Rotorua house values up 6.1%

Beth Millard, Julie Brake, Jacquie Bishop from Bayleys. PHOTO/BEN FRASER

Average house values have surged in Rotorua - with multiple offers becoming more common and houses being sold before the signs go up.

Quotable Value's latest house price index, released yesterday, showed average Rotorua values rose 6.1 per cent annually and 6.1 per cent in the last three months to hit $287,911.

Average values now sit just 1.9 per cent below the 2007 market peak.

Ian McDowell, of McDowell Professionals said the market had been "very, very active" and properties were attracting lots of multi-offers.

He said as a company they had a record sales month in October and he expected the Real Estate Institute of New Zealand statistics, which would be released shortly, to reflect that.

"I'm sure it will be a record month for Rotorua. We have waited six or seven years for the market to take off again."

Mr McDowell said in some cases agents had buyers wanting properties in certain areas being shown through homes before the signs went up or they were advertised on the internet.

"We try and slow it down a little but people are really pushing us."

He said it was becoming more common to see properties listed without price, which was a sign of the market.

"If we know the property is in the right location or the demand is very high it's hard to put an exact price on it."

Ross Stanway, chief executive of Realty Services, which operates Eves and Bayleys Real Estate, said there had been a positive trend for the past few months and this was "more of the same".

"There's a real air of quiet confidence in the city."

He said those purchasing properties were a mix of first home buyers, investors and people moving to Rotorua from other areas.

Mr Stanway said it was "predominantly driven by Aucklanders".

"Finally people are realising what really good value for money property in Rotorua is."

Mr Stanway said there was always a lag between what happened in Auckland and the regions.

"It's Rotorua's time. It could continue for some time yet."

While demand was across the board, his company, particularly the Bayleys brand was seeing an increased interest for properties around the lakes.

"Definitely days on the market have come back and that's a good sign of increased demand," he said.

Rotorua hot property

* Average current value $287,911
* 6.1 per cent increase from last October
* 6.1 per cent up from three months ago
* 1.9 per cent below the 2007 market peak

- QV figures October 2015