A Mount Maunganui home which sold for $6.3m could be the biggest sale of the year so far.
Tauranga Harcourts general manager Nigel Martin said the house on Oceanbeach Rd sold for $6.3m at a public auction last week.
"It is not the highest-price property we have sold in the Mount which was $8.2m a few years back, but it was the highest to have sold under the hammer in the auction room," he said.
The three-bedroom home went through a three-week marketing campaign and sold at auction in the fourth week, Martin said.
Martin said the auction drew plenty of interest and came down to a final four bidders, but the house sold to a local buyer.
"There was a selection of buyers from different places, some were from out of town, some were local, but at the end of the day it was a local buyer," he said.
"It shows that the locals here see value in the property and potential in the house."
The house was built closest to the beach on the 857sq m site which had the potential to be subdivided, Martin said.
"It is one of the most unique sites on Oceanbeach Rd," he said. "The distance between the house and the beach is a short distance. A lot of other beachfront properties have other houses on the same driveway."
A close neighbour, who did not want to be named, said he had bought his beachfront property for $6m less in 1989.
"It was easier to get a beachfront property back then," he said.
The neighbour said he had bought the holiday home for $300,000 and had since renovated but had no plans to move or sell.
"We love it here. It was a dunger of a house, but it had a great section," he said.
He said the $6.3m home was not built when he and his partner arrived.
Data from OneRoof shows that property prices in Mt Maunganui have surged more than 54 per cent in the last four years, jumping from a median sales price of $425,000 in 2014 to $658,000.
It is popular with retirees and has been a target for cashed-up baby-boomers from Auckland.
Although the suburb boasts many luxury-style apartments and houses, the median sales price for a three to four-bedroom house has dropped from $985,000 in 2017 to $840,000 this year.
A Real Estate Institute of New Zealand spokeswoman said data from January 1, 2017, to April 30, 2018, showed the highest sale price in Tauranga City in this period was $2.6m at Ascot Drive, Papamoa.
QV Tauranga general manager Melanie Lewis said the latest data showed the median house value for Mount Maunganui was $869,050.
"Mount Maunganui offers destination eateries, boutique shopping, excellent weather, a great walk and, of course, one of New Zealand's top beaches," she said.
"This appeal as a lifestyle destination combined with continued diversification and growth of the wider Tauranga economy is driving high demand and value growth in the region."
Lewis said supply could become constrained due to limited geographic space in Mount Maunganui which will also contribute to higher property values in "such an appealing location".
- Oceanbeach Rd
- 3 bedrooms
- 3 bathrooms
- 3 toilets
- 2 lounges
- 1 dining room
- 1 study
- 2 garage car spaces