Tauranga's property value performance post-Covid-19 lockdown has been "solid" with experts predicting a "hot market" in the next few months.
Local property experts have reported being busier than ever with people rushing to buy property, with some calling it the "perfect storm".
OneRoof's latest Property Report showed for the year to March 25, all suburbs showed positive growth with Matua, Bellevue, Tauranga South and Mount Maunganui registering double-digits.
Since lockdown, six suburbs were down on the index - Tauranga South, Tauranga Central, Mount Maunganui, Ōhauiti, Judea and Matua. However, sales volumes in these areas have been low.
Valocity director of valuation and innovation James Wilson said Tauranga's performance post-Covid had been "solid but not spectacular".
Wilson said property values on the index jumped just 3.1 per cent since March 25 with the median value sitting at $730,000.
"First-home buyers continue to dominate but investors are starting to move back into the fray, increasing their share of registrations to 18.8 per cent in the last quarter."
Valocity director of valuation and innovation James Wilson. Photo / File
OneRoof editor Owen Vaughan said Tauranga was enjoying some "pretty big sales" post lockdown.
"There are big lists in buyer activity, both within town and from outside. That's from the Auckland market looking to put its money in nicer locations, as well as investors coming back to the market.
"It's a really great place to be to capitalise on this big wave of enthusiasm in the property market right now."
Overall, Vaughan said Tauranga was coming out of lockdown fairly well.
"We are still putting in a solid effort ... It is likely it is going to be a hot market for months to come.
"There was still going to be extra attraction to beachfront locations. When those front sections come up they seem to be flying out the door."
OneRoof editor Owen Vaughan. Photo / File
Managing director of the Realty Group Ltd, which operates Eves and Bayleys, Simon Anderson said he did not expect to see the level of catchup the property market was experiencing currently and there had not been any election effect on the market.
"It's caught up to the point where we were at last year, which is exceptional market behaviour.
"We are seeing people rushing to property as a safe place to be."
Anderson said most of the activity was "local people buying local" either their second properties or homes for their children.
"The shortage of supply available for those trying to enter the property market or those moving into Tauranga is where we see the market move quicker than normal."
Managing director of the Realty Group Ltd, which operates Eves and Bayleys, Simon Anderson. Photo / Andrew Warner
General manager of Tremains Bay of Plenty and Waikato, Anton Jones, said the property market had "gone crazy".
"It's busier now than we've ever seen it. The demand is just huge, there are multiple buyers for property."
First National Real Estate Tauranga general manager Cameron Hooper said every company was talking about low levels of stock across all price bands in the market.
General manager of Tremains Bay of Plenty and Waikato, Anton Jones. Photo / George Novak
"With demand like this it can only push prices up - and backed with high consumer confidence and open home turnouts it's the perfect storm right now.
"There's pressure on all locations and price points but we find the under $650,000 market the hottest right now, which is unfortunate for our first-home buyers and investors."
Hooper said activity since lockdown was going well due to low interest rates, with the company's sales volumes reaching 318 last month.
He said people were confident in the state of Tauranga's property market.
First National Real Estate Tauranga general manager Cameron Hooper. Photo / Supplied
Oliver Road Estate Agents partner Jason Eves said the market continued to be active with strong listing inquiries since lockdown and a noticeable increase in "serious interest" from Auckland and returning ex-pats.
"We are starting to recognise a significant increase in requests for appraisals, which we would usually expect at this time of year as people consider selling their homes over the late spring/summer."
Eves said since lockdown the company had sold nine properties in the Western Bay of Plenty ranging from $1.1 million to $3.1m, and nine in Tauranga ranging from $1.2m to $2.4m.
Real Estate Institute of New Zealand figures showed the total value of sales in Tauranga City in the 12 months to September was $2,476,780,000.
Chief executive Bindi Norwell said there was no denying the Bay of Plenty was seeing a strong real estate market, with an uplift in both the number of properties sold and median prices.
"In fact, in September Rotorua District, Tauranga City, Western Bay of Plenty and Whakatane all saw record median prices showing just how buoyant the market is."
Golden Homes Bay of Plenty general manager Saint Whatuira said their sales had been up in Pāpāmoa and Ōmōkoroa.
"We have over 100 houses currently at different stages under construction. We would be 20 per cent up from what we would normally have under construction.
"The issue we face is the lack of land, and the cost."
Is your suburb on the up?
UP! Matua Value change in 12 months to March 25 12.7% Value change since March 25 -1.7% Median property value October 2020 $800,000 Median property value October 2019 $740,000 12-month change in $ $60,000 12-month change in % 8%
Bellevue Value change in 12 months to March 25 11% Value change since March 25 1% Median property value October 2020 $605,000 Median property value October 2019 $535,000 12-month change in $ $70,000 12-month change in % 13%
Tauranga South Value change in 12 months to March 25 10.4% Value change since March 25 -7.8% Median property value October 2020 $650,000 Median property value October 2019 $590,000 12-month change in $ $60,000 12-month change in % 10%
Mount Maunganui Value change in 12 months to March 25 10.5% Value change since March 25 -4.3% Median property value October 2020 $840,000 Median property value October 2019 $765,000 12-month change in $ $75,000 12-month change in % 10%
DOWN! Tauranga South Value change in 12 months to March 25 10.4% Value change since March 25 -7.8% Median property value October 2020 $650,000 Median property value October 2019 $590,000 12-month change in $ $60,000 12-month change in % 10%
Tauranga Value change in 12 months to March 25 12.2% Value change since March 25 -8.8% Median property value October 2020 $735,000 Median property value October 2019 $687,500 12-month change in $ $47,500 12-month change in % 7%
Mount Maunganui Value change in 12 months to March 25 10.5% Value change since March 25 -4.3% Median property value October 2020 $840,000 Median property value October 2019 $765,000 12-month change in $ $75,000 12-month change in % 10%
Ohauiti Value change in 12 months to March 25 7.4% Value change since March 25 -3.7% Median property value October 2020 $830,000 Median property value October 2019 $775,000 12-month change in $ $55,000 12-month change in % 7%
Judea Value change in 12 months to March 25 5.6% Value change since March 25 -5.3% Median property value October 2020 $575,000 Median property value October 2019 $510,000 12-month change in $ $65,000 12-month change in % 13%
Matua Value change in 12 months to March 25 12.7% Value change since March 25 -1.7% Median property value October 2020 $800,000 Median property value October 2019 $740,000 12-month change in $ $60,000 12-month change in % 8%
