Lake Okareka is one of Rotorua's new million-dollar suburbs. Photo / File
Lake Okareka is one of Rotorua's new million-dollar suburbs. Photo / File
What do Hamurana, Lake Okareka, Lake Tarawera and Matipo Heights have in common?
They are the latest suburbs to join Rotorua's million-dollar club, new data shows.
The latest property report from OneRoof and its data partner Valocity, themed The Rich List, showed four Rotorua suburbs reached a $1 million medianvalue or more in the past year.
Hamurana reached $1.1m, Lake Okareka $1.2m, Lake Tarawera $1.3m and Matipo Heights $1.06m.
They join Ngongotaha Valley and Tikitere, which already have median values above $1m, in the million-dollar club.
Valocity director of valuation and innovation James Wilson. Photo / Supplied
Wilson said Rotorua's million-dollar suburbs were lakeside locations with quality homes and some lifestyle properties offering privacy and "pleasant surroundings" while being close to amenities and employment base.
"In Rotorua, many are locals relocating and out of towners buying to live or as holiday homes."
Demand was outpacing supply in these suburbs pushing prices into the million-dollar level, he said.
"Buyers need to do your homework and know your affordability.
"The pent up demand is now driving buyers to surrounding suburbs in the near future, pushing these prices higher."
Simon Anderson, managing director of the Realty Group Ltd, which operates Eves and Bayleys, was not surprised Rotorua's lakeside suburbs were in the million-dollar club.
"There's been another waterfront wave that has come through Rotorua like there was in 2006 because of the desire to own a lake property."
Managing director of the Realty Group Ltd, which operates Eves and Bayleys, Simon Anderson. Photo / File
Anderson said Mount Maunganui had become unaffordable for some who now saw Rotorua as good value.
"People are willing to look for alternative waterfront property."
Rotorua Professionals McDowell Real Estate co-owner Steve Lovegrove said lifestyle and lakeside property was proving very popular.
"You almost wouldn't get a look in for a residential lifestyle property in Rotorua for anything less than a million now."
Lovegrove said many people from outside the city were moving to Rotorua to "enjoy the beauty of the area".
Rotorua Professionals McDowell Real Estate co-owner Steve Lovegrove. Photo / File
Lovegrove said people were trading their million-dollar-plus suburban home in bigger cities for lifestyle, lakeside living in Rotorua.
"We're starting to see a new buyer coming through.
"The nearly-retired who have decided to cash up their rental properties and buying themselves a new one - it's what's called the mansion effect.
"Over the next few months that is going to balloon."
First National Rotorua principal Ann Crossley. Photo / File
First National Rotorua principal Ann Crossley said the suburbs in Rotorua's million-dollar club all offered an "X-factor" either by the lakefront or with lots of land and water views.
Crossley, a Real Estate Institute of New Zealand spokeswoman for Rotorua, said it was surprising how many people were shopping in the million-dollar market.
"It used to be a rarity."
Tremains Rotorua sales manager Megan Davies was not surprised more suburbs had reached a million-dollar median value, with a Lake Okareka property settling for above $1m last week.
Davies said people craving a lifestyle change but could not travel were shopping in the million-dollar market.
"We do sell more million-dollar homes now, particularly as travel restrictions have allowed us to be more appreciative of our natural beauty and resources.
"But they tend to be a smaller market and in very distinct areas such as Okareka, etc, supply will always dictate.
"We have sold to out of towners who have waited years for a special holiday or retirement home or change of pace."
But she said the million-dollar homes were a "fairly bespoke market" and most suburbs with high-value homes had a few properties at the lower-edge for "aspirational buyers" to get into.
Rotorua's Rich List:
Median values: May 10, 2021 - May 10, 2020
Hamurana $1,125,000 from $860,000 Lake Okareka $ 1,230,000 from $885,000 Lake Tarawera $1,345,000 from $930,000 Matipo Heights $1,060,000 from $915,000 Ngongotaha Valley $1,230,000 from $1,087,500 Tikitere $1,370,000 from $1,005,000
Highest settled sales price in the 6 months to May 10, 2021 Hamurana $1,500,000 Lake Okareka $4,500,000 Lake Tarawera $2,000,000 Matipo Heights $1,185,000 Tikitere $2,640,000
