Property values in region matching national trends

Buying or selling a house in Nelson city or Tasman district remains a half-milliondollar proposition but is still cheaper than the New Zealand average, according to new 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.

Meanwhile, values in Tasman 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 is now $569,064.

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

The 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 and LVR restrictions, which 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 off selling until the warmer months.’’

QV general manager, David Nagel said: ‘‘We’re still seeing growth in regional New Zealand 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.’’