The latest QV House Price Index figures were released this week and the Bay hit another record high over August. Average house price for a Tauranga property is $633,638, up 28.5% from the same time in 2015. Nationwide the average is $612,527. The figures show that every suburb in Tauranga saw property values increase in the last 12 months, often by more than 20%! The top three suburbs were Parkvale (35.5 per cent), Greerton (35.2 per cent) and Gate Pa (33.8 per cent).
Interestingly actual volume of sales in Tauranga dropped 11.1% last month compared to 2015. We believe the huge price growth we have seen this year may slow with the new LVR restrictions coming into play, however there is still strong demand from first home buyers who want to move to our stunning region.
Average rent has also increased in the last 12 months and the good news for investors is that demand for rental properties in Tauranga and Papamoa is still very strong. As discussed in previous articles, areas such as Greerton, Gate Pa and Parkvale are seeing huge rental demand. Papamoa also remains a favourite for families new to the area.
The Council has announced that structure planning for a new urban development area at Te Tumu is underway. Te Tumu land lies between the eastern end of Papamoa Beach Rd and the Kaituna River. This development is expected to house between eight and fourteen thousand people, depending on how many homes are built. Once the planning stage is completed the actual development is expected to start in 2021.
New construction and development in Tauranga is still going gangbusters as well. In August there were 254 residential and building consents worth a total $62 million!
Finally, good news for Tauranga residents who find parking in town an issue. With construction of the top floor now complete, the Elizabeth Street building now provides 342 public parking spaces plus 278 leased spaces, and is open 24 hours a day, seven days a week.