A four-bedroom new build home in Gisborne has sold for $1 million at auction - 90 percent above its 2017 rating valuation of $527,000.
Strong competition at the Bayleys auction rapidly pushed the price of 85 Hamilton Drive, in Wainui, up from a starting bid of $750,000 to the town's highest settled sale price this year.
Bayleys national auction manager Conor Patton says the bidding was particularly fierce in the final stretch with two buyers "scrapping it out" to secure the property.
“It was a particularly outstanding result and I believe it set a new record for that area,” he said.
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Bayleys agent Shelley Donaldson, who marketed the property, said there was no other house like it on the market, with the house just a stroll away from the beach and in a family-friendly area.
Auctions are perennially popular in the east coast region. Month after month Gisborne has the highest amount of properties sold by auction, even higher than in Auckland, Patton says.
Last week he sold nine out of 11 Gisborne properties under the hammer and three weeks ago, sold another nine out of ten, with 50 and 60 registered buyers respectively. “It’s just phenomenal numbers in terms of interest there," he said.
The four-bedroom home in Wainui set a new record sale for the area. Photo/ Supplied.
“Prices have been rising obviously, but it is still fairly affordable there compared to other regions. There are investors who are getting good returns on properties, but there are also new people moving to the area.”
According to the latest OneRoof-Valocity house price data, the region's median value sits at $455,000, up almost $100,000 on August last year. Most of the stock on the market sits in the sub-$500,000 price bracket so it's unusual to see a house join the million-dollar club.
“When modern homes like this come onto the market you tend to see good competition because there's only a certain amount of homes of that quality because it’s a smaller market,” Patton said.
For ten months in a row, Gisborne homes are selling on average 70 per cent higher than their current CV, the highest in the country, Real Estate Institute of New Zealand's recent data shows.
REINZ chief executive Bindi Norwell said the shortage of listings in Gisborne continues to affect the region.
“Whilst CVs are not what a property is ‘worth’ they are one of a range of indicators that can help understand the value of a property. With demand for good properties exceeding supply, this is why we’re seeing such a premium being paid for properties in some parts of the country,” she said.
Despite recent headlines of an uplift in sales of Auckland’s multi-million-dollar mansions, particularly as Kiwis living offshore look to return home, across the whole region Auckland’s residential properties are currently selling at the closest to their CV.
“Currently, buyers are paying on average 5 per cent over the CV in Auckland which is the most ‘affordable’ in the country – despite the fact that the current CVs are nearly three years old and were due to be updated at the end of this year."
