Character costs nearly $1m as city house values soar

The value of an average home in Nelson city has risen $6000 over the last month, according to the latest figures from Quotable Value.

That’s a rise of nearly $200 a day. The average value in the city is now $593,947, an increase of 1.7 per cent over the past quarter, the latest QV House Price Index showed.

Values in Tasman district also continued to climb, up 1 per cent over the past three months to $586,219.

Both areas experienced a yearly increase of more than 7 per cent, compared to 5.4 per cent nationwide.

‘‘Residential land values have significantly increased in the [Nelson] city centre,’’ QV Nelson property consultant Craig Russell said of the October figures. ‘‘Mostly due to its lifestyle appeal and the limited supply of properties.

The college and cathedral area had proven particularly popular because of its ‘‘proximity to good schooling and central city amenities’’, Russell said. ‘‘Modernised character homes in this area are generally selling in excess of $900,000.

‘‘At the same time, properties that are mostly in original condition or have significant deferred maintenance evident have proven difficult to sell or have sold at more modest levels, particularly in the Port Hills,’’ he said.

Investor activity had been quieter than usual, Russell said, which was likely due to more modest returns, a ‘‘limited prospect of strong capital growth in the short to medium term, and increased compliance costs on the horizon’’.

Value growth remained modest across the country, with a 1 per cent rise in the three months to October to a nationwide average of $681,802.