Buyers have been tussling over an entry-level lifestyle property in Tauranga after an unprecedented number of groups went through its first open home, pulling in multiple offers.
Tauranga agents say there’s been a rise in the number of people turning up to open homes in the last few weeks largely due to the fine weather and certain properties such as entry lifestyle ones proving extremely popular.
52 Panorama Drive, in Welcome Bay, had a conditional contract on it after only a week on the market. The owners had to choose from seven offers all within a 10% price range of each other.
Of those offers, three were conditional on the new buyers selling their existing properties.
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While the price can’t be revealed yet, the property was seeking offers over $990,000 and had a July 2021 RV of $950,000.
Listing agents Tracey and Trevor East of the newly launched East Realty said there was a traffic jam on the street on Sunday as people arrived to view the property.
The open home had been scheduled for 45 minutes, but ran for two hours as people kept turning up. In total, 37 groups went through the open home and a further five for private inspections.
Tracey East said one of the reasons for its popularity was due to the fact that entry-level lifestyle properties were in high demand.
“Everyone wants to have their own bit of dirt where they can grow their own veges and raise a few animals and have the kids play and roam and do all those fun lifestyle things. And for young families of today, it’s very hard to get into lifestyle so we’ve got six very sad people that have missed out.”
A three-bedroom home on a 5514sqm section at 48 Cobbett Drive in the Western Bay of Plenty is seeking enquiries over $989,000. Photo / Supplied
The property comprised of a main, recently renovated three-bedroom home and a separate sleepout on a 4559sqm lifestyle section on the rural borders of Welcome Bay and just a minute from Waipuna Park. There was also a stream running through the property.
East said while the second dwelling wasn’t suitable as a home and income situation due to not having a permitted kitchen, they had seen a lot of interest from multi-generational families where the parents and their adult children were looking to buy the property together.
“I think that’s one of the biggest concerns a lot of people have at the moment is their young ones not being able to get on the ladder so they are helping them in some way.”
The former Bayleys agents said the market had been quiet over recent months and prior to marketing this property, numbers to open homes had been low.
Trevor East said more properties generally did come onto the market during spring and summer, but the better weather was definitely helping the market.
“Generally, people’s mood changes and I just think in regard to a lot of things including real estate, people just become a bit more positive because the weather is great or is improving.”
Powers Realty salesperson Nathan Gill agreed there is huge demand for lifestyle properties priced under $1 million, especially since the Covid lockdowns and there was interest from a wide range of buyers including first-home buyers, upsizers and downsizers.
“Since Covid people are more attracted towards lifestyle properties compared to just the residential ones as long as that fits into the price range because then they have the freedom to be in their own space, not have neighbours close by.”
The first open home he held for a lifestyle property at 48 Corbett Drive, in Te Puna, in early July also attracted more than 20 groups through and is taking enquiries over $989,000.
However, Gill said the property was still on the market after the third contract on it fell over last Friday due to financing. All three times the property has been under contract there were multiple offers presented.
This five-bedroom luxury home on a 1.04ha block at 526a Belk Road, Omanawa, Western Bay Of Plenty goes to auction on August 30. Photo / Supplied
“The finance from the banks has been an issue for buyers so that’s still playing a part with actually getting deals across the line,” he said.
“When they (first-home buyers) put forward offers, we are noticing 60% to 70% of the times the offers don’t go through because of the banks’ criteria at the moment.”
He said there was still huge interest in property and he had private viewing planned for it this week as well as people lining up for the open home at the weekend.
“I’ve got no doubt that that will go under contract again very shortly.”
Along with lifestyle properties, first-home buyers were also looking for solid homes in good areas. A property at Grange Road in Otūmoetai sold at the end of June after about 30 groups went through the open home and the property sold for $968,00 within a week after receiving seven offers.
“Even in this market, as long as your real estate sits in a really decent location and has got good build so brick and tile for example, 1960s solid homes, those ones are still selling for a really good price.”
Otūmoetai, Matua, Bethlehem, Pyes Pa, The Lakes, some parts of Brookfield and early Papamoa are the popular areas.
Other properties are also starting to draw bigger numbers.
Tremains managing director Anton Jones said they had noticed a definite increase in the number of people attending open homes in the last few weeks with several properties attracting more than 10 groups through its doors.
It was often hard to work out which properties would draw crowds, he said, as both a lifestyle property at 526a Belk Road, in Omanawa, and an entry-level home at 5a Brookfield Terrace had seen at least a dozen groups through its open homes.
Another lifestyle property at 268 Joyce Rd in Pyes Pa is also on the market with an asking price of $2.095m.
The good weather also played a “massive factor” in encouraging people to venture out to open homes.
“If it’s a not so good day then they don’t definitely don’t come out in the open homes. They’ve got to be a very keen buyer to want to come out with weather that’s not so great.... And in winter there’s not as many houses theoretically on the market either.”
- Click here to find more lifestyle properties for sale in Bay of Plenty.
