Bay of Plenty lifestyle properties buck national trend and still selling for top dollar

bop0909HeathYoung.JPG Heath Young, chief executive of the Realty Group Ltd, which operates Eves and Bayleys. Photo / Supplied

The Bay of Plenty has been described as the “Gold Coast of New Zealand” and is holding
its own on the property lifestyle price front with “international buyers viewing online and watching the market closely”.

Figures from the Real Estate Institute of New Zealand show the median average for lifestyle properties for the three months to September was $1.29m in the Bay of Plenty compared with $1.02m nationally.

However, sales plummeted nationwide, falling 8.9 per cent nationally and 25.4 per cent in the Bay of Plenty over the same timeframes.

Institute rural spokesman Brian Peacocke said it was off the back of stricter lending criteria, higher interest rates, inflation, affordability, and “vendors preferring to retain price expectation rather than succumbing to the increasing trend of low offers being put forward by purchasers”.

The data also reveals Bay of Plenty sales dropped 50 per cent since September 2020 with the median price slightly better than last month, but considerably higher than two years ago.

Heath Young, chief executive of the Realty Group Ltd, which operates Eves and Bayleys, said 84 buyers visited a 1ha property with a large shed near Tauranga.

When it sold at auction for $1.93m, there were three cash buyers in the auction room and a large number of people subject to conditional interest.

“Good properties in good locations are selling well. The number of people looking at this type of property is higher than the number that are purchasing.

“We are not yet seeing the Aucklanders back in the market like the last two years. They were a good supporter of the lifestyle market which increased demand and prices as they saw them as good value.”

Young said “international buyers were viewing online and watching the market closely”.

The positives of lifestyle properties included space, work from home, the ability to earn income from and or off your property, views and privacy.

Meanwhile, things to consider were the current and future potential zoning of the property, services, water supply, GST status, distance to schools, shops, and services, he said.

Property Brokers Bay of Plenty regional manager Simon Short said he thought many people were trying to be more responsive to making decisions right now rather than gamble on what may or may not eventuate next year.

He said the Whakatane market was bubbling away and the Rotorua lifestyle market was exceptionally busy while the outskirts of Tauranga were seeing a bump in inquiries.

“That is a little bit to do with this time of the year. Equally, I think there’s just the maturing of buyers that are not trying to predict the bottom now they are on a timeframe and they are active.

“There are a lot of multi-offers about and we have had a lot of auctions over the last six weeks with close to 80 per cent selling under the hammer.”

Short said the Bay of Plenty “really is the Gold Coast of New Zealand market”.

“There is a lot to like about our market, we’ve got the beaches, the lakes the climate, and most things are in our favour. On top of that, we’ve got a very big employment base, the largest port in New Zealand, and a lot of industry here now which is creating employment and other opportunities.”

PGG Wrightson Real Estate Bay of Plenty lifestyle specialist Anton Terblanche said values seemed to be holding steady and vendors who had realistic price expectations were still selling.

Demand was strong due to the desirability of the region, particularly in the lifestyle sector.

However, because buyers had more choice and things generally took longer to sell, buyers showed less urgency to commit to a particular property, he said.

“I am also finding continued demand from those living in towns and cities, who wish to move into the country to become more self-sufficient in food production and income.”

Buyers were coming from all walks of life with farmers downsizing, businesspeople alongside friends and family wanting to buy together.

“Often parents work in with their children to assist them to get a foot on the property ladder. One way to do that is to buy a lifestyle property with multiple dwellings or a property with one dwelling but self-contained areas within the house.”

He said it was important buyers understood what they’d like to achieve.

Location, budget, dwelling type and size, land type and size must feature in such a wish list, he said.

Living the lifestyle dream

‘It is a magical place’

When Michelle Bunce picks up her phone to talk she says “right now I am looking outside my kitchen window and I can see trout swimming down the river”.

She owns two blocks of land in Paradise Valley Rd in Rotorua with her partner Albert Van Oostrom and they are about to launch a llama trekking venture, before Christmas.

The river runs through a 10-acre block while another 60-acre block weaves up Mt Ngongotaha and plans are afoot to strategically place two architecturally designed cabins that complement the sublime setting.

Michelle credits Albert for that project.

“He loves great architecture and wants to put something special up there.

“It is a magical place.”

Meanwhile, Michelle has been training six llamas for about three years to trek.

“It’s like being with a pre-historic creature and they all have different personalities.”

She stumbled across the idea of the treks while overseas and said people would be able to spend time with the llamas and lead them by harness over some tracks.

The llamas will be dressed for the occasion with tassels and saddlebags to carry food and drinks for a picnic.

“We want to let other people enjoy our environment … It’s important for us to leave behind a better environment so we’ve also planted a lot of natives on the property.”

Michelle acknowledged it was a lot of hard work, Albert did his consultancy job from home while she was a part-time orientation and mobility therapist, but they wouldn’t have it any other way.

“I just love being up on the mountain with my dogs and my horses, even when it’s raining. I ride up and it’s like being on top of the world.”

She says together they are a good team.

“He’s the brains, I’m the brawn.”

‘They want us to live here forever’

Robyn and Phil Mangos walk the talk on their lifestyle property in Belk Rd in Tauranga.

The Bayleys real estate salespeople are specialists when it comes to living the dream many Kiwis aspire to.

Robyn, a country girl at heart, has never really left home. About 25 years ago when the opportunity arose to buy a slice of land next door to her parents, they jumped at the chance.

When the couple moved in, the site was barren and they built their house to encompass sweeping views of the native bush and beyond.

She jokingly remembers being in labour on more than one occasion and Phil was still toiling establishing gardens around their home.

The Mangoses are now empty nesters but have fond memories of their children go-karting around the front lawn and playing hockey.

A newer highlight built five years ago is a separate entertainment area nestled out of sight down gravel steps and through barn-like doors.

The project, which Phil took full ownership of, is built entirely out of recycled materials complete with wrought-iron chandeliers, glass-bottle walls and features you would most likely find in a trendy restaurant.

“This was always known as a beer garden and I just made it bigger and bigger,” Phil says.

“At night it is amazing and you can see all the stars. It’s perfect at any time of the day for a barbecue, a beer, or a cup of tea in the morning.”

Robyn says they have held two of their daughters’ 21sts and had family and friends gatherings in the entertainment area which has a sheltered deck.

“We get wood pigeons, tuis, and all sorts of native birds calling in and it’s just a little piece of paradise away from the house.”

The silence of lifestyle living was a big attraction for Robyn.

The Mangoses also have avocados, which they originally grew to pay the rates.

Phil loves the peace and quiet he says when they did contemplate moving to the city at one stage, it was their kids who begged them to stay.

“They want us to live here forever.”