Rotorua's Current Market Performance
In a recent news release Kelvin Davidson of CoreLogic waxed lyrical about Rotorua's property market performance and the strength behind this:
"The annual rate of growth in property values in Rotorua has been stronger than the national average since early 2016 and has even picked up a little in the past 2-3 months, as opposed to the national slowdown (see the first chart). In the past three years, average values in Rotorua have risen by 57% (almost $155,000) to a touch more than $427,000." You can read the full article here.
This comes as no surprise to me. I have been writing in NZ Property Investor magazine for many years how undervalued the Rotorua property market is. Now average values have gone up $155,000 in three years so the gap with other cities has closed somewhat, however values still have phenomenal room to grow. In terms of growth in the last year Rotorua has outperformed neighbouring cities of Hamilton and Tauranga and even Queenstown as below table shows.
Average Property Value
|July 2018||July 2017||% Change|
Incredibly Rotorua values are still 31% lower than Hamilton; 64% lower than Tauranga and - wait for it - 173% lower than Queenstown! This is incredible because Rotorua is the Queenstown of the North Island. Tourist numbers alone back this up but at the moment Rotorua is buzzing like never before. Rotorua Lakes Council are behind much of the current success winning at the Local Government New Zealand EXCELLENCE Awards for the second year running. Their partnership with Iwi is seeing fantastic benefits and development in and around the city.
Rotorua is also now a globally recognised destination for mountain bikers. Successful hosting of Crankworx in recent years has been a boon for taking Rotorua trails to the world.
Then there are the multitude of beautiful lakes and proximity to main centres, the coast and the mountains. I meet people every weekend who have driven down from Auckland to bike in the forest. Almost invariably their ambition is to eventually move here permanently.
Some suburbs have taken off and become unaffordable to investors but if you know where to look there is still great buying in Rotorua. When
I started investing 6 years ago I was able to purchase a 3 bedroom house on a quarter acre in Lynmore for under $300,000. Prices there are
not far below the exclusive areas of Lake Tarawera and Okareka as shown in the below table. I think there are three suburbs in particular
that will see significant growth in the next few years and look forward to helping investors on our Premium
buy well in those areas.
Last 3 Months Sales in Rotorua by Suburb
|Suburb||No. Of Sales||Median Sale Price||
Sale Price & CV