Sitting on the east coast of the North Island about two and a half hours south of Auckland, is Tauranga City - New Zealand’s fifth most populous city. The city encompasses eight neigbhourhoods across either side of the harbour bridge. With its moderate climate, beautiful sandy beaches, laid back lifestyle and the iconic Mauao, Tauranga City is a sought after place to live. Potentially even more so in the future with the CBD being brought back to life with major renovations currently taking place. If you’re looking to move to Tauranga City, here is everything you need to know about the property market.
What is the Average Property Value in Tauranga City?
Data taken in March 2024 shows that the average house value in Tauranga City is $1,033,181 which is higher than the average house value across New Zealand which is $933, 612.
That said, despite the higher house value it is growing at a slower rate than the national average. In the year to March 2024, house value growth in Tauranga increased by 0.4% compared to 2.5% across the country as a whole. [1]
Every three years, Tauranga City’s Council, legally has to reassess the value of every property in Tauranga City. The last time revaluation took place in 2023 it found that, the average new capital value (what they estimate a property might have sold for on 1st May 2023, excluding chattels), city wide was $1,008,000 which was a -8.3% decrease from the previous revaluation.
According to REINZ’s New Zealand Property Report published in September 2024, the average median price in Tauranga City fell from $895,000 in July 2024 to $850,000 in August 2024.
Although it is improving, Tauranga is currently the least affordable main centre in the country with a value-to-income ratio of 9.0 in Q2 2024.
This means that based on the median annual household income, it would take 12.1 years to save for a deposit. [2]
How Has The Property Market Changed Since 2014?
Unsurprisingly, house prices have increased over the last ten years.
In 2014, the average house value was $446,0505. The biggest increase in the average house value was from 2020 to 2021 which saw a 26.5% increase. The following year, prices peaked at $1,109, 746. This was soon followed by the biggest decrease in 2023 where the average house dropped by 13.6% in value to $1,028,715.
[3]
How do the Average Property Values Differ Across Tauranga City’s Suburbs?
CoreLogic analysed 20 suburbs across Tauranga City and found that in the past 12 months to September 2024, ten suburbs had seen their median property values drop including Ohauiti and Ōtūmoetai where prices had dropped by at least 3%. In the months since June 2024, 17 suburbs had seen a decrease.
Want to live in the popular suburb of Mount Maunganui? It’s the most expensive suburb with a median property value of $1.31m. At the other end is Poike, despite median property values rising by 5% in the last 12 months, they remain the cheapest at $668,750.[4]
Tauranga City Council’s revaluation report indicates that from its last report in 2021, the average residential property value had decreased by 12.26% in Ōtūmoetai, closely followed by Arataki/Royal Palm which had decreased by 12.17%. Whereas in Bethlehem it had only dropped 1.48%[5]
How Much Rent Can You Expect to Pay in Tauranga City?
In the last ten years the average weekly rent has increased from $333 in 2014 to $648 in March 2024. This puts Tauranga City’s average weekly rent at $88 a week higher than the national average.
In the last year, the average weekly rent has increased 7.6% or $43 a week, again this is higher than the increase across the country which is 6.7% or $35 a week. [6]
What is the Future of Tauranga City’s Property Market?
With interest rates decreasing, this could favour house prices and there could be an increase for those looking to sell. For those looking to buy it is likely that the trend will remain the same as it has for the last 10 years and will continue to increase.
Thinking about moving to Tauranga City? Let our team at The Finance Hub help you, give us a call on 0800 346 482.
[1] Infometrics: https://rep.infometrics.co.nz/tauranga-city/living-standards/house-values?compare=new-zealand
[2] Core Logic Housing Affordability Report https://info.corelogic.co.nz/l/994732/2022-10-06/s8b6c/994732/1707906388pMLEMthf/2402_CoreLogic_HousingAffordability_Q42023_Report.pdf
[3] Infometrics https://rep.infometrics.co.nz/tauranga-city/living-standards/house-values?compare=new-zealand
[4] Core Logic https://www.corelogic.co.nz/our-data/mapping-market
[5] Tauranga City Revaluation 2023 https://www.tauranga.govt.nz/living/property-and-rates/property-valuations/revaluation-2023
[6] https://rep.infometrics.co.nz/tauranga-city/living-standards/average-rent?compare=new-zealand
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