KEY POINTS:
The difference in property values for beachfront sites at Mount Maunganui and those just a stone's throw away is becoming ever more startling.
A property on a full section in Marine Parade is now valued at $4.7 million, up from $2.76 million.
But just a block away in Valley Rd, a home on an 840sq m section has a valuation of $549,000, with land making up $480,000 of that.
Interestingly, rural-zoned land on the fringe of the city is also coming into its own. A section there is now valued at $196,000 - up from $70,000 just six years ago.
The average capital valuation is $442,000, similar to the Avenues, higher than Otumoetai and not far behind fast-growing Papamoa.
Dan Keller, who runs property management firm Quinovic and is president of the Tauranga Property Investors' Association, said he was not surprised at the latest increases in property values.
Mr Keller said Tauranga was still a great place to invest in property.
"There are a lot of people coming here and you have lots of space and a good lifestyle ... If you had been in the market before the property boom you will have done very nicely.
"But the next two years could be good years and if you can get in with property investment then you will do well."
Tauranga Mayor Stuart Crosby said the property value increases did not come as a surprise.
"It creates two issues for us. One is that it can increase residents' equity and that is great news, but it can also create some issues for new home buyers and affordability within the city for our current and future workforce.
"That is quite a concern for me because we need to encourage skilled people here for our economy, so it is a double-edged sword."
- BAY OF PLENTY TIMES
