Property demand driving prices up
Growth in the housing market has slowed across Nelson and Tasman, but house prices remain steady due to a strong demand for properties.
House values in the Nelson region have risen by 13.6 per cent in the year to August and 1.9 per cent over the past three months to an average of $538,136, according to the latest figures from QV.
House values in Nelson are now 40.5 per cent higher than during the previous peak of 2007.
Meanwhile values in the Tasman District have risen 16.1 per cent in the year (0.6 per cent in the past three months) to an average of $538,256, which is 34.0 per cent higher than the 2007 peak.
QV Nelson registered valuer Craig Russell said despite value growth easing in the past few months, prices remained firm due to strong demand.
‘‘The lower end of the market is still very active especially for properties up to $550,000.’’
‘‘It is typical to see an increase in market activity as we come into spring. This may be delayed given the pending election which provides uncertainty for people making property decisions.’’
Russell said the recent announcement of new Special Housing Accord (SHA) areas for Nelson and Tasman would significantly increase land supply.
Earlier in the month, Building and Construction Minister Nick Smith announced 20 new SHAs in the Nelson-Tasman region with capacity for about 1700 homes.
More than 1000 of those are part of two SHAs approved for sites near McShane Rd in an area called Richmond West.
The ApplebyField SHA will have potential yield of 250 homes and The Meadows will have a minimum of 800 houses, including a retirement village.
‘‘It remains to be seen what impact these SHAs will have in the market and whether there is sufficient demand for such large scale developments,’’ Russell said.