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Home / Bay of Plenty Times

Luxury home sales soar

Sonya Bateson
By Sonya Bateson
Regional content leader, Bay of Plenty Times and Rotorua Daily Post·Bay of Plenty Times·
27 Jun, 2015 10:00 PM4 mins to read

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This stunning Papamoa home has a capital valuation of more than $2million.

This stunning Papamoa home has a capital valuation of more than $2million.

The number of million-dollar plus homes selling in Tauranga is on the rise, new figures show.

And it is no longer just beachfront homes reaching top dollar, with houses in streets further back in Mount Maunganui and in other suburbs of Tauranga now hitting the $1 million mark.

Real Estate Institute of New Zealand figures show 69 properties sold in Tauranga for $1 million or more between January and May this year.

This compares to 57 for the same period in 2014, a 21 per cent increase, and 22 for the same period in 2013 - an increase of 213 per cent.

For the whole of 2014, there were 111 sales of $1 million-plus properties in the city, compared to 73 in 2013.

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Trade Me has had 108 properties with an asking price of $1 million or more listed on the site this year.

The properties listed on the site range from sprawling beachfront homes in Mount Maunganui and Papamoa to classic homes with a view in the Avenues and Matua.

The most expensive property listed on both sites is a 338 sq m Oceanbeach Rd house with four bedrooms and five bathrooms, with an asking price of $3,495,000.

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Ross Stanway, chief executive of Eves and Bayleys Real Estate, said there had been a significant increase in sales of million dollar properties in the past 12 to 18 months, which had "really kicked off" in the past six months.

"This year so far we have sold as many properties worth a million-plus in the Mount as we did the whole of last year.

"The interesting thing is some of that has to do with steadily increasing prices at that range, and the other significant factor is some streets or roads are contributing significantly to that increase in that price bracket."

Some of those roads included Muricata Ave, Valley Rd and Ranch Rd.

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"These roads are becoming more sought after so the level of interest there is driving homes into that bracket. There have always been those properties along Marine Parade and Oceanbeach Rd, but the newcomers to that price range are in those streets."

Full sites becoming available close to good schools and the beach was an incentive for more families to move into the area, Mr Stanway said.

In Tauranga, million-dollar houses were still being sold in the Avenues, Matua, Pillans Point and pockets of Bethlehem, and like in Mount Maunganui, many were being bought by people with families. The buyers of these homes were mixed - some were locals moving to a new location, some were Aucklanders and others were expat Kiwis returning home.

Harcourts Tauranga franchise owner Max Martin said more $1 million-plus homes had been selling recently and Harcourts had seen "quite a few" this month. "There has been more confidence in the whole residential real estate market. It's working it's way up through the price brackets really."

Million-dollar homes were selling on "both sides of the water", Mr Martin said.

Several homes on Orkney Rd in Mount Maunganui had sold for more than $1 million since Christmas and Mr Martin expected more beachfront homes would start selling as summer drew closer.

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Increasing sales and the next bracket down meant some people were looking to upgrade.

"People who are getting good prices in that bracket are looking upwards."

The $1 million-plus homes in Matua and Bethlehem were also selling and Mr Martin said the suburbs had been moving strongly for about two years.

These homes tended to be a good size with views and were often, more modern.

Colleen Milne, chief executive officer of the Real Estate Institute of New Zealand said it was encouraging to see regional prices outside Auckland beginning to increase, especially as people perceived greater value in the kind of property they could purchase in the provincial regions.

"We are generally seeing an increase in interest particularly of Auckland buyers looking to secure a greater lifestyle and affordable properties in areas such as Tauranga."

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