$1.9 million view - Record sale as median house prices remain high

‘It’s all positive’ in Gisborne market

‘It’s all positive’ in Gisborne market

VIEW FROM THE TOP: The view from the dual apartment complex at 287 Grey Street, which sold at auction for a record price of $1.9 million. Pictures by Rich Bayley Photography
Gisborne's $1.9m property at 287 Grey Street, sold for an all time record price. Picture by Kerry Fox

Gisborne auctioneers last week brought the hammer down on an all-time record buy as median house prices remained high in the region.

Latest statistics from the Real Estate Institute of New Zealand show the median house price for March was $380,000 — up 15.2 percent on the same time for March 2018.

That was a better performance than neighbouring areas Hawke’s Bay (up 10.8 percent) and Bay of Plenty (up 1.7 percent)

However, there were 25 fewer houses sold here over the same period — a 33.3 percent fall, the biggest in New Zealand.

REINZ regional director Neville Falconer said there had been a change in the market.

“In the last month, the number of people bidding per house on sale has decreased, which could be an early indication banks are tightening their lending criteria.”

The March median price for Gisborne was down 2.6 percent from February’s all-time record median of $390,000.

“The Gisborne market continued to be active for the first month of autumn,” said Mr Falconer. “Auctions are performing very well and the number of auctions each month is increasing due to the high demand in the market — especially for the more affordable properties up to $500,000.

“The houses that are not sold under the hammer are the top-end properties, which appear to be sitting on the market longer, which is a change compared to a few months ago. All points to an April that will continue in a similar trend, with the low end being very busy while the top end will take longer to sell.”

Bayleys Gisborne sales manager and director Karen Raureti said realtors were not worried about a fall in sales volume.

“If we took a snapshot over the last three months it would even out to still be on the positive side. We’ve got a big month of auctions this month and I know other companies have as well, so the number of sales this month and next month are going to be quite dramatic.”

“Looking at a long-term trend from realestate.co.nz, the average number of sales on a monthly basis was 46,” said Ms Raureti

“So, the March sales number (50) was very much in line with longer-term averages.

“From the activity we’re having and getting the feel of Gisborne, it’s anything but negative; it’s all positive.”

Bayleys auctioneers last week sold $11m of properties on one day at an average sale price of $1.2m.

That included $1.9m for a beachfront apartment at Waikanae.

“That is the highest residential sale in Gisborne ever recorded,” said Ms Raureti

The previous record was $1.8m for a Wainui beachfront property in March 2018.

Bayleys saleswoman Shelley Donaldson said the Waikanae beachfront property on Grey Street, up for sale for the first time since it was built 12 years ago, was bought by a Gisborne buyer.

“There were actually three local parties in the auction room, plus an out-of-towner. Three-quarters of the buyers were local, which is great, and it has gone to some lovely local people.

“It was pretty exciting . . . because I knew what the highest sale price had been. To know we had surpassed that was pretty exciting but it was well deserved.”

Gisborne auctioneers last week brought the hammer down on an all-time record buy as median house prices remained high in the region.

Latest statistics from the Real Estate Institute of New Zealand show the median house price for March was $380,000 — up 15.2 percent on the same time for March 2018.

That was a better performance than neighbouring areas Hawke’s Bay (up 10.8 percent) and Bay of Plenty (up 1.7 percent)

However, there were 25 fewer houses sold here over the same period — a 33.3 percent fall, the biggest in New Zealand.

REINZ regional director Neville Falconer said there had been a change in the market.

“In the last month, the number of people bidding per house on sale has decreased, which could be an early indication banks are tightening their lending criteria.”

The March median price for Gisborne was down 2.6 percent from February’s all-time record median of $390,000.

“The Gisborne market continued to be active for the first month of autumn,” said Mr Falconer. “Auctions are performing very well and the number of auctions each month is increasing due to the high demand in the market — especially for the more affordable properties up to $500,000.

“The houses that are not sold under the hammer are the top-end properties, which appear to be sitting on the market longer, which is a change compared to a few months ago. All points to an April that will continue in a similar trend, with the low end being very busy while the top end will take longer to sell.”

Bayleys Gisborne sales manager and director Karen Raureti said realtors were not worried about a fall in sales volume.

“If we took a snapshot over the last three months it would even out to still be on the positive side. We’ve got a big month of auctions this month and I know other companies have as well, so the number of sales this month and next month are going to be quite dramatic.”

“Looking at a long-term trend from realestate.co.nz, the average number of sales on a monthly basis was 46,” said Ms Raureti

“So, the March sales number (50) was very much in line with longer-term averages.

“From the activity we’re having and getting the feel of Gisborne, it’s anything but negative; it’s all positive.”

Bayleys auctioneers last week sold $11m of properties on one day at an average sale price of $1.2m.

That included $1.9m for a beachfront apartment at Waikanae.

“That is the highest residential sale in Gisborne ever recorded,” said Ms Raureti

The previous record was $1.8m for a Wainui beachfront property in March 2018.

Bayleys saleswoman Shelley Donaldson said the Waikanae beachfront property on Grey Street, up for sale for the first time since it was built 12 years ago, was bought by a Gisborne buyer.

“There were actually three local parties in the auction room, plus an out-of-towner. Three-quarters of the buyers were local, which is great, and it has gone to some lovely local people.

“It was pretty exciting . . . because I knew what the highest sale price had been. To know we had surpassed that was pretty exciting but it was well deserved.”

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