Nelson property values up 6 per cent in latest QV figures

Friday, 8 June 2018

Nelson residential property values rose 6.2 per cent in the year to May but dropped 1.3 per cent over the last quarter. The average house price is now $560,473.

Buying or selling a house in Nelson or Tasman remains a half-million dollar proposition, but is still cheaper than the New Zealand average according to latest figures.

The latest monthly QV House Price Index shows nationwide residential property values for May increased 6.9 per cent over the past year, while values rose 0.8 per cent over the past three months.

The nationwide average value is now $677,996. When adjusted for inflation, the nationwide annual increase drops slightly to 5.8 per cent.

Nelson residential property values rose 6.2 per cent in the year to May but dropped 1.3 per cent over the last quarter.

Early morning sun on a chilly morning on Whakatu Drive SH6 during morning peak traffic. Nelson and Tasman property affordability is currently on par with Hamilton, Whangarei and Napier, but only slightly cheaper than Wellington.

* Average house price in Nelson and Tasman almost half a million dollars

* Doer-uppers 'discounted' as housing market cools**

Meanwhile, values in the Tasman District have also continued to rise, up 6.4 per cent year on year and 0.6 per cent over the past three months.

The average value in the city is now $560,473, while Tasman district was now $569,064.

In comparison, Christchurch values made no improvement to stay at $495,148, Napier had risen 16.3 per cent to average $507,441 and Hamilton had risen 3.1 per cent to average $553,873.

The average value for the Auckland region is now $1,054,729, while the average Queenstown Lakes District property would fetch $1,153,155.

Most affordable of the 15 listed areas was Invercargill, at $264,630.

QV Nelson Property Consultant Craig Russell said the market had become more balanced compared with this time last year, thanks to a growing portion of first home buyers entering the market, sales activity easing and modest value growth.

The market had also been affected by changes in Government policy such as Kiwisaver entitlements for first home buyers, insulation requirements, LVR restrictions and possible ring fencing had contributed to a drop in investor activity, he said.

'We're continuing to see good quality, well-located properties sell quickly particularly in areas close to good schooling and amenities such as Richmond Mall, Saxton Sports Complex and Nelson City shopping precinct.'

'I would anticipate sales activity to remain fairly quiet over the winter months which is traditionally a subdued period of the year as people hold of selling until the warmer months.'

QV general manager, David Nagel said, 'As anticipated, nationwide sales volumes are down as we enter the usual winter slowdown although value levels are holding … this is typical of this time of year, as many people put off selling their property until the warmer months.

'We're still seeing growth in regional NZ where values levels were initially slower to take off. But even these provincial towns are showing signs that the growth we've observed in the past few quarters will be difficult to maintain.'