market report - residential

The Western Bay of Plenty residential property market has continued to improve in 2015 and is now operating in a buoyant fashion.  Tauranga sales volumes were up 44.9% for the year to March 2015 while sales at Mount Maunganui and Papamoa were up 26.7% over the same period.   We consider this strong growth will continue through the rest of 2015.

There have been value increases in the more sought after areas like The Avenues and Bethlehem and to a far greater extent at Mount Maunganui and Papamoa.  We note in particular the median sale price in Tauranga is up 11.3% from $388,000 in March 2014 to $432,000 in March 2015.  Over the same period the median at Mount Maunganui and Papamoa has increased 26.7% from $450,000 up to $517,000.

Following this trend the number of days to sell in both Tauranga and Mount Maunganui / Papamoa has dipped under 40 days in both cases.  

The Governor of the Reserve Bank has kept the Official Cash Rate at 3.5% and said that it may have to lower the rate if inflationary pressures track lower than inflation targets.  

Inflation remains close to zero rising at an annual rate of 0.1% and much of this was attributable to falling fuel prices but it is expected to pick up gradually.  

The growing economy is a reflection of low interest rates, high inflation and construction activity although house price inflation in Auckland is elevated.

In terms of the local market, we are seeing an increase in Auckland buyers and also overseas investors who are more likely to pay increased asking prices, particularly for property in the medium and upper bracket.

We are seeing more investors returning to the market although returns remain relatively low, however there is now potential capital gain with significant pressure coming on rental levels.  Rents in all suburbs have increased and there is now a shortage of accommodation.  

Prices for sections are improving and we are seeing significant activity particularly in the Greenfield subdivisions.  Building consent numbers remain strong right across the Western Bay of Plenty District.  Removal of new house builds from the high loan to value restrictions has also helped bolster this sector.

The apartment market has also improved in that the over supply problem appears to have been mostly absorbed.  We have yet however seen the market shift to a stage where new apartment developments are being considered.

There has been more activity in the upper bracket with an increased number of properties selling in excess of a million dollars particularly at Mount Maunganui and to a lesser extent in Tauranga.

Overall we consider the housing market will continue to strengthen in 2015 particularly as the wider economy improves.
Hills Haden
  Tauranga Statistics
  Tauranga City
  Suburb Statistics
  The Avenues
  Gate Pa/Merrivale
  Mount Maunganui - Residential
  Papamoa Central/West
  Papamoa East
  Pyes Pa/Late Ohauiti
  Welcome Bay/Hairini/ Windermere/Ohauiti
  Area Statistics
  Volume of Sales
  Median Sale Price
  Sale Price % Above/Below Rateable Valuation
  Apartment Statistics
  Mount Maunganui - Apartments