MAIN STORY: Coastal homes double in value

The Kiwi dream of owning a bach on the beach now costs $1 million - even in some of the smaller Bay communities.
Coastal prices have almost doubled in just two years and a Bay of Plenty Times survey of the seaside strip from Waihi to Ohope has found that seven-figure sums are now the norm. The baches and homes are being snapped up by people from Auckland, Hamilton, Rotorua and Tauranga, many of whom are using them only during the Christmas-New Year holidays and long weekends.
Warren Lambess, manager of Harcourts Te Puke, said it was surprising how much beachfront properties had jumped in value. Much of it was driven by overseas buyers.
People were now looking further afield for cheaper properties, only to find slim pickings.
In his own patch of Pukehina, an ordinary beachfront bach could sell for roughly $800,000 when it was worth between $400,000 and $500,000 just two years ago.
A smart three or four bedroom, two-level beachfront house at Pukehina could fetch $1.2 million.
At fast-growing Waihi Beach, a two-level home next to the sand that was recently sold for a record $1.475 million was re-sold a month later for an extra $175,000.
The 800 sq m properties along the Waihi Beach waterfront in Shaw Rd and The Loop are valued at $1.1 million - just for the land.
Mike Fowler, principal of Professionals Fowler Real Estate, said he never thought prices would rise so quickly.
"For the people with money in Auckland, Waihi Beach is the place to be. I think they have had a gutsful of taking the windy road to Coromandel."
Tauranga people were also buying there, including retired couples shifting.
Mr Fowler said some people had called into his office saying the Mount was too big and noisy. They liked Waihi Beach because it was quieter - just like the Mount was 25 years ago.
Tauranga property investor Tom Roper, who has had a holiday home at Waihi Beach for 26 years, said the Bay coastal communities all had their charm.
"Coastal properties have become so expensive that people are forced further away from the hotspots - Coromandel and the Mount - to get their toe in the water," he said.
It's the same story at Pukehina.
First National agent Joy Walker said the area appealed to people turned off by the city feel of the Mount and Papamoa.
"They like Pukehina for its laid-back lifestyle. They want a place to get away to in the weekends and holidays. But many people are also looking at a long-term investment."
Some vacant beachfront sections are on the market for more than $700,000. One home reached hit the magic $1 million mark in July last year.
Agents report a trebling of beachfront prices in Pukehina in four years. Homes on the road opposite the beachfront have doubled in value.
One "basic bach" bought for $127,000 three years ago was now valued at $317,000.
Century 21 agent Patti Bryan said she could sell four to six homes in a good month.
"Where we were selling six properties to get the same amount of money, we just have to sell a couple now," she said.
Mrs Bryan sold one beachfront property three times in the past 10 years. Its price had soared from the original $83,000 to $630,000.
When sewerage reticulation comes to Pukehina, Mrs Bryan said, subdivision restrictions would free up and residential density increase.
At Ohope, a beach property was now worth more than $1 million - and one that has been expanded into six bedrooms and two bathrooms was on the market for $1.35 million.
On the other side of Pohutukawa Ave at Ohope, homes sold for between $400,000 and $600,000. Further down on Ocean Rd near the sand dunes, properties fetch between $600,000 and $1 million.
Earl Austin, principal of Professionals Austin Real Estate in Whakatane, said coastal property prices would not ease until there was an over-supply of listings - and that was not happening.
Many of the holiday homes were tightly held by families, for as long as 40 years.
Mr Austin said other coastal areas around Whakatane were being discovered. Beachfront properties at Coastlands and Piripai, just before Whakatane travelling from Matata, were now worth up to $750,000.
Matata homes with views of the sea and access to the beach have even reached $500,000.