Falling prices paralyse investment in property

People are less keen to become landlords and landlords are more wary of selling because of falling house prices, a survey suggests.

A year ago, one in four people intended to buy rental housing, but now one in seven has this goal.

The Nielsen online survey for realestate.co.nz found the appetite for rental housing had dropped in the past 12 months.

The survey also showed a 42 per cent fall in the intention of landlords to sell.

An online website yesterday listed 15,997 Auckland properties for sale and 4190 houses and flats in Auckland available to rent.

NZIER economist Shamubeel Eaqub said the housing market was extremely depressed and low sales volumes suggested a sombre outlook.

"Housing as an investment is less alluring than in recent years," he said.

To read the full NZ Herald article, click here

Posted: 19 Aug 2010

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