Rotorua values up 25 per cent

Rotorua's property values continue to soar, while the majority of the country shows signs of a slowing market.

The QV residential property value index for October, released today, show the average house value in Rotorua was $362,583. That's 7.1 per cent higher than three months ago and 25.9 per cent higher than a year ago.

That places Rotorua in the top 10 New Zealand cities when it comes to annual growth. Kawerau tops the country - its average house value increased by almost 50 per cent over the past year.

Nationally residential property values for October were up 12.7 per cent over the past year - the slowest rate since May.

Professionals McDowell Real Estate Rotorua principal Steve Lovegrove said locals could expect continued rise in values as the city "played catch-up".

"It will be interesting from here on out because we are going to start comparing a hot market with a hot market - it was around October last year that we began to see big increases in our values.

"Rotorua is worth it. More people are realising its great value and we are very clearly on our way to the $400,000 mark."

Ross Stanway, chief executive of Eves and Bayleys Real Estate, said it was a significant increase, showing the Rotorua market taking off.

"Rotorua is benefiting from renewed interest and has been for some time. It bodes well for Rotorua that we are seeing strong, sustained interest, particularly from outside buyers.

"The competitive advantage Rotorua has over other centres is that it is still affordable."

Ray White Rotorua co-owner Anita Martelli said her business had been busy.

"It's positive for everyone, we are seeing home owners moving up to the next rung of the property ladder and are still getting investor interest which we need to help ease rental pressure."

Ms Martelli said the market was still active with first home buyers, despite the ongoing rise in values.

"Rotorua is still affordable compared with centres like Auckland and Tauranga. We need to look at the bigger picture which shows this growth creating positive economic impacts for Rotorua."

Tauranga man Peter Lette bought his Rotorua home last month and told the Rotorua Daily Post he was pleased to be moving back to the city.

"I did live in Rotorua for many years and most of our family are here so we've decided to come back.

"We were surprised at how the prices have jumped up but it was not anything you wouldn't see in other major cities."

Mr Lette said it was pleasing to find a house that ticked all the boxes in Pukehangi.

"It was low maintenance which suited us perfectly. The price we paid was what we were expecting so there were no surprises there."

Highest value increases - 12 months to October
1. Kawerau 49.3%
2. Western Bay of Plenty 33%
3. Waikato 30.2%
4. Queenstown Lakes 29.8%
5. Tauranga 27%
6. Rotorua 25.9%
7. Hamilton North East 26.8%
8. Hamilton Central North West 25.3%
9. Matamata Piako 24.9%
10. Hauraki 24.3%
- QV