Residential property values in Tauranga City have risen 4.8 per cent over the past three months and 13.7 per cent year on year.
Values are now 6.6 per cent higher than the previous peak of 2007. The average value in the city is now $513,325.
Western Bay of Plenty homevalues have also continued to show solid increases rising 3.3 per cent over the past three months, 6.1 per cent year on year and values in the district are now just 0.4 per cent lower than 2007 levels.
QV homevalue Tauranga Registered Valuer David Hume said, "We are witnessing a continuing trend in the Tauranga market of very strong demand from local and out of town buyers."
"The majority of properties are selling at auction and those that are priced accordingly being turned over very quickly.
"The beach side suburb of Papamoa is continuing to show particularly high growth.
"There have been a number of section sales in the 'Coast' development there sold in the $280,000 to $360,000 price range, and the developer reports that 90 per cent of sales were to out of town buyers, in particular Aucklanders."
"The suburb of Welcome Bay is also expected to see good growth in the coming years with the recent commencement of construction on the Maungatapu underpass which is expected to be completed in 2018. The new road will alleviate congestion issues for the Hairini and Maungatapu roundabouts."
"We are also starting to see evidence of profit taking with a number of properties being turned over in quick succession as investors look to make quick capital gains in a very buoyant market."
