Tauranga sunshine brings more houses to the market

Mount Maunganui looking east to Pāpāmoa. File photo

Vitamin D is contributing to Tauranga's buoyant property market according to local agents.

Figures released by REINZ highlight a record median price of $667,500 for Tauranga in October – a $7500 increase on the last record set in May this year.

Dee Crooks, head of communications at REINZ, said the record price came from sales in Mount Maunganui and Pāpāmoa.

"We've seen an 18.8 per cent, year-on-year increase to $683,000 in terms of price for the Mount and Papamoa while Otumoetai and Pyes Pa are actually down 3.6 per cent [$659,000 in 2017 to $635,000 this year] for the same period," Crook said.

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While prices have increased, the volume of properties sold has decreased from 243 in October 2017, to 192 in October 2018.

The figures come as no surprise to real estate principals working in the beach suburbs.

Simon Anderson, chief executive of Realty Group, which operates Eves and Bayleys, said sales of high-value homes in Mount Maunganui and Pāpāmoa impacted the record median.

"On the other side of the bridge [Ōtumoetai and Pyes Pa] first-time home buyers have taken advantage of the supply," Anderson said.

He said his business had not seen a decrease in sales.

Ray White Realty Focus in Mount Maunganui and Papamoa franchise owner Greg Purcell agreed the beach "side of the city" was going pretty well.

"I think, in terms of the Mount, it's very much supply and demand," Purcell said.

"As the city gets bigger there are parts of it that simply cannot grow any more despite the demand remaining. The Mount falls into the category."

He said October and March traditionally saw more stock come to the market but that had not happened this year.

"There's not a lot of properties for people to sell and move to so it's a catch 22 situation."

Purcell likened Pāpāmoa to Auckland's North Shore by describing it as a big suburb where residents only went into town (Tauranga) when they had to.

"Once they're there they stay so ... The appetite is still here but the availability is not and the sun increases the appetite a little more."

Anton Jones, general manager for Tremains, Waikato and Bay of Plenty, said Pāpāmoa had experienced a lull over the past two months but it had become popular again.

"This is evident by numbers coming through open homes and by the increase in inquiries we are now seeing. It could also be because summer is almost upon us and more people are wanting to get closer to the beach.

"For people who cannot get into the Mount, Pāpāmoa is the next best thing."

All agents said November was shaping up to be a better month.

"People have had an injection of Vitamin D," said Jones.