Has the bubble burst?
Friday 20 February 2004
Nelson's property boom has suffered a sudden slowdown as the region's market starts to cool.
By The LandlordReal Estate Institute of New Zealand Nelson Marlborough president Darryl Marshall this morning said the next few months would tell where the property market was headed.
Just released institute statistics reveal the median selling price of a home in the Nelson-Marlborough region dropped by more than $20,000 to $265,750 - the single biggest decline across all regions last month.
The Nelson area median price dropped from $322,625 to $310,875 - better than the $203,531 posted last January but not enough to buoy residential sales.
Nelson city and Richmond sales dropped 21 percent, Motueka by 27 percent, 23 percent in Golden Bay, and a whopping 33 percent in Nelson country.
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It’s full steam ahead for the Stevenson Group’s $800 million, 361-hectare industrial and residential development in South Auckland – despite the uncertainties of the post-Covid-19 era.
Periods of house price decline are rare and "short-lived", says economist Tony Alexander, amid forecasts of a drop of 10%-15% this year.
The Reserve Bank says the commercial property sector is vulnerable to the Covid-19 crisis. But PMG Funds' chief executive believes that while there’ll be short-term pain, the biggest long-term impact will be structural change.
Mortgage lending fell to its lowest level on record last month as the property market ground to a halt during the Covid-19 lockdown.