1 September 2009
A shortage of properties in New Zealand for sale means that the New Zealand property sector is now firmly a sellers’ market, says a new report released today.
The monthly NZ Property Report released by realestate.co.nz reflects on the fact that there is a shortage of properties in Auckland, properties in Wellington and properties in Christchurch for sale, suggesting that vendors are currently in a strong position.
The shortage of New Zealand property sale listings may lead to price increases.
Alistair Helm chief executive of Alistair Helm said: “The arrival of Spring typically signals a surge in residential property market activity, but with inventory levels low this year - particularly in the three largest centres - vendors may be encouraged to increase asking prices.”
A glance at August’s residential property data shows that prices have not increased yet, which reflects a “stable market”, Helm said.
The average price of a home in New Zealand currently stands at NZ$397,187 (£167,00), which was still 7% below the peak of NZ$429,033 (£180,500) witnessed in October 2007.
Although there were 10,644 new sale listings registered in August, down from 10,773 in July, it was not enough to satisfy growing demand for property in New Zealand.
Helm added: “There is concern that the slight rise in new listings seen in July matched to a similar level in August may not be sufficient to meet the demand being seen in the [New Zealand property] market at this time.
“Spring is one of the most active periods of the year and with constraint of new listings; the market may not be able to meet this demand without consequential impact on prices. However this scenario is as yet not being witnessed in the asking price expectation which remains steady and still represents a 7% decline from the peak of the market.”
See Also: Marc Da-Silva (269), New Zealand (44), Overseas property investor news (42)
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