Growing demand for high-end Rotorua homes

Rotorua's booming property market is paying off at the high end with more interest in the $1 million-plus houses and more people considering building their dream home.

The Rotorua Daily Post reported this week Rotorua's average house value, according to QV, had risen 25.9 per cent in the year to October, to $362,583.

And the city's property market shows no signs of slowing with one real estate agent saying there is consistent activity across all price bands.

Among the most expensive properties listed on realestate.co.nz yesterday was a four-bedroom home with uninterrupted views of Lake Tarawera and a massive 11-bedroom, nine-bathroom home in Tikitere.

At the other end of the scale, among the cheapest properties were modest two and three-bedroom homes, suitable for investors, in Pohutukawa Dr, Frank St and Beech Pl.

Ray White co-owner Anita Martelli said the Tikitere property had been on the market a while but recently garnered some good interest.

"It's a huge property and very versatile. We've had several groups show interest recently which is great because it has been on the market a while.

"I think the recognised options in these $1m-plus properties is part of Rotorua's growth."

Ms Martelli said a lot of the high-end properties were listed without a price tag but many sellers were looking for more than $1m.

One of these properties is a six-bedroom, four-bathroom mansion on Matipo Ave with a pool and sweeping city, rural and lake views.

"The interest at the higher end of the property market is definitely growing, there's a good feeling about Rotorua at the moment and it's starting to show."

Bayleys Rotorua manager Beth Millard said Rotorua "has its big kid pants on now".

"As interest in the high-end market increases so does people's confidence in building their dream home because they know if they do end up selling, there are buyers out there interested in the city."

Ms Millard said it was not just interest being shown in the high-end market, the sales were happening too.

"Expectations of properties above the $1m mark is that there has to be a point of difference. This often translates into spectacular lake or city views."

First National principal Ann Crossley said properties selling for under $200,000 were more likely to only attract investors.

"All the properties at that level are there for the same reason, the risk is high. Investors are number crunchers so they are going to look at what they are investing in the property and gauging their return against the risk."

Ms Crossley said interest was slow in the lowest price band compared with others.

"The Pohutukawa Dr property has been on the market for about three weeks which, in the current market where houses are selling in 10 days, is quite slow. We are seeing a lot more interest in the mid to high range."

But Harcourts Rotorua residential sales consultant Hielke Oppers said he was seeing consistent activity in every area of the market.

"There is good activity in all the price brackets. Those properties at the lowest band are cheap for a reason - they're investment types, not attracting other buyers. The new restrictions on investors could slow the market slightly, but we haven't seen that."

Three of the most expensive

1.

1135c State Highway 30, Tikitere

Price: $1,900,000

Features: 11 bedrooms, nine bathrooms, 1.10ha land, eight car spaces

2.

161 Spencer Rd, Lake Tarawera

Price: $1,700,000

Features: Four bedrooms, three bathrooms, Lake Tarawera views

3. 25 Cookson Rd, Tikitere
Price: $1,375,000
Features: Three bedrooms, one bathroom, 6.76ha land, panoramic lake, city and rural views

Top three cheapest
1. 21A Frank St, Koutu
Price: $137,000
Features: Two bedrooms, one bathroom. Tidy inside and heat pump for the winter. Carport included and small back yard.

2. 11A Beech Pl, Owhata
Price: $139,000
Features: Three bedrooms, one bathroom, two car spaces

3.

85A Pohutukawa Dr, Owhata

Price: $147,000

Features: Two bedrooms, one bathroom, outdoor decking area

• Based on properties with listed prices