All the properties resold in Rotorua in the last quarter of 2018 made a profit. Photo / File
All the properties resold in Rotorua in the last quarter of 2018 made a profit. Photo / File
Every property resold in Rotorua in the last quarter of last year made a profit, with the city's gross profit from sales exceeding $50 million, a new report has revealed.
The latest Pain and Gain report was released today , analysing homes sold in the previous quarter and comparing the most recent sale price to the previous price to determine if the property resold at a gross profit or loss.
In the last quarter of the year, Rotorua had no resales made at a loss, down from an already low 0.8 per cent loss in the third quarter.
According to the report, compiled by CoreLogic, the median profit made by Rotorua residents who sold their home between October 1 and December 31 was $195,000 per property - the city's gross profit from sales exceeded $50 million.
A Lynmore property sold in November made the biggest resale profit of $802,500 after being owned by the same people for more than 30 years.
"It's a significant market that is pretty strong. Property values have been going up. The average rise in values has been 7 per cent. That's two times the national average [2.9 per cent].
Davidson said according to CoreLogic figures, the biggest buyers in Rotorua were mortgaged investors. They made up 29 per cent of buyers. First-home buyers followed making up 23 per cent, and movers (existing owner/occupiers) made up 21 per cent.
Cash investors rounded out the top four, making up 11 per cent.
"Values are going up and demand is being driven by investors finding value in Rotorua. That points to a strong market supported by a healthy tourism industry."
Davidson said it was important to note the figures only covered resales, not new properties.
Tremains Real Estate Rotorua manager Malcolm Forsyth said Rotorua had been experiencing "real growth" in the market in the past 18 months.
"At the moment certainly we're experiencing new listings and a lot of activity. It's not uncommon to have multiple viewings on one property."
Forsyth said a lot of factors came into play when it came to selling a property but people never intended to make a loss when they bought a property.
Tremains Real Estate Rotorua manager Malcolm Forsyth.
"I don't know what the future holds in terms of values but if we look at Rotorua we've seen some real activity. I can't see that slowing down."
Professionals McDowell Real Estate co-owner Steve Lovegrove was said Rotorua's property growth had been "long overdue".
"Rotorua was under-priced and now we have had demand and population growth over the last four to five years ... but the market doesn't keep going like that forever."
Lovegrove said there was uncertainty in the property market around legislation, the capital gains tax and recent changes to rental requirements.
Professionals McDowell co-owner Steve Lovegrove. Photo / File
"I've been hesitant to talk about prices going backward but I think we're heading into a stage where it's going to be possible people might have to consider selling for less than they thought."
Both Forsyth and Lovegrove queried what effect the proposed capital gains tax would have on the property market, and the effect of uncertainty around Government legislation and other recent changes.
