As national house prices soar to new highs, Rotorua is being hailed as a great market for first-time home buyers because of its cheap properties.
The region's median house price dropped $13,000 in the year to March, levelling at $256,000. However, this was significantly lower than the national median of $400,000 - a new record high.
The figures were revealed in the latest Real Estate Institute of New Zealand (REINZ) property report.
The soaring figures have been blamed on skyrocketing house prices in Auckland and Christchurch. In Auckland, the median house price reached $562,000, and Canterbury/Westland recorded $359,000 - both regional peaks.
But while city dwellers struggled with outrageous prices and tense auctions, buyers in Rotorua and much of provincial New Zealand enjoyed a more leisurely property market run.
Graeme Leigh of the Mortgage Centre said many first-time home buyers were taking advantage of Rotorua's cheap prices.
One couple he recently worked with relocated to Rotorua from Auckland because they were unable to find an affordable home, he said.
"They were able to buy a house for $245,000 [in Rotorua] that represented absolutely incredible value for them."
While the couple earn less in Rotorua, shifting to a more affordable housing market had paid off, he said.
"The housing market is really, really affordable in Rotorua."
According to Statistics NZ, the median income in the Bay of Plenty region - excluding Tauranga - was $60,400. A Rotorua-specific figure was not available.
A decent $265,000 home was easily affordable on this income, Mr Leigh said.
However, first-time buyers needed to be wary of extra debt from financing companies which could limit lending prospects, he warned.
REINZ chief executive Helen O'Sullivan said the national median price jumped 8.1 per cent or $30,000 in the year to March.
Ninety per cent of this increase was from price movements in Auckland and Canterbury/Westland.
"Together these two regions represent 52 per cent of national house sales, indicating that the remaining 10 per cent of the increase came from the remaining 10 regions, which cover 84 per cent of New Zealand geographically."
Auckland's median household income was $77,000, compared with 69,100 in Canterbury.
New Zealand's overall median income was $66,500, according to Statistics NZ.
Ms O'Sullivan said supply shortages in the Auckland and Christchurch property markets had resulted in "double-digit price increase and new record prices" in March.
The number of days to sell also reached near-record lows.
Overall, about 8000 residential sales occurred nationwide last month.
Most regions saw an increase in year-on-year sales volume, with Northland registering the largest jump (43 per cent), followed by Auckland (17 per cent) and Waikato/Bay of Plenty (15 per cent).