In 2014 going into 2015 he sold 10 multi-income properties and the main attraction was the capital growth opportunities and "Tauranga was going pretty hot", he said, and the company had based an office in the region.
Loan Market director Bruce Pattern said clients there were predominantly out of East Auckland and his agency's out-of-town investors and buyers had their eyes on Tauranga.
Twice as many buyers were buying in Tauranga as opposed to Hamilton, he said, and there was a fair mix of investors, retirees and young couples looking to relocate and start families.
Geographically, according to his statistics, it was very strong - "the strongest I have seen in the 15 years I have been involved in the mortgage, finance side of things".
"It is certainly unprecedented, the number of people that are looking in that neck of the woods," he said.
Auckland Property Investors' Association president Andrew Bruce said it was hard to get decent cashflow returns in Auckland due to the upcycle in the market so people were looking further afield to Tauranga, Hamilton and Rotorua.
Loan-to-value ratios introduced by the Reserve Bank had accentuated the situation and made it tough for those looking to increase their portfolio, while investors were also slowed down by their ability to service the bank, Mr Bruce said.
Tauranga Property Investors' Association vice-president Simon Darmody said Auckland investors and buyers had had a big impact on the market.
Prices were being driven higher, with some buying without even seeing the properties, he said.
Average yields for properties were from 4 to 6 per cent, and there was a strong rental demand and rents had increased over the past six months, "which are keeping yields at reasonable levels even with the higher property prices ". However, the association had not seen a big interest from local investors for a while.
"Most I have spoken with are sitting back and watching or investing in Rotorua," he said.
Ross Stanway, chief executive of Eves and Bayleys Real Estate, told the Bay of Plenty Times Weekend the number of investors from outside the region "are significantly higher than this time last year", as demand for rentals continued to outstrip supply. Habitual investors from Auckland and people contemplating moving to Tauranga in the future but wanting a stake in the market were the two key elements, he said.
Tauranga Harcourts general manager Nigel Martin said investors were "looking to our area for both return and capital gain".
QV national spokeswoman Andrea Rush said the suburbs with the lowest average value and the highest rental in comparison would always deliver a higher yield to investors.
According to its E-Valuer to September 1, 2015, Hairini had the highest house price lift, up 10 per cent to $364,350 from $329,200 to September 1, 2014, with a median rent of $380 per week.
Over the same time periods Welcome Bay was up 9 per cent to $404,000 from $367,000, with a median rent of $380, Mount Manganui increased by 9 per cent to $590,250 from $540,650 with a median rent of $390, and Pyes Pa was up 9 per cent to $505,400 from $463,200 with a median rent of $380.
Tauranga Central had the lowest increase, at 3 per cent to $531,700 from $512,750, with a median rent of $340 per week.
Tauranga property investor Lindsay Richards said he advertised a rental on Trade Me and had to pull it off within 24 hours due to an overwhelming response from tenants. "It is obviously getting desperate out there."
