House price surge
Gisborne's median house price is up $100,000 on the same time last year — the largest percentage increase in the country.
Latest Real Estate Institute data shows a 29.4 percent increase in the region's median price from June 2019 to June 2020 — up from $340,000 to $440,000.
“The market is very busy, with plenty of inquiries, “ REINZ regional director Neville Falconer said.
However, new listings have decreased 5.1 percent from the same time last year, which continues to put pressure on buyer demand.
Auctions have remained popular in the region, with many properties selling under the hammer or just after auction.
“There are more first-home buyers in the market but many are missing out to investors at auctions,” said Mr Falconer.
“In a recent auction when 10 properties went under the hammer, three were sold as rentals.
“Over the next few months, access to finance is likely to improve as banks are starting to work more collaboratively with agents to assist purchasers.”
The biggest Gisborne residential sale for June was $1.04 million for a riverbank property in Balfour Road, Te Hapara.
“It was a great month of sales, with Gisborne continuing to record the highest percentage of auctions across the country,” Bayleys Gisborne sales manager Karen Raureti said.
A variety of properties had sold, ranging from residential to commercial/industrial and large-scale farms.
“The highest sale residential of the month was 3 Balfour Road, Te Hapara, sold under the hammer. There are a number of new listings coming to the market and buyers are still out in force at open homes with over 10 groups per property.
“The feeling around town is really positive and it is only getting better and more exciting for those of us lucky enough to live here.”
Property Brokers regional manager Joe Snee said it was “heartening” to see that 54 properties sold in the region last month, just short of the 57 in June last year.
“In May, the region only sold 36 properties, which was to be expected, but it left uncertainty coming out of Covid lockdown.
“The fact that June was back to last year's sales numbers shows the confidence in the market."
Another interesting point was that while there was interest from outside the region, around 80 percent of properties sold in May and June went to Gisborne buyers, which was great for local confidence.
“As for the market moving forward, there are a lot of people a lot smarter than myself trying to predict what's going to happen, but buyer demand is still strong and is outstripping the local supply.
“While this continues we should continue to see what we are seeing. How long that will last for will be determined by a large number of factors none of us can control.”
Across New Zealand, medians rose 9.2 percent in June to $639,000 — up from $585,000 in June 2019 and $620,000 (a 3.1 percent rise) in May 2020,
“The Waikato region was the only region in the country with a record median price in June — a 17.1 percent increase year-on-year to $615,000, which was up from $525,000,” REINZ chief executive Bindi Norwell said.
“Gisborne saw the largest annual increase in median price of all the regions, with a 29.4 percent uplift.”