People & Places
Northland's up and coming areas
Jo-ann Hodgson investigates why Whangarei and Kerikeri are the Northland region’s up-and-coming areas.
The area of Northland – reaching from Mangawhai in the south to Cape Reinga in the north – has experienced significant population and economic growth over the last five years, pushing up property prices in the region.
Northland currently has a population of approximately 152,000, an increase of 5.4 per cent since 2001, according to the Statistics New Zealand 2006 provisional census. This increase has been most apparent in Whangarei and Kerikeri, two areas to have enjoyed economic and employment growth in the last few years. Whangarei has experienced the greatest levels of growth with five- and ten-year population growth rates of 10.1 per cent and 12.2 per cent respectively, compared to 4.2 and 6 per cent in the Far North, according to Bayleys Research. This growth is mainly a result of employment growth focused in primary industries such as manufacturing and export.
In contrast Kerikeri/Bay of Island's growth has been driven by tourism and service employment. As a gauge of Kerikeri's growing popularity, Air New Zealand now provide four to five flights a day from Auckland to the town. Also the construction of the new John Butler Centre, to consist of retail and office units and 54 car parks, serves as a measure of commercial demand. Both areas have also proved popular with property-buying workers and retirees looking to enjoy the warmer climate and stunning scenery Northland offers. "The healthy and relaxed lifestyle that the area promotes, coupled with the proximity to Auckland and Whangarei with up to 25 flights from Auckland to Kerikeri per week, promote the area well to both property purchasers who cashed up from outside the region and those with business interests both in and around the region," says Gerald Rundle from Bayleys New Zealand Research.
The growth in Northland's economy is also reflected in the wage growth of its residents, another factor attracting property buyers from within the country and those overseas. "According to Enterprise Northland Economic Indicators 2006 the proportion of the population, aged over 15, earning less than NZ$20,000 per annum fell from 60 percent in 2001 to 48 percent in 2006 as more people moved into higher income brackets, particularly NZ$30,001 to NZ$40,000 per annum," notes Bayleys Research Regional Focus. "The proportion of local residents falling within this bracket increased from 10 per cent in 2001 to 14 percent by 2006." The unemployment rate in Northland also dropped from 10.2 per cent in the 2001 Census to 6.5 per cent in 2006.
Future growth in the Northland region will be assisted by planned improvements in infrastructure. These include the upgrade and realignment of State Highway 1 between Albany and Puhoi, due for completion in mid-2009, which will reduce travelling time from Auckland to Northland by up to fifteen minutes, whilst making the route safer. A new rail link will also provide another freight option from Marsden Point based businesses. These infrastructural improvements, paired with economic and employment growth has created much demand for property in the Northland area. The median property prices increased from NZ$222,000 in the March quarter 2002 to NZ$365,000 in the March quarter 2007, representing a growth of approximately 64 per cent.
Since 2003, a year in which property sales in New Zealand reached near unprecedented levels, the volume of property sales in Northland have steadily decreased despite rising property prices. This is due, in part, to the high number of property owners and prospective buyers with either no mortgage of low lending to value ratios. "This means there is often less incentive to buy of sell quickly," says Rundle. "The fact that purchasers can afford to take their time to shop around is partly responsible to the high average days on market results achieved in the area." As well as migrants buying in the area, Northland property is also proving popular with those looking for holiday homes due to its long stretches of beach, spa facilities, marina and boating, sailing, fishing and adventure tourism opportunities.
For further information:
New Zealand Government Stats
Bayleys