Tauranga suburb median house value jumps 109pc in five years

Long term Judea resident Anne Prendeville says her view is good for the soul. PHOTO/GEORGE NOVAK

House prices have jumped more than 100 per cent in five years in one Tauranga suburb, new figures show.

Data compiled by Quotable Value New Zealand reveals Judea had the biggest median price change, jumping 109.9 per cent between June 2012 and June 2017 - or from $259,200 to $509,800.

Prices fell back slightly to $502,300 in July.

In large increases, Judea was followed by Brookfield with a 94.4 per cent rise in five years, climbing from $313,350 to $554,600 and Parkvale on 82.9 per cent, growing from $231,250 to $427,250.

But median values eased in July, according to the statistics, with Mount Maunganui posting the highest value in the city at $816,550, down from $817,350 in June.

Parkvale registered Tauranga's lowest median value overall in July at $430,300, up slightly from $427,250 the previous month.

QV registered valuer David Hume said the Tauranga and Western Bay of Plenty market had seen strong growth in the last two years.

''A combination of continued low-interest rates, out of town investment and a general upswing in the property cycle have all contributed to this growth.

''The market has stabilised throughout 2017 as the latest round of LVR restrictions brought in during 2016 have had the desired effect or slowing the rate of value growth.''

Judea, along with the rest of Tauranga, had been popular with out of town investors, he said.

''It has recovered strongly from the drop in house values witnessed in the post GFC [Global Financial Crisis] period.''

Simon Anderson, chief executive of Realty Group, which operates Eves and Bayleys, said Judea was an attractive area for investors and was "best value for out of town buyers".

''All of a sudden you have all this interest in suburbs of Tauranga . . . that are lower value, which lifts the price heavily when buyers compete on it.''

Meanwhile, Mount Maunganui was always about ''location, location, location''.

''People want to live at the Mount and have a Mount address and it's a great place to live, which hasn't changed.''

First National Mount Maunganui, Tauranga and Omokoroa owner Anton Jones said historically, lower value properties were sought after by investors and first home buyers, which drove demand.

''They get a double whammy from both markets. ''

Often, home buyers that bought in those suburbs tended to ''do them up'', refurbish, or renovate, he said, which lifted the profile of the neighbourhood.

Judea was an appealing area in its own right.

''It has some nice aspects and views and its proximity to town is attractive with the increasing volumes of traffic from the incoming people.''

There was also more disposable income at the Mount, and any areas near water and the beach were popular.

''Those coastal areas seem to go up quite a lot and beachfront properties have gone up significantly, so that is going to increase those median prices.''

Tauranga Harcourts managing director Simon Martin said if you knocked out a few first home buyers and investors, the properties selling in those areas were higher priced.

''That will have a dramatic effect on the median sale price because the median is the middle figure in the list of sales and that is part of the increase. You won't see it to the same extent in the more expensive suburbs.''

The Mount was a supply and demand scenario, he said.

''If the land is not available and people want to get in there then they are going to have to pay a premium.''

Meanwhile, the QV statistics revealed the highest Western Bay of Plenty median price hike was in Pukehina, which skyrocketed 232 per cent in the five years to June, rising from $239,500 to $658,750 in June and $658,750 in July.

Judea 'good for the soul'

''Good for the soul and calming'' is how retired deputy school principal Ann Prendeville describes the view from her deck in Judea.

''It's beautiful at night when the water is flat and the moon comes up. It's just amazing.''

The landscape changed constantly and the suburb itself had grown since she moved into the neighbourhood in 1990.

Her late husband Tony chose the 1960s home after being blown away with city vistas of the harbour and the property's strong bones.

''The house had been rented out for years and wasn't in a good space. But he saw the potential, he looked at the floor and the view and he was gone.''

The central location was another bonus, she said.

''I am eight minutes from the hospital and 10 minutes from St Mary's School where my granddaughter goes and I used to teach. Town is so close.''

Judea was also a friendly neighbourhood Mrs Prendeville said and very community minded with an active marae.