Hot demand for coastal properties | Bay of Plenty Business | Business News for Bay of Plenty, New Zealand

Residential property worth a total of just over $2 million was sold under the hammer at a bumper Tauranga auction yesterday.

Eves Realty presented 20 houses in two sessions and four in Mount Maunganui and Omokoroa were bought in the packed auction room, while five others were passed in but had conditional offers on them.

The highest price, of $850,000, went to a 1930s home in Pitau Rd at the Mount following bidding from three prospective buyers. The final selling price was $100,000 above the 2009 capital valuation of $750,000.

Two more properties at the Mount sold - one for $455,000 in Hawea St and the other in Carysfort St for $312,000. Their capital valuations were $420,000 and $305,000 respectively.

The strong bidding for the Mount houses reflected the renewed buying interest on the coastal strip.

Recent New Zealand Real Estate Institute figures have shown monthly sales are on the move in Mount and Papamoa, rising from 64 in October to 79 in November and down slightly to 75 last month - on a par with the volume recorded four years ago.

The median selling price also jumped to $418,000 last month, from $385,000 in November.

The fourth property sold at auction yesterday was a home on a full section in Harbour View Rd, Omokoroa, for $440,100.

Auctioneer Grant Child said the room was full and the interest remained strong right through. "The perception is that too many people judge the success in the auction room but that's far from the truth.

"The auction flushes out the cash buyers and there's the opportunity for the conditional buyers afterwards."

Mr Child said there was definitely increased buyer activity and the market was again going through a correction period.

"Before, the market was climbing out of its peak and the buyer was saying 'enough is enough, I'm not prepared to pay that price'.

"Now the market is coming out of a low and the vendor is saying 'enough is enough, I'm not selling for that price."

He said if buyers want to move - instead of waiting and watching - they need to realise they have to pay the market price.

"They can't steal it any more. The market has plateaued and we've got some stability back," Mr Child said.

Eves' big offering yesterday resulted from an auction campaign that began at the end of last year.