Market Update September 2016
Market Commentary
Nelson home values have increased by 14.1% year on year and 3.5% over the past three months. The
average value in the city is now $476,817. Values in the city are now 24.5% above the previous peak of
2007. The Tasman District also increased by 11.4% over the past year and 4.2% over the past three
months and the average value in the district is now $475,427.
The market is extremely competitive in the lower to median price bracket across the Nelson region.
Properties up to the $500,000 price bracket have been most sought after with first home buyers and
investors in strong competition.
Section prices have increased considerably in recent months particularly in the Richmond and Stoke as
demand outstrips supply. We have seen increased activity from speculators in recent months
particularly in the new build market. The recent LVR restrictions applied to investors have seen a
change in approach with investors looking to obtain new builds with a smaller deposit.
Higher value lifestyle properties between Richmond and Motueka have been selling well and there has
been an increase in buyer interest for modern homes with coastal sea views.
Sales Volumes and Listing Numbers
600
500
400
300
200
100
0
May-16
Jun-16
Jul-16
Aug-16
Sep-16
Tasman Sales Volumes
Tasman listing numbers
Nelson Sales Volumes
Nelson Listing Numbers
*Sales volumes are a three month rolling average
QV House Price Index/Sales Volumes/Listing Numbers (Nelson)
450
400
1500
350
1450
300
250
1400
200
1350
150
100
1300
1250
May-16
50
Sales Volume/Listing Numbers
QV House Price Index
1550
0
Jun-16
Nelson QV House Price Index
Jul-16
Aug-16
Nelson Sales Volumes
Sep-16
Nelson Listing Numbers
Sales volumes are up slightly on last month with listing numbers beginning to show signs of recovery.
Listing numbers typically increase as we enter into Spring.
QV House Price Index/Sales Volumes/Listing Numbers (Tasman)
900
800
1500
700
1450
600
500
1400
400
1350
300
200
1300
1250
May-16
100
Sales Volume/Listing Numbers
QV House Price Index
1550
0
Jun-16
Tasman QV House Price Index
Jul-16
Aug-16
Tasman Sales Volumes
Sep-16
Tasman listing numbers
The QV House Price Index is calculated by analysing the average sales price to capital value ratio for
sales over the last three months which is applied to the entire stock to generate a current average
value.
New home building consents up 20 in Nelson/Tasman from July to
August with house and land packages dominating the market
There were 75 building consents issued for new houses in August. Nelson had 24 new homes
consented last month, up from 10 the previous month. Tasman had 34 new home consents issued, up
from 28 the previous month. Marlborough had 17 consents issued, down from 33 the previous month.
There is typically a surge in new home constructed coming into spring with many home owners trying
to meet a xmas deadline. We are also seeing increased activity from speculators in recent months
particularly in the new build market.
New Dwelling Building Consents Issued
100
Number of consents issued
90
80
70
60
50
40
30
20
10
0
May-16
Jun-16
Tasman
Nelson
Jul-16
Aug-16
Marlborough
Source: Statistics New Zealand
Richmond and Stoke section prices have increased considerably in recent months making it more
difficult to construct a new home within previously normal budgets.
There is a lack of supply coming on stream of level sections which is further putting pressure on value
levels. Richmond west and Stoke in particular have seen strong value level increases given the
geographical constraints of Nelson and demand for premium flat land close to amenities.
Rental listing numbers down in Nelson in September compared with the
previous month
The median rent in Nelson is sitting at $331 per week and in Tasman is at $350 per week. As we enter
spring we may see demand pick up given listing numbers have been declining over previous months.
Mean Rent by Territorial Authority
390
Weekly Rnt ($)
370
350
330
310
290
270
May-16
Jun-16
Marlborough
Jul-16
Nelson
Aug-16
Tasman
Source: MBIE
The mean rent in Nelson has shown fluctuations over recent months. Nelson is seen as having a
higher proportion of rental properties with some suburbs subject to shading and often hard to rent in
the winter months.
Bonds Lodged by Territorial Authority
Number of bonds lodged
350
300
250
200
150
100
50
0
May-16
Jun-16
Marlborough
Source: MBIE
Jul-16
Nelson
Tasman
Aug-16
Did You Know
Given the speed of the property market at present this month we look
at a few of the more interesting speed facts:

Did you know your tongue is the fastest healing part of your
body

Did you know to crack a whip the tip must be travelling faster
than the speed of sound

Did you know women’s hearts beat faster than men’s

Did you know fleas can accelerate 50 times faster than a
space shuttle

Did you know cheetahs can accelerate from 0 to 70 km/h in 3
seconds

Did you know bull's can run faster uphill than down
Services
The QV Home Value team have always provided market valuations and have a huge amount of
experience to help with your valuation requirements.
Table 1 Products we offer
Product Type
Purpose
Market Valuations
Purchase, Sale, Finance, Investment, Matrimonial, Forced Sale, Tax and duty.
Insurance Valuations
Providers of sum insured valuations for insurance purposes.
Desktop
Available for transfer to trust/IRD purposes.
E Valuer
Computer generated estimate of value available from qv.co.nz
QV Home Guide
App available for free download on both android and IOS with a range of
free information as well as in-app purchasers for prospective home buyers.
Other
Arbitration, mediations, high court expert witness, research.
Pricing
Table 2 Nelson Price List (Inclusive of GST)
Category
Price
Residential (Nelson, Richmond, Motueka)
Starting from $680
Vacant sites
Starting from $600
Lifestyle Property > 5000m²
Starting from $900
Insurance
Starting from $650
Commercial/Specialist Property
Quote
Desktop – For Related Party Transfer/IRD Only
$230 (Residential)
Quotes are available on request with a standard turnaround time for each job between 2 and 4 days
following inspection.
Contact Us
QV Home Value Nelson
Level 1, AMI Building, 2 Cambridge Street
PO Box 3021, Richmond
Nelson 7050
03 543 8360
[email protected]
Staff Profiles
Staff Profiles
Geoff Butterworth
Registered Valuer – ANZIV, SPINZ
Geoff is a registered valuer and property consultant with over
30 years’ experience in valuing a wide range of urban property,
with a focus on commercial and industrial property, plus
residential and lifestyle property.
Area of expertise: Commercial/Industrial/Lifestyle/Residential
DDI: (03) 543 8353 Mobile: 0272307314
Craig Russell
Registered Valuer – BCom VPM, NZIV and MPINZ
Craig has been a valuer with QV for the last five years and
transferred to QV Nelson in 2014 with his wife after working in
Christchurch as a valuer following the Canterbury earthquakes.
Craig’s has a wide range of urban property experience with the
bulk of his work being market and insurance valuations in the
lifestyle/residential property market.
Area of expertise: Lifestyle/Residential
DDI: (03) 543 8354 Mobile: 0276997780
Hayley Dabinette
Valuer – BBS – VPM, Graduate Member PINZ
Hayley has been working as a valuer at Quotable Value since
she graduated from Massey University in 2013. Hayley’s
primary focus is on the residential and lifestyle market
providing both rating valuations and market valuations.
Area of expertise: Lifestyle/Residential
DDI: (03) 543 8361 Mobile: 0274084364