District property sales boom

BENEFITS: Satellite districts in the Bay of Plenty, such as Omokoroa, are piggybacking the region's hot property market, say experts.PHOTO/FILE

Satellite districts in the Bay are piggybacking on Tauranga's hot property market as buyers look further afield for bargains, industry experts say.

Figures from the Real Estate Institute of New Zealand show volumes of sales have jumped in Paengaroa, Pukehina and Omokoroa over the past year. Data in the 12 months to August 2015 revealed 21 properties had sold in Paengaroa at a sale price median of $300,000 compared with six sales over the same period in 2014 with numbers so low the institute did not record any other statistics.

In Pukehina 37 houses sold to August 2015 at a sale price median of $375,000 compared with 25 property sales the year before at a sale price median of $425,000.

Meanwhile, 100 properties sold at Omokoroa to August 2015 at a sale price median of $527,500 compared with 73 houses sold 12 months previously at a sale price median of $525,000.

QV registered valuer Jessica Videbeck said 12 months ago the asking price for land in the new release areas at Paengaroa was $80,000 and that had soared to $120,000. "Buyers are being priced out of the Tauranga market, therefore are looking further afield for property."

There had been an increase in values across the board in Western Bay of Plenty, although that increase was still below the value increases that had been seen in Tauranga, she said.

Eves and Bayleys Real Estate chief executive Ross Stanway (pictured) said the outlying districts were benefiting in terms of increased sale volumes where properties represented "very good value for money".

People that wanted land to build on, "would certainly be able to purchase it at a lower rate in Paengaroa" as opposed to Papamoa, Mount Maunganui or Tauranga, he said.

Tauranga Harcourts general manager Nigel Martin said Omokoroa had picked up because of its proximity to Auckland and people were investing in the area for retirement purposes.

The Tauranga Eastern Link had also helped activity in Paengaroa and, to a certain degree, Pukehina as the distance to the city had shortened.

However, during the last upturn in the property market Pukehina "was one of those places that really boomed but when the recession came in houses dropped significantly and we still haven't seen huge activity to justify an increase in prices".

Countrywide Real Estate Te Puke manager Russell Doughty said the increased volumes of sales at Paengaroa and Pukehina were great for both communities. They were cheaper, the commute to Tauranga was quicker and the rural lifestyle was attractive, he said.

"That is the guts of it really."