The Power of 2

Rotorua Property Market Update: April 2024 Insights, Trends and Prices

April 21, 2024
Rotorua Property Update April 2024

Our April 2024 Rotorua Property Market Update provides the essential latest property insights for all property owners and especially good news for rental property owners with the bright-line property rule changing from 1 July 2024!


Welcome to our April 2024 update which is primarily sourced from the REINZ (Real Estate Institute of New Zealand verified sales data to end of March 2024. We focus on HPI (Housing Price Index) as the most accurate measure of market value trends.

National Highlights

  • Listings increased substantially, up by 23.9% compared with March 2023, reinforcing the trend of more properties coming to market since the beginning of 2024.
  • The total number of properties sold increased by 7.4% in March 2024 compared to February 2024 and up 8% year-on-year.
  • The median sale price (excluding Auckland) increased by 2.3% year-on-year.
  • The HPI was down by -1.2% in March, up 0.2% for the 3-month period (Jan-Feb-Mar) and up 2.9% year-on-year.
  • The average annual growth in the New Zealand HPI over the past five years has been 5.7% per annum, and it is currently 14.5% below the peak of the market reached in 2021.

Overall

  • The trend for more properties listed for sale continues
  • The positive trend in the number of properties sold continues
  • HPI as the more accurate measure of market trends is down -1.2% for March and almost unchanged over the last 3 months.

In the March 2024 NZ Property Report, Jen Baird REINZ CEO commented, “This is the second consecutive month recording a year-on-year increase in the median sale price nationally. This, along with the increased year-on-year levels of sales and listings, suggests that we are past the lowest point of this market cycle.”

Rotorua Property Market Update

76 sales were achieved in March 2024, up 11% from 68 sales in February (adjusted sales count).

The March result also tracks above the 65 sales for December 2023 and 64 sales for November 2023.

530 properties are currently (20 April 2024) listed for sale on trademe.co.nz.

The median sales price was $639,000 in March 2024 up +11.8% from $630,000 in February 2024 and compares favorably (up +6.5%) from $600,000 in March 2023.

The key HPI market index trends for Rotorua are:

  • -2.6% for March 2024
  • -3.3% for the 3-month period Jan-Feb-March 2024
  • +1.4% year on year and
  • 5-year average annual HPI increase +5.6% per annum

Overall, the Rotorua Property Market for the 3-months ending March 2024 can be summarized as:

  • A continued trend for more properties being listed for sale
  • A month-on-month increase in the number of properties sold
  • Whilst the median sale price shows a positive trend, HPI as the most accurate measure of market trend is – 3.3% in the last three months.

Overall, the Rotorua property market is showing a positive trend in the number of sales and most recently a lift in the level of activity mainly from first-home and home-owner buyers. Rotorua is yet to see a stable or positive market value trend as measured by HPI (Housing Price Index).

Power of 2 Update

With 17 properties currently listed for sale across Rotorua we really have our finger on the pulse of the Rotorua property market.

Within the last 3-4 weeks we have experienced a lift in levels of activity and currently have six properties under contract.

The market remains very price conscious – with buyers shopping around and researching sold data (e.g. on homes.co.nz) to get a feel for value in the current market.

We are finding that key factors in achieving best sale price are:

  • Choosing the best marketing method(s) to strategically market the property
  • The Arizto high-impact marketing campaign to get our clients properties noticed ‘above and beyond’ all the other properties listed for sale.
  • Strategically pricing for optimum buyer inquiry
  • The value we add negotiating buyers to best price

Good News for Rental Property Owner!

Depending on when you purchased your rental property you may well have been subject to a 5-year or even 10-year bright line test.

The date you sell matters.
The good news is that from 1st July 2024 the bright-line property rule is changing.

If you sell a property on or after 1st July 2024 the bright-line property rule will apply only if the property is sold within two years of purchasing it.

Wow! Below is the link to the IRD website for you to further research the change of rule and how it may affect you:

https://www.ird.govt.nz/property/buying-and-selling/when-you-need-to-pay/the-brightline-
property-rule/changes-to-brightline

Very important point! Only your accountant is qualified to give you taxation advice!

It is super important that you check in with your accountant who is your taxation expert to get absolute clarity of the new rule change and how that impacts you with respect to you considering selling a rental property you own.

Now may be your ideal opportunity to get a free market appraisal from us to get a clearer understanding of where your property sits in the current market.

And that is as easy as clicking this link to book your free no-obligation appraisal:

We wish you and your loved ones all the very best, and for all things real estate contact us today!


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