QV figures show Rotorua's upward house values continue

Housing stock in Rotorua remains low say local agents. Photo / File

The upward trend of Rotorua's property values and downward trend in availability has continued but local real estate agents hope the change in season may alleviate stock pressures.

The latest QV House Price Index was released this week and showed Rotorua's average value rose 6.2 per cent in the year to August 2018 and 3.1 per cent in the past three months.

The current average value is $432,758.

QV property consultant Derek Turnwald said a growing population meant there was strong demand for residential properties in between $300,000 and $500,000.

"Values of Rotorua residential property is still well below the national average and is perceived as being comparatively affordable.

"There is a lack of listings in all value ranges and most properties are being sold under multi-offer situations."

LJ Hooker principal Malcolm Forsyth said traditionally spring and summer brought an increase in properties on the market, and that was likely to happen again.

He said Rotorua still had cheaper houses prices compared to other cities.

"We've always been just behind everybody else and there's no reason for it. Rotorua has got so much going for it."

Recent vendor Deborah Haley was surprised when her Owhata home sold in a little over a week.

It went on the market last week, the first open home was September 2 and Haley accepted a conditional offer on Wednesday.

Haley didn't want to reveal how much the offer was but said she had received multiple offers on the three-bedroom, two-bathroom Lockwood home.

Haley said the Rotorua market seemed to have demand from buyers.

"Rotorua definitely seems to be on the rise. People like it because it's central and because of the lifestyle available around here."

First National principal Ann Crossley said the figures were expected and predicted.

"I'm hoping we will experience a spring lift. There are days that feel like there's a bit more activity be we've still got a deficit of properties in the city."

Crossley said Rotorua was still affordable when compared to other cities.

"Our first-home buyers can still buy something under that $400,000 limit.

"Though we've grown where some have started to slow down, I think there will always be a difference in values."

Professionals McDowell Real Estate owner Steve Lovegrove said the consistent and regular increases should be celebrated.

"These consistent increases create a certain reliability in the market.

"We've still got low stock though. We're on the precipice of spring and that can bring more houses."

Lovegrove said while rising prices could be a concern for first-home buyers, they also meant investments were less risky.

OneRoof editor Owen Vaughan said the QV figures were in line with those published in the OneRoof Property Report earlier in the week.

"The positive growth seen in Rotorua is a reflection of its strong local economy, proximity to Tauranga and the attractive price point of property there. Spring is expected to bring with it an increase in listings, giving buyers and sellers more options and providing more movement in the market after a quiet winter period."