Ray White Now New Zealand - October Edition - Page 14

Residential property price rises increased by an average of 4.7 per cent over the past three months in Nelson , with the average price of a home increasing by just 0.9 per cent to $ 826,983 in September .
Local QV senior property consultant Craig Russell said the majority of that value growth was land value inflation . “ Prices for sections in new developments are continuing to creep upwards ,” he said . “ Interest deductibility on new builds will likely entice investors towards this property type for now .”
However , he warned that rising construction costs and significant delays in awaiting title and construction will also likely dampen demand for new builds to some extent . “ A tightening of lending criteria and rising interest rates are also expected to soften property price increases which have been extremely strong to date in 2021 ,” he added .
In the meantime , he said FOMO ( fear of missing out ) had re-emerged in the market following lockdown , with pent-up demand and a lack of listings keeping upward pressure on property prices at the time of writing .
Christchurch has started spring with significant house price growth .
Prices in Ōtautahi have increased by an average of 7.7 per cent this quarter with a 3.8 per cent increase during the month of September alone , bringing the average value of a home to $ 702,215 − crossing the $ 700,000 threshold for the very first time .
Local QV property consultant Olivia Brownie said affordability , low interest rates , and supply constraints were still the main drivers in the local housing market , with strong interest from first-home buyers also driving the market upward .
“ We expect to see continued upward pressure over the medium term , especially from first-home buyers . However , the long term growth may be influenced by increased interest rates , regulation and a future increase in supply ,” she said .
Meanwhile , QV ’ s latest House Price Index also recorded a significant 11.2 per cent increase in house prices across the Selwyn District this quarter , with the Waimakariri District also registering a double-digit increase of exactly 10 per cent .
“ There has been a significant increase in section prices right across the Canterbury region , but especially in the neighbouring Waimakariri and Selwyn Districts . Value for money and growing infrastructure is appealing to buyers in these areas ,” Miss Brownie added .