Tauranga homebuyers priced out by Aucklanders

Tauranga homebuyers priced out by Aucklanders

Tauranga is one of New Zealand's fastest growing cities.

But that's causing big issues for those who live there who say they're being priced out of the market by cashed-up Aucklanders.

Judy Castles owns motels in Welcome Bay. This weekend half of her rooms are full with people attending open homes in the city.

"There's a flood of interest coming from people from Auckland and other areas," she says.

It's not hard to see why – $470,000 gets you an average home in Tauranga. You can expect to pay $800,000 for the same privilege in Auckland.

Agents say Aucklanders are used to paying more and their money goes further.

"It's been crazy," says LJ Hooker's Stephen Pepper. "About 50 percent of our inquiry is from Aucklanders."

But while Aucklanders are cashing in, locals feel like they're missing out.

"There's a lot of fear here that first-home buyers are being squeezed out," says Mr Pepper.

It's not just first-home buyers either. Lynn Archer has been looking for a property around the $350,000 mark since January. Out-of-town interest means she's had to cast her net wider.

"The biggest problem is that as each week goes by the prices rise, and we are getting priced out of the market," she says. "That's the distressing thing."

Ms Archer says unless more land is opened up for development, then locals will continue to lose out.

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