Papamoa beachfront section sells for record $1.7 million

An artist's impression of the Beaches precinct. The four sections that sold recently, one for $1.7 million, are highlighted in red. Image/Supplied

A beachfront section at Papamoa has sold for more than $1.7 million and set a new record for the suburb.

Statistics from REINZ reveal in the past three years only one section on Marine Parade at Mt Maunganui sold for more - at $2.5m in June 2015.

The 760sq m site at 1 Papamoa Beach Rd was being developed by Frasers Property as part of the 24ha Coast Papamoa Beach beachside estate on the Beaches precinct, a project that would create a 1.4ha shorefront community.

Frasers Property development manager Kranish Reddy said it was one of the last remaining areas of bare land close to Mt Maunganui so interest was understandably high.

The sale closely follows three neighbouring sections, all on the beachfront, which sold for a total of $3.53m in the past two months, he said.

"The sale of this exclusive section and its neighbouring beachfront sections illustrates how coastal property remains some of the most sought-after in the Bay of Plenty.''

The new owners of the section were a family of six that intended to build their family home on the site, he said.

Work also continued on the $10m retail development featuring a mini supermarket and restaurant on the opposite side of the road to the Beaches precinct. It was forecast to open before Christmas after Classic Developments bought the site off Frasers Property this year.

QV Tauranga registered valuer David Hume said the Papamoa Beach Rd section was close to Mt Maunganui where high demand for beachfront and well-located properties was driving up values.

''This is a strong result for land in this area.''

Managing director and business owner of Harcourts across the Western Bay of Plenty, Nigel Martin said there continued to be good demand for large homes on large sites near the beachfront.

He said more families were relocating to Papamoa and people were looking to invest significant amounts, as a number of large high-end homes were due to be constructed in the Beaches subdivision.

"The top end of the market remains strong across the entire Western Bay of Plenty, which bodes well for the region and the local economy," Martin said.

Simon Anderson, chief executive of Realty Services, which operates Bayleys and Eves, said sections available for sale in the Mount were dwindling and demand was strong.

''What we are seeing right across the Bay of Plenty region is there are still good buyers for those top-end properties. And if they can't find the property and a piece of land comes up they will build the house they want on it.''

Priority One projects manager Annie Hill said the provision of additional housing stock, particularly a desirable area close to the coast and with sea views, ''is great for the city from an economic development perspective''.

The growth was being driven by Tauranga's competitive advantages in terms of attracting people and new business, she said.

Meanwhile, commercial developments were designed to provide amenities for the strong residential growth forecast in the Papamoa East area.

''It is part of the SmartGrowth philosophy of 'live, work, learn and play', which allows people to access key retail, service and public amenities locally,'' she said.

Top recorded section sales to June
June 2015 - Marine Parade, Mt Maunganui - $2.5m
June 2016 - Shire Pl, Mt Maunganui - $1.25m
July 2016 - Tara Rd, Papamoa Beach - $1.02m
July 2014 - Rita St, Mt Maunganui - $985k
July 2016 - Te Maunga Lane, Mt Maunganui - $940k - Source REINZ

By the numbers
Beaches is Coast Papamoa Beach's final precinct
It is at 1 Papamoa Beach Rd
1.4ha will be developed into a shorefront community
Six sections have been sold, 17 remain for sale, starting from $650,000.