Posts

Real Estate In The Bay – The Latest REINZ Figures For Tauranga

Image of Tauranga apartment

The Real Estate Institute of New Zealand (REINZ) has released their latest figures today and, according to the new data, Tauranga house prices have jumped 4.5 per cent.

The latest data shows the median house price in Taurangas jumped to $635,000 in July 2018 from $607,500 in July 2017. Interestingly though, However, the median house price dropped 3.1 per cent from $655,000 in June 2018 to $635,000 in July 2018.

According to the REINZ regional director Philip Searle, as quoted in the Bay of Plenty Times, the Bay of Plenty market was still seeing low stock levels with a number of new listings attracting multi-offers.

“Investor numbers are jumping and are up to 60 per cent of the total buyer interest, and most of the investors are locals who know the area well.”

Searle said the low listing numbers were keeping the prices strong with vendors’ expectations remaining at the same levels.

You can read the full Bay of Plenty Times article Here.

If you are thinking of buying an investment property in Tauranga, Connect Realty Ltd can provide local expertise and advice about the current housing market. We also have in place highly effective systems that set us apart from traditional real estate agencies. We offer a results driven solution for the management of your property investment. When we speak with you about your portfolio, we will discuss the now, the near future and the long term picture. As part of this we are able to discuss development plans to ensure you maximise the potential value of your investment portfolio.

Property is often the largest investment many of us will make, so it is worth the time to ensure you have the right team of industry professionals supporting you in reaching your goal, giving independent advise on where best to invest your money.

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.

Property Investment In Tauranga, Papamoa and Mt Maunganui

Image for why property investors should invest in Tauranga, Papamoa and Mt Maunganui Connect Realty Blog

If you are considering purchasing an investment property somewhere in New Zealand then you should look no further than the Bay of Plenty. The Bay covers Tauranga, Mount Maunganui, Papamoa and outlying areas. The reasons we think you should seriously consider this area are two-fold:

  1. There is currently a housing shortage in this area; specifically there is a rental shortage in the whole of the Tauranga area. All properties are being sought after – apartments, houses and units – in all price ranges.

We have many registered tenants interested in renting property in this area, and we get daily enquiries from other great tenants who cannot find a suitable home.

  1. The Tauranga area is growing exponentially; with new roads, schools and businesses opening to cater for the huge population explosion that has taken place over the last 10 years.

A lot of the housing in Papamoa and Mount Maunganui is also new, well built and low maintenance which interests our out of town clients as a great property management option. And these areas are located close to the beach and other great amenities.

Recently the Bay of Plenty times ran an article about the Bay’s economy. This article stated that the region’s economy is growing faster than that in Auckland and the Waikato. Mark Lister from Craigs Investment Partners was quoted as saying:

“[Tauranga’s] future is bright because of a whole range of reasons. We’ve got the best climate in the country, the best beach, we’ve got the best port … we’re not isolated, we’re close to Auckland and Hamilton and it’s a great place to live.”

We believe the above reasons make the Tauranga area a great place for investment buyers. For prices much cheaper than other similar sized cities you can purchase a low maintenance property with low vacancy periods and great rental return. Combine this with a stunning climate, modern infrastructure, continued growth of this Region and the current shortage of rentals and you have the perfect mix for investment buyers.

If you are interested in more information about the Bay, investment property, and what we can offer landlords with our property management services, then please contact Chris at Connect Realty 0800 333 221.  We look forward to hearing from you.