Josh and Maria and their daughter Emilia, 3 months, bought their house two years ago and feel they sold at the right time.
Josh and Maria and their daughter Emilia, 3 months, bought their house two years ago and feel they sold at the right time.
Average property values in Tauranga soared more than 15 per cent last month compared to the same month last year - the highest increase in more than 10 years.
The latest QV House Price Index showed residential property values in Tauranga last month had risen 15.5 per cent since November 2014 and 6.6 per cent over the past three months.
Values were now 9.2 per cent higher than the previous peak of 2007 at an average of $525,758.
Last year was a good enough year but this year someone's slipped the turbo charge on.
Last time Tauranga had an annual growth rate of more than 15.5 per cent was in October 2005 when it was 18.0 per cent.
Western Bay of Plenty home values had also continued to show solid increases, rising 7.3 per cent year on year and 2.6 per cent over the past three months. Values in the district have now ticked over levels seen in 2007 and are 0.5 per cent higher than the previous peak.
Ross Stanaway
Tauranga QV homevalue registered valuer David Hume said overall it had been a very strong year for the Bay of Plenty property market, with most Tauranga suburbs witnessing exponential growth over the past six to nine months.
"Arataki is continuing to prove popular with locals and out of town buyers who have been priced out of the Mount Maunganui market. A renovated 100sq m dwelling on a 458sq m site [in Leander St] set a new benchmark for the area when it sold under the hammer for $601,000 earlier this month," he said.
But there had been a slight cooling of the market, he said.
"It appears some of the heat has come out of the market, with auction rooms not receiving the record clearance rates witnessed over the past few months, although vendors with reasonable expectations are quickly negotiating a sale post auction."
Eves and Bayleys chief executive Ross Stanway said the latest increase was "significant".
"Particularly when you consider the volume of sales is up as well. It's all go at the moment," he said.
"The previous month year-on-year was almost 14 per cent."
Mr Stanway said houses in The Avenues, at the Mount and in Arataki continued to be popular which was pushing prices in those areas up.
He said there was no indication the Tauranga market was going to slow any time soon.
"As long as we have the capacity in this region to accommodate the increased level of interest from outside the area and as long as we continue to represent value for money that will continue. It will continue as long as Auckland tries to deal with it's housing problem. I think we will continue to see that for some time yet. Certainly through next year."
Greg Purcell, franchise owner of Ray White Realty Focus in Mount Maunganui and Papamoa, said the figures lined up with what he was seeing.
"Last year was a good enough year but this year someone's slipped the turbo charge on. No one saw it coming - not to this degree." Mr Purcell said it was fuelled by the Auckland market which had been tempered to some degree recently.
"It's going to have an impact down here. It's doesn't mean there's going to be a crash but it just means things might level out a bit."
It was unusual the property market was not in line with the economy, he said.
"It's a rockstar property market in a boy-band economy."
First National owner for Mount Maunganui, Tauranga and Omokoroa, Anton Jones, said October had been his busiest month ever.
Mr Jones said Aucklanders had not been as prevalent recently, which might have been a flow on effect from recent regulatory changes. "There aren't as many investors around. But I suspect that might be a short-term thing.
"Things still seem to be moving very, very quickly."
Mr Jones expected the busyness would continue right up until Christmas.
Harcourts managing director Nigel Martin, who specialises in Mount Maunganui and Papamoa, said the QV figures reflected what was going on in the market. "I would suggest the bulk of the 15 per cent increase happened in the last four months. There was a serious increase in volume in that time, which was probably driven by price increases as well.
"We're noticing it right across the market in the Tauranga district."
Timing good for sale of family's house
Tauranga residents Josh and Maria were thrilled with the price they got for their house when they sold it last month ahead of their move to Germany next year.
The couple, who shared their story on the condition their last name was not published, bought their house in The Lakes two years ago and sold it last month for $100,000 more than they paid for it.
"We never actually intended to make money from our house," Josh said. "We had a deposit already saved so we bought a house because it was cheaper than renting and it worked out to be a good thing."
The house went to auction three weeks after it was listed but did not sell. They re-listed it with an advertised price and had two cash offers and one conditional offer by the end of the week. He said there was quite a lot of interest with four to six couples at each of the eight open homes they held.
"We're just really lucky that we're selling in a hot market and we're buying in a market that's warm [in Germany].
Josh said he, his wife and two young children loved living in The Lakes and were only selling because they were moving to Germany early next year. "If we were staying in Tauranga there's no way we would have sold our house.
"It's an awesome subdivision with all the walks and stuff. It's got lots to offer for a young family."
