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Top Suburbs For Tauranga Property Investors Blog Title Image Connect Realty

Top Suburbs For Tauranga Property Investors

Tauranga property investors have had plenty to smile about lately. The latest Quotable Value New Zealand figures show property prices in Greerton, Gate Pa and Parkvake have risen more than 30% in the last 12 months!  The popular family suburb of Greerton had the biggest gain with median house prices rising from $323,200 to $429,650 in the last year, a gain of 32.1%.

QV Suburb Report Tauranga 2016

Situated on the southern gateway to Tauranga, Greerton is very handy to Tauranga downtown only 6km away.   This suburb has always been popular with families due to good local schools and a shopping ‘village’ complex with over 120 retailers –Tauranga’s third largest shopping centre.  Astute property investors are investing in the $400-500,000 bracket because of the excellent rental returns they receive, and the knowledge that they are getting good long-term tenants.  Investors in this area will also find well-built established homes that do not require large renovation costs to bring them up to market standard.  Often the homes just require some insulating and cosmetic touches to lift their street appeal.

Gate Pa is handily located 5km from central Tauranga. This suburb also contains a shopping centre, supermarkets, restaurants and schools.  Tauranga Girls College is a very popular high school and many families are looking to rent in this area.

Parkvale is located on the coast about 5km from the city centre. Parkvale is a pleasant residential suburb with a range of lovely family homes throughout the area. The local primary school is Merivale.

These suburbs also appeal to investors because it is difficult to find a property under $400,000 in Tauranga, with houses in many other suburbs being snapped-up the day they are listed and/or before they even get to auction.

This, unseen, demand for housing is pushing up house prices in the whole of the Tauranga Region.  Real Estate figures show that most sales in April 2016 were for homes in the $400-499,000 price band whereas the same time last year it was for homes in the $300-399,000 band.  In addition, the sales of million-dollar homes in Tauranga has jumped by 93% compared to the same time last year!

Demand for rental properties is also huge, with many great tenants on our waiting list waiting to find a decent home in a good suburb.

So if you are considering investing in property in any of these suburbs, or Papamoa, Mt Maunganui and other suburbs in Tauranga, call Christine Jenkins at Connect Realty. Chris will guide you through the process, give you a free rental appraisal, find you high-quality tenants and manage your property with expertise and experience.

Chris Jenkins, Connect Realty 0800 333 221.

Capital Gain and Top Rental Returns in The Bay of Plenty

Since our last blog, two more articles have featured in the Bay of Plenty times regarding the current property market trends in the Western Bay of Plenty.  As discussed in previous blogs, the current rental shortage is pushing up rental prices in many areas of Tauranga resulting in fantastic returns for landlords, and the current shortage of housing is also resulting in a capital gains increase for the area.

In the article “Top returns on rental homes in city suburbs” they highlighted the great returns landlords are getting for properties in the Hairini, Welcome Bay and Greerton areas of Tauranga.  These areas are all popular with families and those needing easy access to main commuting routes.  In some of these areas rents have increased nearly 10% because of the rental shortage.

The Westpac Property Investor Report (September 2014) quoted in the article names Tauranga’s top 5 suburbs for gross yield returns as shown in this table:

Suburb Property type Median Weekly Rent Estimated Valuation (2014) Gross Yield
Hairini House (3 Beds) $350 $264,000 6.9%
Tauranga Apt/Flat (2 Beds) $272 $246,000 5.8%
Greerton House (3 Beds) $330 $310,000 5.5%
Mount Maunganui Apt/Flat (2 Beds) $331 $311,000 5.5%
Welcome Bay House (3 Beds) $350 $332,000 5.5%

The article also discussed the capital gains property owners are seeing for many of these areas.  The same Westpac report outlines these top 5 suburbs for capital gains returns:

Suburb Property type Median Weekly Rent Estimated Valuation (2014) Capital Gain
Bethlehem Apt/Flat (3 Beds) $315 $335,000 5.3%
Greerton Apt/Flat (2 Beds) $272 $300,000 4.6%
Otumoetai Apt/Flat (2 Beds) $275 $286,000 3.7%
Mount Maunganui House (3 Beds) $375 $455,000 3.6%
Mount Maunganui Apt/Flat (2 Beds) $331 $311,000 3.6%

The second article Value of Bay properties up in ‘cheaper’ areas focused on the latest QV data which also shows that the average value of properties in Tauranga and the Western Bay has increased in the past 12 months, with some increasing in value by more than 5 per cent.

This article showed Pukehina had the highest increase at 9.3 per cent, followed by Matua, 6.9 per cent, Te Puke, 6.8 per cent, Mount Maunganui, 5.7 per cent, and Greerton 4.3 per cent.

Overall Tauranga was one of the best performers in the latest QV data, with values up 0.8 per cent in the past three months and 5.1 per cent year on year.  As previously discussed, many people form Auckland are taking advantage of the cheaper property prices and better lifestyle in Tauranga and the Bay, driving up demand for all types of housing in these areas.

So now is a fantastic time to invest in a Tauranga rental property. With great returns and a capital gain combined with the services offered by Connect Realty Property Managers, you can enjoy a stress free investment.

If you wish to discuss any of the figures outlined in this blog, or the quoted articles, please call Chris in our office. She would be happy to talk about possible rental returns for your investment property, real estate trends in the Bay and more.