Areas of Nelson that have traditionally been thought of as the most affordable in the city have seen the biggest surge in home values over the last three years.
QV, on behalf on Nelson City Council, last week released new valuations for all properties across the city.
Analysis provided to the Nelson Weekly exclusively by Corelogic shows that some suburbs have increased in value by up to 50 percent since the last valuations.
In 2015, the median house value of a home in Toi Toi was $270,000, now it is $410,000 – a 52 percent jump. In Washington Valley the 2015 value was $300,000, now it is $444,000 – a 48 percent jump.
The new information will be used by Nelson City Council to decide how rates will be apportioned across the city, from Stoke to Hira.
Nelson City Council group manager corporate services Nikki Harrison says, although home values have risen across the board, the council won’t receive any extra revenue from the revaluations.
Rather, the updated base simply means the rates will be spread differently between ratepayers than before.
“The revaluation does not generate any additional revenue for council. Council can only collect the rates required to run the city and how your rates are affected depends on how your property changes in contrast with the average,” says Nikki.
Wakatu will likely see the largest annual rates increase, with the average sitting at $95.08 for the suburb while Port Hills will see an average decrease in their annual rates of $207.36.
Statistics NZ puts Nelson in the country’s least affordable region behind Queenstown and Auckland.
However, Mayor Rachel Reese says that we will be not following any further down that track. She says she has been advocating to government that Nelson is at risk of housing affordability issues and needs access to funding and tools that has been ring fenced for high growth regions.
“Housing affordability issues put at risk our ability to attract a skilled workforce and ensure our most vulnerable in the community have housing choice. Supply of land and intensification of existing land is critical to ensure the situation is not further aggravated.”
Rachel says the jump in values look big “on paper” but she has been aware of big sales in the city over the last year so the new valuations were not that surprising. – Data from Corelogic