Suburb Spotlight: Bethlehem median house price more than $1 million, agent not surprised

Bethlehem has become one of the latest Tauranga suburbs to join the $1 million club. Photo / Andrew Warner

Bethlehem has become one of the latest Tauranga suburbs to join the $1 million club but a real estate agent is surprised it took this long.

Property sale figures provided by OneRoof show the median value was $1,120,000 as of last week — 70 per cent more - or $460,000 higher - than five years ago.

And residents say they are drawn to its location, amenities and greenery.

Tauranga real estate agents told the Bay of Plenty Times, for its Suburb Spotlight series, the quality of properties and its location were Bethlehem's biggest drawcards.

Eves Realty Bethlehem branch manager Craig Hilton said the suburb had enjoyed a post-Covid-19 boom like much of Tauranga.

"Bethlehem was hovering at a relatively high median value but that increase has certainly taken us to an obvious median excess of a million dollars," he said.

"It still enjoys that Kiwi dream of standalone homes, a bit of space around the homes, mature trees, we've got wide streets and a very popular town centre."

Craig Hilton, Eves property Bethlehem branch manager. Photo / George Novak

This time last year, the median price for a Bethlehem property was $805,000.

Hilton thought Bethlehem had, other than Pāpāmoa, the highest intensification of retirement villages spread throughout the suburb.

Being in the catchment area for three good schools — Bethlehem Primary, Bethlehem College and Te Wharekura o Mauao — was another plus.

"What that means is that while a lot of people like it for schooling, I think lots are there to support the family," Hilton said.

"If mum or dad is in one of the villages, it's nice to be within a stone's throw of them. It's very much a family environment.

"Don't get me wrong, we do have clients who invest in the location but generally, it's very much a family-orientated neighbourhood."

Hilton remembers driving in the country between Bethlehem and the city but the general expansion of Tauranga meant it was now much more central.

Other attractive Bethlehem features include the size of its sections, the shopping centre and services like a supermarket and medical centres.

"Generally your houses and your sections are a scale larger than you'd find in more 'modern' developments," Hilton said.

"The age of Bethlehem is pre the likes of Pāpāmoa and The Lakes — the sections are that much larger."

Ken Sowerby moved to Bethlehem in 2007 after he and his wife bought a property in a new subdivision on Carmichael Rd to build a house.

They had been living in Ōtūmoetai beforehand and Sowerby said value for money was at the heart of their decision to relocate there.

He was not surprised the median property value had increased to over $1 million as the market had increased similarly throughout New Zealand.

"Bethlehem is a good area, we chose it because we thought it was desirable," Sowerby said.

"One of the real aspects we liked was we did have quite a bit of open space behind us at the time, that's changed since the retirement home built its extension.

"We still have kind of a peak of Mount Maunganui. It was the open aspect that drew us to this part of the subdivision, as it was then."

Another drawcard was its position within the city, Sowerby said. When they first moved there he still had work in Auckland and living there meant it was easy to head north. The CBD was also within an easy distance.

Bethlehem resident since 2007, Ken Sowerby. Photo / George Novak

Another local, Lesley, was also drawn to Bethlehem for its location but because of its rolling hills and how leafy it is.

The town centre was another incentive because it had everything Lesley needed within walking distance: "a doctor, dentist, lawyer, accountant, a supermarket".

Elsewhere, an anonymous resident, said he was surprised at Bethlehem's property value.

"My mate sold the house opposite us for $1 million, a three-bedroom standard. I was thinking he'd get $750,000 for it. I'm actually gobsmacked."

Bethlehem Town Centre is popular among locals and visitors alike. Photo / George Novak

Bethlehem College had 1882 students, and principal Larne Edmeades lived locally and said his family enjoyed the "friendly neighbourhood".

"We enjoy being close to extended family, [the] great local facilities including parks and interesting varied walkways and cycleways," he said.

"Traffic management and congestion always require considered, ongoing attention. One neat thing that I have noticed is that many more children bike to school here at Bethlehem College.

"It is great that parents have the confidence that their children can manage that safely, as I think that there are many benefits for children — and for mums and dads too not having to sit in traffic."

Meanwhile, Bethlehem Town Centre was also enjoying a busy period with a boost in retailer confidence.

Marketing manager Dan Weck said its unique position around numerous retirement villages, subdivisions and beside a state highway was a massive plus.

"We're a bit different from some of the other centres being an outside mall but we've got heaps of parks right outside stores," he said.

"Confidence has maybe picked up a little bit after last year and people haven't seen a downturn. We've filled all of our spare tenancies pretty much in the last month."

Simon Anderson, the chief executive of Realty Services Ltd. Photo / Andrew Warner

Simon Anderson, managing director of Realty Group, which operates Eves and Bayleys, said it was common for cities to grow northwards and Tauranga was no different.

"Pāpāmoa is a bit of an anomaly for [Tauranga], typically cities go north. You'll see Ōmokoroa grow and even Katikati has started to take off now," he said.

"It is a very sought-after area and if you get something on the market there you know it's going to go well.

"Quality and location are what you're after in real estate and Bethlehem's got it in spades. I'm surprised it's taken this long to reach the million-dollar figure."