Lynmore tops house prices as new subdivision announced

Sections in Redwood Park start at $325,000. Photo / Ben Fraser

New figures show Lynmore is streaks ahead as Rotorua's hottest suburb - backed up by 45 new sections going on the market this week priced at more than $325,000.

Data released by the Real Estate Institute of New Zealand shows the median sale price in Lynmore, for the three months ending April 30, was $645,000. Houses in the suburb also sold the third quickest.

In those three months there were 13 sales in Lynmore and the median time it took to sell was 22 days.

The next highest median sale price was $89,000 less; $556,000 in Springfield.
The figures show the quickest median sale time was 13 days in Hillcrest followed by 20 days in Pukehangi.

The cheapest median sale price was Western Heights at $285,000.

The figures come as offers open on 45 consented lots on Tarawera Rd ranging from 0.14 hectares to 1.95ha.

Described on a website as "a new, semi-rural, subdivision that's all about lifestyle", the subdivision is known as Redwood Park.

Houses in the suburb of Lynmore sell for the highest price, new figures show. Photo / File

A TradeMe advertisement for the subdivision said inquiries over $325,000 were being accepted for the sections alone.

The subdivision advertisement said it was about 2km from the Tarawera roundabout and was central to the Redwoods, lakes, Rotorua Golf Club and the central business district.

"Sections range from 0.14ha up to 1.95ha, providing an incredible sense of space, tranquillity and options to suit your needs. The north-facing elevations offer unprecedented lake or rural views across Rotorua," the site said.

The Rotorua Daily Post approached the person responsible for the advertisement but he wasn't in a position to comment at this stage.

The site, at 220 Tarawera Rd, last sold in May 2017 for $1.02 million, a Real Estate Institute of New Zealand spokeswoman said. This was the highest price in Lynmore from 2010 until the start of May.

Ray White Rotorua agent and business owner Anita Martelli said people were always looking for properties in the suburb and they were snatched up quickly.

She had recently sold a house on Selwyn Rd and, although couldn't specify how much it had sold for exactly, said there had been a lot of interest in the property.

"It was on beautiful grounds and a lovely character home that had been well maintained," she said.

Reinz figures showed that the last time that particular property sold was in 2012 for $839,000. This was the second highest house price in Lynmore since 2010.

There have been only six sales in four years on the road.

Martelli said Lynmore was an attractive suburb because of its proximity to the forest and lakes and a sought after school.

"There is a shortage of listings in Lynmore."

First National principal and Rotorua Real Estate Institute of New Zealand ambassador Ann Crossley said it was exciting to see new subdivisions on the market and the Tarawera Rd one would be "highly sought after".

"I think the town is in desperate need of subdivisions to match demand and Lynmore is a highly sought after area," Crossley said.

"That's not a first-home buyers' subdivision but it will allow some flow through because it will unblock the log jam, if you like, at the top."

Crossley said subdivisions were needed but they were not a quick fix.

"It's probably going to be three years before people are moving in. It's not going to happen tomorrow. It's not a short-term fix but we do need them."

When asked what made Lynmore an attractive area, Crossley said it was a few things.

"The whole town offers really good amenities but maybe Lynmore is a bit closer to all of them.

"It's got a good school and it's always offered something a little different. It's next to the Redwoods and the lakes."

Rotorua Lakes Council's sustainable economic development portfolio lead councillor Dave Donaldson said he welcomed new subdivisions.

"We have an absolute housing shortage in Rotorua," he said.

"Any new subdivisions will go some way towards easing what's a serious challenge."

Donaldson said while land prices of $325,000 might not be what's considered "affordable housing" he agreed with Crossley it would have a trickle-down effect.

"It would be welcomed by those looking for the opportunity to build and upgrade ... That creates opportunities for the properties they are leaving to be passed on," he said.

"There are pressures in all areas of the market, both in high-value properties and affordable areas."