Gisborne real estate's stellar suburbs

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NEWS of a recent lift in the median house price in Gisborne has been backed by figures showing that homes sold in Gisborne in June went for an average of nearly 10 percent more than their rateable valuations.

After years of stagnating prices, the residential market in Gisborne is showing signs of life with strong attendance at open days and fast turnover of listed properties.

The Real Estate Institute of New Zealand (REINZ) says that, in June, the median house price in Gisborne was $248,500, as compared to $196,000 in June of 2015.

Also in June 2016, the number of sales was up six more than the 48 that changed hands in the same month the year before and well up on the 41 sold in June, 2014.

And they were snapped up quickly, selling in an average of just 27 days, against the 46 days-to-sell recorded in June 2015 and the lengthy 65 days of the same month in 2014.

Keeping in mind the small sample number of 48 properties sold in June, the median sales price was 9.33 percent ahead of rateable value with the best performing suburb being Tamarau, where the median sales price was recorded at 17.97 percent above rateable value.

The next best performing suburb was Te Hapara, where the median sales price was 13.57 percent more than rateable value, followed by:

Mangapapa – 12.95 percent above rateable value;Wainui Beach – 8.85 percent above;Whataupoko – 8.42 percent above;City central – 6.84 percent above;Inner Kaiti – 6.8 percent above;Elgin – 6.26 percent above;Riverdale – 3.02 percent above; andKaiti – 1.45 percent above.

That shows a price-to-rateable strengthening compared to 2015, when homes sold for a median of 2.32 percent less than their RVs and 2014, when they went for 6.88 percent less.

Because of the previously slow property market, the rateable values of homes in Gisborne dropped an average of five percent when the 2011 valuations were recalculated in 2014.

Gisborne District Council’s contractor is due to carry out new valuations as at July, 2017.