Tauranga Property Market Boosts National Average with 0.9% Increase in House Prices

Date Published: 19 February 2024

Key Facts

• According to data taken at the end of January, property values across New Zealand have risen by 0.9 per cent compared to three months ago.
• 90 per cent of suburbs nationwide saw an increase in property values quarter-on-quarter.
• More than 40 per cent of the 793 suburbs that had 20-plus settled sales in the last 12 months saw year-on-year value increases, indicating a turnaround in the property market.
• The average residential property value in Tauranga has increased to $1.09 million.
• Most active markets are first-home buyers and owner occupiers upsizing or downsizing.
• Mortgages registered to first-home buyers in the last quarter dropped to 44 per cent from the five-year high of 45 per cent in the previous quarter, while registries to investors rose slightly from 22.4 per cent to 23.6 per cent.

Article Summary

New data reveals that property values across New Zealand have experienced a rise of 0.9 per cent compared to the last quarter. The upturn was reflected in 90 percent of suburbs nationwide, suggesting a positive shift in the property market. Specifically in Tauranga, the city’s average residential property value has risen to $1.09 million.

The property market in Tauranga reportedly remains “positive” with increasing buyer activity and steadily stabilising prices. Market activity is particularly noticeable among first-home buyers and owner-occupiers looking to either upsize or downsize. While rental property investors have been relatively quiet, there has been an observed increase in such investors selling their properties.

Despite the perceived positivity, first-home buyers have been advised to manage their property expectations realistically and seek early engagement with realtors for maximum preparation. The current market condition is also influenced by increasing mortgage registration among first-time buyers and investors. However, according to Valocity global CEO of real estate, Helen O’Sullivan, the proposed debt-to-income ratios by the Reserve Bank are not expected to significantly disrupt these trends.

Underscoring this market optimism is the continued influx of new properties, encouraging existing owners to consider relocation. Banks placing lower interest rates and an overall positive outlook for the year are significant contributors to maintaining the current trends in the property market.

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