Buyers with big property budgets are poised to re-enter the Tauranga market this year following a surge of multi-million dollar deals in 2014.
TradeMe Property figures show February was the highest month for new million dollar listings in Tauranga during 2014, with 50 listings, compared with only 12 in both May and July. By December last year the number had risen again to 37.
Overall during 2014 there were 354 individual Tauranga properties, valued between $1 million and $10 million, listed on the site and 248 from the Western Bay.
Harcourts Tauranga owner Max Martin said the million dollar market in Tauranga was the strongest it had been since 2006 or 2007.
The properties in this market were mainly at the Mount, Bethlehem and Matua, some of which did not change hands very often, he said.
"I know we've sold several. Actually we've sold quite a few in the lifestyle market and the Mount. We've got several on the market in Papamoa as well."
Mr Martin said there was a lot more confidence in the market with homes in the $700,000 to $1 million range "moving quite well".
Some of those over the $1 million mark had dropped back in price he said, making them good buying.
"It's below replacement value. They represent particularly good buying at the moment," he said.
Most homes in this price range were built in the past 15 years, he said.
"Most of the houses we sell here are reasonably modern. There wasn't a lot of money around Tauranga 20 or 30 years ago. Certainly in the last 15 years some beautiful properties have been built."
Mr Martin said there was also good demand for lifestyle properties and orchards in the higher price range - particularly on the north side of Tauranga, closer to Auckland.
"Especially with petrol prices coming down, it's not such a big deal any more. We're very confident it's going to be a good year."
Bayleys real estate agent Ray Lees, who has been selling million-dollar Tauranga properties for 20 years, said the top of the market took off in September 2014. Once home owners saw two or three multi-million dollar properties sell, they were prompted on to the market.
"It's a market driven by confidence. If properties are selling, they'll make a move," he said.
From September to December Bayleys made a "very high number of $1 million plus sales," he said.
"This has left us in early January with a shortage of stock to sell."
They had buyers waiting to see what came on the market once the holiday season was over.
The homes were being sold to ex-pat Kiwis returning from overseas, immigrants, mostly from Europe and Aucklanders who had sold expensive homes to move to the Bay.
Mr Lees said New Zealand's profile was building overseas, attracting those who could afford to move for the beaches, environment and lower population density.
"Its sheer distance from a very unsettled world" was also creating a pull to New Zealand, he said.
Successful business people were making a conscious decision to turn down bigger pay packets overseas to give their children a New Zealand upbringing, he said.
Ray White Mount Maunganui agent Kenny Hewitt said there had been significant growth in the amount of inquiry in the million dollar range.
"There's a good feel about the place at the moment. Confidence is picking up."
He had noticed a surge in the number of baches on Marine Parade, Oceanbeach Rd and Muricata Ave disappearing to make room for executive homes on full sites.
Buyers of multi-million dollar properties were coming from the Waikato and Auckland. "There's local money there as well," he said.
"We are getting a wee bit of inquiry from overseas."