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Market Watch

Market Watch - February 2018

January Overview                                                                                          Printable Version

Activity in residential sales for Marlborough/Kaikoura
has risen with 88 sales compared to 73 sales in January.

There were 11 section sales for February, up slightly on the 7 sales recorded for January. The median sell price for homes has
increased to $413,500 in comparison to January’s $401,000.

The median number of days to sell has increased in February with 47 days compared to January with 35 days

The total value of sales for February was 40,889,908.

Property Management Roundup

The change of season and the start of grape harvesting traditionally means a reduction in demand for rental properties. We are not seeing anything to suggest that this year will be anything different although media commentary still suggests there is a shortage of housing in Marlborough. Statistics report that the increase in prices continues although this has slowed. The median rent for 2 bedroom and 3 bedroom properties in Blenheim remains static at $300 and $375 per week respectively although a 4 bedroom has increased from $400 to $420 per week.*

The challenge is always to balance return with quality of tenant. In our experience the best return comes from the best quality tenant and this continues to be our focus.

*Ministry of Business, Innovation and Employment statistics for the six months ending 28th February 2018

Lifestyle Roundup

Marlborough Sounds Property
There are currently in excess of 47 houses listed in the Sounds, ranging in price from $11m, 430ha property with a vineyard, down to under $240k 1bedroom on 1ha.

There are 50 sections/farms listed ranging from over $3m down to under $100k.

Unlike Blenheim listing which turn over like hot cakes, Sounds properties take between 50 and 500plus days to sell the average time would be over 12 months.

The reliability of CV’s on most Sounds properties is very limited, unless the owners have appealed or had an independent valuation done, CV’s can be in-excess of 30% light. However, this has not stopped some agencys still using CV as a suitable selling price. In the last set of CV most Sounds properties either stayed at previous levels or in some cases decreased. This is a far cry from the glory days of Sounds real estate prices, when every man, woman and their cat wanted a Bach in the Sounds. Like most real estate this supply/demand change is cyclical, as people decide to invest their holiday Bach money in other locations this leads to an increase in supply a decrease cost, which in turn will lead to increased affordability and then increase demand, we are just awaiting that turn of the wheel.

Harcourts Blenheim currently has 13 Sounds properties listed and several that are unlisted, so if you are looking for a property in the Sounds please consult your Sounds specialist agents as quite often they will know of properties that are for sale but not listed.

Where in the Sounds to choose your Sounds retreat? Every one of the Sounds has its own advantages and disadvantages, things to consider are, which side of the Sound? On the West side you will get great early morning sun, but will lose the sun early in the afternoon. Accessibility and travel time, boat only or road access, or combination. Some road access property can take 2+ hours to drive to from Linkwater, but only 20mins by boat from Havelock. Boat access further out in the Sounds can at times result in being house bound due to the weather. Obviously, the further out in the Sounds you are the more secluded it becomes, also the clearer the water, better the fishing and hunting.

 

New Building Consents

 

Sale Price to Ratable Value

Sales overview: (Marlborough/Kaikoura/Picton)