Fordlands' property values jump 152% in 5yrs to $381,500

Fordlands' median property values have skyrocketed 152 per cent in the last five years. Photo / Getty

Fordlands' median property values have skyrocketed 152 per cent in the past five years topping the charts of a new property report.

CoreLogic's Best of the Best 2021 report showed Fordlands' median values jumped from $151,200 in 2016 to $381,500.

Median values in the suburb climbed 33.7 per cent in the past year alone.

Value growth was slowest in Lynmore but the suburb still posted a 66.7 per cent increase over the past five years to reach $900,800.

Simon Anderson, managing director of the Realty Group Ltd, which operates Eves and Bayleys, said growth in Fordlands had been "incredible".

"I know it is a popular area and people are seeing true value there but I did not expect to see that much growth."

Managing director of the Realty Group Ltd, which operates Eves and Bayleys, Simon Anderson. Photo / NZME

Anderson said affordable suburbs were "critical" areas for first-home buyers and investors to buy and open up rental opportunities for others "because not everyone can afford to buy a home".

"All suburbs have a part to play in the property market."

However, lakeside suburbs had "really found their feet" this year especially in the second half of the year, he said.

CoreLogic chief property economist Kelvin Davidson said Rotorua's property market upturn across Rotorua in the past 12 to 18 months had been broad-based.

CoreLogic chief property economist Kelvin Davidson. Photo / Supplied

That growth was reflected in common drivers, including low mortgage rates and tight supply/listings, he said.

"However, the large gains in prices across each suburb will have also created affordability challenges.

"This will be an issue for Rotorua and Tauranga next year, slowing these markets – alongside things like higher mortgage rates, tighter lending rules, and a rise in listings."

Professionals McDowell Real Estate co-owner Steve Lovegrove said as the city population grew the focus drifted to more affordable suburbs.

"I think the next thing we will see is a price change for Fordlands.

Professionals McDowell Real Estate co-owner Steve Lovegrove. Photo / Andrew Warner

"As Rotorua grows we will potentially see suburbs like Fordlands start to change not only dynamically in price and value but it will start to change its demographic as well.

"It could go quite a long way over the next 10 years."

First National principal and Rotorua REINZ spokeswoman Ann Crossley said the properties people used to pay $190,000 for were now selling for double that and it was much easier to perform well from a lower value level.

First National principal and Rotorua REINZ spokeswoman Ann Crossley. Photo / NZME

Crossley said the homes that were selling in Fordlands had been "really well received" and were good solid homes that would "stand the test of time".

"It's one of those suburbs that will rejuvenate really well."

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