WELLINGTON, Feb 11 (Reuters) - New Zealand house prices and sales fell in January, Real Estate Institute of New Zealand (REINZ) data showed on Thursday, reflecting an uncertain market ahead of possible tax changes to the property sector.
Sales by the industry group's members were down 26 percent from December, and 1.1 percent lower on a year ago, according to the data which was prematurely released and published by several analysts.
The REINZ, which planned to publish the data on Friday, declined to confirm if the data was accurate.
The data showed the national median house price was NZ$350,000 ($243,000), down 2.8 percent from the previous month but 7.7 percent higher than the same month last year.
'We suspect uncertainty regarding proposed tax changes to property are partly responsible for the weak activity in January. As such, we will not read too much into the figures,' said ANZ-National senior markets economist Khoon Goh.
In January an official report on the tax system recommended among other options a land tax and a look at a capital gains tax as ways to allow lower personal taxes and boost economic investment.
However, this week Prime Minister John Key ruled out new taxes on property, but said tax loopholes favouring investment in residential property would be tackled in the government's May 20 budget.
Housing has been a favourite of New Zealand retail investors, partly due to its favourable tax treatment.
The housing market has been improving over recent months, after its sharp decline in the past year, with the median price close to the peak in November 2007.
Rising mortgage rates and a weak labour market have, however, weighed on the market recently, with the median number of days to sell a house jumped to 43 from 33 in December.
The REINZ in recent months has reported rising prices but a fall off in sales, with sellers sitting on the sidelines.
Last month, the Reserve Bank of New Zealand held interest rates steady at 2.50 percent and pledged to keep it there until around the middle of the year to help the economy. It expected the housing market would get back to peak levels in early 2010.
Government agency Quotable Value said this week house prices gained for the fourth month in a row in January, but activity was patchy.
($1=NZ$1.44)
((mantik.kusjanto@thomsonreuters.com; +64 4 471 4232;
Reuters Messaging: mantik.kusjanto.reuters.com@reuters.net)) Keywords: NEWZEALAND ECONOMY/PROPERTY (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Sales by the industry group's members were down 26 percent from December, and 1.1 percent lower on a year ago, according to the data which was prematurely released and published by several analysts.
The REINZ, which planned to publish the data on Friday, declined to confirm if the data was accurate.
The data showed the national median house price was NZ$350,000 ($243,000), down 2.8 percent from the previous month but 7.7 percent higher than the same month last year.
'We suspect uncertainty regarding proposed tax changes to property are partly responsible for the weak activity in January. As such, we will not read too much into the figures,' said ANZ-National senior markets economist Khoon Goh.
In January an official report on the tax system recommended among other options a land tax and a look at a capital gains tax as ways to allow lower personal taxes and boost economic investment.
However, this week Prime Minister John Key ruled out new taxes on property, but said tax loopholes favouring investment in residential property would be tackled in the government's May 20 budget.
Housing has been a favourite of New Zealand retail investors, partly due to its favourable tax treatment.
The housing market has been improving over recent months, after its sharp decline in the past year, with the median price close to the peak in November 2007.
Rising mortgage rates and a weak labour market have, however, weighed on the market recently, with the median number of days to sell a house jumped to 43 from 33 in December.
The REINZ in recent months has reported rising prices but a fall off in sales, with sellers sitting on the sidelines.
Last month, the Reserve Bank of New Zealand held interest rates steady at 2.50 percent and pledged to keep it there until around the middle of the year to help the economy. It expected the housing market would get back to peak levels in early 2010.
Government agency Quotable Value said this week house prices gained for the fourth month in a row in January, but activity was patchy.
($1=NZ$1.44)
((mantik.kusjanto@thomsonreuters.com; +64 4 471 4232;
Reuters Messaging: mantik.kusjanto.reuters.com@reuters.net)) Keywords: NEWZEALAND ECONOMY/PROPERTY (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.