The latest property values are good news for Gore homeowners — but it’s a different story for the district’s rural sector.
Nearly 7000 properties have been valued for the Gore District Council based on their quotable value, reflecting the price of sale on July 1 last year.
The district as a whole has grown to a value of $5.59 billion, a 2.8% increase, with land value sitting at $2.88 billion — a 0.4% increase.
However variation within sectors tells a different story than just steady growth, and fluctuations between residential, commercial and industrial, lifestyle, pastoral and dairy tell different stories.
The residential market showed Gore homes have increased in value by 10-15%, driven by first home buyers and investors, with strong value for entry level homes and modern buildings.
Bayleys Real Estate Agent Julie Mitchell said Gore was a superb place to live, with plenty to do, and said it was interesting how adaptable the district was.
"I think Gore always keeps reinventing itself. Every time we have major industry come in, some say it won’t last, but it does, and we just get more coming in.
"We’ve had Mataura Milk Valley plants, the Fonterra extension, now the wind farms. They bring great economic benefit to the town," she said.
Mrs Mitchell said it was a busy time to be a real estate agent in Gore, and she was excited for future growth.
Property Brokers sales manager and consultant Tara Maxwell said it was a good time to get into the property market in Gore, and encouraged people to go out and get a home.
"At the moment, with rents being pretty high, with the changes to the Residential Tenancy Act, you want a bit more security to where you’re living.
"You want to own it, you want to have decisions over your life and where you live," she said
Gore was good for families and first time home buyers alike, Mrs Maxwell said.
Gore Mayor Ben Bell said the valuations were welcome news, with steady increases and affordable housing providing a draw for families and businesses, calling Gore an appealing option for those seeking a balanced lifestyle.
Commercial and industrial properties sit at 9.4% of the district’s value with an uptick of 9.6% and 14.3% respectively. Mr Bell said the improvements in the confidence of the economy and the central nature of the Gore district were key strengths.
"Gore’s strategic location on key transport routes, combined with its skilled workforce and proximity to processing facilities, positions the district as a vital link in Southland’s agricultural economy.
"This confidence is reinforced by ongoing investment in infrastructure and services that support business growth."
QV lead valuer Brenan Tancredi said in a statement an uptick in value for larger and older family homes has helped these numbers for the Gore District.
Mataura has retained a flat market throughout the three years, based on a higher proportion of poor-condition dwellings which have higher cost of renovations but Mr Tancredi said other townships have had further rises due to different factors.
"Some of the smaller townships are starting from a low home value base, so even modest dollar gains can show up as quite high percentage increases."
The value of pastoral properties has declined by 8.7%, still compromising 26.8% of the district’s value, but difficult seasons since 2022, increased costs, compliance pressures, and uncertainty around commodity price have caused values to drop from three years ago.
Sheep farmers particularly have felt the drop, but cropping, beef and dairy operations have been steadier. The loss of tree-planting options which underpinned the value of harder hill country properties had impacted their value.
Mr Tancredi said it had been a difficult few years, with sales through the period showing values falling 5-20% on average, with the largest declines on properties physically restricted to sheep-based systems.
Despite the volatility, he said confidence was slowly recovering, but this had not yet translated to higher farm values, with a focus on buckling down rather than reaching out.
"While commodity prices have lifted recently and confidence is improving, most farmers are still focused on restoring their balance sheets rather than paying more for land."
Dairy properties, comprising 10.9% of the district’s value, have seen an average growth of .9%, with steadier commodity prices and a continued attraction for buyers. Fonterra’s consumer brand sales had given a boost to confidence in the industry.
Mr Bell said the decline in pastoral values did not impact the overall positive picture for the district.
Its affordability, connectivity, and opportunity alongside residential growth, industrial confidence and community support placed it well for families and businesses looking to set up in Southland.
