure. This will support other large-scale projects such as increased freight volumes.