Property market takes April breather

The New Zealand residential property market experienced its traditionally “soft” month during April, according to the president of the Real Estate Institute of New Zealand, Howard Morley.

Wednesday, May 18th 2005, 9:52AM

The national median selling price was $272,000 which, although a record for April on a year-to-year basis (the April 2004 median was $242,000), was down on the record $280,000 achieved in March.

The softening of the market was accompanied by a significant reduction in sales from 10,398 in March to 8,876 in April, according to Mr Morley.

Sales were the lowest for any April since 2001. “April is always a quieter month and activity usually falls sharply, whereas March is always a strong month which has been the seasonal pattern for many years. Some of the median prices in the regions have been reduced by particularly low volumes which are really a reflection of a decline in the number of properties being offered by vendors. This is witnessed by the fact that the national days to sell figure is unchanged at 28 days, suggesting there has been little over-all fall in confidence in the market, despite rising interest rates — simply a reduced level of activity."

The Northland region median price fell from $240,000 in March to $230,000 but is still up on the April 2004 median of $200,000. Auckland saw its median reduce from $372,000 in March to $369,000 compared with the April 2004 median of $330,000.

Waikato/Bay of Plenty/Gisborne median prices eased from $248,000 to $244,000, while the Hawke’s Bay median was down from $240,000 to $230,000 compared with the April 2004 median of $210,000. Manawatu/Wanganui was the only region to hold its ground with an unchanged median of $155,000, while Taranaki experienced an apparently big reduction from $220,000 to $162,637.

Mr Morley said the Taranaki region had experienced some dramatic growth recently and this, coupled with a drop in sales from 269 in March to 192 in April, suggested the price reduction was more likely to be a reflection of a swing from more expensive property sales to lower-priced properties.

Wellington also experienced an apparently big reduction from $289,000 to $275,000, however the latest median is also still close to the February median of $276,750 and ahead of the April 2004 median of $273,000.

The Nelson/Marlborough region saw its median come back from $287,000 in March, to $269,000, but on sales down from 339 to 234. Canterbury/Westland's median price fell from $249,000 to $242,000, still well up on the April 2004 median of $197,750.

Otago managed to almost withstand the trend with a small decrease in its median from $219,000 in March to $216,100 in April, well up on the April 2004 median of $180,000. Southland's median was down from $147,000 to $144,500, compared with the median a year ago of $137,000.

Nationally the median price of $272,000 is now 12.4 per cent higher than the April 2004 median of $242,000, with the four leading regions being Waikato/Bay of Plenty/Gisborne up 27.6 per cent, followed by Canterbury/Westland up 22.4 per cent, Manawatu/Wanganui up 21.1 per cent and Otago up 20 per cent.

Mr Morley said that the figures illustrated the fact that different regions had all experienced price spurts but at different times, “a year ago it was Nelson/Marlborough and Hawke’s Bay near the head of the table and earlier this year it was Taranaki. Now the Waikato/Bay of Plenty/Gisborne region is staging a run.”

Mr Morley said Tauranga continued its price growth during April with an increase from $323,500 in March to $325,000 in April, while Mt Maunganui/Papamoa was up from $380,750 in March to $419,000.

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