Rotorua suburbs proving money-makers with surge in values

Houses across all Rotorua suburbs are proving to be money-makers, with property values city-wide showing substantial increases in the past five years.

But two suburbs in particular have seen values skyrocket, more than doubling in the same period of time.

Median values in Hamurana and Koutu have increased 147.2 per cent and 114.5 per cent respectively when comparing values as at November 1, 2013, and November 1, 2018.

These suburbs are followed by Western Heights, Ohinemutu and Selwyn Heights with median value increases of 94.7 per cent, 94.5 per cent and 93.2 per cent for the same period.

At the other end of the scale, Rotoiti Forest and Kawaha Point were the only two suburbs to experience less than 50 per cent growth in median values.

Rotoiti Forest has grown 35.9 per cent, while Kawaha Point has increased 48.8 per cent.

The city's median value has risen 16.8 per cent annually to $433,000.

Ray White co-owner Anita Martelli said value growth in Hamurana was "incredible" and could be attributed to a number of factors.

"Hamurana has lifestyle properties which are very sought after. Many have lake views and there's a good school nearby. The area offers you a rural lifestyle but it's not too far from town.

"There's been a definite surge in property requests for that area."

She said Koutu was desirable because it too offered lake edge properties but noted it was a "mixed area".

"The median value is reflective of the area being of high interest to first-home buyers and investors at that lower end, with the lake-edge properties fetching more."

At the other end of the scale, Martelli said she did not believe Kawaha Point's figures were a true indication of the area.

"Again, it is quite a mixed area so there have been sales in the area but many are at that lower end, whereas the lake-edge properties are held on to tightly in Kawaha Point."

She said the figures clearly showed Rotorua was in a growth period and would continue to be popular as an affordable place for people to buy.

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First National principal Ann Crossley said Rotorua had just had the "most amazing market correction", which was evident in the growth of values across the board.

"It's always about supply and demand. We've just had a population surge but no development to mop that up. Competition in the market will see prices and values continue to rise."

Crossley said there had been a spike in demand for lake edge and bach-type properties which could be contributing to demand in Hamurana and Koutu."

Crossley said given Rotorua's overall growth, it "almost doesn't matter where you get into the property market, just get in where you can".

"First home buyers buy with heart so if they like a house and it's in their price range, we encourage to buy because you'll come out of it with some equity."

Professionals McDowell Real Estate co-owner Steve Lovegrove said the common denominator between Koutu, Hamurana and Ohinemutu was the lake.

"Any property that has access to the water or water views is going to be attractive. Hamurana offers this while also having access to the state highway, making it desirable for people working in Tauranga who want to get on the property ladder and see Rotorua as a viable option."

Lovegrove said Kawaha Point was already a premium area before the Rotorua market boom, which he suggested could be the reason other areas were seeing more growth in values.

"They're playing catch up. In small areas like Ohinemutu, it only takes a few exceptional sales to drastically change the figures so that could be at play too."

He said it was unrealistic to expect to see the same level of growth in Rotorua in the next five years but said he "optimistically expects Rotorua to continue on its upward trajectory".

OneRoof.co.nz editor Owen Vaughan said Rotorua was still getting good growth, with those suburbs that had dropped in value, not dropping much.

"Affordability and close proximity to Tauranga have been the key drivers of growth in Rotorua.

"Growth slowed in the last quarter to 5.9 per cent but the figures suggest the market still has plenty of energy, although the drop in sales volumes indicate that growth Rotorua will eventually flatten."

Five year median value change
Fairy Springs2018: $370,000 2013: $210,000
76.2%
Fenton Park2018: $389,500 2013: $225,000 73.1%
Fordlands 2018: $205,000 2013: $115,000 78.3%
Glenholme2018: $481,000 2013: $315,000 52.7%
Hamurana2018: $803,500 2013: $325,000 147.2%
Hannahs Bay 2018: $341,500 2013: $190,000 79.7%
Hillcrest 2018: $426,000 2013: $255,000 67.1%
Holdens Bay2018: $391,500 2013: $235,000 66.6%
Kawaha Point2018: $491,000 2013: $330,000 48.8%
Koutu 2018: $311,000 2013: $145,00011 4.5%
Lake Rotoma2018: $365,000 2013: $230,000 58.7%
Lynmore 2018: $634,000 2013: $415,000 52.8%
Mangakakahi2018: $350,000 2013: $190,000 84.2%
Ngapuna 2018: $272,500 2013: $160,000 70.3%
Ngongotaha2018: $409,500 2013: $235,000 74.3%
Ohinemutu2018: $408,500 2013: $210,000 94.5%
Okere Falls2018: $565,000 2013: $325,000 73.8%
Owhata 2018: $414,000 2013: $235,000 76.2%
Pukehangi2018: $397,000 2013: $230,000 72.6%
Rotoiti Forest2018: $469,000 2013: $345,000 35.9%
Central 2018: $344,500 2013: $220,000 56.6%
Selwyn Heights2018: $367,000 2013: $190,000 93.2%
Springfield2018: $541,000 2013: $350,000 54.6%
Tihiotonga2018: $635,000 2013: $410,000 54.9%
Utuhina 2018: $409,000 2013: $245,000 66.9%
Victoria 2018: $377,000 2013: $237,500 58.7%
Westbrook2018: $484,000 2013: $275,00076.0%
Western Heights 2018: $331,000 2013: $170,000 94.7%
Whakarewarewa 2018: $331,000 2013: $172,500 91.9%