Buyers in the Bay of Plenty are getting a shock when they hear they may miss out on their dream home because they are up against several other buyers also desperate for it.
The competition is ramping up for properties in all price ranges as the number of properties for sale in the region hits its lowest level in several years, agents told OneRoof.
They say this is causing a noticeable rise in the number of multi-offers being presented to owners, which was almost unheard of earlier in the year.
Powers Realty principal Sandra Power said the increased competition is surprising buyers, who are still reading the media reports of “property gloom” based on past statistics.
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“As the number of listings has reduced competition has come back in and the market has become more balanced so not favouring the buyer to the extent it was before. This means buyers are becoming more confident that what they buy will not likely become worth less after their purchase.”
In the last few weeks, Powers Realty has seen a handful of properties in both Tauranga and Papamoa turn into multi-offer situations.
A four-bedroom, two-bathroom home on Waitaha Road in Welcome Bay ended up having three rounds of multi-offers made on it, which Powers said was quite rare and impressive given the current market. Two offers were made before the deadline but were rejected for being too low, then two more offers were made at the deadline, and one was accepted, but later fell over on conditions. Another two offers were made, resulting in the property selling for $760,000.
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Bayleys Mount Maunganui branch manager Linda Greenslade has been involved in at least three multi-offers this week alone – a stark change from earlier this year when they were almost non-existent.
Several properties have even been snapped up at auction including one on Lee St, Mount Maunganui, which sold for $1.85m and had two bidders.
Greenslade told OneRoof in March that most sales in Mount Maunganui so far this year had been between $1m and $2m and buyers had plenty of choice.
But five months on that no longer seems to ring true with stock levels dropping and a number of sales in Mount Maunganui pipping the $2m mark and a couple even selling above $5m.
Bayleys recently sold a property close to the beach for $5m plus, but Greenslade could not provide further details until after settlement. The highest sale so far in Mount Maunganui this year was a property on Ngarata Avenue that sold for $6.6m in May, according to OneRoof-Valocity data.
She said the upper-end of the market has definitely picked up and they are getting more people through open homes.
A four-bedroom, two-bathroom home on Lee St, Mount Maunganui sold under the hammer for $1.85m in July after two people bid on it. Photo / Supplied
Properties on or near the beach are still very sought-after such as this absolute waterfront property at 339 Oceanbeach Road, Mount Manuganui. Photo / Supplied
“Mount Maunganui and Papamoa still seem to be very sought after with the Auckland market of course, but we are still getting enquiry from Waikato, Wellington – all other parts of the country.”
Properties with sea views, close to the beach and in the popular central Mount Maunganui locations are the most sought after. Most of the buyers are shopping for permanent homes, she added.
And despite the overall drop in listings in Mount Maunganui and Papamoa, Bayleys actually has more beachfront properties for sale than it did earlier in the year.
Properties at 217A and B Oceanbeach Road and 339 Oceanbeach Road, Mount Maunganui, have recently been listed, while 129 Marine Parade and 23 Karewa Parade in Papmoa are still for sale.
New Zealand Sotheby’s International Realty agent Sally Francis said while houses are still taking slightly longer to sell, interest has picked up from genuine buyers.
“I certainly think if people are in a position where they are moving or they have to sell or they have to buy, they are realising that now is actually a really good time to buy. Compared to last year it’s definitely more positive,” she said.
“We weren’t dealing with multi-offers for months and months and months and they’ve definitely picked up for sure in the last two to three months.”
Francis is selling a 1970s bach at 3c Muricata Ave, Mount Maunganui which is attracting interest from people who already live in the area and want to live on the desirable street or be closer to the beach. For the first time in a while, she’s also seen interest from some investors.
Ray White Pukehina principal Rochelle Carter said buyers aren't sitting back and waiting any more. Photo / Supplied
Buyer interest has also spread to the Western Bay of Plenty. Ray White Pukehina business owner Rochelle Carter has seen a return of historic cash buyers that have been sitting back for the last 12 months and are now looking in the beach town again because they are worried FOMO will return.
“There is definitely a change in the market with good activity on the beachfronts again as summer draws closer, buyers are feeling far more confident in the market plus we have the new rateable values which are more accurate.”
And there’s plenty of choice with about a dozen beachfront properties currently listed for sale one OneRoof. The prices range from $1.195m for a 1970s A-frame on the estuary to $2.35m for a five-bedroom, two-bathroom home on the beachfront. The entry-level price for Pukehina is a classic two-bedroom pod at 605 Pukehina Parade that has an asking price of $789,000.
Carter said prices are still down on what they were at the peak of the market and a beachfront land value that was $1.5m in 2021 is now $1.28m.
“As buyers return to this beautiful area the prices will increase again over time.”
The lifestyle waterfront properties continue to be the most sought-after with people from the larger surrounding cities such as Papamoa, Rotorua and Whakatane prepared to travel further to have a self-sufficient lifestyle so they can live by the beach and still have chickens, calves, and even a pony, she said.
“We very rarely obtain these magic properties which allow the owners to be self-sufficient and pop across the road to the beach or down the road to the boat ramp to go jet skiing or fishing. It is a lifestyle choice that many only ever dream of. To own a lifestyle property by the beach is truly very unique.”
Last month, a Pukehina waterfront lifestyle property on SH2, marketed by EVES, that had no resource consent or code of compliance sold for $2.1m in an auction ordered by the court. There were 12 registered buyers and more than 20 bids placed on the waterfront property, which sold for just above its land value of $2.04m.
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