So many things have happened in the New Zealand property market over 2019 – plans for capital gains tax were scrapped, tax breaks cancelled for investors, cuts to the OCR and legislation passed to create healthier homes.
In the Tauranga area, the median value of homes is up 4.7% on last year to $670,000 but growth has been slower in the last quarter with values up just 0.7%.
Sales volumes in Tauranga are down compared to the same period last year, but the good news is that investors are returning to the market after being virtually shut out for the last two years.
Investors with a small portfolio of two or three properties took out 16.23% of new mortgages in the last quarter - up 0.68% from the same time last year. Its great to see that first home buyers continue to be the most common buyer, accounting for 24.53% of new mortgages over the last quarter.
Tauranga’s top performing suburbs are Gate Pa, Maungatapu, Parkvale, Poike, Tauriko and Welcome Bay - all up between 6% and 8% over the last 12 months. With the exception of Tauriko, the appeal of these suburbs lies in their relatively affordable price points - all have median values below $650,000 (Tauriko’s median value is $1.33 million), attracting both first home buyers and investors.
I’m pleased to report that our company continues to dominate the Tauranga market which should give anybody who is thinking of selling confidence that when they list with us, they will achieve exceptional results.
EVES. Exceptional. Every day.