City of Sails house values have cooled as priced-out Aucklanders flock to the Bay of Plenty, new property figures reveal.
The figures, to be released tomorrow, show home values in some Tauranga suburbs rose by as much as 10 per cent in the quarter to December 2015.
Over the same period prices in most of the Auckland region fell.
In the QV.co.nz Property Report, free in tomorrow's Herald, the managing director of real estate agent Bayley's, Mike Bayley, says there is anecdotal evidence investors are now looking outside Auckland.
"We are hearing that some seasoned Auckland property investors have broadened their radar to the adjacent province of Bay of Plenty, Waikato and Northland," he says.
"Prices for houses in those areas have increased accordingly - with greater demand driving up values."
The over-heated market, soft summer sales and a lack of overseas buyers have all contributed to the Auckland slowdown, say experts.
But many are tipping an upswing in the next few months as foreigners return to the market, attracted by favourable interest rates.
The report shows the biggest decreases were on Auckland's North Shore. Schnapper Rock fell 5.1 per cent, Narrow Neck 4.8 per cent and Albany was down 4.6 per cent.
But Andrea Rush from QV says the decreases need to be viewed in context. In the year to December 2015, North Shore suburb values rose between 12 and 21 per cent.
The calendar year also saw huge gains in suburbs such as Manurewa East and Otara in South Auckland, where values rose 50 per cent. Overall the Auckland region was up 17.8 per cent year-on-year and the decrease of 0.7 per cent had only been seen over the past three months.
There are now 62 Auckland suburbs with a median price of more than $1 million. The prime central Auckland suburb of Herne Bay remains the only area to have hit $2 million with St Mary's Bay knocking on the door with $1.97 million.