Houses in three Tauranga suburbs look set to have an average price tag of $1 million within two years.
Bayleys head of research Ian Little told NZME property listings site OneRoof that suburbs nudging the million-dollar mark included Mount Maunganui, Bethlehem and Omokoroa.
Research showed the average sale price of houses in Mount Maunganui was at $885,662, $872,677 in Bethlehem and $861,853 in Omokoroa.
"If the annual median price rise for the Bay of Plenty for the past year of 10.1 per cent is applied to the year ahead, those three areas may not reach the $1 million mark by next summer," Little said.
But, it was likely to happen by 2020, he said.
"But with growth predicted to continue, it could well be the summer after."
Real estate agents say while it is no surprise the areas are nearing the $1m mark, home buyers wanting to buy in the areas may have to look at other areas first.
Little said 23 per cent of all sales in Mount Maunganui, 22 per cent of Bethlehem sales and 17.5 per cent of Omokoroa sales were at more than $1 million in 2017.
Little said the three suburbs were the "lifestyle lovelies" of the Bay of Plenty.
"Mount Maunganui is an iconic resort suburb with its long white surf beaches and north-facing beach-front properties, while Omokoroa sits on a sea-encircled headland with marine activities aplenty," he said.
"Bethlehem boasts an array of homes with executive-style homes on larger sections, clear favourites at the upper price bands."
Waihi Beach was a classic holiday spot which also featured strongly in the next wave of areas close to the million-dollar mark.
Bayley's research showed the average sale price in Waihi Beach was at $828,010.
First National, Mount Maunganui, Tauranga and Omokoroa owner Anton Jones said there were plenty of top end properties at Mount Maunganui that were selling for well above $1m.
He said Bethlehem had historically been a popular area to buy, but he was a little surprised to see Omokoroa reaching close to $1m.
First-home buyers wanting to move to sought-after areas such as Mount Maunganui may need to buy elsewhere before looking to cash in on the million-dollar market.
"You just have to move your circle out a bit until you get on the property market and can afford to get into those areas at a later date," he said.
Jones said a million-dollar home at The Lakes and Bethlehem was typically a four-bedroom home with a decent section and good views.
The million-dollar Mount Maunganui home was a lot smaller, but people were paying for the status.
Tauranga Harcourts managing director Simon Martin said it was not surprising the average sale price of houses in the Mount, Bethlehem and Omokoroa were reaching $1m.
"They are sought after areas where you have a lot of demand," he said.
However, Martin there were plenty of other options for potential buyers who could not afford shopping in the million-dollar market.
"You have got to remember it is the average selling price. Not all houses are selling for $1m, there are options for all buyers," he said.
Simon Anderson, chief executive of Realty Group which operates Eves and Bayleys, said there was no surprises the Mount was nearing the million-dollar average house price.
"There has been a lot of big sales there in the last 12 months," he said.
Anderson said Bethlehem had previously been reported as one of the most high-value suburbs in Tauranga, while Omokoroa was a "developing area".
Robyn Breckon chose to build her home in Bethlehem 20 years ago.
She has renovated twice and said the Government Valuation on her two-storey home was now $1.1m.
"We thought about selling but where do we go?" she said. "We like Bethlehem."
"As long as you are happy where you live the price is irrelevant."
Breckon was one of the original homeowners on her street which was now full.
"There was just a few of us for about 6-8 months," she said. "It is a nice neighbourhood... a good location."
Breckon said the "uniqueness" of houses had lifted the suburb's average house price.
"All of the houses are different," she said. "It is nice when you go into a subdivision and all the houses are unique."