Stage one of Gore's new subdivision has been almost fully subscribed within 24 hours of going on the market.

Eleven of the 15 sections at east Gore's Matai Ridge went under contract on the first day with sections selling for between $149,000 and $205,000, and realising just over $2million.

The subdivision is a joint venture between Gore District Council (GDC) and Wilson Contractors (2003) Ltd.

GDC chief executive Stephen Parry said all the sections were conditionally sold for the asking price, except one which went for $8000 higher than the asking price.

“This sets a new benchmark in the local market. “We were confident there was pent-up demand, and we would see several sections under offer in the first few weeks. But to have 75% of sections under contract in 24 hours is well beyond our expectations.”

The strong response to stage one is likely to see the release of stage two before next winter, Parry said.

First National Gore realtors Graham and Tara Maxwell said they had had both first home buyers and developers locally and from out of Gore securing sections.

“One email today was from a New Zealander returning from Ireland with his family.”

“We knew from client feedback over the last few years that the demand for land was high,” they said.

However Harcourts Gore sales manager Kylie Anderson said there was still a huge shortage of all types of property in Gore.

First home buyers were having to pay up to $450,000 for a house, and new earthquake standards would also put further pressure of existing commercial properties.

She said with Gore being surrounded by dairy farms and lifestyle blocks, the town was currently landlocked to further expansion.

"We really need a subdivision of 100 sections," Anderson said.