There are signs rampant house value growth in the Bay of Plenty is slowing, new OneRoof figures show.
But lifestyle properties remain in "hot demand", with strong value growth in the Western Bay and Tauranga rural fringe areas such as Ohauiti and Tauriko — Bay of Plenty's most expensive suburbwith an average value of $2.2 million.
Figures from OneRoof's latest House Price Report showed value growth in the region slowed from 5.7 per cent in the three months to the end of January to 4.4 per cent in the three months to the end of February. Year-on-year growth was 26.6 per cent.
Tauranga's average property value rose 4.5 per cent — or $54,000 — to $1,244,000 and Western Bay's climbed 8.1 per cent — or $99,000 — to $1,320,000.
OneRoof editor Owen Vaughan said the region's "solid" performance had largely been driven by buying activity in Western Bay of Plenty, Tauranga and Whakatāne.
Vaughan said Tauranga suburbs "dominated" by lifestyle properties performed the best, with Tauriko and Ohauiti recording value growth of more than 10 per cent.
Fifteen out of Tauranga's 23 suburbs had an average index value of above $1m, up from five suburbs a year ago, Vaughan said.
OneRoof editor Owen Vaughan. Photo / NZME
"Buyers unable to buy in the city have been forced to search in the neighbouring Western Bay of Plenty, which has driven the market there."
Vaughan said the "surge in activity" in the Western Bay was because buyers couldn't afford their dream properties in Tauranga, Pāpāmoa and Mount Maunganui and they were looking at the next best option.
"It has pushed people to look further afield for the type of properties they want.
"At the high end of the market, people who can't get into Tauranga, Pāpāmoa and Mount Maunganui are being outbid for those rare properties and are having to go further afield to satisfy those demands."
First National Real Estate Tauranga general manager Cameron Hooper said lifestyle properties in the region were "in hot demand" including Tauriko.
Hooper said Tauriko was popular among families shifting out of the city, with some properties getting pre-auction offers and "competitively" bid on at auction.
However, he said many people were hesitant to buy due to rising interest rates and he anticipated the market to shift in the coming months.
"You can put a line in the sand right now. What we have seen growth-wise will be a black-and-white difference between what we see going forward."
First National Real Estate Tauranga general manager Cameron Hooper. Photo / George Novak
He said a "huge amount" of stock had come on to the market in the last three weeks, with buyers now having "a few more choices" of properties.
"There is less interest in auctions or no-price advertising. The competitiveness isn't there at the moment because there is a lot of interest rate chat, so that has slowed purchasers' appetite for property."
He said the main buyers right now were locals who were looking to move up the property ladder and purchase their second or third home.
Tremains Bay of Plenty managing director Anton Jones. Photo / George Novak
Tremains Bay of Plenty managing director Anton Jones said lifestyle properties in Tauriko were "very popular" with families and Aucklanders looking for more space.
"There are certainly some beautiful houses there, and that all adds to it... people want the lifestyle.
"Tauriko is on good arterial routes in and out of town so it's pretty popular from that perspective. People coming from Auckland are preferring the lifestyle properties instead of suburban housing."
The pandemic and past lockdowns have contributed to more interest in this sort of lifestyle, he said.
But Jones said many families were buying houses in regional areas like Katikati, Te Puke and Ōmokoroa due to not being able to afford in Tauranga.
"If you can't afford Tauranga, you have got to go out the periphery regional areas."
'Lucky' journey onto the ladder
Tracey and Greg Phillips have bought their first home in Brookfield. Photo / Supplied
Tracey and Greg Phillips' journey onto the property ladder was "fairly quick".
The couple, who have a three-year-old daughter, have spent the past 10 years living in farm accommodation supplied through Greg's work.
But after deciding it was time for a career change, the Phillips have purchased their first-ever home in Brookfield.
Tracey and Greg Phillips have bought their first home in Brookfield. Photo / Supplied
Tracey Phillips said their new house was only the second open home they went to and they put in an offer straight after viewing it.
She said they were "lucky enough" to have a decent-sized deposit and KiwiSaver funds, only taking out a "small mortgage" from the bank.
Saving for their deposit had been "fairly easy" as the rent they paid while living in farm accommodation was minimal.
"We went in pretty green. We didn't really know what we were doing, to be honest," she said.
"But it has been a fairly quick journey for us. The financial part of it was probably the easiest part of it."
She said the three-bedroom, one-bathroom 1990s villa was on a "quiet little cul-de-sac", with an open-plan kitchen and lounge.
"We loved it, it was exactly what we wanted. We put in an offer the same day we viewed it. And that was that."
The location of the home was particularly appealing due to its proximity to schools, shops and other amenities.
"This is where we want to raise our daughter. It's a good place to be in the Bay.
The pair saw this purchase as a "stepping stone" and one day dreamed of building their own home.
"We can't wait. We are excited to be in it and open up a new chapter."
