Matua has become the second Tauranga suburb to join the million-dollar club, according to a new house price report.
CoreLogic's Mapping the Market 2021 report showed Matua has reached a median property value of $1 million.
Meanwhile, the city's cheapest suburb, Parkvale (also known as Merivale) - topped the charts for growth in median values in the last 12 months, reaching $586,900.
Senior property economist Kelvin Davidson said Mount Maunganui was the first suburb to crack the million-dollar mark just last quarter.
"Its median value is now $1.11m, while Matua has also gone to $1m," he said.
"Parkvale is the cheapest. However, Parkvale has topped the growth ranking (18.9 per cent) over the past 12 months, with Matua's gain ($132,300) the largest in dollar terms."
According to the Real Estate Institute of New Zealand, there were 114 sales in Matua, 519 in Mount Maunganui and 36 in Parkvale in the 12 months ending in February.
Bowls Matua president Cliff Osborne has lived in Matua for 21 years and said there had been many changes since 2000.
"A lot of houses have had face lifts and a lot of people were adding Airbnbs. A lot of people are doing up their gardens too and investing in landscaping."
Osborne said the bowls club was an asset to the community with the area boasting lots of great amenities and good bus routes.
"It's a quiet suburb, close to the sea. We just fell in love with our house."
Matua Primary School principal Marcus Norrish said the school had a growing roll of more than 500 children as younger families moved into the area.
Norrish said the fact Matua was now a million-dollar suburb reflected the area's popularity and showed it was in high demand.
"It's a popular place to live and has a lovely community. People love being part of it."
Matua Residents Association president Richard Kluit said Matua was popular because it was a peninsula.
"The fact it has got harbour on three-quarters of its site is such an attraction. It's got good amenities and is close to town and easy to get around.
"There is also the Matua saltmarsh right on your doorstep and Ferguson Park is popular with families."
Kluit said the suburb had changed from a "retirees suburb" to a good mix of young families seeking to be near good schools.
"The school tends to be a real hub where people know each other."
Managing director of the Realty Group Ltd, which operates Eves and Bayleys, Simon Anderson said Matua is a traditional Tauranga suburb with "beautiful" sights and homes.
"It's not surprising it's moved into the million-dollar club. It's really been rediscovered."
Meanwhile, Parkvale was the most "affordable unaffordable area" as median values were still above the First Home Grant housing cap, he said.
"But it's not surprising we've seen that's where the biggest growth is because we've seen so much interest there from investors and first home buyers with interest rates where they are over the last 12 months."
REINZ acting chief executive Wendy Alexander said median prices across the Bay of Plenty have been increasing significantly over the last couple of years.
This was particularly seen in Tauranga and Rotorua, which had traditionally been popular with buyers for lifestyle and affordability reasons, she said.
"Although many would question how affordable these cities have become in the last few months."
Alexander said it was interesting to see how close Matua's median sale price for the year to February ($870,000) had come to Mount Maunganui's ($871,000).
"But given the good school zones, the great community amenities and fantastic water views, it's not surprising how quickly prices have risen in the suburb of late.
"Looking forward, it will be interesting to see what impact the LVR changes and recent government housing initiatives will have on the local market."
Managing director of Tremains Bay of Plenty Anton Jones said a Matua home sold at auction for well above the vendors' expectations a few weeks ago.
"Matua is very popular and is showing some really good growth signs.
"The Mount has some higher values homes as well as some more affordable properties like townhouses. It's certainly a nice place to be."
"Parkvale has also seen some growth," he said. "It has got some nice views and has always been a place that is potentially ready to go."
Mount Maunganui College principal Alastair Sinton said the Mount was popular for its schooling and "geographically blessed" with Mauao, Moturiki (Leisure Island) and "stunning beaches" that encourage an active lifestyle.
"It has handy and popular entertainment options, good sporting facilities and a strengthening cultural vibrancy."
The school's roll had grown by an average 100 students in each of the last four years.
Sinton said he had lived in the Mount since 2019 but his connections stretched back to childhood.
"My grandparents lived on Macville Rd and my mum and aunties all grew up here and attended Omanu School then Mount Maunganui College.
"The whole area has changed a lot in that time."
Merivale School principal Tom Paekau said Merivale was popular for its affordable housing and access to the city, surf and countryside.
Paekau said the school had 175 pupils in 2019 before it peaked at 196 last year.
"In Term 1 2021 we are already at 184 with numbers still coming in and three more terms to go.
"The roll has increased to the point that we are now needing more classrooms."
The area's demographic had changed in the last 12 months.
"There are a few more homeowners that have moved in but we have also had an influx of new families that are renting.
"It is a great neighbourhood with whānau values who look out for one another."