Gisborne house price rise tops North Island

STILL GOING UP: Latest data from the Real Estate Institute of NZ shows the median house price in Gisborne rose by 13.2 percent over the past year, to $566,000 in August. Drone picture by Ben Cowper

House prices here are up $66,000 in a year, bucking the national trend. Owner-occupier buyers trading up or down are dominating the market.

Latest data from the Real Estate Institute (REINZ) shows the median house price in Gisborne increased by 13.2 percent over the past year, reaching $566,000 in August.

“Owner occupiers dominated the market, taking the opportunity to up-size or downsize their property,” REINZ chief executive Jen Baird said.

“New listings decreased by 17.1 percent and stock levels are slowly starting to ease.

“Sales counts in Gisborne had an annual increase of 72.7 percent, with 22 properties sold in August 2021 and 38 sold August 2022.

“However, this will be in part due to the nationwide Covid-19 lockdown, which commenced in mid-August last year.

“Gisborne salespeople say rising interest rates and inflation will determine how the market plays out in the months ahead.”

Stock levels increased by 82.4 percent annually, with the top sale last month of $1,1m.

Median prices across the country decreased 5.9 percent annually from $850,000 in August 2021 to $800,000 in August 2022.

Gisborne's rise was the largest in the North Island.

Property Brokers Gisborne branch manager Stefan McNeely said while that rise should be seen in the context of a lockdown being in place last August, there were really positive signs.

“It's probably more of a reflection on what part of the market has been selling — it's that middle to lower range. We have seen quite an increase in activity in that sort of range, more so than the months before, which is really positive.

“It really does bode well.

“Stock numbers have definitely come back. We are starting to see investors come back into the market, which is again probably a reflection on that median house price, whereas the months before they were just gone. I think it's really positive, especially if people are looking at selling and buying in the same market in Gisborne. I think there will be some very good opportunities for people going forward.”

Bayley's Gisborne director Simon Bousfield said spring has brought a “notable lift” in activity across the Gisborne residential market.

“General inquiry, both locally and regionally, is well up on recent months, with some open home numbers being recorded similar to those in peak times.

“The increase in sales measured is partly due to lockdown last August, but also high stock availability, paired with the increased demand is generating good sales value. It's evident buyers are a lot more active but with higher stock levels come notable differences between properties selling and those remaining on market.”