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Duke & Cooke Property News |
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Published on: 14th April 2009 RENTS CUT TO MEET MARKET RENTS CUT TO MEET MARKETSurge in rental listings in Nelson Some Nelson landlords are having to drop their prices as rental properties flood the market. Rental listings in The Nelson Mail and on Trade Me’s property section have both climbed in recent months, with dozens more homes available now than at the same time last year. Rental agencies say higher priced properties – those over $400 a week – are getting harder to fill, with some landlords dropping rents. Nelson Property Investors Association secretary and Independent Property Managers Association founding member Glenn Morris said there had been an “enormous” surge in rentals around the country during the last six weeks, mostly due to investors taking advantage of lower interest rates and house prices. (The Nelson Mail, Monday 6 April 2009) SOME BACKING FOR TARGETED RATES PLANNelson property owners could pay targeted rates in future, as city councillors move closer to a solution for a fairer rating system. This is despite comments yesterday by Grey Power Nelson president Gordon Currie, that imposing more targeted rates to fund developments could stymie plans by the Government to cap rates bills. The proposal to cap rates will be announced over the next few months as part of a major shake-up of the Local Government Amendment Act 2002 by Local Government Minister and ACT leader Rodney Hide. Nelson City Council governance committee chairman councillor Graeme Thomas said yesterday the rating system working party, set up in September last year to overhaul the method by which the city council collects rates, had done some preliminary work and would soon determine a way forward. Nelson city collects rates based on a property’s land value, which Mr Thomas said last year was an “archaic method”. Tasman district collects rates based on a property’s capital value, and uses targeted rates where rating areas are identified in relation to specific projects. The Nelson rating review, which will involve wide public consultation, is in line with the recommendations of last year’s nationwide independent rates inquiry. (The Nelson Mail, Tuesday 7 April 2009) HOUSE PRICE DECLINE SHOWINGHouse prices in Nelson city continue to drop, but at a slower rate, according to latest figures, while a shortage of “for sale” signs is frustrating buyers. March figures show that in Nelson there was a 6.8 per cent decline in property values over the past year, compared with a 7.3 per cent decline reported in February. The average house sale price in Nelson for March this year was $332,551. Houses remain more expensive in the Tasman district, with an average sale price of $348,779 in March. The rate of decrease in value in Tasman over the past year is marginally greater, from a 5.3 per cent decline reported in February, compared with March’s 5.5 per cent decline. (The Nelson Mail, Thursday 9 April 2009) House prices in Nelson city continue to drop, but at aProperty sales show rise Nelson real estate agents are reporting the same increase in activity that’s been seen in other parts of the country in recent weeks. “There seems to be a breath of fresh air come into real estate,” Real Estate Institute Nelson Marlborough president Jenny Dickie said. She gave the example of an Atawhai home that had sat on the market for about a year and had just been purchased for more than $1 million by a new buyer entering the market. Ray White Richmond principal Brent Sturm said his agency notched up 27 sales last month. “That was pretty out of the box, really.” But BNZ chief economist Tony Alexander warns in his weekly overview that recent trends do not represent a housing upturn. “The market is going through a clearing process, with vendors meeting buyers after a period of both sides eyeing the other. Buyers have scrambled to buy before rises in fixed interest rates, giving an artificial boost to activity which will not be sustained,” he said. Cars offered with land The developers of a St Arnaud subdivision are offering a brand new Suzuki Swift car, valued at more than $20,000, with the last six sections. Ray White agent Brian Burke said the deal was designed to draw attention to the fact that the vendors were open to offers. It had been running for four weeks and had sparked a couple of inquiries during the past week, Mr Burke said. “We’ve got a couple of people after one of them at the moment. I expect to have five (left) within the next week.” Three had already sold since Christmas, he said. Vineyard on the market The Rimu Grove vineyard at Mahana has been signed up for sale through Summit agent Simon Thomas, who took the property to tender in February. The sale is yet to go unconditional. The 6.07-hectare property, developed and owned by Patrick and Barbara Stowe, has a rateable value of $1.54 million. It includes a mature vineyard, winemaking and cellar door facilities and a three-bedroom home. Inquiries on the rise A 1375sq m section at 4 Arthur Vista, Atawhai has sold through Haven Realty agent Kate Bradley, who has noted an increase in section inquiries. “Quite a few have been signed up in the last couple of weeks, mostly conditional. I’m just going, ‘Well, fancy that – isn’t it great’.” The Atawhai section was listed just after Christmas for just over $300,000. It has a rateable value of $300,000. The sale price was comparable with that of other similar-sized sections, she said. DID YOU KNOW?The Duke & Cooke range of services includes market valuations of utilities - e.g. airports. |
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This publication is compiled by Duke & Cooke Ltd, valuation and property specialists. The information contained within this newssheet has been obtained from various local sources and 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 (03) 5489104, Fax +64 (03) 5468668, or email: admin@valuersnelson.co.nz |