Auckland property steady despite rate rises

7 June 2007

Auckland property steady despite interest rate rises

As the Reserve Bank moves to raise the Official Cash Rate a further 25 basis points, the latest sales figures from leading Auckland real estate company Barfoot & Thompson show the Auckland property market has yet to feel any impact from the two previous interest rate rises.

Barfoot & Thompson has today released the company's sales data for May showing buoyant sales volumes and prices, and a significant influx of new listings for the month. Director Peter Thompson says the figures suggest vendors continue to have confidence in the ability of the market to deliver good prices within a reasonable selling time.

Barfoot & Thompson sold more than 1,100 properties during May for an average sale price of $557,546. This was up 4.7% on the April average of $532,482, 8.4% ahead of the average for the first quarter and 16.3% ahead of the same month last year.

Barfoot & Thompson reports settled sales, so many of the sales transacted during May would have been signed up at a time when the March and April movements in the Official Cash Rate would have been fresh in the minds of buyers. Mr Thompson says, "It's interesting to see such underlying strength in the property market despite the prospect of higher home loan rates."

"We've been consistent in our view that the market will continue to demonstrate an underlying strength and the figures for May continue to support that position. It was particularly pleasing to see more than 1,800 new listings come on stream during the month."

"Our Property Management division turned in a similarly strong performance in May with the establishment of a new company record for average weekly rent. Average weekly rent for May was $375, up from $361 in April and significantly ahead of the previous record of $367 (March '07). A total of 627 houses and units were let during May."

ENDS

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