By ROSALEEN MACBRAYNE
TAURANGA - The residential property market in Tauranga remains healthy, despite a dip in house prices, says Real Estate Institute spokesman Neville Falconer.
Although average house values are 1.3 per cent down on three years ago, the total value for the district rose 20 per cent, from $8.75 billion in 1997 to $10.5 billion on September 1 this year.
Residential land values increased an average of 14.7 per cent district-wide, with Greerton up 21 per cent.
"This clearly points to continued growth of the area," said Mr Falconer. "There is nothing to worry about. The state of the market today is very, very buoyant.
"Tauranga landowners will receive their new valuation notices this week, with the 43,000 properties assessed up $6900 on three years ago."
Mt Maunganui and Otumoetai were the only areas to see a rise in capital values.
All other suburbs dropped an average 0.6 to 8.6 per cent.
This is consistent with the general trend throughout New Zealand, says Tauranga District Council finance and business services manager Dan Hodgson.
Rating values were a snapshot of the current market and came from Quotable Value's analysis of most recent property sales, he said.
Quotable Value does not set the market but determines what has happened in the marketplace.
Mr Hodgson said an increase in land values did not mean a corresponding rise in rates. Although the past three years have seen a decline in house sales and values, many coastal and waterfront properties have appreciated since 1997.
For the first time, Mt Maunganui values have shot ahead of the mature Tauranga suburb of Matua. Sales in areas of high-density, multi-unit development, such as popular apartments at the Mount, have shown dramatic increases.
There has also been a strong demand for well-located rural lifestyle blocks around the edges of Tauranga City, mainly in Bethlehem.
Commercial and industrial markets have shown some growth, especially within the Mt Maunganui retail sector.
Commercial property had an overall capital value increase of 11 per cent, with an average land value rise of 15 per cent in the past three years.
Capital values for industrial property went up 10 per cent on average.
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