‘Lack of homes’ fuels house value growth

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Nelson home values are rising quickly, up 4.3 per cent over the past three months.

Values rose 8.9 per cent year on year and the average value in the city is now $446,860. While home values in the Tasman District rose 1.1 per cent over the past three months and 5.1 per cent year on year.

QV Nelson Registered Valuer Craig Russell says it has been a strong start to the year in the region with the recent interest rate cuts and strong migration fuelling house prices.

“We have seen a continuation of a proactive market with properties selling in a short time frame with asking prices typically being achieved or exceeded.

“There have been plenty of section sales occurring in recent months, which is partly due to a lack of listings of existing homes. Construction companies are expecting to be busy with new house builds as a result of the increased activity in section sales.”

He says investors remain active given the current low interest rates and relatively high yields compared to the main centres around the country.

“A number of agents have switched to no price marketing which is another indication of a strong market given purchasers can be forced into a bidding war.”