Gisborne Property Auction Yields Good Results Despite Covid-19

Twenty-four out of 30 properties that Property Brokers took to market, sold for good prices under the hammer at the recent Project Gisborne Auction Event.

This year’s Project Gisborne was seen as the first real test of buyer activity and property prices since the Covid-19 lockdown. Now in its sixth year, Project Gisborne is renowned for being an enormously successful auction and Saturday's results did not disappoint.

"It was an amazing event for the Tairawhiti region, after a period of uncertainty coming out of the Covid-19 lockdown there were lots of questions around whether the event should go ahead," says Hawke's Bay and Gisborne Regional Manager, Joe Snee.

"On the day we marketed 30 properties and 24 sold under the hammer. That is an 80% clearance rate! With an additional three under contract and the properties on the day selling on average +51% of RV, it is a good illustration of where the Gisborne market sits post- Covid-19. A total value of $12,487,000.000 was sold on the day."

With the whole country looking for some indication around how the property market is going to respond to post Covid-19 conditions, the early indicators are looking very promising. If the Project Gisborne auction results are anything to go by, it looks like the removal of restrictions on real estate agencies and buyer-friendly bank activity, such as low-interest rates and removal of LVR restrictions, could kick-start the market to levels above where they were pre lockdown.

Saturday’s auctioneer Guy Mordaunt says an 80% clearance rate is a huge number in any market and is higher than the last Project Gisborne in February.

“Prices were strong and are following the trend across the country of an upward lift since March. Properties sold across the entire range from an investment at $188,000 through to $1,100,000 and everything in between."

"I've called hundreds of auctions and the activity today was as busy as I've ever seen it. People have had their life on put hold and are keen to move on to the next stage. There were a lot of happy people in Gisborne on Saturday night!"

Property Brokers CEO Bill Highet says provincial New Zealand still has an incredible shortage of property on the market and strong interest both locally and from the big centres.

“The results that we are seeing in Gisborne are a good representation of what we are seeing across our 70 locations across provincial New Zealand. The average sale price has actually increased by 1% since entering level two when compared to the near-record levels in the four weeks prior to Lockdown. Sales volume is still down, but we are seeing growth almost double week on week

Mordaunt said it was a quite different type of auction room for Project Gisborne as it was set for social distancing.

“Only buyers and vendors were allowed in for each auction block with spectators watching from outside. At the end of each session, the room needed to be cleared and was cleaned and disinfected. It didn't deter the buyers from showing up and bidding strongly.”

Property Brokers is a proudly provincial company, and 100% New Zealand owned, with more than 70 locations.

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