BOOMING VALUES: Tauranga councillor Leanne Brown in Arataki, an area enjoying one of the biggest spikes in values. PHOTO/JOHN COUSINS
BOOMING VALUES: Tauranga councillor Leanne Brown in Arataki, an area enjoying one of the biggest spikes in values. PHOTO/JOHN COUSINS
Tauranga property values have shot up 15 to 28 per cent in the last three years, with the popularity of Mount Maunganui spilling over to drive up prices in the cheaper neighbouring seaside suburbs of Omanu and Arataki.
A feature of the latest three-yearly valuation of Tauranga has been the 28 per cent gains made by Omanu, Arataki, Oropi, Pyes Pa and The Lakes. Mount Maunganui came a close second at 26 per cent.
Demand from property investors and first-home buyers had also caused values in the city's more affordable areas to rise at a steeper rate than suburbs such as Otumoetai, Papamoa and Bethlehem. Greerton and Gate Pa was the only other area of the city to achieve valuation gains of higher than 20 per cent.
Eves and Bayleys Real Estate chief executive Ross Stanway said the biggest influence on this year's city-wide revaluation would have been sales in the past 12 months.
Mr Stanway attributed some of the rise in values in Omanu and parts of Arataki to rebuilds or significant house renovations, particularly along Ocean Beach Rd. And the big movement in values in Pyes Pa had been helped by Freeburn Park moving into the million-dollar-plus sales category.
Ross Stanway
Tauranga's other lower-priced areas such as Brookfield, Judea and Greerton were regarded as good value for money, with soundly-built homes attracting a lot of interest in the past 12 months, he said.
Asked why values in Matua had risen at a slower rate than its traditional rival Mount Maunganui, Mr Stanway said the beach suburbs had taken off in popularity: "It's not so much that Matua has dropped off, but the other areas by the coast have moved to another level."
Mount/Papamoa Ward councillor Leanne Brown said everyone liked to live close to the beach and there had been a lot of buying pressure for pockets of houses in the more affordable areas of Arataki.
"The market was saying that people could ask a lot more than in the past. It's supply and demand."
Arataki was also attractive to people wanting to live close to Bayfair amenities, she said.
Cr Brown said the shortage of entry-level houses was encouraging people to sell their houses in lower-valued areas and move up the property ladder.
However, a big factor in the rising values had been Aucklanders cashing up and shifting to Tauranga. "Houses are moving quickly, they are not sitting around."
Mount/Papamoa's other councillor Steve Morris said the majority of the movement had been in the older parts of Arataki such as Farm St and Eversham Rd. They were the most in-demand from the hot market. "Buyers get into panic buying mode. They are keen to lock in a sale before the market moves up any further."
Otumoetai/Pyes Pa Ward councillor Bev Edlin said she had heard of a house in Pyes Pa that the agent thought would sell for about $350,000 but actually reached $500,000. Values were also rising by people buying houses as investments and doing them up.
She said travelling times in "10-minute Tauranga" were a bonus for Auckland and overseas buyers: "You can live on the perimeter like The Lakes and still be very close to town."
Cr Edlin said the other big change in the market was the turnaround in popularity of two-bedroom homes. "People are saying they want lifestyle - they don't want big houses and gardening all weekend."
Frank Vosper of Vosper Reality said demand was exceeding supply, with Tauranga properties listed on Trade Me, including bare land, dropping from 2500 two years ago to 800 to 900 now.
