LVR restrictions appear to have impacted the Tauranga housing market, according a report by QV.
Prices continue to rise, but at a much slower rate, with home values in Tauranga city up by 18.3 per cent year on year and 0.6 per cent over the past three months.
The average value in the city is now $676,381.
Western Bay of Plenty values continue to rise more quickly, up 18.7 per cent year on year and 3.3 per cent over the past three months. The average value in the district is now $590,608.
QV register valuer David Hume says the high end of the Tauranga market is doing well, achieving record prices – a similar trend to that in Auckland.
“There have been large value increases in the $1 million plus bracket of the market as local and out-of-town cash buyers not affected by LVRs continue to move or invest in Tauranga, purchasing high-end properties,” he says.
“At the low-end and mid-range of the market things are less frantic. Rather than seeing 10-way multi-offers on a property after the first open home, we are instead seeing the market return to a more normal situation with good demand for property and slightly fewer offers on each property now Auckland investors are less active in the market here.”
He says many first home buyers are looking outside of Tauranga for more affordable properties in Te Puke, Te Puna and other outlying rural areas, in order to get value for money.
“The new Tauranga Northern Link will reduce commuting times to Te Puna and similar road improvements have led to significant property value increases in areas such as Paengaroa, so it's likely this will also happen in areas north of Bethlehem once the roading project is completed.”