Springfield one of Rotorua's biggest risers, new property figures reveal

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Springfield leads the pack in Rotorua in the latest OneRoof Property Report figures.

The median value of houses in the suburb grew 3.5 percent in the second quarter of the year, underscoring its continued popularity with families in the area.

Fordlands was the next biggest riser in Rotorua, enjoying growth of 3.0 percent. Also performing well were Pukehangi (2.0 percent); Lynmore (1.7 percent) and Kawha Point (1.6 percent).

While none of Rotorua's suburbs lost value - in marked contrast to nearby Tauranga, which saw dips in more than 50 percent of its suburbs - the figures suggest an easing in the stratospheric growth the city has enjoyed in the past two years.

Among the suburbs to see marginal growth in the last quarter were Utuhina (0.2 percent), Koutu (0.3 percent) and Glenholme (0.5 percent).

The median value for the city as whole grew 1.80 percent in the last quarter to $427,132.

Looking at the growth story over the 12-month period to June 30, half of the city's suburbs enjoyed double digit rises in value, with Hillcrest seeing the biggest increases, with 15.1 percent.

Lynmore continues to be Rotorua's most expensive suburb, boasting a median value of $618,500 as of July 31 - still well below what Aucklanders can expect to pay for a three-bedroom affordable KiwiBuild house. Catching up are Springfield ($520,800) and Kawaha Point ($507,900).

With a median value of $192,300, Rotorua's cheapest suburb remains Fordlands, but as the figures above show, the suburb is gaining ground and rising in value.

Bayleys Rotorua Branch Manager Beth Millard says: "Rotorua has lagged behind other markets especially Tauranga, Mount Maunganui and Hamilton for decades.

"It is only in the last two years the Rotorua has experienced population growth it is almost like middle earth has finally been discovered. Tourism is booming and mountain biking and the demographics of people that go with the mountain biking culture has certainly assisted in lifting Rotorua more in line with competing markets."

Millard says low levels of stock have been a factor rising price levels.

"As 90 per cent of deals go to multiple offers, once you get buyers competing for the same property often price becomes secondary to ownership."

She adds: "With respect to Fordlands' growth, there was nowhere else for this suburb to go as values were so low."

She says Pukehangi, the region's top residential performer in terms of sale numbers, has experienced huge growth, but adds: "There have been some very big sales recorded in this location which has distorted the average sale price for this location. Pukehangi encompasses Parkland Estates a $1,000,000 plus gated community."

As for 2018's top performers in terms of value growth - Hillcrest and Utuhina - she says: "These locations have really come into their own as stock has become less. Hillcrest is a very good example of growth as historically this has been a low stock turnover location based on the fact that people that live in the area just stay."