Nelson residential property values rose 14.4% year on year with 2.5% growth over the past three months and values are now 42.5% higher than the previous peak of 2007. The average value in the city is now $545,565. Meanwhile values in the Tasman District have risen 13.6% year on year and 0.9% over the past three months and are 34.4% higher than in the previous peak of 2007. The average value in the Tasman district is now $539,866.
Prices are holding firm for properties across the board despite value growth easing in recent months. The start of Spring has seen the typical increase in properties listed for sale, although only modest. Purchasers may be cautious over the coming weeks until the election result becomes clearer.
Value levels in Richmond are strong with properties situated close to Richmond Mall and Saxton Fields having strong underlying land values. Entry level lifestyle blocks up to $700,000 are in strong demand particularly those locations close to service townships. Sales volumes have increased slightly after dropping in August.
Sales Volumes and Listing Numbers
QV House Price Index/Sales Volumes/Listing Numbers (Nelson)
Sales volumes are up in September after dipping in August and are now at similar levels to July. Current listing numbers have increased modestly in September as more people bring their property to the market to take advantage of the Spring weather.
QV House Price Index/Sales Volumes/Listing Numbers (Tasman)
The QV House Price Index is calculated by analysing the average sales price to capital value ratio for sales over the last three months which is applied to the entire stock to generate a current average value.
Steady supply of houses being consented with 85 in August for the Top of the South
The new build sector remains active with a steady stream of properties being consented. There were 10 more houses consented than August 2016. There is a clear demand for affordable homes and a desire by many to increase the supply of properties via the Special Housing Accord. Given the majority of house price inflation is within the land value component this increase in supply is likely to curb land value inflation. Whether this eventuates is dependent on when developers release sections to the market given developers are likely to drip feed sections to the market only as demand suffices which keeps prices high. This will vary depending on the developers financial situation.
New Dwelling Building Consents Issued
Mean rent $362 in Tasman and $355 in Nelson
There has been little to no rental increases over the previous three months with Tasman showing a decrease month on month since May but at similar levels to April. There is generally little movement in rental levels over winter as landlords typically wait until the summer months to list their property when demand is greatest. It is typical to see increased activity in Spring.
Mean Rent by Territorial Authority
Thank you to QV Nelson for producing the Nelson Tasman Real Estate September 2017 Market Report.
About the Author: The above article on Nelson Tasman Real Estate Market Update September 2017 was written and provided by QV Nelson.
Brent Palmer, a local leader in the field of Richmond and Nelson Real Estate sales, marketing, advanced technology for home selling, and social media. You can contact Brent Palmer here, or at 027 544 9921.
He has helped many people buy and sell homes in the Nelson, Stoke and Richmond areas for years, and would love the opportunity to help you as well.
Thinking of selling your home? I have a real passion for helping people sell their homes in our Nelson and Tasman Region, as well as the marketing, social media & advanced technology for home selling that goes along with it. I’d love to have the opportunity to sit down with you discuss how we can work together to get you the best price.
I help people buy and sell real estate in the following Nelson and Tasman towns & neighbourhoods: Wakefield, Brightwater, Hope, Appleby, Redwood Valley, Mapua, Stoke, Tahunanui, Atawhai and of course, Richmond and Nelson City. Connect with Brent on Facebook and pretty much everywhere else.
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