Value of Bay properties up in 'cheaper' areas

Janet Finlayson

The average value of properties in Tauranga and the Western Bay has increased in the past 12 months - some by more than 5 per cent.

The biggest increase has been seen in Pukehina, 9.3 per cent, Matua, 6.9 per cent, Te Puke, 6.8 per cent, Mount Maunganui, 5.7 per cent, and Greerton 4.3 per cent, according to new QV data.

Figures reflecting the past two years show there have been large increases in property values, including a 9.2 per cent increase in Greerton, 8.9 per cent in Maungatapu and 7 per cent in Gate Pa.

Harcourts Advantage Realty Tauranga managing director Simon Martin said part of the rising average values in the traditional "cheaper" suburbs was likely because of the restrictions on loan-to-value ratio lending introduced in October last year. "If you take out the bottom end and knock that back considerably, your average sale price is going to increase.

"Quite a bit of that has probably occurred in those cheaper areas, that bottom end has been knocked out in all the suburbs."

Taking out the lower end properties had more of an effect in the cheaper suburbs than in the higher priced suburbs, he said. Many of the higher-priced suburbs also had considerable increases in average value, something Mr Martin put down to more confidence "across the board".

Ross Stanway, chief executive of Realty Services which operates Bayleys and Eves, said two or three years ago, suburbs such as Greerton and Gate Pa had a lower average value and therefore were seen as good value to a number of buyers. Mr Stanway said there had been more of an upswing in the lower-priced areas and there were more people keen to come and live in the Bay.

Greerton's 'wide, open spaces' appeal

Janet Finlayson (pictured) loves living in Greerton.

Her beautifully kept 1950s stucco home is in a quiet street within easy walking distance to Greerton Village.

Mrs Finlayson moved to the neighbourhood 16 years ago and had seen "tremendous growth" in that time.

"They've done the town up beautifully. We moved here because of the proximity to two very good schools, Greenpark and Greerton Village, and also the golf course and shops. There's a lovely little restaurant there and it's also very handy to amenities, there are two chemists, four banks, the library and swimming pool.

"There are so many wide, open spaces, houses aren't right on top of each other like they are in other suburbs. I think Greerton is definitely undervalued."

The flat land in the suburb was a bonus for elderly people as it would make it easier for them to get around.