Gisborne house prices continue to rise

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NEW lending restrictions for investors could be having an impact on home values here, with new statistics showing the average price of a house in Gisborne rising almost 5 percent to $246,757.

The latest QV house price index shows the average value of a house here rose $11,844 in the past three months, meaning values here have now risen 8.8 percent compared to the same time last year.

However, the news was not so good for home owners in Wairoa, where the average value fell 2.6 percent to $146,174. Homes there are now a full $100,000 less than in neighbouring Gisborne.

QV national spokesperson Andrea Rush said Wairoa was the only North Island district to experience a fall in values.

“Other central North Island regions have seen values soar — Kawerau was up the most, rising 41 percent year-on- year, Otorohanga District rose 29 percent while Rotorua was up 24.8 percent over the same period.

“The latest QV house price index shows values continue to rise rapidly in many parts of New Zealand, buoyed by low interest rates, strong investor activity and high net migration, with the average value nationwide now topping $600,000.

“The Auckland market however has continued to accelerate up more than 5 percent over the past three months and it now has an average value just shy of $1 million dollars.

It was too soon to tell the impact on the market of the Reserve Bank’s new 40 percent deposit requirement for anyone purchasing a property they do not intend to live in.

“However, there are reports the new rules have already led to some offers being withdrawn by investors in parts of the country.”