It has seen residential properties selling on average for 71% higher than the current CVs
Residential properties in the Gisborne region are selling on average for 71% higher than the current CVs – the highest in New Zealand, according to the latest report by the Real Estate Institute of New Zealand (REINZ).
The latest analysis by the REINZ found that Gisborne has seen purchasers pay the highest percentage over the CV for properties in the country since October 2019, showing how the shortage of listings in the region has continued to impact the East Coast.
“While 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, and 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,” said Bindi Norwell, the chief executive of the REINZ.
“Undoubtedly, the pent-up demand after the country came out of the first lockdown has contributed to the premium people are prepared to pay for properties – particularly if they have features such as a great outdoor area, a pool, a study/office for working from home or even a large backyard.”
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Southland has the second-highest house prices in the country, with prices around 43% higher than the current CV. Hawke's Bay and Marlborough follow with around 27% more than their current CVs, while Auckland's residential properties are selling at the closest to their CV.
“Currently, buyers are paying on average 5% 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,” Norwell said.
“Interestingly, Auckland has been the region where purchasers are paying the closest to the CV for the last 11 months, and for the prior nine months, it was the only region in the country where properties were selling for below CV.”
