News and Publications

Property News: 20th October 2014

FIRST- HOME PINCH BENEFITS INVESTORS

Property investors are the big winners from the Reserves Bank's mortgage restrictions, while first-home buyers are increasingly struggling to afford a house. The Reserve Bank introduced a limit a year ago on the amount banks can offer to people with less than 20 per cent of a deposit, in an effort to cool the housing market. Since then data from property analysis company CoreLogic has shown activity among investors who owned two or more properties had hit a 10 year high.

Big investors with more than 10 properties were the most active, buying about two out of every five homes in August. But those trying to get onto the property ladder had found it harder, with first-home buyer numbers falling as had the numbers of people moving from one property to another. Just before the mortgage restriction was introduced there was a surge in first-home buying as people got their foot in the property door. However, the figures showed that had fallen away, with first-home buyers accounting for about 18 percent of homes bought, several per cent less than before the brief pre-restrictions surge.

(The Nelson Mail Monday, October 13, 2014)

GROWTH SPARKS HOUSE PRICE LEAP

House prices in Richmond have jumped 22 per cent on September last year, and are now well above the national median. In Nelson city they have dropped 1 per cent for the same time, the latest Real Estate Institute figures show. The median house price in Richmond has gone from $395,000 in September last year to $483,150 by September this year, exceeding the national median price of $420,000, which is up $20,000 on September 2013. In Nelson city, the median has dropped from $357,000 to $353,500. Motueka, which over the past year has seen prices leap ahead, saw a comparatively modest 4 cent increase for the year from a median of $335,000 to $348,000.

(The Nelson Mail Tuesday, October 14, 2014)

HISTORIC PUB TO BECOME STUDENT DIGS

An old tavern with deep Nelson roots has been bought by Nelsonians, including a former patron who grew up around the corner. The Bush Inn in Grove St was sold at auction in August to Nelson Builder Jonny Lewis and a business partner, and will be turned into short-term or long stay accommodation, with students being the target market.

Lewis, who operates his own building firm J Lewis Builders, said they had identified a demand for student accommodation some time ago, particularly with growth at Nelson Marlborough Institute of Technology, but needed the right building. "My business partner and I came up with the concept together, and this is the ideal building for it," Lewis said. The property (including land and building) with an RV of $680,000 sold at auction for $431,000 after a slow start to the bidding. Plans for the refit were being drawn up by Nelson architect Ken Robinson. Lewis said the two-level building would have 12 rooms and five bathrooms downstairs with a communal kitchen and dining area. Upstairs would include a manager's apartment and four double rooms with ensuites.

(The Nelson Mail Tuesday, October 14, 2014)

HOUSE PRICES RISE AS MARKET RECOVERS FROM PRE-ELECTION LULL

House prices rose 5 per cent in September and volumes have also started improving, the Real Estate Institute (REINZ) says. Figures show September house sales were up 7.8 per cent on August, but continued to fall on an annual basis, down 12 per cent on September last year. The number of days taken to sell a house also improved from August, up by three days to 35 days, but were still four days slower than last year, REINZ said.

O'Sullivan said all the signs were that the real estate market had moved on from its pre-election lull, with "a noticeable increase in activity" afterwards.

(The Nelson Mail Tuesday, October 14, 2014)

HOUSES LESS AFFORDABLE

Nelson's home affordability is now the fourth hardest in the country, research shows. Housing Minister and Nelson MP Nick Smith said today he hoped to have Nelson and Tasman added to the Housing Accord special housing areas legislation by the end of the year. That would enable access to fast-track resource consent under the legislation in developing new housing developments.

Smith said he needed to talk with the Nelson and Tasman councils about it. "The clear objective is the increase of housing supply and housing in a more affordable range," he said. The first area scheduled was Auckland, followed by Wellington, Christchurch, Tauranga, Bay of Plenty and Queenstown. Nelson, Tasman and Waimakariri are next.

Unaffordability as Percentage of National Average

 

Housing Affordability Change

 

Auckland

138.6%

Auckland

-14.4%

Central Otago Lakes

119.3%

Canterbury/Westland

-11.7%

Canterbury/Westland

98.8%

Southland

-9.4%

Nelson/Marlborough

93.8%

Otago

-9.2%

Waikato/Bay of Plenty

86.1%

Central Otage Lakes

-8.9%

Wellington

85.8%

Waikato/Bay of Plenty

-7.8%

Northland

79.5%

Wellington

-7.79%

Hawke’s Bay

74.6%

Hawke’s Bay

-2.1%

Otago

66%

Nelson/Marlborough

-1.2%

Taranaki

61.4%

Northland

+0.2%

Manawatu/Whanganui

58.2%

Taranaki

+1.2%

Southland

51.4%

Manawatu/Whanganui

+2.7%

 

 

 

 

 

 

 

 

(The Nelson Mail Wednesday, October 15, 2014)

LONG ROAD FOR WASTE PLANT

Work on a $560,000 stock effluent disposal facility at Three Brothers Corner south of Richmond as begun. The facility has been in the pipelines for more than seven years and after disputes over location and funding, construction has finally kicked off and is due to be finished by February.

The NZ Transport Agency and Nelson City Council are splitting the cost of construction. The council will pay $318,000 and the Government pay the rest. As a regional authority Nelson City Council has the responsibility to provide a stock effluent facility to improve the safety of the roads. The NZTA-owned land is on an old scrap-metal yard near the northwest quadrant of Three Brother Corner. NZTA regional performance manager Mark Owen said stock effluent on the roads posed a big risk to drivers.. The city council will have to spend $25,000 a year to truck the effluent from the site to a permanent disposal site on Fittal St in Richmond.

(The Nelson Mail Thursday, October 16, 2014)

HISTORIC BUILDING SALE AN OPTION

The future of the historic Anchor building near the Nelson waterfront remains up in the air, but selling it might be an option, city councillors have heard. The earthquake-prone heritage building, bought by the previous council for $1.1 million including the land, had an initial seismic capacity of 5 per cent, revised to 22 per cent after detailed assessment. Buildings determined as earthquake prone are required to meet seismic strength standards no less than 34 per cent of the new building standards (NBS).

(The Nelson Mail Friday, October 17, 2014)

TAXPAYERS ASKED TO HELP FUND DAM

Irrigation NZ will talk to the Government about the need for central funding to offset the high capital costs of long-term water storage projects to local communities. The board of the national advocacy group, which represents the irrigation industry, schemes and water users, was in Tasman yesterday talking to the district council and stakeholders about the proposed Waimea Community Dam. Board members also toured the Waimea East Irrigation Scheme's pumping station at the edge of the Wairoa River.

Chief executive Andrew Curtis said Tasman residents, particularly horticulturists reliant on reliable water supply, have to put the proposed $74.6 million Waimea Community Dam in context and understand what it means to them if the dam did not go ahead. Irrigation NZ chairwoman Nicky Hyslop said Tasman already knew the value of its existing primary industries. If the water reliability dropped the district's exiting industries would cut back, she said. "If you are not going to go ahead with the dam the makeup of what happens out on the Waimea Plains will have to change - you will not be able to have the high value horticulture you have out there now.

(The Nelson Mail Friday, October 17, 2014)

RENOVATING 'NOT OUR BUSINESS'

Works and infrastructure committee chairman Eric Davy said the Anchor building's fate would be outlined in a report under way now reviewing the council's property assets. Depending on what that showed, the council might want to sell it. Regardless of the review, there was an obligation now to bring the vacant building up to a standard that was safe for the public in a moderate earthquake.

High-risk buildings Nelson City Council-owned buildings that fall below 34 per cent of the New Building Standard - the threshold of acceptable seismic standard:

Anchor building, the building occupied by Zumo, State Advances building, 23 Halifax St, Highland Pipe Band hall , Refinery Gallery building , building occupied by Hunter Furniture, former Hunting & Fishing building, Trafalgar Park old grandstand, Wakapuaka Community Hall, Founders Anchor Inn, Founders Maritime Museum, Founders Port building, Stoke Community Hall, former Reliance engineering building, former Four Season s building, Trafalgar Centre (project manager appointed), Woodturners building in Guppy Park, Plant and Food Building in Wakefield Quay.

(The Nelson Mail Friday, October 17, 2014)

HALL FACES THE AXE

The lease will depend on a detailed seismic assessment of the building. The full council will now make a decision on whether to spend $50,000 on demolishing the band's premises at Rutherford Park, to make way for the newly revamped Maitai walkway, as part of the Rutherford and Trafalgar parks development plan.

(The Nelson Mail Friday, October 17, 2014)

TEMPORARY HOME FOUND FOR ART GALLERY

The Suter Art Gallery will be housed temporarily at a former retail site in central Nelson as its buildings are revamped in a two-year project. The gallery will be closed next month for a redevelopment that will involve demolition of most of the complex. Its temporary home will be adjoining retail sites on Halifax St that house Mountain Designs and Gigatown.

The regional gallery's building and facilities will be preserved, refurbished, and strengthened, with some rebuilding. The $12 million project has been funded by Nelson City Council and the Bishop Suter Trust, with support from the community through fundraising.

(The Nelson Mail Saturday, October 18, 2014)

MAGICAL WINDMILL DISPLAY TO ENTERTAIN AT PARK

Something magical is happening at the entrance to Founders Heritage Park. At night the windmill turns into a grandfather clock, and in turn a space shuttle, a ferris wheel and a popcorn maker. The fantastic showing to music has been conjured up by artist Delainy Kennedy who has been developing the concept of video-mapping light installation, where a video is mapped to a three dimensional structure.

(The Nelson Mail Saturday, October 18, 2014)

"THOUGHT FOR THE WEEK"

Friendship means understanding, not agreement.
It means forgiveness, not forgetting.
It means the memories last, even if contact is lost.

Duke & Cooke Property News is a clipping service publication compiled by Duke & Cooke Ltd, valuation and property specialists. The information contained within this newssheet are excerpts of property-related articles from current local news sources. Full attribution is given for the source of the extracts in order that the reader may refer to the source articles for full information. As this publication is a clipping service only, the articles included do not necessarily reflect the opinion of Duke & Cooke, and these items are included impartially and objectively. No responsibility is held for any parties relying on the accuracy of this information without obtaining independent verification. To contact us regarding circulation of this service phone +64 35489104 or e-mail: propertynews@valuersnelson.co.nz