Those wanting to stay a bit closer to home could look to Wellsford - Auckland region's cheapest spot.

First-home hunters sick of missing out because of Auckland's raging prices should consider a move south.

The deep south, that is - to Mataura, just outside Gore, the country's cheapest town where the average home will set you back just $81,250.

However, those wanting to stay a bit closer to home could look to Wellsford - Auckland region's cheapest spot - with an average value of $360,700 - or the central city where you can still pick up properties for under $400,000.

Residents of Herne Bay now need $2 million to buy a standard home, after the suburb tipped over the dizzying threshold this week.

A 20 per cent deposit on an average Herne Bay house could buy you five freehold homes in Mataura, known for its meat industry, world-renowned trout fishing river and favourite son Justin Marshall.

Local Ray White agent Alan Byrne said an Auckland homeowner who cashed in their chips and headed for provincial Southland could live like a king on their new-found liquidity.

"You'd virtually get the whole town for $2 million. You'd pick up a lot of property here. You'd kill it."

Latest Real Estate Institute figures show Auckland house prices surged by 20 per cent in the past year to a median of $749,000 - an increase of $340 each day. It was fuelled by immigration pressure, a severe housing shortage and falling home-loan interest rates.

Mr Byrne is marketing a "tidy" 120sq m house with an asking price of $85,000. It has been on the market for 12 months without a single offer.

"There's nothing wrong with it. It's a three-bedroom house, it's got a wet-floor shower, it's warm and dry."

If the ex-state house were on the North Shore it would probably fetch $1.2 million. Mr Byrne said locals were amazed at Auckland property prices, which were on another planet. The firm's Remuera branch had turned over $63 million in sales in a single month, he said.

CoreLogic data ranks Wellsford with the cheapest real estate, then Auckland central reflecting its apartment market, Parakai in Rodney, Orere Point in Manukau and Clendon Park in Manukau.

CoreLogic senior analyst Nick Goodall said growth had been modest in many provincial towns as small populations and limited job opportunities kept demand in check.

Cheapest Auckland localities

• Wellsford, Rodney: $360,700
• Auckland Central: $366,950
• Parakai, Rodney: $391,550
• Orere Point, Manukau: $394,400
• Clendon Park, Manukau: $409,150
• Grafton, Auckland CBD: $410,450
• Manukau, Manukau : $411,550
• Wiri, Manukau: $418,150
• Awhitu, Franklin: $426,400
• Red Hill, Papakura: $426,750

Source: CoreLogic

(Source NZ Herald)