Publication:

Katikati Advertiser - 2021-07-22

Data:

House prices hit record highs

Katikatiadvertiser

Zoe Hunter

House prices in Katikati and Te Puke have reached new record median highs, according to new data showing the Western Bay outperformed Tauranga in June. The latest Real Estate Institute of New Zealand property report for June showed Katikati’s median house price has reached a new record of $860,000 and $763,000 in Te Puke. Meanwhile, 23 million-dollar-plus sales and two multimillion-dollar transactions saw the Western Bay overtake Tauranga as the region’s most expensive district in June. Median house prices almost doubled in the Kaimai Ward to reach above $1m, with Maketu, Te Puke, Katikati and Waihi Beach also seeing strong increases. REINZ chief executive Jen Baird said the new records reflected a trend they have seen in many parts of the country in the last few months. “This is certainly making it harder for first-home buyers and families to get on to the market, which is why we’re now seeing more people looking at options in satellite cities and considering commuting for work. “In part, these price rises have been underpinned by a lack of supply and a fall in the total inventory levels, but, also, the low-interest-rate environment we’re operating in has meant that people are keen to get on to the property market before prices rise even further and before rates go up. “We’ve also got this classic situation whereby people want to move but, as there are limited listings on the market, they hold off from listing their own property for sale, thereby reducing the total pool of properties on the market.” Baird said more supply was needed if the current demand-supply issue was to start to ease. REINZ regional director Neville Falconer said the district’s previous record was $855,000 in March 2021. “This now makes it the most expensive district in the Bay having overtaken Tauranga City.” First National Real Estate Tauranga general manager Cameron Hooper said Te Puke’s median house price has been creeping up in the last six months. “It’s almost on par with some of the other suburbs in Tauranga,” he said. “Te Puke is starting to morph into Pā​pā​moa.” Buyers had broadened their search because of the limited stock available for sale and ending up in places like Te Puke and Katikati, he said. “Paengaora is going to come to life in the next six months.” Managing director of the Realty Group, which operates Eves and Bayleys, Simon Anderson said Katikati was growing in popularity as buyers broadened their searches. “It suits those Auckland commuters because it’s a bit closer. There are also some nice properties with views around Katikati.” Te Puke was also proving popular, he said. “We’ve seen a lot of wealth in Te Puke through the kiwifruit market,” he said. “With Pā​pā​moa becoming busier people are happy to transact in the Te Puke area instead.”

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