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Papamoa Beach house sells for $4.1 million

The median house price in the Bay of Plenty region is now more than $800,000. File photos.

The median house price for February in the Bay of Plenty region has increased 26.8 per cent.

The median house price in the region rose from $669,000 in February 2020 to a record high of $848,250 in February 2021.

The median house price rose by 10.6 per cent in the last month alone from $767,000 in January 2021, according to the latest statistics from REINZ.

One property sold for $4,155,000 in Papamoa Beach.

“Record median house prices were also reached in Rotorua District ($617,000), Tauranga City ($905,000) and Western Bay of Plenty District ($855,000). At $905,000, Tauranga City is now more expensive than Auckland’s Franklin District ($827,000) and Papakura District ($822,000),” says REINZ regional director Neville Falconer.

“Demand for good properties has remained high and purchasers are quick to act on new listings with median days to sell down to 30 days, from 45 days in February 2020 – this is the lowest median days to sell for a February month on record.

“Auctions continue to be a popular method of sale, as 47.8 per cent of all February sales were made by auction, up from 18.9 per cent at the same time last year.

“Access to finance is still difficult, particularly for first time buyers or purchasers with low equity.

“Looking forward, we would expect prices to remain under pressure unless we can see an uplift in supply.”

REINZ HPI hits new high again in February

The REINZ House Price Index for New Zealand, which measures the changing value of property in the market, increased 21.5 per cent year-on-year to 3,657 a new high on the index.

This is the first time the index has exceeded the 3500 mark and was the highest annual percentage increase in the HPI seen in 201 months (May 2004) showing just how strong the market was in February, says REINZ.

The HPI for New Zealand, excluding Auckland, showed house price values increased 22.2 per cent from February 2020 to 3653 in February 2021 a new high on the index and the highest percentage increase in 199 months (July 2004).

Auckland’s house price values increased 20.7 per cent year-on-year to 3662 meaning house values in the City of Sails have increased by more than 260 per cent since 2003 when the index base level was set.

Additionally, every region reached a new high on the index.

In February, Gisborne/Hawke’s Bay again had the highest annual growth rate in house price values with a 30.1 per cent increase to a new record index level of 4110.

In second place was Manawatu/Wanganui with a 29.4 per cent increase and in third place was Wellington with a 29.2 per cent annual increase in house price values.

Both Manawatu/Wanganui and Wellington’s increases were the largest HPI movement for the respective regions on record.

Read REINZ’s monthly property report in full here.

 

 

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Bubbles.

Posted on 12-03-2021 12:54 | By morepork

Thanks Prof, for your response. I lived in London during the 80s and some of the 90s. I took advice from a very highly regarded financial professional. I was making serious money and watching people churning properties for large sums of money. He asked me: "Do you intend to settle in the U.K. permanently?" I said: "No, I’ll always end my days in NZ". He then said: "Don’t buy a property at the moment unless you intend to live in it long term. The bubble will burst sometime in the next 4 months." 3 months later it did and around 9 million people were plunged into negative equity (paying off a mortgage that was far more than the property was worth). I would hate to see the same thing happen here.

@morepork

Posted on 11-03-2021 17:56 | By

Unfortunately, the bubble probably won’t burst as such. We may find that prices slow or retract slightly, but generally speaking, house prices double approx every 10 to 15 years.

Time to move?

Posted on 11-03-2021 12:38 | By morepork

This is obviously unsustainable. I live in what has been a family bungalow since it was built in the 1980s and I love being in Tauranga and being in my house. But if someone offered me $905,000, I’d have to think very carefully about it... This bubble has to burst sometime soon, doesn’t it?