Rising lakes sales bode well for region

ENCOURAGING SIGN: Ray White auctioneer James Alexander with the property sold recently at Lake Rotoiti.

Increased interest in the lakes real estate market is indicative of a general upturn in interest in Rotorua real estate which is leaving agents cautiously optimistic.

Ray White recently sold a waterfront Lake Rotoiti property for more than $1.2 million and has cited the sale as proof of an increasingly active market.

Meanwhile, the luxury Lake Okareka Lodge, which has a going rate of $10,000 a night and has hosted celebrity guests, is for sale by Bayleys.

Lake Okareka Lodge

It is also listing Tongariro Lodge on the shores of Lake Taupo, which regularly attracts Hollywood movie stars.

Ray White co-owner Anita Martelli said in the past four or five weeks they'd noticed an increase in inquiries from people looking at properties around the lakes.

Mrs Martelli said interest was spread across properties at all the lakes, which was good, and had resulted in some impressive sales over the $1 million mark, including the Rotoiti property.

"Most of them have been for holiday homes, but a couple have been people looking for permanent homes."

She said the market had been positive and she believed the next lot of real estate sales figures would reflect that.

Part of the appeal of the lakes was fond memories among people who had holidayed there in the past, while others saw it as good-value buying compared with the Auckland market.

McDowell Professionals managing director Ian McDowell said properties at the lakes had been fairly quiet for quite some time but there were signs it was starting to pick up.

He said they had noticed an increase in out-of-town buyers coming into the Rotorua market again - in the lakes area and in general.

In the past two months, 57 per cent of the properties his company sold were to buyers outside Rotorua.

"That's a really good sign."

The out-of-town buyers were a mix of investors and people relocating to Rotorua, he said.

"There is quite a strong market in the $300,000 to $450,000 range. They are selling well."

Mr McDowell said he'd also noticed a trend of people downsizing properties - either moving to smaller homes when children left home or because they wanted funds for travelling.

He said demand was across various areas.

"There's strong demand for Lynmore but it's hard getting stock ... there's been quite a lift in Rotoiti and Okareka too."

Mr McDowell said he was cautiously optimistic of an upturn in the market.

"We are pleased with what is happening and hopeful it will carry on."

Bayleys salesman Chester Rendell, who was marketing Lake Okareka Lodge and Tongariro Lodge, said both were being sold as going concerns owned by separate vendors.

Lake Okareka Lodge is Thai-owned and has a standard rate of $10,000 per night booking the entire property.

Mr Rendell said its target was mature, wealthy European and South East Asian free-independent travellers and corporates, but it could alternatively be bought and converted back to a private residence.