Buyers from Auckland and Wellington making offers on homes sight unseen are being credited for the housing market surge in Whangarei Heads.
The average property value in the coastal stretch just outside of Whangarei jumped 30% ($275,000) in the last 12 months to $1.182 million.
Agents in the area told OneRoof that much of the market has been driven by outside demand, even when Northland was in lockdown.
Bayleys agent Sam Swinburne said that Aucklanders were buying sight unseen in the latter half of last year.
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“People were making unconditional cash offers and bidding at auction without seeing the property. It would have been people who holidayed here in the past or have family in the greater area and are familiar with how nice it is,” he said.
He said buyers seemed to be displaying more confidence in the local market. “People won’t have an issue with having a crack at buying sight unseen because coastal property holds it value really well in any market. There’s an inherent value in that despite what the house might throw at you.”
House prices in Whangarei Heads, which offers residents ocean and harbour views and bush reserves, against a backdrop of Mount Manaia, may have risen sharply but standalone homes are still relatively affordable compared to houses in Langs Beach, where the average property value is just over $2m.
A four-bedroom house on Whangarei Heads Road sold at auction in December for $1.075m. Photo / Supplied
Swinburne sold a 1990s four- home on an 800sqm site near the beach last month for $1.07m. The home, which had been a popular Airbnb rental, was not suitable for everyone as it had a lot of stairs, and yet it still sold way above its July 2021 rating valuation of $790,000.
Swinburne said empty sections were also in demand. “I have a bare land site at the moment and no one is looking at it for land bank, everyone interested has intentions to build a dream home,” he said.
Ray White agent Daniel Foote agreed that buyers were prepared to a premium for well-presented properties in Whangarei Heads. He received multiple offers on a four-bedroom 1970s house in Urquhart Bay last month, with the property selling just before Christmas for $2m.
“We’ve had some astronomical prices driven by the competition from out-of-town buyers. It’s people from Wellington and Auckland fighting.
"But in tightly held area like Urquhart Bay, all the neighbours are friends, properties are held for generations of families, and local purchasers love it.”
A smart two-bedroom cottage sold for $800,000, $215,000 more than it sold for 18 months ago. Photo / Supplied
Foote said higher prices were being paid for large lifestyle blocks.
He said the majority of buyers were seeking an escape, and that demand had grown since the Covid pandemic.
“It seems like everyone in Auckland has an auntie, an uncle or a cousin in Whangarei and during open homes people were attending on people’s behalf. Everyone has their phones out Face-Timing,” Foote said.
However Foote noted that out of towners are heading up North for a more chill surrounding have lead to a slight change in the local dynamic.
He added: “The community here historically was a chill and very down to Earth place but because it’s become more attractive to Aucklanders, we are noticing a bit of change.
“You can tell by the kinds of cars driving around and the level of social-economic status.”
A three-bedroom brick and tile property with sea views sold at auction in December for $1.733m. Photo / Supplied
Bayleys agent Kirsty McCorkindale has had a run of sales that have exceeded expectations.
A modest two-bedroom Skyline cottage overlooking McLeod Bay sold in December for $800,000 - $225,000 more than the buyers paid in July 2020.
And a pre-auction offer of $1.5m for a three-bedroom brick and tile house on Bay View Road was bumped up another $233,000 when two bidders fought at one of the last auctions before Christmas.
“Its July ratings valuation was $1.245m, but it had amazing views of the sea and Mount Manaia, two primary schools nearby. It was a local and an Aucklander competing.”
This lodge at Kauri Mountain Point could create an all-time record for Whangarei Heads when it sells. Photo / Supplied
If world-class luxury appeals, a lodge compound at Kauri Mountain Point that was looking for around $8.5m when it listed a year ago is yet to sell. The overseas-based vendor is marketing the property through Graham Wall Real Estate and Wall says he is happy to talk to interested buyers.
Meantime, the property is available for holiday rentals, with the price now just $1,750 per night, down from the peak of $2350.
- Additional reporting Catherine Smith
