A place in the sun

After many years of doing it hard in the fall out from the Global Financial Crisis, Whangarei earned a place in the sun as a beneficiary of the halo emanating from Auckland’s recent boom. Following in the SuperCity’s footsteps, the country’s northernmost city has seen stellar price growth and a hot market from 2015 on.

But now the property cycle is coming to an end nationwide and Auckland’s market has been plateauing for some time. So where has this left Whangarei’s market? Well, still sitting pretty for investors as it turns out.

The city’s median house price may have gone up, but prices remain reasonably affordable, especially compared to Auckland. There is a shortage of rental property, but high demand and better returns on investment than in the major centres. On top of this, Whangarei is seeing some significant infrastructure and economic development going on. All of this adds up to an attractive proposition for many investors.

City on the rise

On the face of it, the latest data on the Whangarei market presents a subdued, but healthy picture. According to QV, price growth in the city dropped by 3.1% in the quarter to the end of March. But year-on-year prices grew by just over 5%. This has left its median value at $545,988, as compared to $517,302 at the same time last year.