CoreLogic's Best of the Best mid-year report shows how Rotorua has performed in the first half of the year. Photo / Getty Images
CoreLogic's Best of the Best mid-year report shows how Rotorua has performed in the first half of the year. Photo / Getty Images
Tauranga has only five suburbs with a median value under $700,000 a new report reveals, as competition heats up among first home buyers in the city's more affordable suburbs.
CoreLogic's Best of the Best mid-year report shows how Tauranga has performed in the first half of the year, with bigger median-value growth recorded in the city's more affordable suburbs.
Chief property economist Kelvin Davidson said only five suburbs in Tauranga now had a median value of less than $700,000.
Simon Anderson, managing director of the Realty Group, which operates Eves and Bayleys, said the more affordable areas have seen greater competition in the marketplace from investors and first home buyers.
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Stronger median value growth was recorded in the city's more affordable suburbs where people were making a move on the property ladder or securing their second home, he said.
Simon Anderson, managing director of the Realty Group, which operates Eves and Bayleys. Photo / NZME
"We are seeing strong growth in the areas of first home buyers, including Greerton, Parkvale, Gate Pā and Judea."
At the other end of the market, some houses in Ōtumoetai were selling above $1 million in the auction room, he said.
Anderson said value growth was "exciting" for the area but was not sustainable in the long term.
"How long is it before those five are not below $700,000?"
Managing director of Tremains Bay of Plenty, Anton Jones, said any property in the lower-priced bracket, including Parkvale, Greerton and Judea, was popular.
"They are certainly the first home buyer areas. Judea has been very popular because of its closeness to town."
But Jones said it had proved tougher for homebuyers in the last few months.
Managing director of Tremains Bay of Plenty, Anton Jones. Photo / NZME
"Vendors' expectations are still high and buyers' expectations are a lot lower in what they are prepared to pay."
There was also a shortage of property listings, he said.
"That is the only thing that is keeping prices up."
Greerton recorded the highest 12-month median value change of 23.3 per cent.
Greerton Village manager Sally Benning said Greerton had become a desirable place to live for many reasons.
"The centre has many retail and service providers that people want and need."
Greerton Village manager Sally Benning. Photo / NZME
The area has excellent schools and early-childhood care facilities for young families, medical facilities, bus services, free parking, sports grounds and a community hall.
"We have an amazing 'village' vibe that people love with iconic events like our annual Yarn Bombing, Christmas Show and beautiful Cherry Blossom Festival to name but a few.
"It all makes for a compelling reason why so many are choosing to call Greerton home."
