KEY POINTS:
First-home buyers unable to afford ratcheting property prices in the main centres are being urged to consider areas further afield - and even Auckland's notorious suburb of Otara.
A long-predicted slowdown of the property market has brought little respite for those starting out in big cities like Auckland, where the median residential price for both the region and metropolitan area is a hefty $445,000, says the Real Estate Institute.
Yet a comparison of sales figures across the country shows that although there are huge variations in residential prices, affordable areas can be found in just about every region - and making the move does not always require major compromises on jobs, amenities or quality of life.
In seeking affordable places to live across the country, the Herald on Sunday scoured statistics on housing affordability, cost of living, household income, economic vitality and quality of life. We asked real estate agents for their regional picks, looked at areas tipped for good capital growth and sought out locations with residential median sale prices below that of October's national median of $350,000.
Our selection encompasses five areas in the North Island, and three in the South. They are, in geographical order: Whangarei and Morrinsville; Wanganui and Palmerston North in the Manawatu; Newlands in Wellington; Motueka in Nelson; Timaru in South Canterbury; and coastal Dunedin.
Whangarei
The commercial centre of Northland, has much to recommend it - not least its subtropical climate and beautiful beaches just 30 minutes from the city. You can snare a three bedroom house here for about $350,000, with sections ranging from $190,000 to $280,000.
Tourism and dairy farming flourishes locally (there's a huge milk processing site at Kauri), as do horticultural enterprises exporting kiwifruit, avocados, citrus and flowers. Another big plus for employment opportunities are core businesses such as NZ's only oil refinery at Marsden Point, the Portland Cement Plant and the 'superyacht' boat-building industry. Barfoot & Thompson agent Debbie Oliver-Lloyd said she gets a lot of inquiries from Aucklanders. "It's more family-orientated," she said.
Morrinsville
Waikato's Morrinsville, with an average sale price of around $280,000, is also proving its worth to clued-up buyers. Local Harcourts manager Kevin Deane said the area was blossoming on the back of a strong dairy economy, and full employment, good schooling and affordable rates meant homes and sections were being snapped up. "It's increasingly becoming a commuter suburb of Hamilton," he said. "There's still that small town country feel that New Zealand used to be known for."
Palmerston North
The country's 11th largest city is now branded with the slogan "Young Heart, Easy Living" - a reference to its large student population at Massey University. The tertiary education sector brings in over $1 billion to the local economy but the city's location just two hours away from the capital means it is also an important regional servicing hub for the lower North Island. "[It's] extraordinarily economically strong" claims REINZ district president Tim Mordaunt, yet "Palmy", as it is affectionately known by residents, can still boast a modest median sale price of $315,000. (In nearby Wanganui City, it's a mere $175,000.) Three-bedroom properties range from just $160,000 to $230,000 but you could pay even less in nearby Feilding, Pahiatua, and Levin. "It's affordable because it's not sexy," explains Mordaunt, a Palmerston North resident for 26 years. "But it is great for business, great for friends, and great for family."
Newlands
Newlands, just seven minutes drive from Wellington City, is also being tipped as an affordable area to relocate. Three-bedroom houses can range from $320,000 to $360,000 and though infill housing is becoming more popular, section sizes tend to be larger than Aucklanders are used to.
Motueka
With a population of just 6000, Motueka is considered more affordable than its more glamorous Nelson neighbour with three-bedroom properties in the $300,000 to $310,000 price range.
Timaru
The South Canterbury town is even cheaper, with its median residential sale price in October at just $225,000.
Dunedin
Dunedin has been running an aggressive campaign to attract skilled workers from within New Zealand and overseas. One of its big selling points is the cost of housing; it had a median sale price in the city of just $240,000 in October, well below the national average. Affordable family-style homes can be found in St Clair, Mosgiel and Mornington, while grander villas and mansions are in and around the City Rise area.
