Buyers eye Rotorua for homes

Rotorua property market is booming

Buyers are eyeing up Rotorua as the next place to invest, with Aucklanders looking to the city as stock dries up in Tauranga.

The combination of Auckland investors, people choosing to retire in Rotorua and first-home buyers taking advantage of low interest rates is behind an increase in interest in Rotorua properties, agents say.

Their comments come as the average home value in Rotorua has increased slightly year-on-year to $271,414, according to QV's July residential price movement index.

But values dropped slightly on the three months ended July.

Karen Worley, group sales and marketing manager of Realty Services, which operates Eves and Bayleys Real Estate, said the company was starting to see increased inquiries - "particularly from Aucklanders".

She said, while there had been an increase in inquiries from investors from Auckland, agents were also seeing Aucklanders retiring to Rotorua.

Mrs Worley said the increase in interest had happened over the past four weeks, on the back of stock drying up in Tauranga.

"People are looking at Rotorua as the next place to invest."

What Realty Services was not yet seeing was young families moving to Rotorua, Mrs Worley said.

Properties in demand by investors tended to be ones "showing a good return" around the $200,000 to $400,000 range. Those looking at retiring were looking at a slightly higher price range.

"The other thing is first-home buyers' interest has picked up again."

REINZ Rotorua district forum leader Ian McDowell, of McDowell Professionals, said he believed values had gone up more than the figures.

He said properties in the $300,000 to $450,000 price range were most in demand but there had been a lot of sales in the $150,000 to $250,000 range.

Mr McDowell said interest was across the board, with investors, out-of-town buyers and first home buyers in the mix.

Out-of-town buyers had traditionally looked at areas such as Tauranga and Mount Maunganui but prices and values in those areas had "gone up considerably", he said.

"They see Rotorua as good value. Long may it continue."

Mr McDowell said agents were seeing quite a lot of properties attract multiple offers.

Ray White's Anita Martelli said her company was experiencing a "very busy" time.

Buyers were out there with multiple offers on many properties and homes being snapped up quickly, she said.

"I don't think it [QV figures] gives a true reflection. We have been busy across all the price ranges."

"It certainly has become a sellers' market."

Mrs Martelli agreed there had been a lot of interest from Auckland buyers.

QV Rotorua figures

* Average current value - $271,414

* 12-month change, up 0.3 per cent

* 3-month change, down 1.6 per cent