Property values in New Zealand have taken a substantial drop over the past year, according to the government valuation agency. Quotable Value New Zealand reports that housing prices fell 8.3 percent during 2008, the largest drop since the agency began tracking figures in 2005.
Price drops were spread out across the country, with Auckland seeing a 9 percent drop during the year. Rotorua saw the largest drop in major areas with a fall of 11.9 percent in property prices, while Wellington prices fell 8.5 percent and Christchurch values went down by 8.5 percent.
Interest rates have declined substantially in the past few months, and that has created an opportunity for buyers. Unfortunately, many local residents are concerned about job security and that is leading to lower sales. According to QV spokesman Blue Hancock, “Many buyers also appear to be holding back in expectation of further property value and interest rates drops throughout 2009.”
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