$ 65.2m in houses sold
Property prices in Katikati are sound and the market has stabilised, say local experts, with $65.2 million worth of residential houses sold last year.
Figures from the Real Estate Institute of New Zealand show the median sales price for the first quarter of 2018 was $547,000 compared to $532,175 over the same timeframe last year.
Its data reveals there were 28 sales in the first quarter of this year and 31 sales in the first quarter of 2017.
Chief executive Bindi Norwell said the “Katikati market remains relatively stable at the moment and we continue to see roughly eight to 12 sales each month”.
“The majority of interest we’re seeing at the moment is from owner-occupiers rather than investors or first time buyers as there’s limited options in the more affordable housing bracket for them,” Ms Norwell said.
“Most inquiries are from locals and those from the Tauranga/Papamoa area, but there is still the odd inquiry from Aucklanders looking to relocate for a quieter and more rural lifestyle. However, six months ago it was the complete opposite,” she said.
Claridges Real Estate Katikati principal Merv Gardiner said the market was back to amore normal state “as opposed to the frenzy of 2015/16”.
“The market is still sound and prices are holding and I don’t see this changing too much as Katikati is on the doorstep Tauranga.”
The local economy was also doing well, he said.
“We have a lots of activities available, hunting, fishing, nature walks and popular Waihi Beach a short distance away, so this attracts people from outside our area.
“Demand for residential property was reasonable and there was a supply issue,” Mr Gardiner said.
“Currently the supply is not keeping upwith demand and buyers would like a bigger range to view before purchasing.
“Demand for residential is reasonable for all price brackets especially themid range homes and these are mainly for owner occupied, there are less buyers in the more expensive priced homes so these can take a little longer to sell.”
In his view first home buyers were still struggling to get a foot in the door and “I believe the rules around deposits and so forth need to be looked at”.
He also thought the rules regarding investors had affected the rental market.
“I’m not a fan of Government measures which are good intentioned, as I don’t believe it
helps our area. We don’t have a problemwith investors flipping properties and we are short of rental homes.
“Now the tax rules for investors have been increased to five years andwith more stringent heating and ventilation rules it has become less attractive to them.”
Simon Anderson, chief executive of Realty Group which operates Eves and Bayleys, said people were still seeing good value in Katikati.
“There is good inquiry locally but also the Auckland market is coming and looking.
“Obviously the volumes of sales have come back from 2015 and 2016 to now but that is not a concern. We still have people through open homes and the interest in lifestyle blocks is really pleasing and has increased.”
But the number of rental properties available was light “so that just proves Katikati is a positive place to be,”, he said.