The New Zealand suburbs profiting home owners the most

A survey of house values across New Zealand has found that people who bought houses in some of Auckland's fringe suburbs five years ago could be in for major windfalls.

Real estate website OneRoof carried out the research along with Valocity to identify the suburbs in New Zealand that have seen the biggest dollar value gain since 2014.

Their results show that if you bought a house in Auckland's Dairy Flat or Clevedon five years ago, you'd now be looking at a profit of, on average, over half a million dollars if you sold today.

Not surprisingly, Auckland's suburbs dominated the top 10 with big gains also coming for home owners in Lucas Heights, Herne Bay, Paremoremo, Shamrock Park, Drury, Coatesville, Wai o Taiki Bay and Campbells Bay.

Auckland's Best Performing Suburbs (net gain)

  • Dairy Flat ($685,000)
  • Clevedon ($502,000)
  • Lucas Heights ($444,000)
  • Herne Bay ($440,000)
  • Paremoremo ($432,000)
  • Shamrock Park ($431,000)
  • Drury ($416,000)
  • Coatesville ($414,000)
  • Wai o Taiki Bay ($348,000)
  • Campbells Bay ($307,000)

Outside of New Zealand's biggest city, gains were more modest. 

In Wellington, Berhampore, Newtown, Granada and Aro Valley buyers showed gains of around $200,000 while Tauranga owners in Mount Maunganui or Ohauiti netted around $170,000, similar to that of Hamilton's Flagstaff. 

However, it was not all good news for those in the housing game. 

If you bought a house in the Auckland suburb of Kumeu you'd be facing a loss in value of over $200,000.

Auckland's Worst Performing Suburbs (net gain)

  • Kumeu ($-210,000)
  • Oratia ($-12,000)
  • Henderson Valley ($5,000)
  • Waiatarua ($18,000)
  • Chatswood ($19,000)
  • Albany Heights ($21,000)
  • Hobsonville ($31,000)
  • Whenuapai ($44,000)
  • Herald Island ($47,000)
  • Birkenhead ($53,000)

The calculations made to determine the net gains for home buyers deducted the cost of servicing a mortgage over the five-year period. 

The formula took the 2014 median suburb value and, based on that figure, factored in a 20 percent deposit and 30-year mortgage at an interest rate of 5 percent. The finance costs did not include rates, insurance, repairs and maintenance and other operating expenses.

OneRoof editor Owen Vaughan says the figures illustrate the steady expansion of Auckland's outer suburbs.

"The top performers in Auckland are typically fringe suburbs that have seen rapid growth and new development," Vaughan said in a statement. 

"Five years ago Clevedon was viewed as an affordable area. Homeowners who bought there in 2014 would have been able to secure a large home for around about $750,000, which would have also meant a smaller mortgage compared to pricier parts of the city."