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WELLINGTON: New Zealand house prices were steady in April with the stabilisation that started in Auckland spreading across the country to halt the market slide, government property valuer Quotable Value (QV) said on Tuesday, May 10.
QV's residential house price index fell 1.9% in the year to April, after a 2% decline in the year to March.
It said the signs of stability, which started in the nation's biggest city, had now spread across many other parts of the country.
"Nationwide property values have now been relatively stable for several months after falling slightly throughout most of 2010," said QV research director Jonno Ingerson.
"Market sentiment remains patchy with some areas lacking quality listings to satisfy buyer demand, while other areas have little buyer demand despite plenty of houses for sale," Ingerson said.
The housing market has struggled to gain any momentum since the economy emerged from recession in mid-2009. The market remains 5.8% below its peak in late 2007.
The average sale price, which is not used to calculate the main index, over the three months to April rose 1.2% to NZ$405,310 (RM961,076.03) compared to a month earlier.
In Christchurch, the country's second biggest city which was wrecked by an earthquake on Feb 22, there was strong interest in undamaged houses, although uncertainty over job security is weighing on the market.
"Local valuers in Christchurch are seeing plenty of interest in quality properties in relatively unaffected areas, and prices have been generally holding," Ingerson said.
Official estimates suggest as many as 10,000 houses may have to be abandoned because of the quake, which killed at least 172 people, and that some land may no longer be fit for development.
The Reserve Bank of New Zealand, which has cut its benchmark interest rate to a record low 2.5% to bolster sentiment and activity after the quake, is expected to hold rates there until early next year.
House prices in Auckland, New Zealand's biggest city, were 0.5% lower than a year ago, while in the capital Wellington prices were 3.4% lower, with virtually all this fall occurring in 2010, Ingerson said. — Reuters
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