Housing market in Auckland could see similar price drops as Australian cities

New Zealand economists believe Auckland’s housing market could follow similar trends to major Australian cities and experience price drops.

Sydney house prices are down 5 per cent according to CoreLogic figures, and Melbourne prices are down half a per cent for the first time in six years.

ANZ chief economist Sharon Zollner said she was watching the New Zealand market with interest because of what was happening across the Tasman Sea.

“Another risk has emerged on the horizon and that would be contagion from a more marked slowdown in the Australian housing market than is currently expected,” she said.

However, Craigs Investment Partners’ Mark Lister told The Herald it could happen but he believed a price decrease was unlikely in the current economic climate.

“It’s not my expectation that it will happen here, not while our economy is as strong as it is – but you’d be very naive to rule out the prospect of house prices falling.

“I think it’s entirely likely that you see house prices over the next four or five years much more subdued than they have [been],” he said.