Expats, Aucklanders lift Tauranga values

Stephen Pepper

Expats returning to Tauranga and Aucklanders moving south have contributed to a 4 per cent increase in Tauranga home values, real estate agents say.

Quotable Value figures for January, which were released yesterday, show Tauranga City home values increased 4 per cent year-on-year to $457,481 and were now only 5 per cent below the previous peak of 2007.

Western Bay of Plenty values increased 5.5 per cent year-on-year to $424,202 and were now 5.8 per cent lower than 2007 levels.

LJ Hooker Tauranga general manager Stephen Pepper said most staff were working with buyers from Auckland.

"They are looking in higher price ranges and buying in higher price ranges than local buyers. Our average sale price was around $350,000, for us now it's more like $450,000. This has certainly been evident for us in about the last six months," Mr Pepper said.

The increased average sale price was indicative not of prices going up, but more of houses selling at the top end of the market.

"I think this will continue. We had two properties that were open for the first time last weekend in Brookfield and had 46 inspections. Another property in Otumoetai had 43 ... in one weekend."

Tauranga Harcourts managing director Simon Martin agreed.

"Instead of selling a lot of $400,000 properties, we're selling at a $500,000 average sale price. This harks back to the LVR situation [loan-to-value ration restrictions], although that is having less and less effect," Mr Martin said.

Buyers who had been told a year ago they could not get a mortgage were returning after saving for a deposit and securing properties. "As time goes on, the LVR restrictions will have less effect in the market place."

As well as Auckland buyers, Mr Martin was seeing expats returning from Australia to buy homes in Tauranga.

Eves and Bayleys Real Estate chief executive Ross Stanway said the figures were promising.

"I think that continues to show that there is a good balance between supply and demand. There's new stock coming on stream in terms of land and build packages.

"There's more properties coming on to the market although there are still relatively low numbers," he said. "I think that bodes well for Tauranga.

"We've had a very good January ... a very good start to the year."

QV valuer Mairi Macdonald said the Tauranga housing market was steady, with good activity and sales: "There is strong buyer interest in new subdivisions in Papamoa and the entry-level price-bracket suburbs such as Greerton and Welcome Bay.

"The Western Bay of Plenty market remains stable with good interest in coastal properties in Waihi Beach and steady sales activity in the other regional towns."