The property market continues to soar in Tauranga and the Western Bay of Plenty, with a growth of more than 13 per cent last month resulting in a record breaking average home value.
The average value in the city is now $591,942.
In the latest monthly QV House Price Index,released today, home values were still showing a strong upward trend, rising 4.9 per cent over the past three months and 23.1 per cent year on year.
Western Bay of Plenty home values are also accelerating, up 8.4 per cent over the past three months alone and 23.6 per cent year on year. The average value in the district is now $525,133.
QV homevalue Tauranga Registered Valuer David Hume said, "The Tauranga and Western Bay of Plenty housing markets are continuing to show strong value growth."
"Auckland investors remain very active in the market as they search for more feasible rental returns in Tauranga and surrounding small towns such as Te Puke."
"Tauranga first home buyers are finding it increasingly difficult to compete with out of town buyers and even entry level houses in less sought after areas are now becoming increasingly unaffordable for them."
"A number of recent auction results show that just how rapidly home values are rising and sales prices continue to exceed vendors' expectations."
"A three bedroom Mount Maunganui property sold for $840,000 setting a new benchmark for the area with similar properties that were previously selling in the early $700,000s."
"In terms of bare sections, 850 square metres sections in the Conway Drive Development in Paengaroa that were selling for $120,000 twelve months ago are now being on-sold at $210,000."
