Rotorua property market driven by affordability, but agents say there's a shortage of listings

The sun is shining, lambs are being born and flowers are starting to bloom. They're signs that spring is well and truly here, which means summer must be just around the corner. The springtime also means the sun is shining on the property market. Prospective buyers have woken from their winter slumber and people have more of a spring in their step. Houses, particularly in the Bay of Plenty, look much better on the market during this time of year. Property Reporter Zoe Hunter talks to real estate agents about what to expect in the coming months.

Rotorua's property market has experienced a strong start to spring, with affordability being the main driver of the city's popularity.

However, some agents say a shortage of affordable property listings was the city's biggest challenge.

Figures from OneRoof and its data partner Valocity show Rotorua's median sales price jumped 7 per cent to $450,000 in the year to September.

James Wilson, Valocity director of valuation and innovation, said Rotorua's property market had remained buoyant.

Wilson said the majority of properties (19.9 per cent) sold between the $400,000 to $500,000 price bracket.

"The comparative affordability continues to be one of the main drivers of Rotorua's popularity, appealing to first home buyers in particular."

First-home buyers represented nearly a quarter (24.3 per cent) of all new registrations last month.

Simon Anderson, chief executive of Realty Group, which operates Eves and Bayleys, said a shortage of listings had continued to be the biggest challenge in Rotorua.

"There is a sheer lack of properties on the market at that affordable level."

Tremains Real Estate Rotorua manager Malcolm Forsyth said properties in the $350,000 to $500,000 price bracket were most popular.

"Rotorua is a very affordable market . . . But there is a real shortage of stock.

"We have had a real purge on that $350,000 to $500,000 market. That is probably what has helped keep prices up."

First National principal and Rotorua REINZ spokeswoman Ann Crossley was disappointed there had not been a spring lift in listings.

"It means the spring market is going to remain tight. People are going to have to make decisions if they want to buy property."

Rotorua's hot suburbs for sale price growth:

Glenholme 37.4 %

Owhata 31.5 %

Fenton Park 16.2 %

Ngongotaha 15.9 %

Victoria 15.2 %

Source: OneRoof Valocity