Out-of-town buyers could be largely behind a 60.5 per cent increase in the median value of Dargaville house prices over the past three years.
A Quotable Value ‘E-Valuer Quarterly Suburb’ report showed a median house value of $291,000 for Dargaville as at September 1, 2017 — a increase of 24 per cent since September 1, 2016.
“Currently QV is seeing an average increase between 40 and 50 per cent above the rating values for residential properties set during the last rating revaluation for the Kaipara District as at September 1, 2014,” said QV Whangarei Registered Valuer Thomas Ujdur.
“The Kaipara District is currently undergoing a rating revaluation and new rating values will be released later in the year based on the market as at September 1, 2017.”
Mr Ujdur said a notable increase in buyer activity has been seen in the last two years, with increased sales volume driven by out-of-town purchasers.
“These are mostly investors attracted to the lower value, higher yield investment properties of Dargaville township. An increase in retirees in the Dargaville market is also evident, mainly driving the top end of the market.
“There have been more buyers relocating to the area from Auckland due to more affordable prices. Dargaville is still affordable enough for investors to be able to come up with a 40% deposit whereas some other areas are now out of reach.”
The report has come as no surprise to local Ray White realtor, Jean Johnson.
“Sales are still going well in Dargaville both residential and lifestyle, also sections. We have had a mixture of local purchasers and Auckland people. Properties are not on the market long at the moment as there is a shortage,” she said.
She said sometimes this meant they would have more than one offer on a home.
Over on the east coast Mr Ujdur said the market had been marginally increasing over past year but values were starting to level off.
“As the median value for homes in the area becomes more unaffordable for secondary homes, we have noticed value levels levelling out over the last year. Sales volume has also dropped notably for the last year by close to half from 2015/16 and 2014/15 levels. We believe this is in response to lack of properties being listed and overall affordability of homes in the area.”
Mangawhai median values rose 12% over the past year to $666,250.