Investment returns on Gisborne property has been particularly strong for native and overseas property investors over the last year.
Property investors buying Gisborne property are getting big capital gains and rental returns on investment of $320 a week.
New research published in the Real Estate Institute’s Capital Gains and Rental Yield Report showed Gisborne had the third highest capital gains in New Zealand.
For the three months ended August 2019, the median house price in Gisborne rose $50,000 to $370,000, equating to a capital gain of 15.6 per cent from the same three-month period last year.
REINZ chief executive Bindi Norwell said with capital gains up 15.6 per cent year-on-year and good annual yields (4.5 per cent annually), investors had enjoyed strong returns over the past 12 months.
She said: ‘The majority of the regions were high in one measure and low in the other, so for Southland to have a strong result in both capital gains and yields indicates that it was a good region for investors to have investment property in over the past year.’
Manawatu-Whanganui (23 per cent) and Southland (20.5 per cent) had the highest capital gains.
The report recorded Gisborne’s median rental price as $320 a week, up from $310 a week over the same period last year.
Property Brokers Gisborne branch manager George Searle said core investors were buying into Gisborne, with fewer ‘mum and dad’ investors entering the market.
‘We have seen a definite jump in the market over the last few months, with results at our Out East auction, where 30 properties went under the hammer, reflecting this,’ said Mr Searle. ‘We do market out of town; however, local buyers appear to be stronger in most cases.’
However, online realtor Proppy has noticed a spike in interest in Gisborne from out of town.
‘There is definitely healthy interest from out-of-towners looking to move or invest in the Gisborne market,’ Central North Island regional manager Peter Nikolov said.
‘Approximately 40 per cent of people looking through all web channels are out of the area.
‘There is a combination of people relocating to Gisborne for work and business, and Gisbornites returning back home from elsewhere in the country and overseas.’