First home buyers and investors are competing for homes in Rotorua's more affordable suburbs, agents say, as a new report reveals where to find the city's lowest property values.
CoreLogic's Best of the Best mid-year report shows how Rotorua has performed in the first half of the year, with biggermedian-value growth recorded in the city's more affordable suburbs.
Fordlands recorded the lowest median value at $358,450 but grew 30.1 per cent in the last 12 months. Houses in the suburb also had the shortest time on the market - taking just nine days to sell.
"Even the slowest growing suburb in Rotorua over the past 12 months (Lynmore) has still had a rise of 16.8 per cent."
RDP_property_update_June_OL
Simon Anderson, managing director of the Realty Group, which operates Eves and Bayleys. Photo / NZME
Simon Anderson, managing director of the Realty Group, which operates Eves and Bayleys, said the more affordable areas have seen more competition in the marketplace from investors and first home buyers.
Anderson said bigger median-value growth was recorded in the city's more affordable suburbs, with Fordlands recording a "significant" 30.1 per cent rise.
"At a median price of $358,000 you have to say that is a first home buyer and investor market."
First National Rotorua principal and Real Estate Institute of New Zealand Rotorua spokeswoman Ann Crossley. Photo / NZME
However, First National Rotorua principal and Real Estate Institute of New Zealand Rotorua spokeswoman Ann Crossley said it was surprising Fordlands' median value was still that low.
"There have been some good-value sales there but maybe there has been some low ones as well.
"But there is very little under $400,000 anywhere these days."
Crossley said first home buyers and investors were "snaffling up" lower-priced properties.
"I'm not surprised the suburbs performing the best were first home buyer and investors markets. They are the suburbs with the biggest growth and where there is more competition."
Crossley said there was still "huge demand" for property.
"The frenzy has gone out of the market because there is not as many listings. But when a listing does come up and it hits those target areas, there is a lot of reaction."
Rotorua Professionals McDowell Real Estate co-owner Steve Lovegrove. Photo / NZME
Rotorua Professionals McDowell Real Estate co-owner Steve Lovegrove said Fordlands' popularity was driven by investors, developers and first home buyers.
However, he said higher-value, well-presented properties were still in high demand, with houses in the $700,000 to $800,000 market "just rocking out the door" with multiple offers.
Lovegrove said June was a "very busy month" but the number of listings had dropped.
"We are seeing the amount of available stock falling like a hot rock."
Ray White Rotorua principal Anita Martelli. Photo / Supplied
Ray White Rotorua principal Anita Martelli said it was mostly first home buyers and "a mix of" investors buying in Fordlands.
"There are a few out there who are typically looking at those areas because it gives them a chance to get into the market."
