Tauranga average house prices closing in on $1M

PHOTO: Investor interest in the market is expected to decline, says QV. File photo.

Tauranga is still one of New Zealand’s leading cities for rapid property market growth at present, despite some predictions that it’s slowing.

In fact, Tauranga’s average house price is rapidly closing in on $1 million.

At 7.8 per cent growth for the quarter − including three per cent for the month of April − it looks as though the city should reach that mark later this month, reports QV.

As it stands now though, the average price of a home here is currently $992,087.

Although confidence in the Tauranga economy remained strong, local QV property consultant Derek Turnwald advises that a number of factors will still likely slow the city’s rampant house price growth in the future.

“With the gradual removal of interest cost deductibility for investors it’s highly likely that investor interest will decline now,” he says.

“Agents are receiving less enquiries from New Zealanders living overseas, possibly as a consequence of vaccine rollouts and increased confidence that there is an end in sight to the worst effects of the Covid-19 pandemic.