Nelson bucking national trend as property prices continue rise

Thursday, 6 September 2018

Despite a 1.6 per cent decrease in average property values nationwide, Nelson's house prices have increased by two per cent in the last three months.

As the average property values fall around the country, the Nelson region continues to trend upwards, according to latest figures.

QV's House Price Index, released this week, showed nationwide residential property values fell 1.6 per cent over the three months to August, despite a 4.8 per cent increase over the last year. The nationwide average value is now $672,504.

Nelson residential property values rose 9.3 per cent in the year to August and by 2.0 per cent over the past quarter. The average value in the city is now $588,140.

Values in the Tasman District have also continued to rise, up 8.7 per cent year on year and 2.3 per cent over the past three months. The average value in the Tasman district is now $585,198.

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

* Region's property values continue moderate growth for past year

QV Nelson property consultant Craig Russell said following a relatively quiet winter, market activity had increased over the past month, with both sales and listings up.

'There are certainly particular areas where market activity is notably busy. Small manageable lifestyle holdings on the Waimea Plains have been highly sought after largely given their excellent location close to Richmond and flat contour.

'There is also a lot of demand for central Nelson properties, particularly those up to $700,000. We're seeing many examples of multi-offers and busy open homes for these types of properties. Finally, we're seeing well-maintained character homes in good schooling areas sell at a premium price.'

Nationally, the winter chill has put the brakes on value growth and market activity, but annual growth rates remain solid.

First home buyers continue to benefit from less competition and are driving modest value growth particularly in low-to-mid value areas.

Constrained housing supply coupled with a stable interest rate environment is another key market driver supporting a seemingly steady market.

QV General Manager David Nagel said the figures appeared to suggest a 'business-as-usual' situation across the national property market, as low levels of supply coupled with a record low interest rate environment drive modest value growth across most regions.

With population growth projected to continue to rise, he anticipated a further increase in demand for more affordable two-bedroom semi-detached units and apartments, particularly in the main centres.

'The winter period has certainly taken the heat off the market … spring is going to be a very interesting time for the residential property market as we see what unfolds when a few more buyers and sellers enter the market.'

Nagel said the regions' value for money continued to appeal to a range of buyers, even during the quieter months.

He anticipated value growth to remain flat or steadily grow across most regions.

In Auckland, prices were down 0.4 per cent in the quarter, in New Plymouth down 0.3 per cent, in Christchurch down 0.2 per cent and in Queenstown, down 1 per cent.

The average value for the Auckland Region is now $1,048,956, while Queenstown Lakes District also remained in seven-figures at $1,161,159.

Despite seeing the largest quarterly growth with 3.3 per cent, Invercargill remained the country's most affordable region at $272,855.