Download QV Home Value Market Update July 2016

QV Home Value Market Update July 2016
Market Commentary
Nelson home values have increased by 12.0% since July 2015 and 3.1% over the past three months.
The average value in the city is now $464,885. The Tasman District also increased by 8.2% over the
past year and 2.5% over the past three months and the average value in the district is now $457,542.
Prices remain firm for well-presented properties close to good schooling and shopping centres. We
appear to be entering a phase in the market where we are seeing some opportunist pricing by
vendors and there may be an element of panic buying by some purchasers that may be caught out
without doing the proper due diligence. We are also seeing sales of some properties that have been
on the market for lengthy periods of time.
The reserve bank’s recent announcement of stricter loan to value ratios for investors is likely to have
some impact on the local market but may be partially offset by pent up demand from buyers, and also
a probable fall in interest rates coming into spring.
Sales Volumes and Listing Numbers
900
800
700
600
500
400
300
200
100
Tasman Sales Volumes
Tasman listing numbers
Nelson Sales Volumes
Nelson Listing Numbers
Jul-16
Jun-16
May-16
Apr-16
Mar-16
Feb-16
Jan-16
Dec-15
Nov-15
Oct-15
Sep-15
Aug-15
Jul-15
Jun-15
May-15
Apr-15
Mar-15
Feb-15
Jan-15
0
*Sales volumes are a three month rolling average
There were approximately 950 properties available for sale on Trade Me in the Nelson/Tasman regions
this time 12 months ago. There are now only approximately 500 properties available for sale. The lack
of supply is exacerbated by strong demand for property with cheap borrowing and sales volumes up
slightly over the same period.
QV House Price Index/Sales Volumes/Listing Numbers (Nelson)
450
400
1450
350
1400
300
250
1350
200
1300
150
100
1250
1200
Jan-15
50
Sales Volume/Listing Numbers
QV House Price Index
1500
0
Apr-15
Jul-15
Nelson QV House Price Index
Oct-15
Jan-16
Nelson Sales Volumes
Apr-16
Jul-16
Nelson Listing Numbers
Nelson home values continue to rise with current listing numbers falling. It will be interesting to see
what effect the reserve bank to loan to value restrictions for investors will have on the market.
1500
900
1450
800
1400
700
600
1350
500
1300
400
1250
300
1200
200
1150
100
1100
Jan-15
0
Apr-15
Jul-15
Tasman QV House Price Index
Oct-15
Jan-16
Tasman Sales Volumes
Apr-16
Sales Volume/Listing Numbers
QV House Price Index
QV House Price Index/Sales Volumes/Listing Numbers (Tasman)
Jul-16
Tasman listing numbers
Tasman District home values have increased at a slightly lower rate than Nelson City largely due to the
weaker Golden Bay market given the greater dairy influence in the region which is currently weak.
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.
Building Consents
A total of 79 building consents for new houses were issued in June up from 51 in April. New houses
that are well designed to meet market requirements are selling above land and building costs with
potential profits being made.
House and land packages are dominating the new build market especially in Stoke, Richmond,
Motueka and Mapua. We are seeing a tendency for building companies to prefer promoting house
and land packages over just a contract to the build given the building companies price structure can
meet the market when values are rising and can potentially reap a greater margin.
New Dwelling Building Consents Issued
100
Number of consents issued
90
80
70
60
50
40
30
20
10
0
Tasman
Nelson
Marlborough
Source: Statistics New Zealand
Rental Market
There was an average of 62 properties in Tasman available to rent on Trade Me during July. This is
down from 72 in June. There was an average of 123 properties in Nelson available to rent over the
same period down from 136 in June.
Mean Rent by Territorial Authority
390
Weekly Rnt ($)
370
350
330
310
290
270
250
Marlborough
Nelson
Tasman
Did You Know
The Olympics which begin in Rio de Janeiro shortly feature in this months did you know
segment.

Due to the two World Wars there were no Olympic
Games in 1916, 1940 or 1944.

London, United Kingdom, hosted the Summer
Olympics in 1908, 1948, and 2012, making London
the only city to host the event on three occasions.

The five rings of the Olympic flag represent Africa,
Asia, Australasia, Europe, and the Americas, they are
linked together in friendship. Every national flag of
the world has at least one of the rings colors, blue,
black, green, yellow, and red.

Tug of war was contested as a team event at every
Summer Olympics from 1900 to 1920.

Golf (returning after 112 years) and Rugby
(returning after 92 years) will be the “new” sports of
the Rio Olympic Games

The Summer Olympics have been held 27 times (6
editions in North America, 16 in Europe, 3 in Asia
and 2 in Oceania)
Services
Yes QV do market valuations!
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, MNZIV and MPINZ
Craig transferred to QV Nelson in 2014 with his wife after
working in Christchurch as a valuer following the Canterbury
earthquakes. Craig’s primary focus is on the lifestyle/residential
property market providing both market and insurance
valuations.
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