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NORTHLAND RESIDENTIAL REPORT 2007

OVERVIEW

The Northland area includes the townships of Paihia, Russell, Kerikeri and Kaitaia. The area is extremely popular with tourists and overseas purchasers with beaches, boating, sailing, marina fishing, adventure tourism, spa facilities and internationally acclaimed accommodation all contributing to the attraction. The healthy and relaxed lifestyle that the area promotes coupled with the proximity to Auckland and Whangerei with up to 25 flights from Auckland to Kerikeri per week promote the area well to both those purchasers who have cashed up from outside the region and those with business interests both in and around the region.

The median dwelling sale price for Northland has experienced strong growth over the last five years, increasing from $222,000 in the March quarter 2002 to sit at $365,000 in the 2007 March quarter, according to the Real Estate Institute of New Zealand (REINZ) statistics. This represents growth of approximately 64% over the period and compares with a national median sale price increase of 81% over the same period.

The volume of sales, in Northland have tracked steadily downwards since the peaks that were achieved in 2003. This was at a stage when the New Zealand property market was experiencing near unprecedented activity levels. Since this period, sale volumes have been in steady decline although sale prices have been heading steadily upwards. This in an indication that the demand for residential property in the Far Northis still high and that property is being more tightly held, resulting in the upward movement in house prices.

The average days on the market for Northland property has remained at fairly constant levels throughout the last five years, a further indication of the high levels of demand for property in the area. The March 2007 result of 86 days sits just slightly above the average days on the market figure for the last six March quarters. There are a high percentage of property owners and prospective purchasers in the Northland area with either no mortgage or low lending to value ratio’s which means there is often less incentive to buy or sell quickly. That fact that purchasers can afford to take there time to shop around is partly responsible to the high average days on market results achieved in the area.