Property buyers pushed to new heights

The demand for land in Tauranga's competitive market has prompted one prospective Papamoa buyer to camp out in his car for not one, but two nights, in order to secure the section of his dreams.

Coast Papamoa Beach launched its fourth exclusive public land release of the year in the weekend – releasing 19 bare sections aimed at families, retirees and investors.


Frasers Property development manager Kranish Reddy.

And as with the first two releases, interest came hours beforehand in the form of people camping out in their vehicles.

However, one man took this a step further, camping out for two nights to be at the front of the queue.

'We had a Papamoa man who sold his home about six months ago and has been renting since,” says Frasers Property development manager Kranish Reddy.

'He has had his eye on one section in particular and took the necessary lengths to ensure he secured it.

'This just shows people are doing whatever it takes to secure property, and these sales are indicative of a clear market for sections at Coast Papamoa Beach.”

Latest REINZ figures show continued evidence of Auckland investors and first-home buyers spreading to other regions, including the Waikato and the Bay of Plenty, causing very strong sales growth and price boosts.

In March, 386 houses sold in Tauranga, Mount Maunganui and Papamoa.

That's more than 12 houses a day and a 23.7 per cent year-on-year increase.It was the highest number of sales for the month of March in 11 years for the Bay of Plenty and Waikato.

At the weekend's launch, a 613m2 section, which sold for $450,000, was one of 15 sections sold on the day.

Sections were sold on a first-in, first-served basis ranging in price from $289,000 to $450,000.

In order to secure one of the highly sought-after plots, potential buyers had to either be present or have a family representative at the launch in order for the contract to be processed. They were also encouraged to contact the sales team and review a draft copy of the contract prior to the launch day.

'Having 10 groups camping overnight shows that land at Coast Papamoa Beach is some of the most sought-after stock on the Bay market,” says Kranish.

'Prior to this launch, 86 sections had sold this year alone. Demand is as strong as ever. In fact, last weekend was the busiest we've been.”

While recent statistics show Aucklanders account for nearly 20 per cent of all sales in Tauranga during the first quarter of the year, Coast Papamoa Beach's sales team is fielding calls from nationwide.

'In the beginning the majority of interest came from the local region – Papamoa, Te Puke, Mount Maunganui and Tauranga.

'We now have prospective buyers from Taupo, Wellington and Christchurch, while overseas interest is coming from Australia, the UK, Dubai and Austria.”

With Tauranga being New Zealand's fastest-growing lifestyle city, coastal locations like this are getting harder and harder to find. In fact, they are a rarity, says Kranish.

'This is one of the last remaining areas of bare land closest to Mount Maunganui so, naturally, demand is high.

'Tauranga, and the Bay of Plenty, is the place to be at the moment, and it is exciting to be a part of this,” says Kranish.

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4 comments

jmac

Posted on 06-05-2016 18:43 | By JohnMac

I guess that is OK if you bought about 3 or 4 years ago but not good for the young family trying to make a start in this amazing place. Sad really. I guess it is only going to become harder as time goes on especially if you want to be close enough to be able to walk to the beach in 4 or 5 minutes.


Rates

Posted on 06-05-2016 21:30 | By Kenworthlogger

3 or 4 years ago the interest rates were sky high so the repayments would be relatively similar....


When the bubble bursts.

Posted on 07-05-2016 06:48 | By monty1212

We've seen all this before and all these people paying inflated prices now will learn the hard way when the market takes a tumble!


monty is right

Posted on 07-05-2016 10:42 | By Surfwatch

The increasing value is due to unusually low interest rates, which may or may not last. We may see some tears later, as happened in the US market several years ago. Dont be desperate to buy thinking prices will keep going up as they have.


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