Bethlehem is one of Tauranga's seven million-dollar suburbs. Photo / File
Bethlehem is one of Tauranga's seven million-dollar suburbs. Photo / File
Tauranga now has seven suburbs with a median value of $1 million or more, new data shows.
The latest property report from OneRoof and its data partner Valocity, themed The Rich List, showed Tauranga had gone from having no $1m-plus suburbs a year ago to now having seven.
That includedBethlehem at $1.1m, Matapihi at $1.08m, Matua at $1.07m, Mount Maunganui at $1.1m, Ōhauiti at $1.08m, Pyes Pā at $1.05m and Tauriko at $1.6m.
Another four suburbs - Kairua, Ōtumoetai, Pāpāmoa Beach and Tauranga Central - were close to joining them which meant house prices in half the city were typically $1m or above.
Valocity director of valuation and innovation James Wilson. Photo / File
"In Tauranga they are evenly balanced between first-home buyers and investors, moving into the location as opposed to those existing owner moving closer to the beach."
Demand was outpacing supply in these suburbs pushing prices into the million-dollar level, he said.
"Buyers need to do your homework and know your affordability.
"The pent-up demand is now driving buyers to surrounding suburbs in the near future, pushing these prices higher."
First National Real Estate Tauranga general manager Cameron Hooper. Photo / File
First National Real Estate Tauranga general manager Cameron Hooper said there were no surprises in the city's new million-dollar club.
"Years ago our eyes used to pop out of our heads at a $1m but it has become the new norm."
Hooper said nowadays they had no problems selling property at the million-dollar level.
"Years ago that million-dollars was a big, grand home, now the price to get that big grand home is $2m. That $2m is the old $1m.
"I think that price million-dollar bracket is here to stay."
But he said more suburbs over $1m median value did not affect housing affordability as interest rates were so low.
"First-home buyers are looking in the $500,000 to $700,000 and they know what houses are going for. I don't think there will be any surprise to first-home buyers that houses are selling above $1m in some areas."
Simon Anderson, managing director of the Realty Group, which operates Eves and Bayleys. Photo / File
Simon Anderson, managing director of the Realty Group, which operates Eves and Bayleys, was also not surprised seven suburbs had joined the million-dollar club given the significant market change in the past 12 months.
"It just proves again how popular Tauranga and the Mount has become since Covid and now that people can work away from the office.
"People are now choosing lifestyle over congested cities and coming to Tauranga. It closes the gap between Auckland and Tauranga ..."
Anderson said first-home buyers were still able to get onto the ladder but they may have to look elsewhere.
"There are still some pockets of Tauranga, which are more affordable.
"It will require buyers to search further out from the city."
Managing director of Tremains Bay of Plenty Anton Jones. Photo / File
Managing director of Tremains Bay of Plenty Anton Jones said three homes had sold under the hammer for more than a million in the past week.
Jones said in the past few years a lot of Aucklanders and people arriving from out of town were buying in the million-dollar bracket.
"We do get a number of out of towners buying in those areas. The prices they get up there [Auckland] they can afford more here."
Oliver Road Estate Agents partner Jason Eves and director Cameron Winter. Photo / File
Oliver Road Estate Agents director Cameron Winter said they have lifted the minimum price point in their listing criteria because of the increase in median values.
"Previously we would occasionally take on a listing below $1.5m but there is now very little below that level that would be considered a luxury property."
Winter said the $2m market had "never been busier", with the company selling a property in Tauriko for $2,810,000 and one on Bethlehem for $2,775,000 in the past few weeks.
"The unique, high-value homes we sell are still attracting strong interest because by their very nature they are unique products - in many cases unrepeatable in terms of location or other features."
Winter said inevitably one day these same suburbs will reach the two-million-dollar club but "they're all just numbers on a screen".
"Providing you can comfortably afford the mortgage repayments then buy a home you love and enjoy your life."
Harcourts Tauranga managing director Simon Martin. Photo / File
Harcourts Tauranga managing director Simon Martin said it was all relative to what was happening across the country.
He said people need to understand that $1m was just the median figure and "it's not that everything in that suburb is going to be a $1m".
"There are still sales cheaper than that and at the end of the day the market is going to be determined by the demand."
The Rich List:
Tauranga's median property value: May 10, 2021 - May 10, 2020
Bethlehem $1,120,000 from $805,000 Matapihi $1,080,000 from $725,000 Matua $1,070,000 from $755,000 Mount Maunganui $1,120,000 from $795,000 Pyes Pā $1,050,000 from $755,000 Ōhauiti $1,080,000 from $780,000 Tauriko $1,670,000 from $1,240,000 Ōtumoetai $965,000 Kairua $997,500 Pāpāmoa Beach $980,000 Tauranga Central $970,000
Highest settled sales price in the 6 months to May 10, 2021 Bethlehem $2,750,000 Matua $2,600,000 Mount Maunganui $4,000,000 Ōhauiti $1,950,000 Pyes Pā $2,100,000 Tauriko $2,280,000
