House values in Waihi Beach have jumped nearly 10 per cent in one year, with a property in the area now estimated to be worth more than $800,000, according to Quotable Value's latest quarterly data.
The data showed the estimated median value of a home in Waihi Beach jumped 9.9 per cent from $731,250 in March 2017 to $803,600 in March 2018.
A home in the area was estimated to be worth $806,400 as at April 30 — a 30.1 per cent increase from $617,500 since the last market peak in October 2007.
OneRoof data showed more than a quarter of Waihi Beach residents were aged 60-plus.
A OneRoof spokesman said the suburb's coastal charms had been a magnet for wealthy baby boomers for more than a decade and a half.
"Much of the sales activity of the last five years has been driven by retirees who have sold up in Auckland and have relocated to Tauranga or those looking for a holiday home," he said.
Analysis of recent sales showed premium prices were still being achieved for good quality stock at the upper end of the market.
Simon Anderson, chief executive of Realty Group, which operates Eves and Bayleys, said Waihi Beach's popularity was not a surprise.
"If you think about Waihi Beach, there's a typical lag time in the market and what we are seeing is with the interest in Mount Maunganui and Pukehina, with those beachfront properties, Waihi Beach has now become of interest."
Tauranga Harcourts managing director Simon Martin expected areas such as Mount Maunganui, Bethlehem, Papamoa and Waihi Beach had higher value properties due to their proximity to the beach.
Buyers were looking for lifestyle rather than return on investment, he said.
"Mount Maunganui is unique in the fact it has the most amazing beach and all of the aspects of a top-end city on your doorstep."
First National Mount Maunganui, Tauranga and Omokoroa owner Anton Jones said new builds had contributed to the 5 per cent increase in the estimated median value of homes in Omokoroa from $775,900 in March 2017 to $814,950 in March 2018.
"It has had a big growth with many lovely homes out there which have some good water views."
Homes in Te Puke jumped 6.9 per cent in value and 5.5 per cent in Pukehina.
Ray White Pukehina's Rochelle Carter said Pukehina was recognised as a favourite holiday destination and was attracting more permanent residents.