Activity in residential sales for Marlborough/Kaikoura in October continues to grow in regards to sales volume, up to 83 sales
compared to 76 sales in September. There were 16 section sales for October, an increase on the 8 sales recorded for September.
However the median sell price for homes is on the rise again this month to $440,000 in comparison to September’s $415,000.
The median number of days to sell has remained constant at 32 days just below last months 36 days.
The total value of sales for October was $38,561,575
The rental market continues to get busier and market rents continue their upward trend. There is no indication that the shortage of rental properties is going to ease and with the Government passing the Banning of Let Fees Bill it is expected that further increases in rents will be experienced as Landlords seek to recover these additional costs.
The October statistics* report the median rent for a 2 bedroom house in Blenheim increasing slightly to $315pw, the 3 bedroom remaining static at $385pw and a 4 bedroom increasing from $410pw to $425pw.
*Ministry of Business, Innovation and Employment statistics for the six months ending 31st October 2018
Lifestyle properties continue to dominant settled sales for the last quarter although in the last two months we have seen an increase in vineyard settlements.
Average sales price for lifestyle blocks August $553,766, September $648,611 and October $555,950. Land sizes ranges from 1 to 5 hectares.
Horticulture blocks average settled sales for September $1,566,250 and October $1,640,000. Land sizes ranged from 3 to 9 hectares.
No surge of activity
On Labour Day 2018, the Overseas Investment Amendment Bill came into effect, officially barring non-resident foreign buyers from buying property in New Zealand.
The Bill aims to address the country’s housing shortage and affordability issues, effectively opening up the market to more New Zealanders wanting to buy homes.
While the ban restricts foreign buyers from buying single, standalone homes, it still allows them to purchase large, newly built apartment buildings and developments for the purpose of selling.
Residents of Australia and Singapore are also exempt from the new laws.
Despite predictions of a plummeting housing market or a flurry of foreign buyers getting in “before the door closes”, it’s been business as usual.