A distinctive Kiwi bach on the waterfront at Ngunguru, in Northland, has been sold for the first time in almost 70 years.

The "Rainbow Bach'' was bought by a family in Whangārei.

It had been in the same family for 68 years and its colourful and distinctive rainbow paint job has been attracting attention since it was painted in 1974.

Ray White agent Alan Dowsett said there had been plenty of interest of the bach.

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First built by the owner's grandfather in the early 1950s, the property was only ever meant to be a temporary wooden shanty, but over the years additions including two bedrooms, and a second floor were added.

The bold rainbow mural painted on its exterior made it a local landmark.

Partly inspired by the design of Pat Hanly's work on the newly built Christchurch Town Hall at the time, the mural was first painted by the family's resident artist in the winter on 1974 - while residing in the property to save up for their own home.

"Judging by the online comments and other feedback received it would seem that locals have become far more accepting of the design, and concerned for the building's future - with many worried that out of town developers would come in and bowl the iconic structure," Dowsett said.

"Back in the day locals were upset about the mural because they thought it looked ugly."

The new owners intend to use the bach for weekend and mid-week family escapes.

The sale price has not yet been released. The bach had a CV of $450,00 but the vendors were seeking interest over $700,000.