Rotorua poised to gain from Auckland bubble

FILE

Auckland's housing bubble is beginning to roll over Rotorua with prices set to rise, says one real estate agent.

Ian McDowell of McDowell Real Estate said he had noticed an increase in people relocating to Rotorua after selling up in Auckland.

"People see that buying in Rotorua, they are getting very good value for money.

"People come down from Auckland having sold their home for a good amount and they can buy a home here with money left over in the bank."

He said an increase in buyer demand was starting to affect some house prices.

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"It is starting to lift our prices in certain areas."

However, so far the year-on-year increase in house prices on Rotorua is just 0.3 per cent, according to the latest figures from QV released yesterday.

The average house price was $275,919 as of April 2015.

Nationally, April property values increased 8.3 per cent over the past year and 2.6 per cent over the past three months. This put values 22.4 per cent above the previous market peak of late 2007.

QV national spokeswoman Andrea Rush said the Auckland property market continued to dictate property values nationwide.

"The steepening of the national index is indicative of the sharp rise in Auckland values over the past six months," she said.

"While Hamilton, Tauranga, Wellington and Christchurch have continued to show a steady, moderate rise in values, Auckland has continued its rapid rise, with many areas seeing double-digit increases in values since November."

Loan-to-value ratio restrictions were also still having an affect on values, she said.

"Dunedin is the only main centre where values decreased slightly since February and the housing market there along with many other provincial towns around the country is showing flat or decreasing home values, as the loan-value ratio restrictions continue to make it difficult for first-home buyers to enter the market."