Property investors procrastinate ahead of Budget: QV

QV Valuations flagged uncertainty around what will be in the budget for property investors as one of the reasons for the subdued market last month. Property values rose 6.1% in the 12 months through April while the average sales price for the three months ended April 30 fell to $405,235 from $407,133. Values were 3.9% below the market peak in late 2007.

"The great procrastinators have taken over at the moment and are awaiting further evidence confirming what's happening in the budget," QV spokeswoman Glenda Whitehead told Landlords.co.nz.

The government has flagged tax on property investment as an area that it wants to address, and has signalled it's considering cutting investors' ability to claim depreciation on buildings.

Whitehead said market activity in the coming months will rely on what comes out of the Budget and if confidence returns, the winter months could see a pick-up. Still, this could be tempered by interest rate hikes by the Reserve Bank, which is getting closer to returning the Official Cash Rate to more normal levels.