Tax changes in the budget aimed at property investors have produced "no sharp or immediate reaction" in the Auckland housing market.Auckland real estate company Barfoot&Thompson today said early indications were that the Auckland market was
Tax changes in the budget aimed at property investors have produced "no sharp or immediate reaction" in the Auckland housing market.
Auckland real estate company Barfoot&Thompson today said early indications were that the Auckland market was taking the May 20 budget announcement in its stride.
Last month the company sold 792 homes at an average price of $542,806, with the price in line with that for April and up 1.7 percent on May 2009, while the number sold was 18 percent higher than in April and 2.7 percent down on a year earlier.
Barfoot&Thompson managing director Peter Thompson said the numbers for May reflected a stable and balanced market, with the average price a sound benchmark before the onset of winter.
"There was no sharp or immediate reaction to May 20's budget announcement around depreciation allowances," Mr Thompson said.
But he pointed out that with the budget coming two-thirds of the way through the month, it was too early to be "black and white" about the impact of the budget on sales numbers and prices.
New listings for May were 57 up on those for April at 1369, while the 6023 properties on the company's books on June 1 were 56 fewer than on May 1.
"We will have to wait until June's sales figures are in before we get a real fix on the impact of the budget on property values," Mr Thompson said.
"However, based on the trends that can be read into May's figures, what is evident is there has been no knee-jerk reaction to the measures introduced."
The rental market also showed stability, with Barfoot&Thompson letting 649 houses and units during May at an average rental of $398 a week. The average rental was the same as in April and the number let down 19 from April.
