Nelson south shows surge in house prices

TRACY NEAL
Last updated 12:59 13/06/2014

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The average value of a house in Nelson South has leaped an estimated $25,000 in a year, making the suburb one of the most dynamic in terms of growth in property values, QV Nelson valuer Richard Kolff says.

Housing affordability and proximity to town and good schools had made the area popular, but interest had slumped recently in line with loan restrictions.

"The area is popular with first home buyers and investors but in the last three months values have dropped off due to new LVR restrictions," Kolff said.

The average value of a house in Nelson South in March 2013 was $343,700. The estimated average price at April this year was $368,550.

Nelson city average prices for the same period, in the most expensive area, increased from $498,950 to an estimated $520,100.

Atawhai homes are now the next most expensive in Nelson, but the annual increase in value was not so dramatic. QV figures show the average value rose from $471,450 to an estimated $473,050 in the year.

Takaka was trailing in the value stakes. Kolff said the market in Takaka has been slow and QV had seen a slight drop in values over the last two years.

The average house price in March last year was $295,850 and by April this year it was $290,600.

Kolff said it was a reflection of values in Golden Bay in general, where sales of coastal properties in particular had been weak.

"Motueka has seen steady growth over the last two years and has bucked the trend of values falling in the last quarter that most other suburbs have seen.

"It has an appealing small-town feel to it yet it is big enough to have a good range of amenities available.

"Prices are more affordable than Nelson and Richmond and it has been a popular destination for retirees."

Nelson and Tasman as a region are still showing growth compared with other centres, QV said recently. Some centres are showing static growth and in some cases values had dropped.

Property values in regions in the south of the South Island are lower than the peak of 2007, such as the Clutha District, where property values are 10.3 per cent below what they were in 2007.

The Southland District is up 0.8 per cent year on year but still 10.1 per cent below 2007 values.

The Grey District is up 3.6 per cent year on year, but 7.5 per cent below 2007 levels, QV figures show.

Regions that are satellite areas to Christchurch are seeing a flow-on effect of the value increases in the city since the earthquakes compared to areas further afield.

HOUSE VALUES

Tasman $416,459 +3%

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Nelson $401,566 +2.1%

- The Nelson Mail

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