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Gisborne property auction draws in crowds

Property Brokers News

Property Brokers 04 Mar 2021

Blog-image_Project-Gisborne_February-202122 out of 26 properties that Property Brokers took to market attracted a crowd of over 120 and sold for sums well above their rating valuation, under the hammer at the recent Project Gisborne Auction Event.

Now in its seventh year, Project Gisborne is renowned for being an enormously successful auction, and Saturday's results did not disappoint.

"As always, the event is a showcase for the entire Tairawhiti region, it is a testament to how the local community has handled the events of the last year, and the region is continuing to thrive," says Hawke's Bay and Gisborne Regional Manager Joe Snee.

"We marketed a total of 26 properties with two selling prior, 19 sold under the hammer with an additional property selling cash unconditional immediately after. That is an 82% clearance rate! On average, the 22 properties sold for 33% above RV, which is a good illustration of where the Gisborne market sits post-Covid-19. A total value of $12,694,500 was sold."

Looking to the January round of REINZ residential property data reveals a consistent tale of spectacular increases in the annual growth rate in house price values in Gisborne/Hawke's Bay with a 30.7% growth rate increase in house price values to a new record index level of 4,012. This was the first time since June 2004 that Gisborne/Hawke's Bay had an annual percentage movement over 30% and was the first time the index for Gisborne/Hawke's Bay has gone over the 4,000 level.

Property Brokers Gisborne sales manager Stefan McNeely is in no doubt that the supply shortage, combined with low-interest rates and Gisborne's comparative affordability, is the main reason for the heat in Gisborne's market. "It's all about supply and demand, and right now, there's lots of demand and limited supply."

Saturday's auctioneers Joe Snee and Stefan McNeely said an 82% clearance rate is a huge number in any market and is higher than the last Project Gisborne in February.

"Prices were strong and are following the trend across the country of an upward lift since January. Properties sold across the entire range from an investment at $172,500 through to $925,000 and everything in between."

"We've called many auctions, and the activity today was as busy as we've ever seen it. There were a lot of happy people in Gisborne on Saturday!"

Property Brokers Managing Director Guy Mordaunt says provincial New Zealand still has an incredible shortage of property on the market and enjoys strong interest both locally and from the big centres.

"The results that we see in Gisborne are a good representation of what we see across our 81 locations throughout provincial New Zealand. Median house prices are continuing to grow. In Gisborne, the prices increased by 17.5% year-on-year to $470,000 in January. And, the percentage of sales over the $750,000 mark continues to grow. The market continues to be strong, with sales volumes increasing by 7.7% year-on-year. First-time buyers are still active in the market, as are investors."

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