Te Puke's average house value jumped more than $200,000 in the year to January. Photo / Getty Images
Te Puke's average house value jumped more than $200,000 in the year to January. Photo / Getty Images
Te Puke's average house value jumped more than $200,000 in the year to January as the Western Bay of Plenty hits a new record above $1 million for the first time.
The latest OneRoof/Valocity figures show Te Puke's average value was $904,000 in January 2022, up from $688,000 in January2021.
Meanwhile, the Western Bay of Plenty's average home value climbed $334,000 to reach above the million-dollar mark for the first time at $1,316,000 in January 2022.
Omokoroa's average value jumped to $1,263,000 from $967,000, Waihi Beach was now $1,571,000 from $1,161,000, and Katikati climbed to $873,000 from $660,000.
First National Real Estate Te Puke general manager Cameron Hooper. Photo / George Novak
"We expect these to be town prices because they are distinctly different to the Mount, Papamoa and Tauranga market but places like Te Puke and Katikati have caught up with Tauranga now.
"Paengaroa and Pongakawa will be the next hot spot to buy."
Marketing techniques have also changed, he said.
"Most people now want to see a fixed price or be able to negotiate because they have had enough of auctions where they can't see a price."
Valocity senior research analyst Wayne Shum. Photo / Supplied
Valocity senior research analyst Wayne Shum said the Western Bay market experienced steady growth leading up to the initial Covid-19 lockdown in 2020, followed by rapid rises as demand continued to outpace supply.
"The lack of listings and rising prices in Tauranga have pushed buyers into surrounding areas such as Omokoroa, Katikati and Te Puke," he said.
Meanwhile, the latest Real Estate Institute of New Zealand data showed median house prices in the Western Bay have made records.
In December 2021, the median residential property price in the region was $904,500 - a 23.2 per cent annual increase.
Katikati's median house price climbed to $745,000 in December, Omokoroa reached $1,175,000, and Te Puke recorded $750,000.
REINZ acting chief executive Rowan Dixon said the Western Bay, like many regions in New Zealand, has had considerable price growth.
"Part of the reason for this growth is an influx of buyers as people move from urban centres such as Auckland, opting for areas nearby that offer a lifestyle change but are still an easy commute.
"As demand goes up, unless stock increases, so do prices."
Dixon said beachside towns have a certain draw for buyers, with Waihi Beach a particularly popular area, demonstrated in the value of property.
The suburb experienced steady price growth in the past five years, with the median price for a residential property in 2021 being $1,350,000, he said.
"Similar can be said for areas such as Katikati, Omokoroa, and Te Puke. Prices in these suburbs have seen a significant uplift over the past two years.
"When we look at the bigger picture, as prices increase, lifestyle expectations change, and people look beyond the usual urban centres or rural pockets, we inevitably see demand — and consequently price growth — having a growing impact on more regions."
Tremains Bay of Plenty managing director Anton Jones. Photo / George Novak
Tremains Bay of Plenty managing director Anton Jones said the Western Bay was becoming more popular for many reasons.
Buyers who may not necessarily be able to afford to live in Tauranga so they look outwards for more affordable options and Aucklanders were eyeing up bigger sections in the Western Bay, he said.
"The Western Bay has plenty of lifestyle blocks. We are seeing that in the prices that some of the lifestyle blocks are getting. Some of those are considerably more than what you can imagine."
Western Bay of Plenty's average house values
WBOP: Jan 2022: $1,316,000 Jan 2021: $982,000 Jan 2020: $850,000 Jan 2019: $798,000 Jan 2018: $765,000 Jan 2017: $710,000
Katikati: Jan 2022: $873,000 Jan 2021: $660,000 Jan 2020: $591,000 Jan 2019: $570,000 Jan 2018: $554,000 Jan 2017: $531,000
Omokoroa Jan 2022: $1,263,000 Jan 2021: $967,000 Jan 2020: $827,000 Jan 2019: $777,000 Jan 2018: $774,000 Jan 2017: $743,000
Waihi Beach Jan 2022: $1,571,000 Jan 2021: $1,161,000 Jan 2020: $958,000 Jan 2019: $891,000 Jan 2018: $837,000 Jan 2017: $762,000
Te Puke Jan 2022: $904,000 Jan 2021: $688,000 Jan 2020: $592,000 Jan 2019: $551,000 Jan 2018: $522,000 Jan 2017: $488,000
