Coastal township leads hike in property prices

Pukehina has experienced a 9.6 per cent increase in property prices over the past year. Photo / File

Property prices have shot up by more than 4 per cent in five Western Bay suburbs in the past year.

Pukehina saw a 9.6 per cent increase in the year to December 31 in the quarterly QV New Zealand Herald Property Report, followed by Mount Maunganui and Omokoroa, both on 5.2 per cent, Ohauiti on 4.7 per cent and Papamoa Beach on 4.3 per cent.

Ross Stanway

Ross Stanway, chief executive of Eves and Bayleys Real Estate, said each of these five suburbs would have different reasons for their increases.

Pukehina had traditionally been a holiday home location but this perception could be changing with the Tauranga Eastern Link nearing completion, which will bring the coastal suburb much closer in travel time to Tauranga and Mount Maunganui.

There had been a lot of interest in Mount Maunganui homes in the $600,000 to $900,000 bracket recently, which may have driven the increase in this area, plus more activity at the top end of the market, Mr Stanway said.

Omokoroa, similar to Pukehina, used to have a perception of being far away from town but that was changing.

"There's now some really nice subdivision options out there so that's probably driving that increase in interest. There's good schools and good lifestyle opportunities, it has a lot going for it."

Ohauiti was a suburb that had been "reasonably stable" in terms of value in recent years and people were now seeing value in that, Mr Stanway said.

Ray White Papamoa and Mount Maunganui owner Greg Purcell said the number of listings in Papamoa and Mount Maunganui was the lowest it had been.

People from Auckland were buying up properties rather than locals selling their home and buying another in the same city, Mr Purcell said. "Everyone is singing the same song at the moment. Everyone is wanting listings. A lot of people are moving down from Auckland but they aren't selling anything locally." Mr Purcell said he was seeing a lot of private sales and while he could understand the rationale behind it, he was dealing with many instances of multi-offers through his office, which was often where the best money was.

"I think people lose sight of that because they're thinking of the commission.

"In some instances, we've got really good money for people that I doubt could have even happened selling privately because a private deal for the most part is just 'can I buy your house, let's talk about money, done'."

Tauranga Harcourts managing director Simon Martin said housing stock was going quickly.

"Buyers are getting on to it in the early parts of the marketing campaign rather than waiting. We're getting the numbers through in our open homes, when that happens, the number of sales tends to follow that pretty closely. It's a good indicator for what's happening."

Mr Martin said he had seen increased demand in Ohauiti as it was a nice area with modern houses, reasonably close to amenities.