Bay News Editor and reporter for NZME.

Suburban Bay of Plenty family home fetches $1m


A new four-bedroom, suburban, brick-and-tile family home in Papamoa has sold for $1 million - a price that ''beat all expectations'' of the company that built it.

New figures also show the average value in the suburb had jumped more than $130,000 in one year.

Tropix Homes director Richard Massey said construction of the house in the Palm Springs subdivision started at the end of April.

Interest in the home, which featured high ceilings, granite benches and a large deck, was high with multiple bidders competing for the property at auction, he said.

''It beat all expectations that is for sure, there is no doubt about it. We realised it would be right up there and into the $900,000s but we weren't sure it was going to crack the $1m mark.''

It sold for $1,011,000 to Auckland buyers in a sale that settled this week, he said. The company had another seven houses in the pipeline.

The median E-Valuer data for Papamoa Beach as at July 1 this year was $630,500 and had increased 24 per cent - $132,300 more than the $498,200 value last year.

The highest reported sale in Papamoa this year was a home on Papamoa Beach Rd, which sold for $3m in June.

Palm Springs sales and marketing manager James Garratt said interest in Palm Springs had increased year on year.

''Last year the Auckland market was quite a dominant region in relation to the visitors coming into our sales office. This year we have had an overall increase in visitors, with Auckland buyers still looking at relocating or purchasing an investment.''

Venture Developments director Mark Fraser-Jones said it had built more then 200 houses in Papamoa East since 2011.

The average house and land package in Golden Sands was $550,000 compared to $310,000 in 2011, he said.

But the average sale price in Golden Sands was now somewhere in the vicinity of $600,000, he said and ''an increase of around $50,000 from the start of the year''.

''Demand is still extremely robust both from locals and people moving into the area - notably from Auckland.

''Record low interest rates and record high immigration is driving the demand for new housing in Papamoa. With interest rates tipped to stay at a low level for the medium term and latent demand yet to be fulfilled, we expect demand to stay strong, at least in the short term.''

Golden Sands sales and marketing manager Mark Day said a four-bedroom property in the subdivision sold for $812,000 under the hammer recently.

QV Tauranga registered valuer David Hume said Papamoa continued to expand further south with the Golden Sands Development progressing steadily.

''As with most areas in Tauranga the supply of sections is not currently meeting demand, pushing up prices.''

SOLD: Tropix Homes director Richard Massey says the company just sold this house in Papamoa for $1 million at auction. PHOTO/JOHN BORREN
SOLD: Tropix Homes director Richard Massey says the company just sold this house in Papamoa for $1 million at auction. PHOTO/JOHN BORREN E-Valuer data for Papamoa Beach

Median E-Valuer as at July 1, 2016: $630,500

Median E-Valuer as at July 1, 2015: $498,200

Median E-Valuer as at July 1, 2014: $453,050

Values have increased 24 per cent year on year

Number of sales in the past 3 months: 236

Difference in sale price to rating value (CV) over the past 3 months has been on average 23 per cent higher than rating value (CV)

In the previous market peak of July 2007 the average value was $464,200

Values are now 36.1 per cent higher than the previous market peak of 2007.

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