Median house prices in Waihi Beach also soared in June. Photo / NZME
Median house prices in Waihi Beach also soared in June. Photo / NZME
House prices in the Western Bay overtook those in Tauranga in the last month due to 23 sales of more than $1 million and two multimillion-dollar transactions.
But the increase was felt even more in the Kaimai Ward where median house prices have almost doubled in the last year. Maketū,Te Puke, Katikati and Waihī Beach have also seen strong increases.
However, the district's mayor Garry Webber says the statistics tell only one side of the story.
The latest Real Estate Institute of New Zealand's monthly property report showed the Western Bay reached a new record median house price of $970,000 in June.
REINZ regional director Neville Falconer. Photo / Supplied
REINZ regional director Neville Falconer said the district's previous record was $855,000 in March.
"This now makes it the most expensive district in the Bay having overtaken Tauranga City."
The data shows the Western Bay's median house price climbed 22 per cent in a month -from $795,000 in May to $970,000 in June - and rose 44.3 per cent in the year to June, up from $672,000 in June 2020.
Tauranga's median house price is now $941,000 creeping up just 0.1 per cent since May and 30.7 per cent from $720,000 in June 2020.
Median prices in the wider Bay of Plenty jumped 31.3 per cent year-on-year, up from $640,000 to $840,000.
REINZ chief executive Jen Baird. Photo / Supplied
REINZ chief executive Jen Baird said median house prices in the Kaimai Ward increased 92.1 per cent annually, jumping from $820,000 in June 2020 to $1,575,000 last month.
Baird said there were also strong increases in median prices in the Maketū-Te Puke Ward (+49.1 per cent to $835,000 up from $560,000) and Katikati-Waihi Beach Ward (+38.6 per cent to $915,000 up from $660,000).
"There were 23 residential properties in the Western Bay that sold in excess of $1 million in June, with the top sales of the month at $2m and $3.025m respectively."
There were also 13 sales in the $750,000 to $999,000 price bracket, nine in the $500,000 to $749,000 bracket and just one in the $250,000 to $499,000 bracket.
"I think it is a reflection of the demand for property in and around Tauranga."
Te Puke, Whakamarama, Ōmōkoroa, Bowentown and Athenree were all popular locations, he said.
"We are really seeing the demand from Tauranga and the Mount spreading to surrounding areas like Katikati and Te Puke and people are willing to pay good money."
First National Real Estate Tauranga general manager Cameron Hooper. Photo / NZME
First National Real Estate Tauranga general manager Cameron Hooper said a few big sales would always skew the data.
Most decent stock in Te Puke was selling between $700,000 and $800,000 and properties in Pukehina on the beachfront were going for $1m or more, he said.
Hooper said a 150sq m home in Ōmōkoroa estimated to sell for about $750,000 had offers on it for $830,000.
"Lifestyle properties are selling for well over $1m," he said.
"The great divide is disappearing between Tauranga and Te Puke."
Western Bay of Plenty mayor Garry Webber said while the data told one story it did not paint a full picture of the Western Bay.
"I can take you to many places in Maketū, Waihī Beach, Katikati, Ōmōkoroa where there are properties nowhere near that value.
"People will look at those house prices and think it is a wealthy area but they overlook the soft underbelly of the district."
Western Bay of Plenty mayor Garry Webber. Photo / NZME
Webber said, on one hand, Zespri figures show the latest Gold 3 kiwifruit licences were selling under the tender process for on average $550,000 per canopy hectare - $150,000 more than last year.
"The kiwifruit industry is doing so well and as local government, we have to encourage that because that employs people and when people are employed they can afford houses."
But, he said, the other side of the story was homelessness.
"Central and local government must work together to intervene in the marketplace and make sure those affordable houses and rentals are actually being built."
Median house price growth
Record:
Western Bay of Plenty District June 2021: $970,000 - up 22.0% May 2021: $795,000 June 2020: $672,000 - up 44.3%
Tauranga City June 2021: $941,000 - up 0.1% May 2021: $940,000 June 2020: $720,000 - up 30.7%
Wider Bay of Plenty June 2021: $840,000 - up 2.4% May 2021: $820,000 June 2020: $640,000 - up 31.3%
