High demand sees sections selling fast
New sections are selling rapidly in Richmond and Stoke, but property industry players warn a lack of serviced land is hampering growth.
Word-of-mouth has seen 19 sections of a 23-lot phase of a staged Richmond subdivision sell before they were even advertised.
John Davies, of Trek Properties, said the final four sections of the Fairose Rise stage of 70-lot Bramley Estate, off Richmond's Hart Rd, would be marketed this weekend.
"It's just amazing the demand and just another indication that Richmond is really going for it," Davies said. Buyers from "across the board" were snapping up the sections that averaged 600 square metres and were priced between $210,000 and $230,000.
Davies said he had been approached by people who had seen the development underway. "It's probably the price - they are probably some of the lower-priced sections in Richmond"
Rob Ford, from Cotton and Light surveyors, said Tasman was ahead of Nelson, but the figures largely pertained to land availability.
The fact Tasman had more land, and therefore more available land, made the distribution of available sections across the district relative.
The biggest issue facing buyers was the lack of serviced land which increased the demand for available sections.
"The councils need to look at moving forward in their annual plans to service more land," Ford said.
First National sales manager Wayne McCrorie said the challenge facing agents was the lack of sections to meet demand.
"We are struggling for stock at the moment - the region hasn't got a lot available."
McCrorie said it was not just the lack of serviced land but the delays developers faced in getting subdivisions through the councils.
There was a lot of interest in the semi-rural subdivisions of Aranui Rd in central Mapua, Aporo View near Tasman village, Appleby Hills and sections in Marsden Park in Marsden Valley were going well. But when it came to urban development, uptake in Richmond was well ahead of Nelson, he said.
McCrorie said people from around the country were buying.
Sales had not reached previous levels but prices continued to climb - largely on the back of the lack of stock, particularly in established homes in the $300,000 to $500,000 bracket, he said.
John McLaughlin, of Marsden Park Ltd, said the resource consent application for the Stoke development's next 140 to 150 lot phase would be lodged soon. Almost all of the stage -three sections of the 130-lot first phase of the development had already sold and more sections would come available around August.
The remaining stage-three sections of 610 to 720sqm were priced around $210,000.
The region's section market stalled from 2009 and saw a noticeable conservative approach to the market since December's loan-to-value (LVR) restrictions were introduced, he said.
Other subdivision prices ranged from $275,000 to $330,000 for sections between 1.08ha and 3.54ha at Aporo View, $185,000 to $189,000 for sections between 500sqm to 635sqm at Aranui Rd and $238,000 to $249,00 for sections between 2191sqm to 2597sqm at Appleby Hills.
Meanwhile, Tasman District Council building consent figures show the number of new houses had dropped in the eight months to the end of February compared to the same period last year.
The council says 178 homes were built in the eight months to February 2014 while 230 homes were built over the same time to February last year.
In Nelson city consents for homes have dropped 11 per cent on last year, but the value of the homes for which consents were sought has increased 3 per cent.
The council said 140 consent applications had been received this year compared with 156 for the same time in the previous year.
- The Nelson Mail
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