Wed, Jan 12, 2022 9:37 AM

Nelson property values continue to rise

Nelson property values increased by three per cent in December. Photo: File.

Staff Reporter

Nelson’s residential property market ended 2021 with a bang.

Home values increased by an average of 3.1 per cent in December, and 7.2 per cent over the last three months of the year.

The city’s average home value finished the year at $886,179 − up 23.8per cent from the same time last year.

Local QV senior property consultant Craig Russell says the Nelson property market had a strong finish to 2021 with a lack of available listings and pent-up demand continuing to drive up prices.

"However, we are seeing a shift in market dynamics as interest rates increase and the availability of credit becomes more challenging for first home buyers and investors."

Craig says this has led to some properties sitting on the market for an extended period, largely due to vendor expectations being above market value.

"What can we expect in 2022? We would still expect first-home buyers to struggle to enter the market given the high deposit hurdle that many face coupled with tightening credit criteria and increased servicing costs."

Craig says land values increased significantly in 2021, which was driven by supply and demand.

"As more land is developed largely on the Richmond periphery it is likely that values will stabilise to some degree."