PHOTO: House prices rose 8.3 per cent for the quarter. File photo/SunLive. John Borren

While other major centres in New Zealand are beginning to show more obvious signs of cooling, Tauranga’s residential property market remains stubbornly hot.

House prices in Tauranga continue to grow at a rapid rate, rising 8.3 per cent for the quarter to a new average of $1,042,533.

This is according to the latest statistics from QV.

“That three-month rolling average is slightly down on the 10.2 per cent we reported last month but higher than the 7.8 per cent we reported back in April and considerably higher than this month’s national average of 6.6 per cent, says QV property consultant Derek Turnwald.

“Agents report a decline in investor interest but not an increase in investors selling properties.

“We should have a clearer idea of their intentions by late winter or early spring, once they have had more time to gauge the market and the effect of LVR changes, the bright-line test extension and tax deductibility law changes.”

Meanwhile, Derek says agents are seeing a drop-off in interest from first-home buyers, “perhaps as a result of reports from the Reserve Bank and others that interest rates are likely to start rising in the mid-to-long term”.

Image: QV

Nationally, the average value increased 6.6 per cent nationally over the past three-month period to the end of June, down from the 8.8 per cent quarterly growth we saw in May, with the national average value now sitting at $943,184.