For Buying or Selling Nelson Property

Economy Update

Since last week we have listed what must be the most exciting do-up opportunity of the year for us at 117 Tipahi Street, Nelson. Fantastic double garage, a sound house in need of significant TLC, and a great family-friendly location. There are no open homes this year so please call for a viewing appointment.

Looking back on the last 14 months of this market, we have seen significant rises in value, particularly in the inner city Nelson area.

This month the Chief Economist for the BNZ, Tony Alexander examines whether we have a real estate bubble or not. He says we don‘t, and the reasons are seven-fold. You can read the full article here, or the summary below –

1. Net immigration is booming (and before you start complaining about migrants, remember that this number includes returning Kiwis, of which there are many);

2. Interest rates have settled at significantly lower levels, not seen in the lifetimes of many of our existing buyers;

3. Construction costs have been boosted by regulatory changes, and we are building bigger houses than we used to;

4. Baby Boomers entering retirement have been unable to earn the high returns they had anticipated from deposits and bonds and are seeking yield in investment property;

5. Insufficient houses have been built in NZ since 2000, which combined with zoning rules, has limited supply;

6. NZ is an increasingly open economy and allows buying from overseas residents; and lastly

7. With the widespread entry of women into the workforce since the 1970s, households have changed from almost entirely one income to two incomes, hence house sale prices have been structurally lifted to reflect this boost in buying power.

Enjoy the read and have a great week.

About Nelson

Nelson is internationally renowned for its unsurpassed natural beauty‚ its pleasant Mediterranean-style climate - sheltered from cold southerly weather, varied recreational activities and diverse cultural opportunities. Taken together‚ these provide a quality of life in Nelson unexcelled by any area of its size in the world.

It is less expensive to live in Nelson than in most metropolitan areas in New Zealand, and the proportion of families who live in their own home and of adults with tertiary qualifications is higher than the national average (2006 NZ Census).

Hailed as one of New Zealand’s most ‘liveable’ cities by Lonely Planet, Nelson is a bright, optimistic, worldly town, arranged around a flat grid on Tasman Bay. Nelson’s streets are dotted with beautiful Victorian houses, with a selection of Buddhist centres, naturopaths, yoga studios and galleries. Artsy wanderers mooch between cafés and coffee-carts, ducking into the Bridge St bars or poetry readings in bookshops. Beyond the urban fringe the coast and hills offer a plethora of activities, both relaxed and adrenalin-charged.

The Nelson region, extending west into the Tasman region, is a top destination for travellers to New Zealand – and for locals too. With more sunny days than anywhere else in the country, brilliant beaches and superb national parks (Kahurangi, Nelson Lakes and Abel Tasman) there’s plenty here to keep you occupied (or to lull you into sun-soaked sedation). The region is also home to a progressive, offbeat community of artists and winemakers.

It is the people that make Nelson the appealing city it really is. Family values and a strong sense of local community underpin day-to-day life in the region. We value our history and tradition, but we also welcome newcomers and the rich diversity they bring to our lives.

I am a relative newcomer myself, having lived most of my years in the North Island. However I am also convinced that Nelson is the best city in New Zealand for the ideal quality of life.

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