House prices are climbing in Nelson-Tasman
House prices are still rising in Nelson-Tasman

Sections sell for ‘eye-watering’ prices

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Nelson home values continue to see strong value growth up 16.9 per cent year over the last year and 4.5 per cent over the past three months the latest monthly QV House Price Index show. The average value in the city is now $522,201.

Values also continue to rise in the Tasman district with an increase of 16.3 per cent over the last year and 2.7 per cent over the past three months. The average value in the district is now $512,754.

QV homevalue Nelson registered valuer Craig Russell says “there has been increased activity within the $1million-plus price bracket with strong prices being achieved, particularly for lifestyle holdings on the Richmond periphery.

“Section prices continue to climb with some eye-watering prices being achieved in some instances.

“There have been numerous developments pre-sell sections prior to earthworks commencing.

“We are seeing a reduced margin on rental yields with values rising and long term interest rates creeping up. This has contributed to less investor activity in the market.”

Craig says with such strong value level growth over the past 12 to 18 months, affordability has become a major issue with some over-extended homeowners at risk from a rise in interest rates. He says those looking to get onto the property market are also finding it difficult obtaining a suitable property within their budget.