Tauranga property values are beginning to slip with no sign of any future improvement, says Quotable Value's report for the three months ending August 31.
Unlike other major centres, Tauranga did not record significant property value gains in 2009 and values are now 0.9 per cent below the same time last year - and 11.3 per cent below the market peak of late 2007.

Shayne Donovan-Grammer of QV Valuations says the local market is experiencing a difficult period. "Confidence in the market is lacking and there is no expectation of a short to medium term improvement.
"The level of activity is as light as any time in recent memory, which is creating a build up of listings. "As a consequence, values are gently slipping for open market transactions, while forced sales are showing considerable discounts."
Some listings have sat for some time and run the risk of being over-exposed, says Shane.
"At this stage, any hope that the market will hold largely depends on stable interest rates."
The average sales price for Tauranga in July was $410,798.