SPEEDING UP THE BUILD

The number of building consents issued in Nelson city and Tasman district in 2014 was down 15 per cent on the previous year, but the average value of each new build increased by almost $80,000 in Tasman and more than $15,000 in Nelson. House prices in the region averaged more than $400,000, over 15 times the median annual income. Local developers say a principal reason for the discrepancy is local authority consent processes and planning. Home and Living Solutions director Simon Collett said the length of time and the process of obtaining a resource or building consent made it ‘‘virtually impossible’’ to put an affordable section on the market. The 12 to 24 months that it could take to get a consent resulted in millions of dollars in holding costs for developers, which filtered through to buyers, he said. To reduce costs and encourage more affordable builds, council planning needed to take a more productive approach to developing land. The introduction of the housing accords and potential changes to the Resource Management Act were ‘‘very positive’’ steps forward for Nelson and Tasman, he said. Nelson Mayor Rachel Reese has made it clear that she wants her council to prioritise the creation of affordable living options in the city. ‘‘As soon as you have to notify a consent and someone submits on it, you’re into a hearing process, and the costs really escalate, and the rights for appeal sit at the end of that to send it to the Environment Court. Reese said developers avoided getting into that process by submitting applications that did not need resource consent or did not need to be notified. ‘‘This means we lose opportunities for investment, because people don’t want that uncertainty, and they put forward what is often not the best solution for a piece of land. ‘‘We don’t end up with what are creative housing solutions. We miss out on affordable housing opportunities, because some of those more comprehensive developments trigger consent processes. We need a better system.’’ She was pleased that Smith had identified housing as an issue for Nelson, and said the housing accords and special housing areas legislation were opportunities the council would be exploring.

(The Nelson Mail Monday, February 02, 2015)

ART GALLERY WORKERS FEEL THE HEAT OF REVAMP

The saying ‘‘what goes up, must come down’’ now applies to Nelson’s Suter Art Gallery, where demolition of the historic building is well underway. Project manager Hans Peter Froeling, of Opus, said the redevelopment, which started earlier this month, is well on track despite this week’s high temperatures. Froeling said the demolition process should take four weeks, after which preparation for construction on the site will begin. The $12 million redevelopment is expected to take about 18 months in total to complete. Nelson building company Scott Construction will carry out the construction work. The Suter Gallery and Suter Cafe have moved into temporary premises on Halifax St. Both will open to the public on February 9.

(The Nelson Mail Monday, February 02, 2015)

PROPERTY VALUES UP IN REGION BUYERS STEER CLEAR OF WATERFRONT HOMES

Demand for waterfront homes has taken a dive as buyers worry about coastal erosion. The QV Residential Price Movement Index for January shows that Nelson home values have increased by 1.8 per cent year on year since January 2014 and are now 6.9 per cent higher than the previous peak of 2007. Residential property values in the Tasman District have increased 3.1 per cent year on year since January 2014 and they are now 4.6 per cent higher than the previous peak of 2007. ‘‘There’s also been an increase in listings in both Nelson and Tasman so it’s likely we will see an increase in sales volumes next month as the higher listing numbers and increased inquiry from buyers in January translates into sales transactions.’’ However, values in holiday and coastal locations at the top of the South Island were still being affected by a drop off in demand since the peak in values in 2007 before the global financial crisis and buyers having more concern about coastal erosion.

(The Nelson Mail Wednesday, February 04, 2015)

ALL HANDS ON DECK

The final length of Nelson's Maitai Walkway is being completed.  The decking is being put down on the section between the Nelson Library and Trafalgar St, then a handrail will be added as protection on side of the river.  It is the final link in the river walkway which now goes to the Nelson marina area.  The latest work has included widening the walkway with a rock base and load-bearing piles.  The walkway is expected to be finished by the first week of March.

(The Nelson Mail Wednesday, February 04, 2015)

HOUSE PRICE SLUMP SEEN AS SIGNIFICANT RISK

The Reserve Bank is worried about the risk of a sharp fall in house prices, which are well out of line with household incomes. In a speech in Christchurch yesterday, Reserve Bank governor Graeme Wheeler also said official interest rates would stay on hold ‘‘for some time’’, though they could be cut if drought hit the economy or times got tougher overseas. The central bank was concerned about house price inflation because of the risk it posed to the stability of the banking system and the economy. And the more that house prices got out of line with historic ‘‘relativities’’ with incomes, the greater the risk of a sharp correction, Wheeler said.

(The Nelson Mail Thursday, February 05, 2015)

PROPERTY BOOM 'NOT SET TO BUST'

Aucklanders should not panic about their properties being overvalued, despite the concerns of the central bank, a property expert says. On Wednesday, Reserve Bank governor Graeme Wheeler warned of the risk of a ‘‘sharp correction’’ in house prices, which are well out of line with household incomes. However, the Property Institute of New Zealand, which represents valuers, property managers and advisers, poured cold water on many of Wheeler’s comments. Chief executive Ashley Church said there had been only two ‘‘sharp’’ corrections in the New Zealand property market since the 1970s. ‘‘The first, in the mid 70s, was the result of New Zealand losing access to the British export market and a dramatic increase in oil prices,’’ he said. ‘‘The second, at the time of the GFC, was the result of a major hit to the world economy. And even then the fall was only around 5 per cent, following a boom in which house prices had more than doubled.’’ Outside Auckland, several areas saw house prices fall last year. According to an analysis of Real Estate Institute sales by interest.co.nz, house prices increased by 5.3 per cent nationally, but fell 12.4 per cent in Northland, 6.3 per cent in Taranaki and 4.6 per cent in Nelson.

(The Nelson Mail Friday, February 06, 2015)

"THOUGHT FOR THE WEEK"

THINK Deeply

SPEAK Gently

LOVE Much

LAUGH Often

WORK Hard

GIVE Freely

AND BE KIND

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.