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Rents in the capital could continue to climb as property market bounces back

Author
Newstalk ZB Staff,
Publish Date
Fri, 9 Feb 2018, 10:45AM
People renting in the capital could see their prices rise as the property market springs back into life. (Photo/ NZ Herald)
People renting in the capital could see their prices rise as the property market springs back into life. (Photo/ NZ Herald)

Rents in the capital could continue to climb as property market bounces back

Author
Newstalk ZB Staff,
Publish Date
Fri, 9 Feb 2018, 10:45AM

Property experts say rents could further increase in Wellington amidst uncertainty around the new government's Healthy Homes Bill.

Wellington's property market is bouncing back to life after a period of quiet over the summer holidays.

The latest QV House Price Index the average house value across the wider Wellington region has increased by 52-thousand-dollars over the last year.

In the last three months alone they've risen by 4%.

And property consultant David Cornford says investors may face significant costs to get properties up to standard under new government rules.

He says those costs will likely be passed on to tenants in the form of rent.

"Particularly with Wellington, we've got quite a lot of older villa stock, so Kelburn, Aro Valley, where you've got two-storey villas which have been converted into two or three flats."

Mr Cornford says the market is back into gear.

"Since Wellington Anniversary weekend we've seen activity start to pick up.

"We've got fresh stock coming to the market, [with] open homes well attended."

Nelson is another centre to see a continued increase in housing values, with a strong demand for homes that hit the 700-thousand-dollar mark.

According to QV's House Price Index, property values have increased 9.9 percent, or just over fifty-thousand-dollars, year on year.

It brings the average value of a home to around 550-thousand-dollars.

QV Nelson Property Consultant Craig Russell says there's a large range of property types in the district.

"You've got multi-million dollar houses and you've also got cheaper type housing, sort of around that $400,000 mark seems to be entry level prices in Nelson."

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