New Zealand’s housing market is under growing pressure with auction clearance rates in Auckland falling sharply, but estate agents report that prices have remained firm.
Up to 75% of residential properties going under the hammer in Auckland have failed to sell in recent weeks, with David Whitburn, head of Auckland-based property developer Fuzo, among those to have noticed a sharp decline in recent weeks.
“There's a slowdown in the market. The North Shore and west Auckland are still reasonably good clearance rates but some of the Auckland central rates are less than 25%,” Whitburn said in an interview with the NZ Herald.
The fall in property sales is owed in part to the fact that many property investors are now struggling to secure mortgage finance, amid more stringent and restricted lending conditions, according to Whitburn.
However, he said that home prices have remained firm despite the drop in sales – a view shared by many estate agents in the region.