The Gisborne property market continues to lead New Zealand for house price growth, rewarding native and overseas property investors alike.
Gisborne property sales last year rocketed to $22.4 million more than 2018 as the region topped New Zealand in house price rises.
Real Estate Institute of New Zealand data for 2019 shows 633 house sales across the region at a combined total of $274.618m. That was up from $252.179m in 2018.
At the end of December, the Gisborne property median price had risen 21.6 percent to $389,000 – the nation’s biggest percentage rise and up more than $100,000 on the region’s median price from two years ago.
REINZ chief executive Bindi Norwell said 2019 was a strong year for price growth throughout the country, with 14 of 16 regions reaching new annual median price records.
‘The only exceptions were Auckland, where prices continued to remain steady at $850,000, and West Coast, where there was a small decrease of -1.3 per cent to $197,500, meaning the median price was just $2500 off the record price of $200,000 set in 2018.
‘Areas of particular note when it came to house price increases were Gisborne, where median prices increased 21.6 percent from $320,000 in 2018 to $389,000 in 2019.
‘This is the second consecutive year of strong growth in Gisborne, with prices having increased 37.3 percent from $283,250 in 2017.’
Property Brokers Gisborne branch manager George Searle expected to see an increase in the Gisborne property market’s value, especially over the past three months.
He said: ‘The median sale price just keeps climbing. Our take on it is largely in line with REINZ – that people are paying more for homes than the interest rates have dropped over the past two years to a point where they are servicing a mortgage that is about the same.’
Regions with the largest percentage growth in median price were Gisborne (up 21.6 per cent), Southland (20.4) and Manawatu/Whanganui (19.4).
The national median house price reached a record of $590,000 and, excluding Auckland, a record $500,000.