Strong growth in NZ over the past three years saw residential prices rise 52pc, but the peak is past, statistics show
THIS YEAR HAS seen the national median selling price for New Zealand residential property increase 16 per cent to NZ$250,000 (HK$1.35 million) from $215,000, according to Howard Morley, national president of the Real Estate Institute of New Zealand.
'A strong and growing economy, relatively low interest rates, positive migration since mid-2002 and the return of a significant number of New Zealanders attracted by a low exchange rate has meant demand for good quality, well-located houses outstripped supply,' Mr Morley said. 'Between June 2001 and June this year, New Zealand house prices rose 52 per cent.'
However, the growth experienced over the past three years cannot be sustained and commentators predict the market will soften and consolidate.
Statistics from the New Zealand Real Estate Institute show that sales volumes have peaked, with sales at fewer than 8,000 a month, compared with 10,687 in September last year.
'However we have yet to see the traditional spring recovery in volumes and confidence, so the next couple of months will be particularly interesting,' Mr Morley said. Residential Colliers International New Zealand director of project marketing Philip Toogood said central business district and waterfront properties were spearheading a trend that started in the early 1990s.