Tauranga home values reach more than $700,000 with top end in demand

Tauranga's average house value was now $702,850. Photo/File

Tauranga home values rose 1.7 per cent year on year but dropped 0.2 per cent in the past three months, according to new data.

The latest monthly QV House Price Index showed the average value in the city was $702,850.

The Western Bay of Plenty market rose 1.9 per cent year on year and dropped by 0.2 per cent in the past three months. The average value in the district was now $629,627.

QV Tauranga property consultant Steven Dunn said the top-end of the market continued to sell well.

"Vendors are still achieving good sales prices, with demand continuing to trend upwards as people seek a lifestyle change from larger centres such as Auckland," he said.

Dunn said low property supply across most of Tauranga and Western Bay of Plenty was also supporting value growth.

"The only exception to this is in Pāpāmoa where supply exceeds demand and value growth is subdued," he said.

"In saying this, the rate of growth has dropped when compared to this time last year. We're seeing prices moderate, as many buyers consolidate after a period of sustained growth."