Gisborne real estate tops asking prices

File picture by Louis McKenna

RESIDENTIAL property market asking prices are soaring in regional New Zealand, with Gisborne leading the way with a 19.5 percent hike from December to reach an average of $344,082.

Asking prices either fell, or remained stable in Auckland, Wellington, Canterbury, Waikato and Otago compared to December, and Gisborne, Northland, Central North Island, Bay of Plenty, Hawkes Bay, Wairarapa and Marlborough were “a hive of activity” said realestate.co.nz spokesperson Vanessa Taylor after their January report was released.

But Philip Searle, a regional director of the Gisborne-Bay of Plenty-Wailato region of the Real Estate Institute of New Zealand, urges caution.

“One needs to bear in mind that asking prices are just that,” he said.

“They are not sale prices. Usually there is negotiation before the selling price is arrived at.

“We are a relatively small residential market and this can reflect in the asking prices and the median sale price depending on what value of properties are transacted.

“All in all the residential market is performing well without major spikes either upwards or downwards.

“We live in a nice place and people from outside are starting to notice. Kiwis from other centres are beginning to realise what we have here, great beaches, lovely weather, mainly, and a positive economy.

“As a result of demand prices are slowly inching upwards due to pressure of demand for nice properties."

Gisborne was followed by the Wairarapa region, which was up 10.3 percent to an average asking price of $473,850.

Northland’s asking price increased 8.6 percent to $609,382 and Hawkes Bay up 8.2 per cent to $492,740.

Central North Island follows closely behind with average asking prices up 7.8 per cent to $434,951 compared to the previous month.

The Marlborough region, a popular holiday destination, is the only South Island region to reach “hot" status with a 6.4 percent increase in average asking prices to $510,030.

“Central Otago-Lakes would be the other holiday destination you could assume would be on the list, but it painted a different picture,” Ms Taylor said.

In Central Otago-Lakes, asking prices fell 10.6 percent compared to the previous month.

Ms Taylor said Aucklanders were less interested in Bay of Plenty than they previously were.

Real time data from realestate.co.nz shows that viewings of listings to the region from Aucklanders have fallen each January over the last three years (January 2016 to January 2018).

Despite this, Bay of Plenty asking prices continue to rise and are at an all-time high of $637,281, a 1.6 percent increase on December 2017.

Asking prices fell in the Auckland region compared to the previous month by -4.0 percent to $943,543.

Falls were also registered in Christchurch, -2.1 per cent, and Otago, -1.3 percent.

Asking prices were relatively stable in the Waikato and Wellington regions, with 0.5 percent increases in both centres.