Residential property values for Tauranga remain steady despite continuing national rises.
According to the latest QV index for August national property values have risen 1.6 per cent in the last three months – a total of 4.8 per cent in the last year.
They are now 0.4 per cent below the market peak of 2007 nationally.
In Tauranga values have faltered in recent months and are 1.2per cent above the same time last year with the average property worth $396,079.
Property value growth in the Western Bay of Plenty has also decreased by 8.6 per cent in the last 12 months.
QV.co.nz research director Jonno Ingerson says Tauranga is a notable exception with values remaining steady for the last few months.
Jonno says the main centres continue to lead the growth in national values, with values increasing fastest in Auckland.
'Outside of the main centre values in most areas have remained relatively stable for the past year.”
He says across most of the country there are a few common trends including a shortage of listings leading to a lack of choice for buyers.
Jonno says first home buyers are active due to low interest rates and investors are back in the market for properties that can return a good yield.
'It appears that there are about to be more properties coming onto the market as we head into spring,” says Jonno.
He says typically at this time of the year he expects to see more properties come onto the market, with the number of sales increasing each month from now through to November.
'This trend looks set to continue in most parts of the country this year, although the low level of stock may constrain the number of sales in some areas.”
According to REINZ statistics median house price for Tauranga fell from $359,500 in July to $330,000 in August with the same number of properties sold – 111.
Tauranga and Western Bay Property Valuer Paul Thomas says the market is a little bit flat at the moment but there is still movement at the bottom end.
He says first home buyers are driving the lower end of the market.
'The lower end around the 250 to 300 areas, that's probably moving the most.”
Paul says he is pretty optimistic that activity will progress but we will not see the values moving upwards just yet.
'It will still be flat for a while.”
2 comments
lol
Posted on 12-09-2012 07:59 | By Capt_Kaveman
there is no shortage of listings there are many empty and on the market properties are some poeple blind? i been to a few open homes and some are lucky to get anyone and find places are about 10% over priced
Rate reflection
Posted on 12-09-2012 10:20 | By SpeakUp
People do more diligent research than they used to. They become increasingly aware of the debt structure the council placed onto this town. Anyone buying property here WILL BE HELD LIABLE (i.e. will be extorted) for the half a BILLION $ debt the ratepayers of Tauranga have to pay for the mismanagement of the last decade, mainly under the spendthrift management of the bozos currently in charge. Compound interest will be the last nail in the coffin. At the same time free enterprise is increasingly hindered by stick-beak know-it-all self-serving intrusion by local administration in their never-ending quest for funding of their extravagant out-of-bounds bureaucratic machine and their crony band of sucking consultants, lawyers and regulators. Look at dying downtown Tauranga: with bureaucratic mania the TCC parking stooges comb the city in search for parking delinquents who go about their rightful business, only to be harassed and robbed. Here is a new motto for Tauranga: Half as big as AKL cemetery but twice as dead. -Citizen Monitoring Council-
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