The Future of Property in Tauranga
One of New Zealand's fastest-growing cities, more than 130,000 people call Tauranga home – and that number is growing each year. As the Bay of Plenty's economic hub, it has plenty to offer – its Port, fantastic climate, stunning beaches, and laid-back lifestyle attract thousands of people each year.
We spoke to Janet O'Shea, Owner of Tall Poppy Tauranga South, for her thoughts on how the local market is responding and adapting to Covid-19.
Opportunities and Challenges
"We're still experiencing a huge wave of active buyers, especially in the mid $700,000 to $800,000 price bracket. First home buyers are also back in the market," says Janet.
The main issue facing buyers right now is the shortage of properties which means someone always misses out if there are multiple offers.
"Homes with broad appeal - four-bedroom, two-bathroom, two living areas homes - are getting large groups through to view, and in many cases attract multiple offers.
"However, we're seeing services like building inspections going up considerably in price, which does put stress on buyers, particularly first home buyers who are usually stretched for funds," says Janet.
Other challenges include restrictions the banks are placing on lenders and the increased length of time for finance pre-approval - both are impacting buyers, especially those wishing to borrow more than 80%.
New Builds Growing
Demand remains high for new homes.
"Right now, the building industry seems to be flying along, with new builds still happening. However, we could see a slow down as we progress. We are also short of new land in Tauranga which impacts the number of new sections being developed," says Janet.
Where to Next?
Investors are active in the market again; however, they're naturally looking for the best deals.
"If we do see a slump in pricing, we will see an increase in investor buying as those who must, sell.
"At the moment with the current shortage of property, there doesn't seem to be any sign of prices declining. It is difficult to say; however, I am optimistic the strong market will continue, even if we do see pricing pull back a little bit," says Janet.
Are you interested in soaking up the Tauranga lifestyle and buying your own piece of paradise? You can contact Janet O'shea or give our friendly team a call on 0800 82 55 76.