Tauranga Property Trends

26th April, 2010

Property values in Tauranga increased by 0.1% over the past year (calculated over the three months ending March 2010 in comparison to the same period last year), down on the 1.0% annual growth reported in February. The average sale price for the region decreased from $422,746 to $413,173.

A representative from a local valuation company said; “Tauranga’s housing market is continuing to slow, and we expect that this will persist for the time being. First home buyers are still the most active; they’re looking to secure a home before interest rates increase later this year. Banks are also currently offering over 80% lending, which makes a big difference to those trying to save deposits. As for current homeowners, is seems the average household is astutely aware of current economic and market conditions, and appear very cautious about incurring significant debt to move into a more expensive home”.

“Investors are very inactive. In Tauranga most investors buy for capital gain, not for high returns. With no prospect of significant capital gain in the foreseeable future, there is not much incentive to invest. Also, a lot of investors have seen their purchases of the last two or three years lose value and have consequently become more conservative and cautious”