Auckland buyers have contributed to towards an almost 70 per cent rise in house sales in Rotorua, according to the latest Real Estate Institute of New Zealand (REINZ) report. 

The REINZ report for July found house sales had risen by 66.7 per cent on the year before, and 15.4 per cent up on June.

In total 120 houses were sold in Rotorua in July, up from 104 in June and 72 in July 2014.

While sales were up, the median price remained static at $250,000.

REINZ Rotorua spokesperson and Professionals estate agent Ian McDowell said the static median average was also indicative of investor activity in the $200,000 price range.

"There's been a lot of investors coming down here," he said.

"Traditionally when they've wanted to get out of Auckland they've moved north or to Tauranga or Taupo or Hawkes Bay, but we're finding a whole lot more are coming to Rotorua for lifestyle, and our properties are really good value."

Rotorua Property Investors Association president Debbie Van Den Broek said Auckland buyers had been active in Rotorua for some time, but interest had increased.

"I think there's been a lot more people looking now they're seeing good yields in Rotorua and that they're [houses] priced pretty sharply when you compare to places like Taupo and Auckland. A lot of people feel there's a bubble [in Auckland] and they're getting out while they can."

Van Den Broek said she knew of one couple who opted to buy property in Rotorua, rather than Auckland, and use the income to rent a property in Auckland.

She said the influx of investors was good for tenants too.

"They're actually taking some of our run down housing stock and they're tidying them up, they're willing to spend money to pick up all those properties that people have brought, probably in the last boom in 2007, and have done nothing to."

Property management firm Russell Hardie director Donna Russell said almost a third of her clients were Auckland based, and that good yields and affordable property made Rotorua an attractive destination.

"Rotorua has always been attractive to the Auckland investors but more so now because it's tighter up there." 

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