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Home / Bay of Plenty Times

Auckland exiles drive housing market

By Michele Hunter
Bay of Plenty Times·
9 Jan, 2015 07:04 PM5 mins to read

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The Western Bay's buoyant property market barely stalled for the holidays, with agents signing contracts on Christmas Eve and New Year's Day and fielding inquiry from visitors and locals throughout the festive season.

Busy Bay real estate experts are predicting a healthy market in 2015 with property prices continuing to rise and the wave of Aucklanders moving to the Bay showing no sign of easing.

Ross Stanway, chief executive of Realty Services, which operates Eves and Bayleys, said staff had been signing sale and purchase agreements on all the statutory holidays.

Tauranga LJ Hooker general manager Stephen Pepper said the phone had been ringing over the holidays. "Normally the brakes come on at Christmas, most of the team's back and they're all booked up," he said.

"A year ago it didn't really happen. We've had half a dozen sales between Christmas and New Year, two on New Year's Day."

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Harcourts owner Max Martin said sales had continued throughout the Christmas period, weighted heavily by inquiries from Auckland. "Not only retired people but a lot of younger people are coming here as well, there's a lot of employment opportunities."

He expected a strong year marred only by dipping dairy prices bringing less Waikato retirees to the Bay.

Mr Martin said it was a vote of confidence that around 40 Harcourts staff would be moving into purpose-built Tauranga premises in May this year.

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Ray White Papamoa and Mount Maunganui owner Greg Purcell said activity had remained high over the holiday period.

"Every year that commercial closure gets smaller. We got listings and sales right though that time," he said.

All the agents predicted 2015 would be similar to the previous year. "I would expect the year to be much like the year we've had. At times good, at times a bit flat and at times a bit unpredictable," Mr Purcell told the Bay of Plenty Times Weekend.

Mr Stanway expected prices to continue to increase, following the trend seen over the last 12 months. Increased confidence among builders and developers would also lead to a welcome increase in housing stock, he said. While demand was high across all property types, being by the beach or in a traditional Tauranga suburb remained popular.

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"I would think that there will continue to be real interest in beachfront and in established suburbs like Matua," he said.

"I think in all areas the market could do with increased stock levels. Price increases will bring more stock onto the market."

At LJ Hooker, Mr Pepper said it was family homes in particular that buyers were looking for. He had also noticed investors making a strong return to the market over the last month.

"They've noticed that the rents are going up and they're looking to capitalise on that," he said. His agency was not even advertising property to rent.

"There is enough inquiry from people walking in looking for property," he said.

Mr Pepper felt 2015 would be a healthy year for property in Tauranga but there would be a percentage of sellers who attempted to price their property for a market they were not in.

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"Properly-priced property is going to sell. I think we're going to get a fair share of people over-pricing property thinking that can get a better return as a result of a stronger market ... all they do is make all the other property look better," he said.

More property had gone on the market in the three to four months leading up to Christmas, but there was still not a surplus available, he said.

There had been renewed interest in Hairini and Ohauiti, and families attracted to good value for money in Gate Pa and Greerton.

Without preconceived ideas about Tauranga suburbs, Aucklanders were snapping up modern homes with double garages in Welcome Bay for the same price as a 20 to 50-year-old home in Matua, that immediately needed money spent on it, he said.

Quality of construction and an emphasis on building reports was also outstripping location in terms of buyers' priorities.

Mr Martin said demand for rural lifestyle properties and orchards had improved at Harcourts Te Puke office. "They haven't got enough orchards to sell, it's certainly bounced back from two years ago," he said.

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Apartments in Tauranga and Mount Maunganui, including those that had been repaired following water-tightness issues, were being sold for less than replacement value, he said.

"Apartments are particularly good buying at the moment."

At Ray White, Mr Purcell said Papamoa East was selling strongly with average property values across the beachside suburb rising from about $390,000 to $430,000 over the past 18 months. Karewa Parade, which is a mixture of holiday and permanent homes, had become the Marine Parade of Papamoa, he said.

"It's got a real charm of its own."

A lack of listings created a sense of urgency but buyers were still keen to take more time to think over purchases than they had before the recession, he said.

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