There have been plenty more articles about Tauranga property investing and the real estate market since our last blog post. In a recent Bay of Plenty Times article journalist Sonya Bateson discussed the property market ‘frenzy’ that has taken place in Tauranga after the latest lowering of the Official Cash Rate. The article highlighted that property sales had continued to climb every month over the last 12 months, partly due to the many Aucklander’s ‘cashing up’ and moving to the area – https://www.nzherald.co.nz/bay-of-plenty-times/news/article.cfm?c_id=1503343&objectid=11605824
There is also a lot of investment in Tauranga and business confidence is at an all time high. According to one article “Both total and per capita gross domestic product (GDP) are at all-time highs, with GDP growing 8 per cent in the last two years”. What’s more astonishing is that “Total GDP rose to $12.29 billion for the 2015 financial year, up from $12.02 billion a year earlier and $11.37 billion in 2013.”! https://www.nzherald.co.nz/bay-of-plenty-times/news/article.cfm?c_id=1503343&objectid=11604932
New property figures discussed in another article “show home values in some Tauranga suburbs rose by as much as 10 per cent in the quarter to December 2015.” https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11600732
5 hotspots were revealed in one Bay article, these are Parkvale, Gate Pa, Tauranga South, Greerton and Welcome Bay. These areas are increasingly attractive to property investors because of good capital gains and increased rental returns due to a rental shortage in the Tauranga Region. Many investors are finding property ‘bargains’ in older homes that have been left unmaintained and which, after renovations, are seeing an excellent rental return. https://www.nzherald.co.nz/bay-of-plenty-times/news/article.cfm?c_id=1503343&objectid=11600559
Papamoa also continues grow with sections in new subdivisions being snapped up the day they come onto the market. Demand for housing in this area in huge and “The average house and land package was $560,000 to $630,000 compared with $500,000 to $580,000 just 18 months ago.” https://www.nzherald.co.nz/bay-of-plenty-times/news/article.cfm?c_id=1503343&objectid=11597301
If you would like to discuss any of these articles and property investing in these areas then give Chris Jenkins at Connect Realty a call. Chris is an experienced Property Manager who has a wealth of experience in Real Estate in the Bay of Plenty area and she is happy to provide her advice to investors.
Connect Realty also offer top of the range Property Management services to clients located in Tauranga, Mt Maunganui and Papamoa. They also provide a free rent appraisal for potential property investments. Give them a call today 0800 333 221.