NZ property prices soar

The median house price for properties in New Zealand has risen a record AU$5,000 to $NZ360,000 (AU$288,000).

Figures from the Real Estate Institute of New Zealand (REINZ) found the median house price for December 2009 was 1.4% greater than the prior month and 9.6% higher than the same time last year.

REINZ president Peter McDonald said the rising house price was fuelled by a shortage of properties for sale.

“It is concerning there were less than 5000 residential properties sold in December, but the sale time of 33 days is one of the shortest for the year, which goes to show those properties sold were well sought after,” he said.

According to Mr McDonald, house prices have “definitely stabilised and appear to be gaining slightly.”

House prices in New Zealand are now only 3.8% below their November 2007 peak.