Ten per cent drop in Tauranga property sales

Sales volumes dropped 10 per cent in June in Tauranga, according to REINZ figures released today. Photo/File

Tauranga property sales have dropped 10 per cent in the last month.

Real Estate Institute of New Zealand figures released this morning show sales volumes dropped 10 per cent in Tauranga last month, falling from 186 sales in May to 168 sales in June.

In the Bay of Plenty/Waikato region, sales fell 14 per cent compared to May. On a seasonally adjusted basis, sales fell by 5 per cent, which REINZ said was an indication the drop in sales was larger than normal.

Sales volumes in Mount Maunganui and Papamoa fell from 137 sales in May compared to 121 last month, although volumes were up on June 2015, when 112 properties were sold.

The median sale price rose 41 per cent in Mount Maunganui and Papamoa and 34 per cent in Tauranga compared to June 2015.

REINZ regional director Philip Searle said the strong rise in prices in the main centres across the region is driving up vendor expectations and making it more difficult for first home buyers, particularly in markets such as Hamilton and Tauranga.

"Despite the lift in prices, demand remains strong and the supply of listings continues to fall away, creating more competition for those properties available for sale."