Summit Real Estate Richmond office manager Gordon Webb with the subdivision plans for Hart Rise just south of Richmond. Photo: Simon Bloomberg.

New subdivision sells out in a day

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The Nelson property market continues to skyrocket with 49 sections in a planned Richmond subdivision signed up by buyers in just 24 hours, with many more missing out on the deal.

Interest in Hart Rise on Paton Rd, south of Richmond, was red hot, with Summit Real Estate director Allister Nalder saying the first stage of the 140-section subdivision was “considerably over-subscribed”.

Although the resource consent for subdividing the 11.5 hectare property is still pending, demand for the August 26 release was “unprecedented”.

“I’ve been in real estate in Nelson for 34 years and it even surprised me,” Allister says. “We saw something similar in the boom of 2003 and 2004, but this is even bigger.”

Summit’s Richmond branch manager Gordon Webb was also astounded by the demand for the sections, which were sold “under agreement” subject to title being issued.

Gordon says the 49 sections range in size from 400 to 700 square metres and sold for an average of $250,000.

“The syndicate has owned the land for six years and we have had people coming to us and asking if we had any sections available for a while now. Once the resource consent was in the system we decided to go and see how the market would respond, so our agents sought expressions of interest – it was so fast it really surprised us.”

Gordon says the demand for sections in Nelson and Tasman is being created by “a perfect storm” of low interest rates, a lack of suitable flat land for subdivision and a backlog of home owners who have been waiting to sell their house and upgrade their investment.

He expects the titles to the sections to be issued in July and, “if everything goes well”, the first houses will be completed by October or November next year.

The Hart Rise subdivision will feature an entranceway off Hart Rd, a new reserve, and it will link in with a planned cycleway that will run from Hill St out to the coast.