Rotorua Daily Post
  • Rotorua Daily Post home
  • Latest news
  • Business
  • Opinion
  • Lifestyle
  • Property
  • Sport
  • Video
  • Death notices
  • Classifieds

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • On The Up
  • Business
  • Opinion
  • Lifestyle
    • All Lifestyle
    • Residential property listings
  • Property
    • All Property
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
  • Rural
  • Sport

Locations

  • Tauranga
  • Te Puke
  • Whakatāne
  • Rotorua
  • Tokoroa
  • Taupō & Tūrangi

Media

  • Video
  • Photo galleries
  • Today's Paper - E-Editions
  • Photo sales

Weather

  • Rotorua
  • Tauranga
  • Whakatāne
  • Tokoroa
  • Taupō

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / Rotorua Daily Post

Rotorua property growth climbs while main centres stall

Katee Shanks
By Katee Shanks
Multimedia journalist·Rotorua Daily Post·
7 May, 2018 06:00 PM4 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

The "FOMO factor" is becoming increasing obvious within Rotorua's real estate market, according to Professionals McDowell Real Estate co-owner Steve Lovegrove.

The Quotable Value House Price Index has just released figures showing the average value of a Rotorua house has seen another year-on-year increase with a 7.6 per cent jump from April 2017.

The increase brings the average value of a home to $426,458 and is in line with the index showing higher growth in the regions than in main centres.

Lovegrove said low stock numbers continued to impact on the market.

Read more: Rotorua properties make $22.9 million 'profit' in three months
Rotorua property sales increase but median price drops as investors, first-home buyers drive market
Rotorua rentals attracting huge numbers to viewings

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

"This has been particularly evident in the past month. Buyers are being more cautious than ever but, because of the lack of choice, if a well-presented property comes on to the market they are prepared to pay an exceptional price.

"This is the FOMO [fear of missing out] factor," he said.

"People accept that if they do not want to miss out on the home they will have to reveal the entirety of their budget. It's about buyers putting their best foot forward to secure what they want."

Advertisement
Advertise with NZME.

Lovegrove said it was an interesting time within the market and, heading toward winter, the lack of stock could be exacerbated.

"If this is the case, it will continue to push the supply and demand which, in turn, will put pressure on prices."

He said the 7 per cent year-on-year increase was not unexpected and should be considered a "good result".

"That's more than Waikato or the Bay of Plenty."

Discover more

Better pay tops teachers' Budget wishlist

09 May 08:00 PM

Rotorua economy still growing

20 May 03:45 AM

Hillcrest home seller and buyer sing Rotorua suburb's praises

04 Jun 07:30 PM

Rotorua homeowners selling at profits

06 Jun 07:00 PM

While not wanting to pick what the winter and spring markets would look like, Lovegrove said the market had tracked "slow and steady" during the first four months of the year and he expected that to continue for the remainder.

"Sellers can be confident properties will continue to sell in a timely manner."

Ray White principal Anita Martelli said the market continued to experience "good growth" and that there was no sign of that changing in the near future.

"There is obviously a bit of pressure on buyers as stock numbers remain low," Martelli said.

"While new stock is coming on [the market], existing stock is still selling quickly."

She said multiple offers continued to be made for most properties.

Advertisement
Advertise with NZME.

"I can't see this changing. Interest rates are still competitive and Rotorua is still a desirable location."

LJ Hooker principal Malcolm Forsyth said looking at the 2.2 per cent increase in value over the past three months as opposed to year-on-year figures, there had been "a bit of slowing" down within the marketplace.

"To be fair that was expected," he said. "But that can be contributed to the lack of stock. We have people saying they want to make a move, they're ready to make a move, and they know their home will sell but who are not confident they will be able to find anything else to buy."

Forsyth said Rotorua had seen some real growth but it was not something that would continue forever.

"I expect a bit of levelling out but not necessarily a drop.

"There has been a cooling in Auckland and that is trickling down into the Waikato. It will happen here, possibly toward the end of the year."

Advertisement
Advertise with NZME.

He said new subdivisions had opened and interest was high, but "until there are more properties available, the shortfall will continue to drive the market".

"Going a few years back I recall homes were selling for $280 to $290,000 and people were saying they couldn't go any higher than that," Forsyth said.

"I think people are asking the same question now."

Simon Anderson, chief executive of Realty Group which operates Eves and Bayleys, said Rotorua had experienced incredible growth over the past two years.

"It had to start cooling at some stage and that's what is happening now," Anderson said.
"However, the lack of stock still being experienced in Rotorua means the market remains good for sellers."

He said the current market was now what would be considered "normal and sustainable" as opposed to the "frantic" market of 18 months ago.

Advertisement
Advertise with NZME.
Save

    Share this article

Latest from Property

Rotorua Daily Post

Helicopter pilot's off-grid Taupō cabin draws international interest

03 Jul 06:55 AM
Premium
Opinion

Property Insider: Foodstuffs' $380m expansion with new Pak'nSave sites in the works

24 Jun 12:00 AM
Premium
Property

'Māori are long-term investors' - learning from success and failure working with iwi

20 Jun 12:00 AM

From early mornings to easy living

sponsored
Advertisement
Advertise with NZME.

Latest from Property

Helicopter pilot's off-grid Taupō cabin draws international interest

Helicopter pilot's off-grid Taupō cabin draws international interest

03 Jul 06:55 AM

Vendor's love of TV westerns inspired him to build his own frontier home.

Premium
Property Insider: Foodstuffs' $380m expansion with new Pak'nSave sites in the works

Property Insider: Foodstuffs' $380m expansion with new Pak'nSave sites in the works

24 Jun 12:00 AM
Premium
'Māori are long-term investors' - learning from success and failure working with iwi

'Māori are long-term investors' - learning from success and failure working with iwi

20 Jun 12:00 AM
Premium
All rentals must meet five Healthy Homes standards by July 1

All rentals must meet five Healthy Homes standards by July 1

17 Jun 11:00 PM
Solar bat monitors uncover secrets of Auckland’s night sky
sponsored

Solar bat monitors uncover secrets of Auckland’s night sky

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • Rotorua Daily Post e-edition
  • Manage your print subscription
  • Manage your digital subscription
  • Subscribe to Herald Premium
  • Subscribe to the Rotorua Daily Post
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • Rotorua Daily Post
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP