Rotorua house prices soaring

By REBECCA DEVINE in Rotorua
Rotorua has finally shed its reputation as a “poor cousin” in the real estate market with prices booming by 26 percent.

Figures released this week show the average sale price in Rotorua was $212,207 – up 26 per cent from the same month last year.

Other Central North Island districts are also experiencing growth in property values with September prices in Opotiki averaging $163,971 – a huge 63.8 per cent rise on September 2004.

In her 10 years in the real estate industry, Bayleys Rotorua residential sales manager Beth Millard said she had never seen such an exciting time for the district, or such growth in the market.

She said people were finally starting to feel confident investing in Rotorua and there was no sign of the trend slowing. The amounts properties were selling for was at times so high it stunned even the real estate agents selling them, she said.

“It is driven by supply and demand – there’s just a lack of properties on the market.”

Ms Millard said there was an influx of people wanting to move to Rotorua.

“In my career I’ve never dealt with so many people who are moving for a lifestyle choice.”

Whereas in the past people were “forced” to move to Rotorua for jobs, they were now asking to move to the region.

Kay Hall is one of those people.

She moved to the district from Auckland with her partner and said Rotorua offered a much more relaxed lifestyle.

“We love it. Auckland had it’s moments but it got to be a bit of a rat race sometimes. We knew we’d enjoy living here.”

Ms Hall said prices were going up as people realised what Rotorua had to offer.

“It has some great investment opportunities but people are realising how good it is to live here too.

“The outdoor lifestyle in Rotorua is fantastic and it’s drawing more and more big events to the area.

“Once upon a time Rotorua was New Zealand’s best kept secret, but I don’t think that’s true anymore. More and more people are finding out what Rotorua is all about.”

Ms Millard said while many sales were made to people moving to the region, there was also quite a trend in local people trading up.

“It’s wonderful, it’s just amazing for the real estate market.”

Rotorua had always been seen as the “poor cousin” to places like Tauranga, so it was great to see the district establishing itself as a good place in its own right.

People were no longer afraid to spend significant amounts on property in Rotorua for fear of losing money.

Meanwhile, the boom is proving challenging for first home buyers.

Rotorua Real Estate Institute spokesman Ian McDowell said the types of properties first home buyers were interested in were being snapped up by investment buyers looking to use the properties as rentals.

“We were undervalued before but people are starting to realise Rotorua’s potential.

“There’s a strong demand for houses and our listings are down.”