A monthly decline in New Zealand housing prices

In April, local residential property has depreciated by 1.2%, compared to March. The March price level has become the highest registered within the last 18 months.

However, in comparison with April 2009, housing prices have climbed up by 4.7% over the last month. The sharpest annual price increase was registered in Auckland (8%), according to a report of the Real Estate Institute of New Zealand (REINZ).

According to REINZ President, Peter Macdonald, sharp price fluctuations, which have been observed during the past year and a half, are gradually ceasing, and the market begins to stabilize.

The number of transactions with local housing has decreased to 15.5%, from March to April, while their total cost plunged by 18%.

Experts believe that the April price adjustment and downward dynamic of sales are due to uncertainty on future tax policy of New Zealand authorities. In particular, the proposed elimination of tax benefits for property buyers and an increase of interest rates could lead to further weakening of the market.

We would like to remind you that comparable data on the dynamics of New Zealand’s home prices has already been published by the Quotable Value consulting company.