Lakeside suburbs were proving popular in the million-dollar market. Photo / NZME
Lakeside suburbs were proving popular in the million-dollar market. Photo / NZME
Rotorua now has eight million-dollar suburbs as property values in the city soar.
The latest OneRoof property report names the eight suburbs that have tipped over the $1 million mark for median property values and three others with values just under $1m.
The suburbs are: Hamurana, Lake Okareka, Lake Tarawera,Matipo Heights, Ngongotahā Valley, Tikitere Tumunui and Waimangu.
Tihiotonga, Waikite Valley and Lynmore, with values in the high $900,000s, are not far behind.
The OneRoof report showed Rotorua's median property value as a whole climbed 92 per cent in five years from $310,000 to $594,000
Tauranga has nine million-dollar suburbs and the Western Bay of Plenty has 17 - bringing the total number of million-dollar suburbs in the three markets to 34.
Senior research analyst at OneRoof's data partner Valocity, Wayne Shum said in Rotorua the first-home buyers' and investors' market share had remained the same in the past two quarters but the portion of multi-homeowners has declined.
Senior research analyst at OneRoof's data partner Valocity, Wayne Shum. Photo / Supplied
"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."
Simon Anderson, managing director of the Realty Group Limited, which operates Eves and Bayleys, told the Rotorua Daily Post Weekend lakeside suburbs in Rotorua were "very popular - without question" and had been for some time.
"It's fair to say there is still strong demand for property in the entire Bay of Plenty."
Managing director of the Realty Group Limited, which operates Eves and Bayleys, Simon Anderson. Photo / NZME
Rotorua Professionals McDowell Real Estate co-owner Steve Lovegrove said some rural areas had seen individual sales of almost $2m.
"One property sold for just shy of $2m and had multi-offers but we're talking large amounts of land and premium sites.
Rotorua Professionals McDowell Real Estate co-owner Steve Lovegrove. Photo / NZME
"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.
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.
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.
"It's great to see that some of our other elite suburbs are close behind, including Tihiotonga, Waikite Valley and Lynmore.
"It may not be long before these areas are up there in dollar value."
REINZ chief executive Jen Baird said it was not a surprise more suburbs were reaching median prices in excess of $1m, particularly in the Bay of Plenty.
Baird said the region was a popular choice 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."
