Rotorua's property hotspots have been revealed in a new report showing where house prices are heating up.

The latest OneRoof property report showed property prices were rising in Tikitere, Waikite Valley, Horohoro, Ngākuru and Lake Tarawera.

Tikitere had the biggest rise in median value, with 9 per cent growth in the last quarter from November to January to $1,005,000.

Waikite Valley's median value climbed 8 per cent to $710,000, Horohoro jumped 6 per cent to $685,000, Ngakuru 6 per cent to $670,000 and Lake Tarawera 4 per cent to $930,000.

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However, property prices had cooled off in Mamaku, which dropped 8 per cent in median value to $270,000 while Reporoa and surrounds dropped 4 per cent to $490,000.

Fairy Springs, Koutu, Mangakākāhi, Ngāpuna and Ōhinemutu all had no change in median value in the last quarter.

OneRoof editor Owen Vaughan. Photo / File
OneRoof editor Owen Vaughan. Photo / File

OneRoof editor Owen Vaughan said Rotorua continued to experience stable house value growth, increasing 1.1 per cent during the last quarter and an annual increase of 8 per cent. The median value for the city was $470,000.

Vaughan said investors and first home buyers were causing the rise in median value, as well as the majority of sales continuing to transact between $400,000 and $500,000.

"For investors who are from a higher-priced market and have money in the bank, it is not too much of a stretch," he said.

"However, first home buyers are finding that stretch possibly a little bit too much."

Heath Young, chief executive of the Realty Group, which operates Eves and Bayleys, said areas where the heat was on represented properties with lifestyle aspects and land.

"The rise in prices is largely to do with the underlying land values increasing in value as the demand for these types of properties increase through out of town buyers and city dwellers seeking properties in the surrounding districts of Rotorua," he said.

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Heath Young, chief executive of the Realty Group, which operates Eves and Bayleys. Photo / File
Heath Young, chief executive of the Realty Group, which operates Eves and Bayleys. Photo / File

"Positive price increases in the higher end of town is indicative of pent up demand for these properties where supply of new listings remains tight."

First National principal and Rotorua REINZ spokeswoman Ann Crossley. Photo / File
First National principal and Rotorua REINZ spokeswoman Ann Crossley. Photo / File

First National principal and Rotorua REINZ spokeswoman Ann Crossley said all of the city's hotspots were rural areas, which could simply be a distortion of sales rather than a trend.

"It is interesting the movement has been right through the rural sectors. Maybe there has been a few nice big ales out there."


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Crossley said first home buyers and investors were driving the market in suburbs like Mangakākāhi.

"It is a very active part of the market. Investors are also now buying some higher-priced property than they would have done. They were under $400,000 and now they might be under $500,000."

Tremains Rotorua sales manager Megan Davies said there was a variety of property in Tikitere but they were predominantly lifestyle properties.

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However, she said Lake Tarawera's rise in median value was possibly a roll on from a shortage of stock and people holding onto property over summer who were now deciding to sell.

Tremains Rotorua sales manager Megan Davies. Photo / File
Tremains Rotorua sales manager Megan Davies. Photo / File

"I think there is an expectation of higher pricing in the Waikite area. There is a growing interest in people moving to a better lifestyle," she said.

Davies said there was a lot of investment properties coming onto the market in Mangakākāhi and the majority of sales in some of the city's hotspots were from first home buyers.

"It is encouraging to see more first home buyers."


Rotorua's biggest sales

$1.9 million
7 Benham Rd, Ōkere Falls

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$1.5 million
25 Willow Ave, Hannahs Bay

$1.3 million
374a Hamurana Rd, Ngongotahā

* Sales figures for properties that have settled in last 3 months.

Source: Real Estate Institute of New Zealand