Tauranga house prices have grown at a rapid rate over the last quarter according to QV. Photo / George Novak.
Tauranga house prices have grown at a rapid rate over the last quarter according to QV. Photo / George Novak.
The average house price in Tauranga is now more than $1 million, according to the latest QV House Price Index.
QV media said the index for June showed house prices in Tauranga continued to grow at a rapid rate and had risen 8.3 per cent for the quarter to a new average of $1,042,533.
That three-month rolling average is slightly down on the 10.2 per cent reported last month but higher than the 7.8 per cent reported back in April and considerably higher than this month's national average of 6.6 per cent.
While other major centres in New Zealand were beginning to show more obvious signs of cooling, Tauranga's residential property market remained stubbornly hot, a media statement from QV said.
QV property consultant Derek Turnwald said: "Agents report a decline in investor interest but not an increase in investors selling properties."
"We should have a clearer idea of their intentions by late winter or early spring, once they have had more time to gauge the market and the effect of LVR changes, the bright-line test extension and tax deductibility law changes."
Meanwhile, he said agents had seen a drop-off in interest from first-home buyers, "perhaps as a result of reports from the Reserve Bank and others that interest rates are likely to start rising in the mid-to-long term".
The average house price in Tauranga is now $1,042,533. Photo / Getty images
In Rotorua, the average house price had risen 7.6 per cent in the June quarter to $691,789. That figure was 21.4 per cent higher than it was at the same time last year.
QV property consultant Derek Turnwald said local agents had been reporting fewer people attending auctions and more vendors opting for negotiated prices or tenders.
"Investor interest has definitely declined sharply in reaction to LVR changes, bright-line test extension and tax deductibility law changes. However, there hasn't been a noticeable increase in investors selling properties yet," he said.
"First-home buyer interest has also dropped off a little, perhaps in response to the Reserve Bank's announcement that in 2022 the OCR is likely to increase in response to inflationary pressure.
"Despite all this, properties are still selling strongly, usually in multi-offer situations," he said.
Nationally, the average value increased 6.6 per cent over the past three-month period to the end of June, down from the 8.8 per cent quarterly growth seen in May. The national average value was now at $943,184.
QV general manager David Nagel said: "It's too early to say the market has turned, but this will be encouraging news for government officials and regulators, concerned about the financial risks of an overheated property market.
"This easing comes after a range of government policy announcements earlier this year to dampen activity by property investors and speculators, while there's also plenty of chatter about interest rates rising later next year.
"But we're also now into the seasonal downturn that normally accompanies the cooler months, so it's difficult to attribute the cause to any single thing," he said in a statement.
"With our borders essentially closed to new residents, we've given the housing supply chain an opportunity to catch its breath with record rates of new houses being constructed, particularly in the main centres.
"But while interest rates are still at record lows, accompanied with a dearth of property listings in most parts of the country, it's unlikely that we see house values fall any time soon.
"We'll likely see a continued slowing in the rate of price increases over the coming months as the property market absorbs the recent changes and winter really sets in," Nagel said.
