Local home values picking up

Rotorua is believed to be at the beginning of some renewed activity in the property market. Photo / File

Rotorua property values are increasing, with the local market in an "exciting time" and showing increased interest from Auckland buyers, according to local real estate agents.

QV's June residential price movement index showed Rotorua average home values increased year-on-year by 1.5 per cent to $272,508. There was also an increase over the past three months, up 1.4 per cent.

Ross Stanway, chief executive of Realty Services, which operates Eves and Bayleys Real Estate, believed Rotorua was at the beginning of some renewed activity in the market.

He said there was more buyer inquiry, including "an element of the Auckland inquiry," which he believed would grow.

Mr Stanway said the Auckland interest was a mix of people looking for investment opportunities, in terms of buying rental properties, as well as those who were moving for the lifestyle.

Mr Stanway said in his group some of the best months in real estate were in winter.

Ian McDowell, managing director of McDowell Professionals, said the market had certainly been picking up.

He said the June sales statistics from the Real Estate Institute, which were due out shortly, could show a record month for sales. Mr McDowell said that, after "six or seven pretty hard years," the market had started to pick up in the last few months of last year.

He agreed there had been outsider interest from Aucklanders. "Some are buying investments but quite a lot are coming here to relocate. Some aren't coming straight away, their aim is to buy something and move down in a few years."

He said while it had been a buyers' market for a "long, long time" that was changing.

"It is quite exciting the way it is going."

First National Real Estate Rotorua principal Ann Crossley said she believed the QV figures were "quite reflective".

"It certainly is a sellers' market. There are plenty of buyers and not [many] properties."

She said one of the reasons was because of who was buying - investors, first-home buyers and Aucklanders. "They don't add anything to our property pool, they just take things out."

She said the number of properties on the market had trended down, which meant some properties which had been sitting on the market for quite a while had sold.

•Additional reporting Erin McKenzie, AUT journalism student

The Rotorua figures:
•Average current value - $272,508
•12 month change, up 1.5 per cent
•Three-month change, up 1.4 per cent
•Down 7.2 per cent from the market peak in 2007
•122 sales for June
- Figures from QV House Price Index for June

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