Rotorua property values rocketing

Find out which areas of Rotorua have had the biggest increase in values. Photo/File

Median property values in Mangakakahi and Utuhina have jumped 30.3 per cent, with Fairy Springs and Western Heights close behind, according to the latest Quotable Value New Zealand E-Valuer report.

Mangakakahi values increased from $197,000 to $256,000, while Utuhina rose from $246,750 to $321,450 in the 12 months to September 30.

The October value for Mangakakahi was $260,100, while Utuhina recorded $319,800.

The highest median value suburb was Lynmore, which at $518,400 was up 21.9 per cent on September 2015, with an October value of $521,200.

Harcourts Rotorua sales manager Clare Willis said Mangakakahi was reasonably close to town and had taken off 12 months ago.

"It's a good middle-of-the road investment area," she said.

Utuhina was on the fringe of town with some good streets, and the rise in both suburbs was not a surprise, she said.

"The investors were driving our market back then, but we're not seeing as much activity from them now because the 40 per cent deposit change has taken some of those investors out, giving first-home owners a chance to get back in. But there's not a terribly big amount of good property to choose from."

Steve Lovegrove, owner of Professionals McDowell Real Estate, said there was a lot of interest in property across Rotorua.

"Rotorua is a city that's in catch-up. People are looking for good places to live that are within easy access to amenities. And both those suburbs are good access areas."

He noted that quite a lot of Mangakakahi was actually industrial, but had good access to the city and was also on the fringe of areas that have become more popular recently such as Western Heights.

Anita Martelli, co-owner of Ray White Rotorua, said she wasn't surprised those suburbs had shown good growth.

"Mangakakahi is known for first-home buyers and for investors looking for rental returns, and we've been very busy with that," she said.

"It's changed recently with the 40 per cent deposit requirement, but there's still good interest in some of the investor market in that area."

Utuhina properties were still quite affordable, as well as being handy to good schools and shops. Bayleys Rotorua manager Beth Millard, who has been in real estate for 24 years, said the market was now achieving prices last seen in the 2006-07 property boom.

"I said at the time I didn't know whether I would ever experience a market like that again, and here we are. It's awesome for our property market."

Don Gunn, of Eve's Realty Rotorua, noted that Mangakakahi was an area where there had been a number of investors, some of whom were now looking at an opportunity to get out of the market and move to higher value properties.

Meanwhile, other investors were still wanting to get in.

"Not only that, but we are also seeing renewed interest by first-time buyers as well."

In neighbouring regions, Kawerau showed the biggest increase to September, up 46 per cent from $103,250 to $151,000. Opotiki and Whakatane also recorded increases of 22.3 per cent and 22.9 per cent respectively.