Median sale prices still rising in Rotorua

The number of Rotorua properties selling is continuing to jump and median prices are on the rise. Photo/File

Investors turning their eyes to area

The number of Rotorua properties selling is continuing to jump and median prices are on the rise - but the district remains one of the most affordable places in the region to buy.

Agents say the affordability of Rotorua and good value for money is partly behind the jump in sales, which increased 66 per cent with 158 properties sold last month compared to 95 in May last year.

Real Estate Institute of New Zealand figures, released yesterday, show the median sale price in Rotorua in May was $285,250 compared with $240,000 in May last year and $275,000 in April this year.

However, the number of properties sold last month was slightly fewer than April's bumper month when 183 properties changed hands.

Real Estate Institute Industry of New Zealand spokeswoman for Rotorua and First National principal Ann Crossley said the number of sales was a good sign.

"We have recovered nicely but are still way more affordable that any of the regions around us with the exception of the likes of Kawerau."

The median in Tauranga in May was $550,250 while Taupo's was $365,500.

Mrs Crossley said a shortage of listings was still a problem and people were having to compete to get properties, with many multi-offer situations. She said First National did not tend to list with fixed prices - "we would rather let the market set the price" - but properties were selling above the price suggested in appraisals.

Professionals McDowell Real Estate Rotorua owner Steve Lovegrove said he knew of several occasions where people had offered more than the listing price in a bid to get the property they had their eye on.

Mr Lovegrove said this week a person had phoned asking what was wrong with a property priced around $800,000 because they thought it was too cheap for what was on offer.

"We had a property a week or so ago with four offers, all four of them were over asking price. It shows the risk of a listing price even if you think it is ambitious."

He said listing prices sometimes worked with properties such as investments where it
drew a line in the sand but trying to value properties at the moment was an "absolute wildcard" as to what buyers would think they were worth.

Ross Stanway, chief executive of Eves and Bayleys Real Estate, said there was increasing wider awareness of the value for money Rotorua offered. He said Rotorua had always been a strong investment market.

Some people who had been investing in Auckland were now finding it difficult to get a return, so were looking at areas such as Rotorua.

Ray White Rotorua co-owner and principal Anita Martelli said the market was busy across investors, first-home buyers and existing home owners moving up to bigger properties.

Ms Martelli said there was still good value properties available but it was competitive to secure them.