NORTHLAND’S KAIPARA DISTRICT GROWS IN POPULARITY
The west coast of Northland’s Kaipara District boasts an extensive and varied coastline of open beaches as well as an enclosed estuary harbour, in an area which has high ecological, historical, environmental and cultural values.
These factors have attracted a growing number of tourists. Over the 12 months ending June 2007, the Ministry of Tourism recorded 159,553 guest nights in the Kaipara District. This is an increase of 39 percent compared to the preceding 12 months and 70 percent higher than recorded in the year ending June 2002.
In an overview of the region, Bayleys Research says it is also increasingly appealing to weekenders and permanent residents. In the face of the area’s growing popularity, the Kaipara District Council is making a concerted effort to ensure the “wilderness” character of the coastline is maintained in order to protect what has led people to choose to visit or locate within the area.
Growth in the Kaipara District is reflected by a number of statistics, the most obvious being population, which was 18,132 in 2006 according to the Statistics New Zealand (StatsNZ) 2006 Census. This is 3.8 percent higher than the 2001 Census population count of 17,460. The number of occupied dwellings has increased from 6,630 in 2001 to 7,044 in 2006, according to StatsNZ, an increase of 6.2 percent. This rate of growth is higher than that of population and reflects the increased number of people buying holiday homes in the area, says Bayleys Research analyst Sarah Davidson.
The Kaipara District has also experienced growth in economic terms, which is exemplified by salary and wage growth and a declining unemployment rate. In 1996, the rate of unemployment was 7.5 percent, according to the StatsNZ Census results. This has been decreasing steadily over the last ten years with 6.7 percent unemployment observed in 2001 and 4.6 percent in the latest census.
As a result of the high interest in the area, residential property in the Kaipara Coast area has experienced a sustained period of median sale price growth over recent years, with an annual average growth rate of 16 percent since 2002.
The median sale price for the year to date is $215,000, according to the Real Estate Institute of New Zealand (REINZ), although this is based on provisional data. Already this is 16.2 percent higher than the 2006 median of $185,000. The median sale price has more than doubled in value since 2002 when it stood at $104,750.
Sales volumes peaked in 2004 and 2005. There were 251 residential dwellings sold in the Kaipara Coast area in 2004, according to REINZ data, and a further 257 transactions were recorded in 2005. In line with New Zealand wide trends, they have since eased back to around 200 per annum but are still significantly higher than from 2001 to 2003 when the number of transactions recorded was between 110 and 158 per annum.
Sarah Davidson says anecdotal evidence suggests a large number of Auckland-based buyers have moved into the market over recent years. She says this is because west coast properties are more affordable than comparable properties on the east coast and are within a comfortable commutable distance from the Auckland region.
Areas showing increased popularity in recent times include:
Baylys Beach: This stretch of the Ripiro coastline, with its already established infrastructure such as a café and dairy, has become an area of focus for purchasers interested in investing in the Kaipara area. Making the most of the interest is developer Sundance Properties Limited, which has created an 86-lot subdivision, known as Sunset West, adjacent to the beach. The first two stages have lots varying in size from 600m2 to 1,734m2 and are selling for between $145,000 and $350,000 through Bayleys Northland.
Another new development in Baylys Beach is Ripiro Villas located on Ripiro Drive. This comprises three semi-detached villas sharing a large 1,859m2 site. The 164m2 villas are split over two levels and are for sale for $650,000, each on an individual unit title.
Glinks Gully: Along the same coast line, just south of Baylys Beach is Glinks Gully, another area which is proving popular, reflected in the recent growth in house prices. The value growth in Glinks Gully residential dwellings is exemplified by recent sales of a property in Glinks Road. The property sold in November 2006 for $650,000. It had sold 14 months earlier for $525,000 and before that in December 2002 for $240,000.
Omamari Beach: North of Baylys Beach, Omamari Beach is a few minutes drive from the picturesque Kai Iwi Lakes. Examples of the current asking price for land in Omamari Beach include a vacant 817m2 site, which has a price tag of $330,000. In addition, a vacant section, half a hectare in size, is for sale with an asking price of $500,000.
