It lists other factors that have affected house sales
The Real Estate Institute of New Zealand (REINZ) has claimed that stiffer housing regulations may have been one of the factors that caused last year’s house sales to plummet.
REINZ’s annual market review revealed that listings in the country dropped 8.1% last year, which affected the number of house sales – making house sales 1.2% lower, totalling 77,470.
Bindi Norwell, chief executive of REINZ, said higher prices and housing shortage might have been mostly to blame – but more legislation for property investors may have been another factor, including a more widespread capital gains tax.
“Significant regulatory changes, including the proposed Capital Gains Tax ... made a significant impact on sales last year as investors considered their options as they waited for an outcome,” Norwell said, as reported by Stuff.co.nz.
Read more: Economists' house price forecast 'may come good even sooner than expected'
Norwell noted that the increase in house prices was a combination of the housing shortage, increased demand for quality properties, fewer listings coming to the market, low interest rates, and Aucklanders moving into regions.
The regions with the biggest price growth were Gisborne, up 21.6% to $389,000; Southland, up 20.4% to $301,000; and Manawatu/Wanganui, up 19.4% to $370,000. On the other hand, the West Coast saw a drop in prices, with a 1.3% decrease to $197,500. Auckland’s prices remained steady at $850,000 but started picking up at the end of 2019.
