House prices to rise by 24pc, says new research
11:30AM Tuesday Aug 11, 2009

House prices in New Zealand will rise by 24 per cent over the next three years due to low interest rates and a shortage of new housing, Infometrics has predicted in a report prepared for mortgage insurer QBE LMI.

Prices could grow by as much as 11 per cent nationally in the year to June 2010, the report said.

"This positive growth is expected to moderate over the following two years as residential construction activity regains momentum," QBE LMI chief executive Ian Graham said.

"On average, property is now also taking a shorter length of time to sell. The median length of time for sale has improved from an average of 58 days in July 2008 to 41 days in June this year. The level of competition among buyers has increased as financing costs have fallen and the number of properties on the market has dropped away," he said.

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