Mount Maunganui is edging closer to becoming Tauranga's first $1 million suburb, according to the latest OneRoof Property figures on value growth in the city.
The median value of properties in the affluent beachside suburb reached $890,600 as of July 31, up more than $70,000 on the year before.
The next most expensive suburb in the city is Matua, which recorded a median value of $810,950. Although a popular location due to its proximity to the beach and water views, growth there in last 12 months has been more subdued, at 0.8 percent.
Matua's growth story is reflective of the wider housing market in Tauranga, which saw a dip in overall median values of 0.90 percent to $700,305 in the second quarter of the year.
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The city has seen a slowdown in growth, and its market is more in line with that of Auckland now, due to the huge leap in values during the past five years.
The figures suggest that although Tauranga continues to offer value and is an in-demand market, it is unlikely to see the large gains enjoyed during the boom, as the market moves into a flat, stable phase.
In terms of quarter on quarter growth, Hairini emerged as the biggest winner, with small residential suburb enjoying 1.7 percent growth in the three months to June 30.
The next biggest risers in the city were Parkvale (1.7 percent), Welcome Bay (0.9 percent) and Bethlehem (0.7 percent).
The worst performers during the second quarter were Matua, which slipped 1.7 percent, and Otumoetai, which fell 1.2 percent.
Over a two-year period, value growth was highest in Mt Maunganui (18.2 percent), followed by Brookfield (14.3 percent) and Bellevue, Bethlehem and Hairini, which all grew about 13 percent.
Tauranga's most affordable remains Parkvale, whose median value was $446,600 as of July 31.
CEO of Bayleys Realty Services Tauranga Simon Anderson says that although Tauranga has experienced a small slowdown over the winter, it was still is "ticking along nicely, with sales actually better than this time last year".
"The Tauranga region continues to enjoy good buyer enquiry right across our price ranges. In some areas a lack of new listings to the market has created increased demand, especially at the top end of the market," he says.
"First-home buyers, although active, are taking longer to transact due to financing constraints and options currently in the market place."
