$5.6m resale gain on Mount home among Tauranga's biggest property winners

The house that made $5.6m. Photo / George Novak

If you bought your home six years ago and have just sold it, chances are you made a significant profit. Hundreds of Tauranga people made big gains after selling their homes above the purchase price in the second quarter of 2019. Property reporter Zoe Hunter unlocks CoreLogic's latest Pain and Gain report data to find which home topped the list for the city's biggest sale. Property experts also take a look at the data and explain what the market was like in the June quarter and whether property owners should expect big gains in the future.

A $5.6 million gain from a single sale of a Mount Maunganui home has topped the list for the city's biggest sales in the last quarter.

The five-bedroom home on 983sq m of land was initially bought for $355,000 in November 1988.

The Marine Parade property sold for a whopping $6m in May this year, recording the most significant individual profit on CoreLogic's latest Pain and Gain report.

It was one of 519 Tauranga homes that sold above the purchase price between April 1 and June 30 - 84 of those properties were in Mount Maunganui.

Tauranga residents who sold their home during the June quarter made a median profit of $243,000 per property. The city's gross profit from sales was $147,579,711.

Properties in the city that resold for a gross profit in the June quarter were held for a median of 6.5 years.

However, some experts believe homeowners should not expect the significant gains to continue in the short term.

Simon Anderson, chief executive of Realty Group, which operates Eves and Bayleys. Photo / Andrew Warner

Simon Anderson, chief executive of Realty Group, which operates Eves and Bayleys, said the Marine Parade property was a standout.

Anderson said the sale suggested location and people wanting to relocate to the Bay of Plenty were still key factors when buying and selling property.

"It is a reflection on how the Mount has been recognised as a recreational haven. This particular property was a standout," he said.

"It has a wide frontage, elevated position and a second access."

Owen Vaughan, editor of property website OneRoof. Photo / File

CoreLogic senior property economist Kelvin Davidson said Tauranga was still a solid market.

"With average property values up by about 5 per cent over the past year (on top of the increases made over several previous years), it is no surprise that resellers are making strong profits," he said.

Davidson said the city's median profit of $243,000 continued a strong three-year run in property gains, which reflected rising house prices on the back of a growing population.

General manager of Tremains Bay of Plenty and Waikato, Anton Jones, said Tauranga home values had increased in the last six years, which is why people saw big gains. But he expected there would be no short-term gains in the next six years.

General manager of Tremains Bay of Plenty and Waikato, Anton Jones. Photo / File

Owen Vaughan, editor of property website OneRoof, said slowing Tauranga house prices meant more people would now suffer some pain when selling.

"Many of those properties bought in the peak of the property boom for Tauranga are going to see the amount of profit they are making is just going to dwindle," he said.

Homes sold at a profit in the June 2019 quarter

Papamoa Beach 102
Mount Maunganui 84
Welcome Bay 32
Bethlehem 30
Pyes Pā 30
Matua 27
Greerton 24
Ōtumoetai 24
Brookfield 23
Gate Pā 23
Bellevue 19
Tauranga South 19
Ōhauiti 15
Hairini 14
Judea 14
Maungatapu 14
Tauranga 9
Poike 5
Tauriko 5
Parkvale 4
Ōropi 1
Kairua 1
Total: 519

Source: CoreLogic