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Home / Bay of Plenty Times

Values up as Aucklanders buy

Amy Wiggins
By Amy Wiggins
Education reporter, NZ Herald.·Bay of Plenty Times·
14 Jan, 2015 10:03 PM4 mins to read

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Katie Bell and partner Rhys Carter bought their first home last year.

Katie Bell and partner Rhys Carter bought their first home last year.

A shortage of houses for sale driven by the increasing number of Aucklanders relocating to the Western Bay saw Tauranga's average residential property value rise 3.7 per cent last year.

The latest Quotable Value (QV) figures showed the rise to an average value of $458,521 between December 2013 and December 2014.

In the Western Bay of Plenty, values rose 7.7 per cent to $423,562 between December 2013 and 2014.

Tauranga real estate agents put the increase in values largely down to the growing number of Aucklanders moving to the area.

Realty Services chief executive Ross Stanway said buyer interest from Auckland had "been a real feature of the Bay".

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"These people are young and old, with families, across the whole spectrum. There are people realising they can sell their property in Auckland for what is, in relative terms, a very, very high price and they can come down to Tauranga or Papamoa and buy a house and have money to spare."

The key issue last year was the low number of homes on the market which, when coupled with the extra demand, had pushed prices up slightly, he said.

Tauranga Harcourts general manager Nigel Martin agreed.

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"There's more people coming down for job opportunities. The job creation that is happening in town is going to drive the property market in 2015."

Mr Martin said stock levels had been low for much of last year, which had helped push prices up.

LJ Hooker Tauranga franchise owner Neville Falconer agreed low stock levels had played a part. "There's a steady flow of buyer interest. If we had more listings we would sell more ..."

QV Tauranga's Jessica Videbeck agreed many of those buying were from out of town. "A lot of people moving down from Auckland, mainly people with young families, were unable to afford to buy in Auckland ..." Values in the Western Bay were benefiting from a boom in the kiwifruit market with investors buying in Te Puke with a view to providing accommodation for kiwifruit pickers.

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Te Puke was also becoming more popular amongst those looking for a more affordable place to buy a first home as it was better value for money than Tauranga and still within commuting distance, she said.

Tauranga and Western Bay of Plenty had been like much of the country, with some flat periods and some slight declines, which was probably caused by uncertainty in the market associated with lending restrictions, interest rate hikes and an election, she said.

Sales volumes picked up by around 20 per cent in the Western Bay of Plenty in December compared to earlier in the year and Tauranga sales volumes were tracking along to at a similar level to the rest of the year.

All three agreed 2015 shaped as an even better year than the last.

First home made possible with parents' help

Katie Bell, 23, went halves with her parents on her first home for herself and partner Rhys Carter, 25 (pictured) to live in, last October.

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Ms Bell said buying a first home on her own would not have been possible.

"This is kind of a stepping stone to help us get set up so we're pretty lucky. The long-term goal is definitely to have our own place and stand on our own two feet."
Finding a house in their price range was a challenge.

"Especially in under the $400,000, it's quite limited," she said.

The three-bedroom house on Maunganui Rd which Ms Bell bought had been on the market for quite some time before the asking price dropped to a figure in the high $400,000s.

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