Rotorua leads charge in property market

Rotorua is leading the charge in the property market while other areas around the country are coming off their peaks, say local real estate agents.

The latest Real Estate Institute of New Zealand figures show Rotorua's median house sale price rose to $350,000 last month - up 22.6 per cent on May 2016.

The number of houses selling is keeping pace with 121 sold last month, up from 117 in April. However, it is still down on 159 sold in May 2016.

The median sale price of $350,000 compares to a median of $340,000 in April 2017 and $285,000 in May 2016.

Simon Anderson, chief executive of Realty Services, which operates Eves and Bayleys, said Rotorua was still performing well.

"It takes a while to pick up but now we are still seeing this news (positive growth) coming through ... Auckland is coming off its peak, Tauranga is back to normal but Rotorua is still leading a charge."

He said like other areas there was demand for quality properties and that demand was seen at last month's Bayley's auction when 24 sections at Baxendale subdivision were sold in one night.

Harcourts Rotorua principal real estate agent Hielke Oppers said he wasn't surprised by the latest figures.

The number of properties on the market was the challenge though, as they had now dipped below 300 after being between 300 to 330, he said.

He said the lack of properties for sale meant it was a sellers' market, which was ideal for those who had a few properties and were wanting to cash up.

"Interest rates are still relatively low and there's lots of interest out there."

However, those selling and wanting to buy something else in Rotorua needed to be more cautious because there was more demand for houses on the market.

"Rotorua has done some amazing things. It is much more of a destination now than we have ever been. We are now a place to be, not what it was like 10 years ago.

"Mountain biking and other things have changed people's attitudes and we are a huge drawcard for people in Hamilton, Auckland and Tauranga. We are immensely popular now and that's why the demand for property is so great."

Ray White Rotorua co-owner and principal Anita Martelli said her firm had a record May and there was no sign of things slowing down just yet.

"It certainly shows we are still in growth mode."

REINZ figures May 2017

Median sale price
Rotorua: $350,000
Taupo: $445,000
Kawerau: $140,500
Opotiki: $245,000
Whakatane: $415,000
Tauranga city: $645,000

Houses sold
Rotorua: 121
Taupo: 120
Kawerau: 11
Opotiki: 6
Whakatane: 38
Tauranga city: 278