'More buyers than listings' sees property prices surge 12.2 pct in Tauranga

Houses in one part of Tauranga have seen median prices rise 12.2 per cent in one year. Photo/file

Houses in one part of Tauranga have seen median prices rise 12.2 per cent in one year, according to new figures from the Real Estate Institute of New Zealand.

The REINZ figures showed the largest rise in median house price in Western Bay of Plenty was in the Te Papa-Welcome Bay ward, jumping from $508,000 to $570,000 year on year, a 12.2 per cent increase.

Houses in the Maketu-Te Puke ward area had the second biggest increase in the Western Bay, with the median house price rising 10.2 per cent from $490,000 in April 2017 to $540,000 last month.

Tauranga as a whole saw median house prices increase 3.1 per cent from $635,000 in April 2017 to $655,000 last month.

REINZ regional director Philip Searle said the Bay of Plenty market was still showing strong numbers.

"There are still more buyers in the middle of the market than there are listings.

"There is a good interest in the upper end of the market, with the majority of the out-of-town buyers being from Auckland."

Searle said buyers were becoming less negotiable and the competition for new stock was "intense".

Looking forward, Searle said the sales results for the end of autumn would depend on listing numbers, "especially with the increased interest from first-home buyers".

Anton Jones, owner of First National in Mount Maunganui, Tauranga and Omokoroa, said Welcome Bay had more top-end properties for sale than usual.

"In the last few years there have been a lot more houses selling in the upper area."

Jones said Ballintoy Park at the end of Waikite Rd had become a popular area to buy into.

"The whole place is pretty popular with some big increases for some of the buyers who have bought there over the last two years."

Rochelle Carter from Ray White Pukehina said the Maketu-Te Puke area was recognised as a growth area.

"We now have a higher percentage of buyers looking for permanent living, they like having the choice of schools plus they are attracted to the location and the community."

Ray White Pukehina sold four houses in the Maketu-Te Puke area that went unconditional in March 2018.

Carter said prices had stabilised and buyers were taking their time to purchase.

"There is no hype like this time last year, although figures are relatively similar."

Simon Anderson, chief executive of Realty Group which operates Eves and Bayleys, said April was one of the few months which was above last year's sales in the same month.

Anderson called it a "post-election bounce".

"What we are seeing is a bit of a lag come through from late spring.

"The market is stable as far as price goes but there are more transactions happening."

Tauranga Harcourts managing director Simon Martin said there was an increase in sales volumes in the past month and an increase in the number of people coming through open homes.

Martin said there was "good activity" in the upper end of the market, with plenty of lifestyle properties for sale.

HOUSE SALES:

Tauranga City:
Increase: 11.1 per cent
April 2017: 235
April 2018: 261
March 2018: 306

Western Bay of Plenty:
Increase: 37.3 per cent
April 2017: 51
April 2018: 70
March 2018: 53

Te Papa-Welcome Bay:
April 2018: 76
April 2017: 79

Maketu-Te Puke:
April 2018: 27
April 2017: 16