Tremains Real Estate August 2023 Market Report
What’s happening in the market?
Nationally and within the Bay of Plenty, the upcoming election is a hot topic of discussion. Current polls at the time of writing suggest that the country is poised for a change in government. Such political shifts often bring changes to the real estate landscape. These changes are expected to rekindle an appetite for real estate among investors and offshore buyers, particularly in the $2 million plus category.
Investors stand to benefit from the deductibility of interest costs over the next few years, coupled with the allure of higher rents due to a shortage of rental properties. Additionally, plans to reduce the Brightline capital gains tax rules to their original 2-year duration will allow for greater tradability of real estate assets currently held back.
Amidst these changes, net gains in immigration are driving population growth, further emphasizing the critical need for housing. First-time homebuyers are already making their presence felt, particularly in the lower and middle segments of the Bay of Plenty’s real estate market, which are showing buoyancy compared to the upper end.
AUTHOR HAYDEN DUNCAN - Chief Executive Officer
The dark clouds that loomed over the Bay of Plenty’s residential real estate market seem to be parting, giving way to rays of optimism and recovery. The latest data released by REINZ for August 2023 paints a promising picture of a market finding its footing once more.
Across New Zealand, the real estate sector has witnessed a remarkable increase in sales volumes, up by 9.2% year-on-year. Auckland, the country’s largest market, has led the charge with an impressive 18.2% year-onyear increase in sales volume. Moreover, Auckland saw a 2% rise in median property values for the month when compared to July.
In the Bay of Plenty region, the median property value currently stands at $770,000, a 14% decrease from the previous year. While this may seem like a significant drop, it’s important to note that other indicators are pointing towards a resilient recovery. One such indicator is the reduction in the number of days a property spends on the market, down by 6 days to 54 compared to the previous year. This decrease in days on the market is a strong signal of growing buyer confidence and a market on the mend.
However, it’s essential to remember that while market dynamics play a significant role, the choice of a real estate agent can make all the difference in achieving a successful outcome. In this ever-evolving market, there are no shortcuts to success when selling property. Those who enter the market well-represented, with a solid strategy and a dedicated agent, tend to reap the rewards.
In conclusion, the Bay of Plenty’s residential real estate market has weathered its share of challenges and is now showing promising signs of recovery. While median property values have dipped, the decrease in days on the market indicates a market gaining strength. Political changes, coupled with economic factors, are poised to reinvigorate investor interest. As the market continues its journey towards recovery, it remains crucial for both buyers and sellers to stay informed, stay strategic, and seek the guidance of experienced professionals to make the most of this evolving landscape.
- Hayden Duncan
About the author: Hayden Duncan is a real estate veteran with over 2o years experience. His career has included being the CEO of NZs largest real estate group, Head auctioneer for NZs largest full service real estate company and after setting up a real estate company in Canada he is now based in Tauranga and works within the market here assisting agents to deliver quality results throughout the Bay of Plenty as CEO of Tremains Real Estate.Western Bay of Plenty District
Median Sale Price change since last year -14% Median Sale Price Bay Of Plenty $770,000 Total Number of Sales Bay Of Plenty 328 Median Days to Sell Bay of Plenty 54 Tauranga City Location Median Sale Price % Sale Price Diff from 1yr Prior Number of Sales Median Days to Sell Tauranga City $840,000 -13% 194 41 Tauranga Suburbs Bellevue $737,500 -4.1% 4 41 Bethlehem $1,000,000 -11.1% 12 42 Brookfield $730,000 -13.1% 9 68 Gate Pa $630,000 -9.2% 10 28 Greerton $710,000 -9% 7 35 Judea $690,000 -14% 9 48 Matua $880,000 -41.3% 7 71 Mount Maunganui $832.500 -14.4% 27 30 Ohauiti $1,050,000 +7.1% 6 86 Otumoetai $836,000 -16.4% 10 57 Papamoa Beach $890,000 -3.3% 53 42 Pyes Pa $1,000,000 -5.7% 17 30 Tauranga Central $770,000 -31.9% 3 36 Tauranga South $693,500 -9.2% 2 78.5 Welcome Bay $765,000 -6.7% 11 86
Location Median Sale Price % Sale Price Diff from 1yr Prior Number of Sales Median Days to Sell Western Bay of Plenty $830,000 -11.2% 35 115 Katikati $830,000 +16.9% 8 90 Omokoroa $822,500 -27.5% 10 57 Te Puke $783,000 -4.7% 9 120
AUGUUST 2023 *All Statistics from Real Estate Institute of New Zealand
AUG 2023 *All Statistics from Real Estate Institute of New Zealand Median Sale Price change since last year -14% Median Sale Price Bay Of Plenty $770,000 Total Number of Sales Bay Of Plenty 328 Median Days to Sell Bay of Plenty 54 Tauranga City Location Median Sale Price % Sale Price Diff from 1yr Prior Number of Sales Median Days to Sell Tauranga City $840,000 -13% 194 41 Tauranga Suburbs Bellevue $737,500 -4.1% 4 41 Bethlehem $1,000,000 -11.1% 12 42 Brookfield $730,000 -13.1% 9 68 Gate Pa $630,000 -9.2% 10 28 Greerton $710,000 -9% 7 35 Judea $690,000 -14% 9 48 Matua $880,000 -41.3% 7 71 Mount Maunganui $832.500 -14.4% 27 30 Ohauiti $1,050,000 +7.1% 6 86 Otumoetai $836,000 -16.4% 10 57 Papamoa Beach $890,000 -3.3% 53 42 Pyes Pa $1,000,000 -5.7% 17 30 Tauranga Central $770,000 -31.9% 3 36 Tauranga South $693,500 -9.2% 2 78.5 Welcome Bay $765,000 -6.7% 11 86 Western Bay of Plenty District Location Median Sale Price % Sale Price Diff from 1yr Prior Number of Sales Median Days to Sell Western Bay of Plenty $830,000 -11.2% 35 115 Katikati $830,000 +16.9% 8 90 Omokoroa $822,500 -27.5% 10 57 Te Puke $783,000 -4.7% 9 120 REINZ MARKET SUMMARY AUGUUST 2023
REINZ MARKET SUMMARY
REINZ Market Summary
A selection of recent results by the team at Tremains
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