Prime spots on Rotorua’s Lake Tarawera, Lake Ōkāreka, and Lake Rotoiti come with hefty price tags, with the cost of owning property in these wealthy suburbs often running well above $3 million.
But agents have told OneRoof that buyers can pick up waterfront properties for a fraction of that price at Lake Rotorua.
Ray White Rotorua co-owner Tim O’Sullivan says homes on Lake Rotorua’s water’s edge represent great value for money, with prices for lakefront properties starting at around $1m.
He’s selling two holiday homes on Lake Rotorua’s water edge and says both represent good buying.
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An out-of-towner, who had stayed in multiple properties on Book a Bach nearby, liked it so much he had a contract on buying 3 Willow Ave in Hannah’s Bay. The property has a price indication of $1.1m.
While an immaculate four-bedroom, two-bathroom home at 20 Gemini Place in Kawaha Point has a price indication of $2m-plus.
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“Both of those are holiday homes and people have really enjoyed what they have to offer and just being so close to everything too. It’s great.
“You’ve got the boat ramp close by and if you are into fishing – fly fishing spots are numerous with boating and you are virtually guaranteed to catch something.”
Bayleys Rotorua branch manager Beth Millard, who recently sold the $7m home on Okere Road in Okere Falls, Lake Rotoiti, which holds the most expensive sale price for the area, says there is a big price gap between houses on Lake Rotorua and those on Lake Tarawera, Lake Ōkāreka, and Lake Rotoiti.
“Lake Rotorua doesn't have the greatest reputation to be used recreationally and it’s because it has got a bad rap for not being very clean.”
It also tends to be more popular for Waka Ama and sailing rather than water sports, and houses more permanent residents, she says, whereas Lake Tarawera, Lake Ōkāreka, and Lake Rotoiti have a more holiday vibe and a lot of the properties there are second homes.
The two-bedroom, two-bathroom house on a prime lakefront position on Willow Ave has a price indication of $1.1m. Photo / Supplied
This luxury property on Okere Road, on Lake Rotoiti, Rotorua, fetched around $7m. Photo / Supplied
However, the price gap between Lake Tarawera, Lake Ōkāreka, and Lake Rotoiti is much smaller, and buyers tend to be very lake specific, she says.
“It’s very rare that you would come across a buyer that would go to Tarawera if they couldn’t find anything at Lake Rotoiti.”
While a million dollars could get someone an entry-level waterfront property on Lake Rotorua, the same budget will only stretch to a property one street back from Lake Ōkāreka with just a glimpse of the water.
A property at Steep Street has gone under contract for just under $1m, while a bare 1010sqm section at Ōkāreka Loop Road recently sold under the hammer for $495,000.
Earlier this year a lakefront bach on State Highway 30 on Lake Rotoiti sold for $3.425m, while a luxury home on Okere Road on Lake Rotoiti sold for about $7m.
A bidding war broke out over a waterfront bach on State Highway 30 on Lake Rotoiti, which sold earlier this year for $3.425m. Photo / Supplied
Millard says properties on leasehold land are also cheaper and the price often depends on how much time is left on the lease. She’s selling a leasehold waterfront property with jetty access at 323 Whangamoa Drive on Lake Rotoiti that has a price indication of around $1.2m.
Despite having higher price tags than Lake Rotorua, Millard says there is still strong demand for lakefront properties on Lake Tarawera, Lake Ōkāreka, and Lake Rotoiti.
“We’ve got buyers for properties particularly if it’s lawn to lake waterfront, most especially if it has a jetty, but we just don’t have enough stock for the demand of people still wanting to buy on the lake.”
Lakefront properties are the most premium and sought after followed by houses with lake views, she adds.
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