Tauriko was one of nine Tauranga suburbs with a median value of $1 million. Photo / NZME
Tauriko was one of nine Tauranga suburbs with a median value of $1 million. Photo / NZME
Tauranga now has nine million-dollar suburbs as property values in the city continue to soar.
Tauriko tops the list with a median property value of $1,712,000, followed by Bethlehem with $1,155,000 then Mount Maunganui with $1,154,000.
The trend is occurring across the region, with neighbouring Western Bay of Plenty districtboasting 17 suburbs with a median property value of more than a million dollars.
Eight suburbs in Rotorua have also crossed the million-dollar mark, taking the total number of million-dollar suburbs across the region to 34.
The latest OneRoof report showed Tauranga's overall median property value climbed 59 per cent over the past five years from $570,000 to $905,000, while in the Western Bay increased 62 per cent from $580,000 to $940,000.
Senior research analyst at OneRoof's data partner Valocity, Wayne Shum, said two Tauranga suburbs, Ōtūmoetai and Tauranga Central, were within striking distance of tipping over the million-dollar mark.
Shum said demand for homes in the region remained strong and supply was yet to catch up.
"The region continues to attract out-of-town buyers in the remote-working era, as buyers are choosing lifestyle over city life."
Senior research analyst at OneRoof's data partner Valocity, Wayne Shum. Photo / Supplied
Owner-occupier market share had increased at the expense of investors and multi-homeowners, he said.
In Rotorua, Shum said in Rotorua, first-home buyers' and investors' market share had remained the same in the past two quarters but the proportion of multi-homeowners had declined.
"Demand continued to outpace supply leading to the price growth. However, the removal of interest deductibility has deterred some out-of-town first-time investors from buying in the area."
While growth in Tauranga and Rotorua was stronger than the national average, it was below the rest of the region with Western Bay of Plenty and Whakatāne growing at 7.2 per cent, he said.
Managing director of the Realty Group Limited, which operates Eves and Bayleys, Simon Anderson. Photo / NZME
Managing director of the Realty Group Limited, which operates Eves and Bayleys, Simon Anderson, said a million-dollar sale seemed uncommon not that long ago.
Now, he said it seemed there was home selling for $1 million almost every other day.
"It is almost like the million-dollar market is just what it is now. It's no longer $10 Tauranga, it is million-dollar Tauranga," he said.
"It is just proving there is a lot of cash in the market."
A total of 14 residential properties were sold at auction by Eves last week
at an average of $948,000, he said.
Anderson said lakeside suburbs in Rotorua were "very popular without question" and had been for some time now.
"It's fair to say there is still strong demand for property in the entire Bay of Plenty."
Lakeside suburbs were proving popular in the million-dollar market. Photo / NZME
Mount Maunganui and Pāpāmoa Ray White franchise owner, Greg Purcell, said the jump in median values was not surprising given the demand for properties across the area.
Purcell said Tauranga being within the golden triangle of Hamilton, Auckland and the Hamilton meant it remained a highly attractive place to live for lots of out-of-town buyers.
Demand for homes across the wider district remained strong, and some buyers were prepared to pay higher prices rather than miss getting onto the property ladder, he said.
Purcell said the district was going through a bit of "golden growth spurt".
Managing director of Tremains Bay of Plenty Anton Jones said he was also not surprised by the growing number of million-dollar suburbs.
"It was always going to happen that the other suburbs were going catch up, it was just a matter of time."
Jones said some of the growth could be put down to the shortage of listings - which helped to kept prices up - but Tauranga also continued to be a "very popular" place to live for lots of reasons, including the lifestyle.
There was still plenty of interest from buyers from Wellington, Auckland and Christchurch, he said.
Jones said these higher valuations also really depended on the range of housing options in a particular suburb, including the number of new developments in an area.
Rotorua Professionals McDowell Real Estate co-owner Steve Lovegrove said individual sales in some rural areas had almost reached $2m.
"One property sold for just shy of $2m and had multi-offers. But we're talking large amounts of land and premium sites.
"The buyer confidence at that level is still high ... the next level at $2m is starting to emerge."
Lovegrove said well-presented lakeside and lifestyle properties had been selling at the million-dollar mark for some time.
Rotorua Professionals McDowell Real Estate co-owner Steve Lovegrove. Photo / NZME
However, elevated properties with lake views were now reaching the million-dollar mark.
Lovegrove said they were seeing older properties with "outstanding views" and larger sections being redeveloped and refurbished.
"Watch this space, they will up there next."
Lakefront properties in Koutu, Hannahs Bay and Kawaha Point were also strong pickings for the "next frontier of million-dollar suburbs".
Harcourts Rotorua sales manager Michelle Matthews said she had seen a significant increase in $1m sales in the city and surrounding areas.
"It was not long ago that $1m sales were few and far between."
Matthews said they had sold a number of $1m-plus properties, particularly lifestyle homes.
"We have also noted that lakeside properties have shown significant growth and are as popular as ever."
Real Estate Institute of New Zealand chief executive Jen Baird said it was little surprise there were more suburbs reaching median house prices in excess of $1m, particularly in the Bay of Plenty.
Baird said the Bay was a popular destination for people looking to relocate from the big cities.
"The Bay of Plenty is also an attractive option for residential investors and developers looking for opportunities to build apartment blocks, higher-density properties and luxury homes, which tend to fall into the upper price brackets."
Baird said the region saw a 47.5 per cent decrease in available stock in June from the same time last year, leaving 726 properties available to purchase at the end of the month.
"These low levels of stock mean that there is strong competition for available properties as demand continues to outweigh supply."
