It’s the “Corrugated Capital of the World”, and the only town in New Zealand that sells itself on roofing material. But what’s the market like for houses in the South Waikato tourist stop?
Agents OneRoof talked to reported that homes in Tīrau and neighbouring Tokoroa and Putāruru are increasingly attracting out-of-town buyers on the look-out for bargains. That uptick in demand is driving property values in the rural towns.
According to the latest OneRoof-Valocity house price figures, the average property value in Tirau has grown 7.2% ($52,000) in the last 12 months $723,000. The year-on-year growth in Tokoroa and Putāruru has been stronger – 11% and 9.9% - but house prices in both towns are lower, $464,000 and $578,000 respectively, and sales volumes are higher.
Tīrau has a place in the hearts of many tourists, both local and international. The small rural town of 800 people is a popular rest stop for those driving though to Rotorua and Taupo, and while many will know it for the large number of cafes and arts and craft shops that line its main drag, most will associate it with the large corrugated iron artworks that dot the landscape, including a giant dog and sheep.
Start your property search
It also has its very own castle-shaped toy museum, which make it a must-stop on State Highway 1.
Property Brokers real estate agent Steve Mathis said Tīrau homes were very popular with retiring local farmers, but also, in recent months, Aucklanders.
"We've got some great houses at Tīrau. We get a lot of retiring farmers buying here but my last three or four properties I've sold to Aucklanders, some coming down for family, other getting away from the busyness of the city,” he said.
A villa on Rose Street, in Tirau, sold at the end of last year for $980,000. Photo / Supplied
A lifestyle property at 368 Horahora Road, in Piarere, is aiming to hit $2m when it goes to auction on October 18. Photo / Supplied
Asked about why demand for real in estate in Tirau was holding strong when prices in Tokoroa and Putāruru were lower, Mathis said: "Tīrau has a very good community and a good golf course. Also, Mount Maunganui, Taupo, Hamilton and Rotorua are all really close."
House prices in Tirau typically start at $400,000, but the houses at the top end of the market can command up to $1m. A grand six-bedroom villa on Rose Street sold late last year for $980,000 – close to $200,000 above its 2021 RV – and a three-bedroom new-build home on Fairview Street fetched the same amount in April this year.
To break the million-dollar mark in Tīrau properties need land. A newish five-bedroom home sitting on more than 7000sqm of land on State Highway 5 sold for $1.4m in November 2021.
Mathis predicting he’ll break the $2m mark with a similarly sized lifestyle property at 368 Horahora Road, in Piarere. The three-bedroom home, which goes to auction on October 18, sits on Lake Karapiro and has its own tiny sandy beach. “It will be a record breaker,” he said. “Over $2m.” It’ll probably sell to someone out of our community.”
Tokoroa
Tokoroa, 33km south of Tirau, is often seen as little more than a takeaways stop for those driving on State Highway 1, but venture one or two streets back from the main drag and there is a thriving community, said Ray White real estate agent Michelle Lamberton.
“We have a stigma attached to Tokoroa, which is not correct. We are a really close knit community, and people who move here, stay here,” she said, citing the recent sale of a three bedroom home on Elizabeth Drive to a couple from Ngaruawahia, just north of Hamilton.
Value for money is a key driver of the town's housing market, with buyers able to pick up homes on large sections affordable prices. Ray White is currently marketing a two-bedroom home on 809sqm at 8 Belmont Street for $280,000 and a renovated three-bedroom home on 875sqm at 229 Balmoral Drive for $530,000.
Buyers can pick up this two-bedroom home 8 Belmont Street, Tokoroa, for $280,000. Photo / Supplied
A renovated three-bedroom home at 229 Balmoral Drive, Tokoroa, has a $530,000 price tag. Photo / Supplied
One big change in the town’s property market over the last 10 years or so is the increasing dominance of owner-occupiers. Tokoroa had been popular with investors back in the mid-2000s, said Lamberton. “We would have busloads of Australian (investors) around 2005. We were run off our feet dealing with all the deals,” she said.
But investors have pulled back in recent years. Of the last eight sales at Ray White Tokoroa, only one was to an investor.
Putāruru
One of the big selling points of Putāruru is that a beautiful home in town still costs less than $1m, said Waikato Real Estate agents Ros Hill and Tanya Konings.
The pair were sitting in a driveway at 7-9 Junction Street while being interviewed just as the property was about to be listed. “It’s a lovely property and it’s $845,000. You’ve got three bathrooms, three bedrooms, great outside living areas, beautiful conservatory and a modern kitchen. It’s lovely and it’s very private,” they said.
Like its neighbouring towns Putāruru’s affordability draws in new residents from the bigger centres. “We're getting a lot of out-of-towners coming to the area because we're so central and where our prices are reasonable still,” Konings said. “Probably about 50% of our buyers do come from out of town. Their money goes a lot further down here.”
A three-bedroom home at 7-9 Junction Street, in Putāruru, is on the market for sale for $845,000. Photo / Supplied
Like the other South Waikato towns, many residents commute for work to nearby towns such as Cambridge, Matamata and Hamilton.
What’s different about Putāruru from its neighbours is that for the first time in nearly as long as Hill can remember, the town has several new subdivisions - in Overdale Road, Maple Drive, Ruru Crescent, and Scotia Glen - as well as a new retirement village planned for Kennedy Drive.
Investors are thin on the ground, but those that do buy, will have no trouble tenanting their properties, said Hill, as rental properties are in short supply.
The other drawcard for Putāruru is the views, said Hill. “Because Putāruru is built on a series of hills, the views are actually incredible. Not only can you get [a home] for under a million, you can get something with some lovely views.”
- Click here to find more properties for sale in South Waikato
