While some parts of NZ are seeing real growth in property values, Gisborne like many smaller provincial cities are not seeing the flow on effect. So why is this? Three reasons stand out as contributing factors.

Static population growth, a slump in economic performance and the onflow effect in terms of spending within the district are contributing factors to a weakening property market in Gisborne. The recent BERL report didn’t place Gisborne is a very favourable position, however when you are at a low point there is only one way to go – upwards. Comments reported in the Gisborne Herald from the Gisborne Chamber of Commerce president Gavin Murphy and Daryl Keast of BDO Spicers point the way forward for the district.

While Gisborne has never featured strongly in the BERL reports, the lifestyle attraction of living in such a wonderful part of the world keeps many residence living in the area. Home affordability, easy access to essential services (you are not more than 5 minutes to anywhere), great sporting facilities and great beaches are just a few wonderful aspects of our wonderful region.

Apartment 119 at Portside Hotel Gisborne is being offered for sale under mortgagee instructions. The ground floor studio apartment is leased to Portside Hotel and is used by guests on a short stay basis. Located close to the centre of Gisborne City and near Waikanae Beach, Portside Hotel enjoys good patronage.

Details of the sale can be obtained from Neil Walker.

"are we all done, all finished?..."

Tuesday’s auctions at LJ Hooker Gisborne showed that buyers were not in a hurry to snap up some great property. Despite 4 properties being offered for sale, none sold under the hammer. “I was expecting more committed interest from those who had viewed the properties,” said agent Neil Walker who marketed 3 of the 4 properties, “but we now just move to the next phase of the plan, offering those properties up for sale with asking prices.”

So do auctions not work in this market?

If you measure the success of the auction by whether a sale is concluded on the day, under the hammer, then you could argue that some auctions are not working. However if you see the actual auction event merely as part of the eventual sale process, then clearly they do. It is our experience that properties that go through an auction programme are more likely to sell, as the owners have signaled a greater willingness to move on their price expectation and to negotiate in order to achieve a sale.

Four residential properties are being offered for sale by auction by LJ Hooker Gisborne today. All four are onsite auctions. 514 Palmerston Road is a brand new 2 bedroom home within walking distance to town. Auction time is 11.30am. 280 Kahutia Street, known as St Ives is a 1920′s two level villa near the city beaches. Auction time is 12.30pm. The cute villa on 106 Iranui Road is up at 1.30pm followed by 19 Owen Road at 2.30pm.

“There has been a good response to the marketing of these properties. We do have good interest on a couple of them, said agent Neil Walker. However I would have expected more interest in St Ives (280 Kahutia Street). Being so close to town and offering so much, it is quite a special property.”

Here’s a home that will bring a smile to your face. 106 Iranui Road, Inner Kaiti Gisborne is a little charmer. It’s full of character and cool features and it is genuinely for sale. The owners are on transfer and are reluctantly offering their much loved home up for sale. Located in a great spot, within walking distance to town it is affordable and ready for a quick take over. Perfect! Selling by Auction on Tuesday 24 April, 1.30pm on site.

Selling homes by auction is becoming more widely acceptable. In a recent article in the NZ Herald,  the trend is for more sellers to offer their property for sale by way of public auction. In a sellers market (when it favours the sellers more than the buyers) it is easy to understand that the competition among buyers is likely to push up the eventual sale price.

But what happens when it’s a buyers market? Well auctions still work, but for different reasons. Having a deadline (the auction day) requires buyers to make up their minds. You get a commitment – or not. It tests how strong the interest really is. Secondly you are more likely to get offers (bids). Even if they are below what the seller would  take, it doesn’t matter because you don’t have to accept any bid. One of the greatest fears that a seller has when they list their property is “what if nothing happens, not even a low offer?”  Selling by auction reduces the chance of that happening.

Auction marketing requires greater skill from the real estate agent. Dealing with an auction focused company will definitely increase the chances of selling for the best price, regardless of the market.

The sales activity for the first quarter 2012 show a 15% increase in the number of houses sold in Gisborne. After a sustained period of fewer sales during the past 18 months, the indicators are pointing towards recovery. While the number of sales are well off the high volumes that we saw 5 to 7 years ago, it is pleasing to see a lift in sales activity.

Prices however remain stable, with a small fluctuation in the median sale price. Generally the median is in the $220,000 – $230,000 range. Properties in the high end of the market (above $500,000) are slower to move with buyers taking longer to purchase.

Of interest is the number of investors returning to the market. There seems to be more about and they are buying.

There was a significant lift in the number of houses sold in Gisborne during March 2012, up to 46 sales. This is the highest level of monthly sales activity since 2 years ago and it was not just a recovery spike following on from a previously weaker  month. Sales activity is up. More houses are selling now than were selling last year. The Gisborne residential property market is on the move. From the full list of actual sales it appears values are stable, with no apparent lift in prices, however there have been a few good results indicating that buyers are willing to pay for well presented property.

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280 Kahutia Street, Inner City Gisborne is a special property.  Give yourself plenty of time to explore as this is a large home (260 sq m) with lots of extras including 3 living areas, modern kitchen, and games room. Magnificent heart rimu joinery is a special feature, as are the beautiful leadlight windows. Take a close look at the amazing heating system, a remarkable Italian made wood burner, and radiators that heat the whole house, and you can cook on it too. Adjacent to Alfred Cox Park it’s so close to the beach and town you can comfortably walk. An inground pool, room for games on the lawn and parking for a caravan or boat makes this the perfect home for you.