House values in Nelson and Tasman are on the rise, but are still lagging behind the peaks of late 2007 and early 2008, according to the latest figures from QV Valuations. However, the region is among the country's few provincial centres to show strong improvement. New Plymouth was the standout performer in 2009 with a 7.1 per cent increase in values, followed by Palmerston North and Tasman district at 3.3 per cent, Invercargill at 3.2 per cent and Nelson at 3.1 per cent
Overall, New Zealand house values rose 2.8 per cent throughout 2009, and are now only 4.9 per cent below the peak of the market.
The latest QV residential price movement monthly report shows prices in Nelson city improved from a 1.1 per cent annual change in November last year, to 3.1 per cent a month later. The average sale price in December was $346,400.
Tasman district edged slightly above Nelson City for the same period, moving up from a 1.1 per cent annual change last November to 3.3 per cent in December. The average sale price in the district was $371,499.
Neighbouring Marlborough recorded a drop from 1 per cent growth to 0.6 per cent between November and December last year.
Whangarei and Gisborne ended the year lower than they started, while Rotorua, Hastings and Queenstown Lakes all finished the year more or less level, Ms Whitehead said.
She said residential property values in most provincial and rural areas did not increase as strongly as the main urban areas. Reports indicated that property listings in the lower performing areas were more abundant, with demand lower due to localised economic factors such as closures of local industries and subdued earnings for the rural sector dampening confidence.
"There are now signs of confidence returning to the provincial markets, with activity in more recent months showing value increases," Ms Whitehead said.
Real Estate Institute of New Zealand Nelson-Marlborough spokesman Vaughan Borcovsky said today anecdotal information from the industry supported the QV findings, but a shortage of listings remained in the region, partly because people were being cautious about selling. However, the trend was starting to ease.
Mr Borcovsky said tighter lending patterns had led to people working to a price ceiling, and vendors needing to be realistic with pricing.
Ms Whitehead said sales activity was expected to lift in the first few months of this year as owners who had held off in 2009 decide to move.
"The future continues to hold uncertainty and risk, and that risk is being priced into the market by sellers, buyers, investors and most certainly lenders," she said.
