QV report shows Tauranga's property boom shows no sign of slowing down

Tauranga's property market shows no sign of slowing down, as QV releases their latest report. Photo/file

Home values in Tauranga continue to soar, as QV release its latest report.

Values have increased 28.5 per cent year on year and 7 per cent in the city over the past three months.

The average value in the city is $633,638. Western Bay of Plenty home values also continue to showed strong growth, rising 26.3 per cent year on year and 6.2 per cent over the past three months. The average value in the district is now $557,640.

QV homevalue Tauranga registered valuer David Hume said: "There've been indications from brokers, lending institutions and real estate agents, that the new LVR restrictions requiring 40 per cent equity for investors is starting to have an effect of cooling the Tauranga and Western Bay of Plenty markets."

"Investors now need twice the equity they did five weeks ago and it appears they are taking a wait and see approach as they come to terms with the new restrictions and the speed of which they have been implemented.''

Mr Hume said there were still a plenty of first-home buyers and pre-approved purchasers in the market driving demand.

"It's too early to tell what effect the new LVR restrictions will have on the market in the medium term and on values, but it's unlikely the Bay of Plenty will see similar levels of growth in the coming year to that witnessed over the last 12 months."

Thoughout the North Island, all areas measured saw values increase over the past year and many regional centres continue to show strong values rises with a number seeing higher percentage growth than Auckland including Whangarei values rising faster which rose 21.6 per cent year on year; Rotorua up 27.1 per cent over the same period; Otorohanga values rose 35.5 per cent year on year and Kawerau is up by 50.1 per cent since August last year. Palmerston North also saw values rise 10.4 per cent year on year after a long period of little value growth.