Tauranga and Whakatāne house prices reach record highs

House prices in Tauranga and Whakatāne have reached record highs in the latest real estate figures. Photo / Getty Images

House prices in Tauranga and Whakatāne have reached record highs, new data shows.

The Real Estate Institute of New Zealand's monthly property report shows Tauranga's median house prices climbed 26.9 per cent in the year to September to a new record of $990,000 from $780,000.

Prices increased 2.1 per cent in the month from $970,000 the previous month.

Whakatāne's median house price rose 16.8 per cent in the month to September to reach a record of $695,000 from $595,000 - and a 5.1 per cent jump from $661,000 in September 2020.

In Rotorua, median house prices have increased 24.8 per cent year-on-year to $650,000 from $521,000 - a 4.8 per cent rise from $620,000 in August 2021.

Median house prices in the wider Bay of Plenty also reached record heights, climbing 24.2 per cent in the last year to $878,000 from $707,000 in September 2020 - and
4.5 per cent from $840,000 in August 2021.

REINZ regional director Neville Falconer. Photo / Supplied

REINZ regional director Neville Falconer said listing numbers were low in the region, with a 16.1 per cent decrease year-on-year.

Properties were spending longer on the market, with median days to sell at 41, up from
36 in September last year.

Falconer said the region also experienced its lowest sales count in a September month since 2014, with just 380 properties sold.

"Some vendors are saying they are waiting on Aucklanders to come and view properties, so transactions are being delayed on what would usually be a quick sale.

"With rising prices in the region, first-home buyers who want to use First Home Grants find their options are limited."

Of the properties being sold, 27.4 per cent were between the $500,000 to $750,000
price bracket, down from 40.3 per cent a year prior.

"With the recent tax changes for investors announced, many expect a decline in investor numbers over the summer period.

"As alert level restrictions continue to ease in the Bay of Plenty, market activity is expected to increase with more listings coming onto the market."