Katikati's average house value jumped more than $200,000 in the year to January. Photo / Getty Images
Katikati's average house value jumped more than $200,000 in the year to January. Photo / Getty Images
The average home value in the Western Bay of Plenty district has exceeded $1 million for the first time.
Agents and analysts say demand for seaside property, interest from buyers priced out of Tauranga, and Aucklanders seeking lifestyle properties are contributing to the rise.
The latest OneRoof/Valocity figures show theWestern Bay's average home value climbed $334,000 from January 2021 to hit $1,316,000 last month.
Katikati's average value was $873,000 in January 2022, up from $660,000 the previous year. Ōmokoroa's average jumped to $1,263,000 from $967,000, Waihi Beach rose to $1,571,000 from $1,161,000, and Te Puke climbed to $904,000 from $688,000.
Dave, who only wanted to be known by his first name, purchased his first home with his partner in Te Puke two weeks ago.
He said getting a 20 per cent deposit was "a bit of a nightmare".
"It just becomes so hard to do. We're lucky Mum gave us a stack of money otherwise it wouldn't have happened."
Valocity senior research analyst Wayne Shum. Photo / Supplied
Valocity senior research analyst Wayne Shum said the Western Bay market experienced steady growth leading up to the initial Covid-19 lockdown in 2020, followed by rapid rises as demand continued to outpace supply.
Shum said Waihi Beach was a popular location, with the suburb reaching $1m as the initial Covid lockdown ended.
"The strong demand and the lack of supply have pushed this area past $1.5m at the end of 2021.
"It is a popular beach location for buyers from nearby cities seeking a beachside property."
New development was driving the rise in values in Ōmokoroa, reflecting plenty of buyer interest in the area, he said.
"The lack of listings and rising prices in Tauranga have pushed buyers into surrounding areas such as Ōmokoroa, Katikati and Te Puke."
Meanwhile, the latest Real Estate Institute of New Zealand data showed median house prices in the Western Bay have reached record levels.
In December 2021, the median residential property price in the region was $904,500 - a 23.2 per cent annual increase.
Katikati's median house price climbed to $745,000 in December, Ōmokoroa reached $1,175,000, while Te Puke recorded $750,000.
REINZ acting chief executive Rowan Dixon said the Western Bay, like many regions in New Zealand, has seen considerable price growth.
"Part of the reason for this growth is an influx of buyers as people move from urban centres such as Auckland, opting for areas nearby that offer a lifestyle change but are still an easy commute.
"As demand goes up, unless stock increases, so do prices."
Dixon said beachside towns have a certain draw for buyers, with Waihi Beach a particularly popular area, demonstrated in the value of property.
The suburb experienced steady price growth in the past five years, with the median price for a residential property in 2021 being $1,350,000, he said.
"Similar can be said for areas such as Katikati, Ōmokoroa, and Te Puke. Prices in these suburbs have seen a significant uplift over the past two years.
"When we look at the bigger picture, as prices increase, lifestyle expectations change, and people look beyond the usual urban centres or rural pockets, we inevitably see demand — and consequently price growth — having a growing impact on more regions."
Managing director of the Realty Group, which operates Eves and Bayleys, Simon Anderson. Photo / Andrew Warner
Managing director of the Realty Group Limited, which operates Eves and Bayleys, Simon Anderson, said in 2016 when there was a "wave" of Aucklanders arriving in the Bay, Katikati was an "undiscovered jewel".
"We are now seeing a real discovery of Katikati again, which is a place that has got real character."
Anderson said there was also a "waterfront explosion" happening in the wider Western Bay.
"Those who can't get into the Mount and Pāpāmoa are looking at Pukehina and Waihi Beach. There is a lot of interest coming from the Waikato."
First National Real Estate Te Puke general manager Cameron Hooper. Photo / George Novak
First National Real Estate Te Puke general manager Cameron Hooper said you don't see much stock in Katikati or Te Puke for under $700,000 now.
"It's fair to say those prices are prices of yesteryear now and that's why you can see the averages going up.
"Most buyers in Te Puke around a million and under are not first home buyers anymore, they are probably second or third home buyers."
Hooper said $2m for a lifestyle property in the Western Bay was not uncommon.
"That used to be record money."
"We expect these to be town prices ... because they are distinctly different to the Mount, Pāpāmoa and Tauranga market ... but places like Te Puke and Katikati have caught up with Tauranga now.
"Paengaroa and Pongakawa will be the next hot spot to buy."
Marketing techniques had also changed, he said.
"Most people now want to see a fixed price or be able to negotiate because they have had enough of auctions where they can't see a price."
Tremains Bay of Plenty managing director Anton Jones. Photo / George Novak
Tremains Bay of Plenty managing director Anton Jones said the Western Bay was becoming a lot more popular for many reasons.
Buyers who may not necessarily be able to afford to live in Tauranga look outwards for more affordable options and Aucklanders were eyeing up bigger sections in the Western Bay, he said.
"The Western Bay has plenty of lifestyle blocks. We are seeing that in the prices that some of the lifestyle blocks are getting. Some of those are considerably more than what you can imagine."
Jones said Ōmokoroa has also had a "big growth spurt" over the last few years, with lots of subdivisions and developments popping up.
"It's not the sleepy little village that it once was."
Western Bay of Plenty's average house values
WBOP: Jan 2022: $1,316,000 Jan 2021: $982,000 Jan 2020: $850,000 Jan 2019: $798,000 Jan 2018: $765,000 Jan 2017: $710,000
Katikati: Jan 2022: $873,000 Jan 2021: $660,000 Jan 2020: $591,000 Jan 2019: $570,000 Jan 2018: $554,000 Jan 2017: $531,000
Ōmokoroa Jan 2022: $1,263,000 Jan 2021: $967,000 Jan 2020: $827,000 Jan 2019: $777,000 Jan 2018: $774,000 Jan 2017: $743,000
Waihi Beach Jan 2022: $1,571,000 Jan 2021: $1,161,000 Jan 2020: $958,000 Jan 2019: $891,000 Jan 2018: $837,000 Jan 2017: $762,000
Te Puke Jan 2022: $904,000 Jan 2021: $688,000 Jan 2020: $592,000 Jan 2019: $551,000 Jan 2018: $522,000 Jan 2017: $488,000
