Ray White Now New Zealand - October Edition - Page 10

House price growth continues to ease back in Tauranga , slowly but surely .
The city ’ s rolling three-monthly rate of house price growth has edged down from a January peak of 10.5 per cent to just 4.5 per cent in September . There have been growth spurts along the way − including another 10.2 per cent spike in May − but price rises have been trending down for four consecutive months now .
However , house prices in Tauranga still increased by 1.5 per cent last month and remain 32.6 per cent higher than they were 12 months ago , making it “ one of New Zealand ’ s leading New Zealand cities for house price inflation ”, according to QV property consultant Derek Turnwald .
“ After Auckland , Tauranga is now probably the least affordable city in New Zealand for housing . It ’ s become extremely difficult for first-home buyers to get on the ladder here ,” he said .
“ The main feature of the current market is a lack of listed properties − although this has improved from last month when lockdown impacted upon the market . Suppliers of home renovation supplies report a very strong demand for supplies at the present time . It would seem that much of the money saved during lockdown and deferred from not being able to travel overseas is being put into home renovations and redecoration .”
Residential property prices increased by an average of 1.2 per cent across the Waikato region in September .
The region ’ s rolling three-monthly average growth rate dropped slightly from 6 per cent in August to 5.1 per cent in September , with the districts of Waikato ( 7.1 per cent ), Taupo ( 6 per cent ), and Waipa ( 6 per cent ) making the greatest gains this quarter .
In Hamilton , property prices have increased by 5.1 per cent over the last three months to reach a new average value of $ 862,125 . The biggest increase over that time was in the city ’ s northeast ( 8.1 per cent ), which surpassed a $ 1m average price tag for the first time in September . The smallest increase was in central Hamilton and the southwest , where values grew by just 0.8 per cent and 2.4 per cent respectively .
Local QV property consultant Tom Schicker commented : “ Over the last three months the median house price in nearly all Waikato districts has continued to perform strongly − with the exception of the southern districts of Waitomo , South Waikato , and Otorohanga , which all saw small decreases .