It’s not just Auckland real estate that is carrying the lockdown heat.
House price records in one of New Zealand’s most affordable cities were smashed on Friday when a beach front home in Gisborne sold for $2.826m.
That’s nearly $1m over its council rating valuation, set only last year, and more than twice what the vendor had paid four it years ago.
The five-bedroom 1970s house on Salisbury Road, in Awapuni, was tired-looking and came with a sleepout and rentable garage storage
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Ray White Gisborne director Shelley Donaldson, who marketed the property with Tom Harbott, said that nothing else had sold on the tightly held strip since well before the house had last sold for $1.225m in 2017.
“There hasn’t been a market for over four years, so we didn’t know what the price would be. There are only 17 houses on this whole stretch and no potential for any more,” she told OneRoof.
The Salisbury Road house is one of only 17 houses on the Awapuni beach, near the centre of Gisborne town. Photo / Supplied
It breaks the previous Gisborne record, set in April, of $2.775m for a smartly renovated 1960s beach-front four-bedroom house on Wairere Road in the sought-after Wainui beach town. There houses open directly on to the beach, while city places have council-owned reserves and boardwalk between them and the sea.
However, water-front property in the city was coming into its own now, Donaldson said. Awapuni, just minutes from downtown, is being significant developed, with a new boardwalk and upgraded surf club and sports complex. She said locals really understand the growing value.
The Salisbury Road house, with spectacular views to the ocean, sold four years ago for $1.225m Photo / Supplied
“We had one open home before lockdown, but we had 3D walk throughs online, that was key. There was a lot of interest from Auckland, Hawke's Bay and Wellington buyers, but it is really the locals who understand the lack of property on this stretch and therefore its huge value.”
The previous Gisborne record was set in April when $2.775m was paid for a beachfront property on Wairere Road, Wainui. Photo / Supplied
Eight bidders registered for the auction, with three parties fighting it out for the last few thousand dollars. Donaldson said most were expecting to pay over $2m and “we’ve got a few buyers who could spend up to $2.8m.
“It’s pretty amazing considering the average sale price in Gisborne is around $500,000, and 12 months ago it was $400,000,” she said.
A 'starter' beach house in Lysnar Street, Okitu, Wainui sold for $965,000, over $300,000 more than it sold for last year. Photo / Supplied
“At the same auction, we sold an entry level house in Wainui for $965,000. Last year that same house [in Lysnar Street, Okitu] sold for $650,000.”
She said the previous owner of Salisbury was an investor, but the new local owners plan to continue renting the three parts of the property while they make long term plans.
“Those views are fantastic, they could build something really lovely and you can just walk to town.”
