Western Bay house prices on the rise

House prices in Tauranga and the Western Bay have risen more than 5 per cent in the last year.

Tauranga City values rose 2 per cent in the past three months and 5.5 per cent year on year.
Values in the Western Bay of Plenty also rose 1.6 per cent in the past three months and 6.2 per cent year on year.

QV registered valuer Mairi Macdonald said the market was mixed depending on the suburb.

"As prices are increasing in more sought after areas more buyers are looking in cheaper suburbs," she said.

"Bethlehem is performing well due to a new town centre development. In Papamoa, a lack of new housing continues to put pressure on prices as demand remains steady for this beach location with relatively cheap prices compared to other city beach locations."

Low sales volumes in Tauranga and Mount Maunganui were likely due to the annual slowdown heading into the winter months.

"The Western Bay of Plenty and Te Puke areas are also seeing a drop in sales volumes which has led to a slight decrease in values and demand heading into winter," she said.