Tauranga property values up 21.8 per cent

The average value of a Tauranga property is now $557,313, according to the latest monthly QV House Price Index.

Residential property values in Tauranga City are up 8.6 per cent in the past three months and 21.8 per cent year-on-year.

Values are now 15.7 per cent higher than the previous peak of 2007. The average value in the city is now $557,313.

Western Bay of Plenty home values are also continuing to rise, up 5.9 per cent in the past three months and 12.0 per cent since January 2015. Values are now 5.4 per cent higher than the previous peak of 2007 and the average value in the district is now $450,068.

QV homevalue Tauranga registered valuer David Hume said: "Early indicators for the 2016 year are that the Tauranga market is continuing on from its strong year in 2015.

"Properties with subdivision potential or those that have been recently refurbished continue to be in strong demand."

"There are a number of frustrated home buyers out there as demand is outstripping supply and this situation was highlighted by people camping outside 'The Coast' sales office last weekend to secure a section in their latest release."

"Rents continue to increase throughout the region fuelled by strong migration to the area and investors looking for a better yield as values increase."

"QVhomevalue has also seen a noticeable increase in people wanting market valuation reports done for the bank so they can refinance and utilise recent equity gains in their properties."