First home buyers help fuel house price growth in Tahunanui
First home buyers and investors have helped push up house prices in Tahunanui by the biggest margin in Nelson and Tasman district suburbs over the last two years.
The price of homes in Tahunanui increased by 29.4 per cent in the two years to June, and 15.4 per cent over the last year, with the average house there now worth an estimated $453,150, according to new figures from rating valuer Quotable Value.
Motueka led the growth in house prices in the year to June in the E-Valuer Quarterly Suburb Report, jumping 17.7 per cent to a current estimated median value of $483,500; a rise of 28.3 per cent over two years.
Nelson city centre remained the most expensive area to live in, with houses there worth an average of $680,800, followed by Atawhai, Richmond and Brightwater.
"Tahunanui is a popular beach side suburb which has a high proportion of residential flats and entry level homes," QV property consultant Craig Russell said.
"These type of homes have experienced strong demand as they appeal to first home buyers, investors and retirees."
Motueka attracted families and retirees because it had a good range of amenities, and was considered more affordable compared with Richmond, Brightwater and Mapua, he said.
House prices in The Wood grew the most in the three months to June, where a rise of 3.2 per cent pushed up the estimate of median value to $534,150.
"Growth in the Wood can be put down to the desirability of being located in central Nelson and the lack of available land which has driven demand for improved properties and infill developments," Russell said.
House prices in Nelson city grew the least in the year to June, increasing by 10.3 per cent.
"Properties around the Nelson central/college/cathedral area are generally desirable character homes which sell in the upper price bracket for the city," Russell said.
"These properties have increased at similar levels in real terms to the rest of the market but less on a percentage basis given the higher value level of the properties."
House prices rose by 22.4 per cent in Takaka over the last two years.
The Quotable Value report estimated the median value of houses in Nelson and Tasman district at the end of July 2017 as follows: Atawhai $627,200, Brightwater $541,850, Motueka $483,500, Nelson $680,800, Nelson South $478,100, Richmond $564,550, Stoke $501,100,Tahunanui $453,150, Takaka $367,250, The Wood $534,150, and Wakefield $492,350.