A Mount Maunganui property surge is seeing previously lower demand streets fetching high prices and becoming some of the most sought-after stock on the Bay market.
Solid 1960s and 70s homes on full sites in Paterson St, Concord Ave, Carysfort St and Leander St are selling for $550,000 to $600,000.
"Those sort of streets now are really fetching prices that no one would have anticipated two or three years ago," Bayleys and Eves Real Estate chief executive Ross Stanway said.
The same properties two or three years ago would have sat firmly in the $360,000 to $450,000 to $460,000 range, he said.
The trend really took off about a year ago with buyers realising the previously lower priced streets offered walking access to the beach, were close to Bayfair shopping centre and offered larger sections.
Meanwhile, Valley Rd, Ranch Rd and Clyde St which were closer to the Mount itself and only one or two streets back from Oceanbeach Rd and Marine Parade, were also increasing in value and buyer demand.
The trend was less extreme in Tauranga where areas like the Avenues, Edgecumbe Rd, Pillans Point and Matua remained traditionally sought after.
"Those streets still command high buyer interest," Mr Stanway said. However, Welcome Bay, Gate Pa and Greerton, which offered reasonably-priced properties on full sections, were becoming very popular, he said. "Because they represent great value for money. Not everybody wants or can afford a million-dollar home."
The suburbs may not be on locals' radars but were a hit with Aucklanders who were more "clinical" in their approach to purchasing property.
"They are just focused on the characteristics they want in their tick box," he said.
"They're less likely to be influenced by yesteryear. Every area, suburb or street is in a state of change, it's just a matter of how fast that change is."
Auckland couples with young families seemed to be most interested in properties in the $600,000 to $850,000 range, giving them high equity in a large family home or some cash in the bank.
These properties, along with higher-priced properties in sought-after Mt Maunganui streets, were attracting multiple bids at weekly auctions (see examples in graphic).
The smaller buyer pool at the top of the market was still attracting a mix of out-of-town and local buyers, Mr Stanway said.
"They compete with each other just like in any other price range."
Franchise owner of Ray White in Mt Maunganui and Papamoa, Greg Purcell, said the Mount was an "extreme example" of what was going on across the Bay.
"Anything with a half-decent section at the Mount has real interest," he said.
In Papamoa, Hartford Ave, which had "historically not been on the menu for shopping for some people", was now attracting sales.
"Prices we've got in there were largely unthinkable a year ago," he said.
Mr Purcell said entry-level properties were always "massively popular", particularly brick and tile homes priced between $500,000 and $700,000.
However, there was a small minority of vendors who were pricing their properties about 5 per cent too high.
"We've reached a stage now - and it happens every time - where some vendors start getting ahead of the market."
Harcourts managing director Nigel Martin, who specialises in Mt Maunganui and Papamoa, said some family homes on full sections in Ranch, Orkney and Valley Rds were now breaking into the $1million market.
However, most of these homes had been previously selling for $850,000 to $900,000, he said.
In Papamoa, the $1m market was reserved for lifestyle sections in excess of 3000sq m, or beachfront properties, he said.
For buyers who had sold properties in Auckland, where the average house price is now $918,000, $1million was "not a lot of money," he said.
Mr Martin agreed buyers at the higher end were an even split between locals and out-of-towners.