Receivers Korda Mentha is acting as receiver for Bank of Scotland, the primary creditor to the $130 million development, which was undertaken by businessman Nigel McKenna, through his company, Melview Viaduct Harbour.

The receiver intends to try to operate the hotel on the remaining 60 rooms and has barred unit owners from accessing their properties, while declining to take up an offer of arbitration.  The unit holders offered to buy out the remainder of the development and re-establish a basis for the whole hotel complex to remain operating.

The hotel is fully booked during next year's Rugby World Cup.

"There is a very real potential here to badly damage New Zealand's tourism brand, throw into disarray the plans of hundreds of guests booked for the 2011 Rugby World Cup, cost jobs and be a black mark against New Zealand's international reputation as a safe place to invest," said Graham Wilkinson, a lawyer acting for the 100 unit titleholders.

The owners had offered to buy out the Melview assets in the hotel, which is managed as a web of separately titled properties, including the restaurants, bars and other revenue-generating guest services, under the Westin brand.

Receiver Michael Stiassny issued a statement saying "no reasonable offer was tabled."

Wilkinson said while Melview had offered investors in the complex guaranteed returns for three years, these were not paid, and buyers discovered they were liable for hidden costs of more than $2.5 million annually in rent for the commercial spaces in the complex. 

Auckland City Council rates had also been found to be unpaid, said Wilkinson.

"The trend appears to have reached a turning point and has fallen in recent months following increases that began in April 2009," the department said.

When the volatile apartment category is included, the number of new housing units authorised rose 3.1%, following a 3.3% rise in June 2010. Retirement units accounted for 128 of the 203 apartment consents granted.

The value of residential building consents in July was $490 million, 11% higher than July 2009.

In contrast, the value for non-residential buildings fell $78 million, or 21%, compared with July 2009. This follows on from a 26% decline in June versus the same month in the previous period, as the commercial property develop sector continued its torrid year.

"The data add to the soft run of domestic data which, when combined with weakness offshore, suggest to us the Reserve Bank of New Zealand will take time out from lifting rates at both the September MPS and the October OCR Review," said Chris Tennent-Brown, an economist with Commonwealth Bank.

The biggest fall came from office and administration buildings, which dropped $59 million to $651 million, followed by education buildings, down $35 million to $620 million, and hotels and other short-term accommodation, down $25 million to $91 million.

The value of consents issued for all buildings last month was $783 million, a 3.6% decrease from a year earlier.

Previously she had forecast that the Reserve Bank would deliver two more rate 25 basis point rate hikes before year-end.

"We expected the first of these to be delivered on September 16, with a pause in October, before another 25bp move higher in the December month.

"Now, though, we believe that increasing uncertainty surrounding the outlook for the global economy, combined with a string of weaker than expected domestic data, have afforded the Reserve Bank governor (Alan Bollard) time to stand pat. Our forecast now calls for the next OCR hike to be delivered in December."

Kevans says that domestically, aside from the retail numbers, the economic data generally has disappointed. The labour market data for the June quarter, in particular, raised serious questions about the strength of the recovery underway. Wage growth remained subdued and the unemployment rate soared beyond the most pessimistic of expectations, shooting up from 6.0% to 6.8%. Though seasonal adjustment difficulties were at play in the labour market data, putting aside this unexpected volatility, the trend unemployment rate has actually remained flat at an elevated 6.7% since 3Q09.  

The retail sales numbers may have been a bright spot on the economic landscape, but the spike in sales values and volumes is only temporary. Consumers are bringing forward spending, particularly on bigger ticket items, ahead of the hike to the goods and services tax (GST) on October 1. Retail sales, therefore, will continue to be strong leading into October, after which they will likely suffer a significant hangover, given a vacuum of demand and as households consolidate spending patterns.

Kevans says last week's data on inflation expectations again provided Bollard more breathing space.

While JP Morgan has put back its rate increase dates it says the current tightening cycle will run well into 2011.

It expects the OCR to be at 3.25% by the end of the year, and 4.5% by the end of 2011.

Cron says: "Trusts are being put under the microscope. The government is showing an increased interest in compliance and is looking at different options that are going to be available to them moving forward."

He points to a number of "red flags" property investors should watch out for around trust administration.

This includes ensuring decisions that affect a trust asset, such as signing off on a mortgage agreement, are recorded and also detail the power the trust has to exercise the decision.

This should be recorded, "not in the top two inches, but on a sheet of paper", Cron says.

It often sees situations where no minutes have been taken in relation to the trust, or have been prepared, but never executed, or are prepared retrospectively, he says.

"As far as we're concerned, everything needs to be in real time," he says.

Trust and personal financial dealings also need to be kept separate.

"We have instances where there is a trust bank account and their wages now go into it and all expenses are paid out of it," Cron says.

"We need to identify what the trust account is for and that is to hold income or receive income from an asset that is held by the trust and a lot of the time none of this is actually happening," he says.

Cron says property investors with family trusts in place need to take an active interest in them and not just rely on professionals to remind them what they should be doing.

"They've got to actually take the attitude that these are their assets and they've got to understand how this works," he says.

They also need to be mindful of why they created the trust in the first place, Cron says.

He suggests all investors should reassess the structure of their property portfolios in light of recent changes such as those made to the depreciation regime for property, to look at the options available to them.

Cron has a new book on family trusts - Family Trusts in New Zealand. This book is a complete guide to setting up and running a trust. More details in the Intelligent Investor Bookstore here

Freeman says this would mean assets such as lifts, air-conditioning systems, plumbing, and electrical reticulation, would be treated differently to those in residential buildings - with depreciation claims continuing to be allowed.

He says an analysis of eight recent commercial and industrial property depreciation valuations undertaken by Bayleys showed that between 32% and 87% of the total depreciation allowances currently claimed from a combination of building and fit-out allowances were for the fit-out.

The IRD and Treasury document is inviting submissions on the review but Freeman expects the property industry and companies who own buildings to generally support the findings, subject to some further enhancements.

"We see little likelihood of any significant opposition to what is being proposed, particularly as the Government's main target with their property tax changes would appear to be what it sees as an over investment in residential property,"  he said.

An earlier IRD review on residential building fit-out had signaled the withdrawal of depreciation allowances for many fit-out asset categories.

"Since the Budget announcement of a review of commercial property fit-out depreciation, the Property Council, with staunch support from KPMG, has liaised with IRD to show that assets currently considered as commercial building fit-out for tax depreciation purposes do depreciate, both financially as well as physically, over time," Freeman says.

"Generally they are replaced far more often than their residential counterparts."

Inspections of a cross section of properties were undertaken jointly with the IRD to demonstrate the requirement for commercial building refurbishment and the replacement of building fit-out.

"All of the hard work undertaken on behalf of property investors seems to have paid off and this is a major triumph for New Zealand's commercial property industry. Property depreciation allowances obviously won't be as significant given the removal of building depreciation. However, it still means that a substantial portion of the depreciation that has been able to be claimed from a combination of building and fit-out allowances is likely to continue to be allowed."

Freeman says the analysis of the eight recent depreciation valuations on buildings of varying types and age showed that fit-out depreciation allowances on six of the properties exceeded those of the building itself, in some cases "by a very substantial amount."

The most extreme example was a hotel with a total cost of $8,779,325 which had $797,000 of fit-out depreciation allowances - compared with $117,877 of building allowance. In another example an $11.7million coolstore and warehouse had fit-out allowances of $538,701, with the building's allowance only $186,188. Even the fit-out allowance of $84,905 on a standard $3.327 million industrial warehouse outstripped the $75,595 on the building.

However, Freeman says if no commercially acceptable segregation of commercial building fit-out from the building is undertaken such assets would be treated the same as the building for tax depreciation purposes, meaning a zero rating in terms of claims.

"As we head into a period when building tax depreciation allowances are set at zero, it therefore encourages all property investors who want to maximise the after-tax income return from their property investment to get the allocation of cost between commercial buildings and their fit-outs sorted out now."

However, net permanent and long-term migration rebounded in July, with the strongest seasonally adjusted net inflow since March this year.

“We had been perplexed by the weakness in permanent and long-term arrivals of foreigners over recent months, because foreign arrivals are administratively controlled,” Westpac says.

“This month, foreign arrivals were much stronger than expected, reversing some (but not all) of the recent weakness.”

The weak run of net migration data over recent months had us worried that house prices and the residential construction sector might undershoot our forecasts. Those concerns have been partially assuaged by the rebound in foreign arrivals.

“This data may be seen as removing some of the downside risk to the housing story.”

The other trend-bucking development in July was a sharp decline in the seasonally adjusted number of Kiwis migrating overseas. Departures to Australia were 27% higher than July 2009, but 28% lower than in July 2008.

“At this stage we view July departures to Australia as a weak outlier in an otherwise rising trend. We expect the strong Australian labour market will continue to draw increasing numbers of Kiwis across the Tasman in coming months, and that is likely to keep overall net migration at a low level.”

ASB says that although these numbers are positive the “drivers of recent trends remain in place and we expect that net migration will remain relatively subdued over the next year.”

“Job growth in Australia continues to outperform job growth in New Zealand, and will continue to attract New Zealanders across the Tasman. Meanwhile, the relative weakness in the New Zealand market reduces the need to recruit from offshore, and the number of new arrivals is likely to remain subdued.”

Last year, one in four of those surveyed said they intended buying residential property as a future investment. Now the figure is one in seven having the same intentions - the lowest level in the five year history of the survey.

This survey is in stark contrast to two other surveys of property investors since the Budget. The surveys by Landlords.co.nz and Mike Pero Mortgages, along with one by QV both showed that investors hadn't been put of property.

Simpson Grierson property lawyer and partner Greg Towers says that the Nielsen survey confirms observations that there has been a measurable decline in the number of transactions involving the traditional property investors.

"This is unlikely to change until there is uplift in the general economy and a greater degree of confidence shown in the property market by all parties."

In addition, there is now a very clear intention among investors who own property to hold rather than sell, which is a clear indicator of why the property market in general has slowed significantly.

Realestate.co.nz chief executive Alistair Helm says the survey highlights the caution around the market at the moment.

"Holders of investment property showed a 42% decline in intention to sell, which is a huge decline.

"As a result, there is likelihood that those investors still looking to find value will target private sellers who they perceive to offer better deals in this type of ‘Buyer's Market'."

This sentiment is supported by the stats. In the space of a year, there has been a 24% increase of intention by property investors to seek out private sellers.

However, he says household sector debt has grown enormously over the last 30 years from 40% at the beginning of the 80s to 160%, which means it has increased fourfold.

He says household sector debt service has also risen, though not as much because of lower interest rates, but would rise further if interest rates increase.

Brash says net immigration which has traditionally been a big driver of increases in house prices also now looks soggy.

He also acknowledged that Government policy threatens house prices in three ways:

• Reduction in top personal tax rate from 38% to 33% reduces the attractiveness of losses arising from property investment
• Inability to claim depreciation on buildings which have a life of more than 50 years also reduces the attractiveness of property investment
• A government-appointed advisory group has been looking at the effect of Metropolitan Urban Limits (and similar restraints) on the price of residential land – which might lead to a change in policy which frees up supply of residential land.

The Economist has also suggested that many housing markets remain overcooked, with New Zealand fourth on the list with 23.7% overvaluation in house prices.

He says when you look at the path of real house prices in New Zealand since 1970 it's easy to be pessimistic and if the public thinks it couldn't see a big fall in real house prices in New Zealand, all it needs to do is look at the example of Japanese real land prices which have been declining since 1990.

The REINZ Monthly Housing Price Index showed nationwide prices also fell in July, down 1.2% to 3191.5 from June. In the three months to July, the index shows housing prices decreased by 1.1%.

"Given the weakened fundamentals for housing demand, including slowing population growth, rising interest rates and change in tax policy, we expect house prices will come under pressure over the second half of the year, falling around 3% over the next year," said  Jane Turner, an economist with ASB.

Compared to 12 months earlier, the REINZ Housing Price Index increased by a paltry 1.8%.

According to REINZ the trend was strongest in Auckland, Wellington and Christchurch where prices remained higher than they were in July 2009.

In Christchurch prices up 7.4%, Auckland up 1.7%, Wellington up 1.1% and other North Island suburbs up 2.2%. Prices in South Island suburbs other than Christchurch were down 2.7% from July 2009.

The total value of residential sales, including sections, in July declined to $1.83 billion, a further decrease on the June total of $1.96 billion.

The national median number of days to sell stayed at 45 for July which is longer than the 37 days of July 2009 but an improvement on the median of 58 days in July 2008.

REINZ spokesperson Peter Thompson said "winter is traditionally a slow period for the property market", and that an uplift in sales volumes can be expected in the spring.

Northland
Northland residential property sales rose from 99 in June to 102 last month but remained down on the 149 in July 2009. From $280,000 in June the median price increased to $307,500 in July but is still 2.6% down on the $315,500 median in July last year.

In the Whangarei County the median price fell to $320,000 from $358,500 in June, and is also below the July 2009 figure of $342,500. Only 19 residential properties sold, an increase on the 16 sales in June but fewer than the 28 in July 2009.

Sales in Whangarei City fell to 43 from the 50 sold in June, and 69 sales in July 2009. But the median price remained steady at $280,000 for a third month, and $10,000 below the July 2009 median of $290,000.

Auckland
After falling from $470,000 in April to $445,000 in June the Auckland median residential property price eased back up to $450,000 in July, less than 2.3% up on the median price of $440,000 a year ago. At 1,505, total sales were down on the 1,645 sales in June and less than the 2,024 sold in July 2009.

The median sale price for a North Shore City home further decreased from $539,000 in June to $490,000 in July, which is also down on the median of $535,000 in July 2009. Sales totalled 277, a decrease on the 315 houses sold in June and down on the 400 sold in July 2009.

Sales stayed relatively steady in Waitakere City at 206 compared with 204 sold in June, but a decrease on the 260 properties sold in July 2009. The median price increased to $390,500 from $379,500 in June and is up on the July 2009 median of $360,000.

After rising to $550,000 in March the median price for an Auckland City house fell further from $495,000 in June to $492,500 last month but is still up on the July 2009 median of $461,250. At 520 sales were down on the 559 houses sold in June, and the 646 in July 2009.

In Manukau City the median residential property price recovered to $455,000 from $419,000 in June and is significantly up on the median of $438,000 a year ago. The number of sales decreased to 289 in July from 346 in June (July 2009: 411).

After rising to $337,500 in April the Papakura District median price eased slightly from $321,250 in June to $320,000 last month which is also down on the July 2009 median of $338,000. The 45 sales in Papakura in July are down on the 56 sold in June and the 60 in July 2009.

The slide in median prices for Metropolitan Auckland homes stopped in July with a recovery from $448,000 in June to $455,000 last month, which is also an increase on the median price of $450,000 in July 2009 and the July 2008 median of $425,000. But sales of 1,337 were a further decrease on the 1,480 houses sold in June and the 1,777 in July 2009.

Sales in the Rodney District increased to 98 from 81 in June but are down on the 142 sold in July 2009. From $500,000 in June the median price fell to $459,500 in July but is still up the July 2009 median of $439,500.

The median price for a Franklin District home eased back from $364,000 in June to $340,000 in July which is still an increase on the median of $337,500 in July last year. With 51 houses sold, sales are up on the 38 sold in June (July 2009: 58).

In Thames/Coromandel sales dropped to 19 from the 46 homes sold in June and the 47 in July 2009. But the median price remained steady at $390,000, and up on the July 2009 median of $355,000.

The median price for an Outer Auckland home eased back from $424,000 in June to $420,000 last month (July 2009: $400,000). Sales volume increased to 168 from 165 houses sold in June (July 2009: 247).

Waikato/Bay of Plenty/Gisborne
At $315,000, the Waikato/Bay of Plenty/Gisborne district median price has slipped back from $322,000 in June, and is nearly 1.6% down on the July 2009 median of $320,000. Altogether 588 houses were sold in the district, a increase on the 579 sold in June but down on the 884 sold in July 2009.

In Waikato Country 97 houses were sold, up on the 87 in June but less than the 161 sales in July last year. At $257,000 the July median is down on $260,000 in June, and the $280,000 median 12 months ago.

The median price for a Hamilton City house fell back from $350,000 in June to $335,000 last month which is also down on the July 2009 median of $338,500. Sales volume was at 155 compared with the 153 sold in June and the 234 sold in July 2009.

In Western Bay of Plenty Country the median price fell further to $347,500 last month from $375,000 in June, $387,000 in May and $392,500 in April, and is also down on the $380,000 median in July last year. Sales volumes also declined to 38 from 43 sold in June and 47 in July 2009.

The median price for a house in Mt Maunganui/Papamoa recovered to $412,000 from $375,150 in June and is also up on the median of $361,500 in July last year. Sales also fell to 47 from 54 houses sold in June, and 74 in July 2009.

In Tauranga the median price rose from $330,000 in June to $339,250 last month, just below the July 2009 median of $340,000. Sales of residential properties also rose to 90 last month from 81 in June, but remained down on the 149 sold in July 2009.

Rotorua's median price fell to $262,000 after rising to $272,250 in June, but is still up on the July 2009 median value of $246,500. Sales of 63 properties are up on the 58 houses sold in June, but a decrease on the 72 sales in July 2009. 

In Taupo the median price dropped to $289,000 in July from $336,250 in June and is also down on the July 2009 median of $347,500. There were 34 sales in July, up on the 28 houses sold in June and the 51 sold in July a year ago.

The median price for King Country residential properties rose to $140,000 from $122,000 in June but is still substantially below the July 2009 median of $190,000. Sales at 6 are down on the 9 sold in June and the 15 in July 2009.

The median price for a Gisborne City home eased back to $259,000 from $270,000 in June but is still up on the July 2009 median of $250,000. At 27 the number of sales is down on the 35 in June (July 2009: 41).

From $260,750 in June, the median price in Eastern Bay of Plenty Country rose again last month to $310,000,  well up on the July 2009 median of $238,000. Houses sold totalled 27, down on the 30 sold in June (July 2009: 39).

Hawke's Bay
In the Hawke's Bay district the median price of $265,000 is 2.4% below last year's July median of $271,500 and is also down on June median of $285,000. Residential property transactions fell from 163 the previous month to 157 in July, also well down on the 232 sales in the same month last year.

After rallying to $315,000 in June, the Napier City median price eased back to $286,750 in July, but is still up on the median of  $277,000 in the same month last year. Sales totalled 66 houses, down on the 73 sold in June and the 115 in July 2009.

In Hastings City the median price stayed steady at $285,000 but is slightly down on the July 2009 median of  $287,500. The sales total was also the same in June and July at 67, but a decrease on July 2009 sales of 85. 

In Hawke's Bay Country the median price dropped to $189,000 from $307,000 in June and $330,000 in July 2009, but there were only 5 sales compared with 9 in July 2009 (June 2010: 3).

Manawatu/Wanganui
Across the Manawatu/Wanganui district the median price improved to $232,000 from $219,000 in June and is also nearly 3.5% up on the median a year ago of $224,250. Sales at 207 are down on the 221 houses sold in June, and fewer than the 328 in July 2009.

At $255,000 the median sale price for a house in Palmerston North City is a decrease on $278,000 in June and also down on the July 2009 median of $277,000. Sales of 99 are an increase on the 93 houses sold in June (July 2009: 134).

Sales volumes in Manawatu Country eased from 22 in June and 31 in July 2009 down to 18 last month. But the median price increased from $165,000 in June to $202,500 last month, though it is still down on the July 2009 median of $220,000.

In the Manawatu the median price eased back from $242,500 in June to $237,000 last month, which is also down on the July 2009 median of $246,500. At 162, the number of sales is up on the 156 sold in June but less than the 243 sold in July last year.

The median price in Wanganui City rose to $190,000 in July from $185,000 the previous month, and is also higher than the July 2009 median of  $164,000. There were 27 houses sold in July, down on the 49 sold in June and the 60 in July 2009.

The median sale price in the Wanganui region remained steady for a third month at $185,000, which is up on the July 2009 median of $175,000. At 45, sales were down on the 65 houses sold in June and the 85 in July 2009.

Taranaki
From $275,000 in May the Taranaki district median house price rose to $285,000 in June and to $292,000 in July, 4.2% up on the $280,100 median in the same month a year ago. Across the district 145 houses sold, an increase on the 137 sales in June (July 2009: 168).

In the Taranaki Country area the median price increased again from $240,000 in June to $274,000 last month (July 2009: $220,000). July sales totalled 21, the same as the month before and July 2009.

The median sale price for a New Plymouth City residential property rose to $324,500 from $295,000 in June, an increase on the median of $310,000 a year ago.  At 84 the number of sales was up on the 65 sold in June (July 2009: 96) .

Wellington
From $405,000 in June the Wellington district median residential property price returned to $385,000 in July, but is still more than 4% up on the July 2009 median of $370,000. Sales increased to 512 last month from 485 in June but are down on the 618 in July 2009.

In the Wairarapa sales increased to 41 from the 31 residential properties sold in June (July 2009:63). From $215,000 in June, the median price rose to $248,000 which is also up on the 2009 July median of $231,500.

The median price for an Upper Hutt house increased again to $322,000 from $317,500 in June but is down on the July 2009 median of $332,000. Sales of 47 residential properties were recorded in July, up on the 40 sold in June and the 39 in the same month last year.

The Hutt Valley median fell further last month to $330,000 from $352,000 in June but is still above the July 2009 median of $325,500. In July sales totalled 100, one up on the 99 sold in June but less than the 134 transactions in July 2009.

For a house in Otaki/Paekakariki the median price increased from $320,000 in June to $328,000 last month, and is higher than the July 2009 median of $315,000. The number of sales increased from 62 in June to 75 last month (July 2009: 91).

From $413,500 in June, the median price in Pukerua Bay/Tawa eased back to $386,500 last month, still well up on the July 2009 median of $367,563. At 67 sales were up on the 49 in June but down on the 80 in July 2009.

The number of sales in Central Wellington is 32, down on the 43 in June and the 42 residential properties sold in July 2009. The median price rose from $435,500 in June to $524,500 last month, which is substantially above the July 2009 median of $427,500.

Nelson/Marlborough
The median price in the Nelson/Marlborough district decreased from $347,250 in June to $327,000 last month, slightly down on the July 2009 median of $328,000. At 159, residential property sales are up on 150 in June, but fewer than the 228 in July last year.

In Nelson City the median price decreased from $325,250 in June to $312,000 last month (July 2009: $350,000) but sales volume rose from 50 the previous month to 59 in July, though still less than 75 in the same month last year.

The median price of a Nelson Council Zone house fell to $332,000 from $352,500 in June and is down on the July 2009 median of $355,500. The number of sales increased to 113 from 98 in June (July 2009:135).

In Marlborough the median price decreased from $312,000 in June to $307,750 last month (July 2009: $305,000). At 46, sales were down on the 52 in June and fewer than the 93 in July last year.

Canterbury/Westland
In the Canterbury/Westland district the median price declined from $325,000 in June to $310,000 last month but is 4.4% up on last year's July median of $297,000. From 710 sales in June, turnover decreased to 683, well below the 905 in July 2009.

The median price for a house in Christchurch City fell from $340,000 in June to $328,250 in July, which is still up on the July 2009 median of $310,000. Sales increased slightly from 473 in June to 482 last month (July 2009: 628).

The median price for a home in Rangiora fell back to $289,000 in July from $330,000 in June, but was still above the median of $272,500 in July last year. Sales volumes eased slightly from 29 properties in June to 26 last month compared with 38 in July 2009.

The median residential property price in North Canterbury continued to rise from $240,000 in May and $283,500 in June to $320,000 last month and is also up on the July 2009 median of $315,000. From 16 houses sold in June, sales are up slightly at 19 last month, but down on the July 2009 figure of 29.

The median price for a Canterbury Country home firmed from $365,000 in June to $367,500 last month but is down on the July 2009 median of $389,000. Sales at 34 were down on the 40 properties sold in June and 41 in July 2009.

The median price of houses sold in Mid-Canterbury decreased from $279,000 in June to $235,000 last month, and is also down on the median of $266,000 in the same month last year. And the number of houses sold declined from 32 in June to 29 last month (July 2009: 32)

After recovering to $218,000 in June the median price in Timaru fell to $190,000 in July which is also below the median of $226,410 a year ago. With 33 properties sold, turnover in Timaru is down on the 40 sold in June and the 48 sold in July last year.

The median price for a house on the West Coast decreased last month from $187,500 in June to $180,750 last month (July 2009: $223,000). Sales eased back to 32 from the 36 residential properties sold in June (July 2009: 31). 

In Outer Canterbury 201 houses sold last month, down on the 237 sales in June and 277 in July 2009. At $265,000 the median price last month is a decrease on the June figure of $285,000 and the median of $270,000 in July last year.

Central Otago Lakes
Across the Central Otago Lakes district the median price eased back further from $415,000 in June to $390,800 in July, 4.9% down on the median value of $411,000 a year ago. Central Otago Lakes house sales also decreased to 48 last month from 85 in June which is also down on the 84 sold in July last year.

The median price for a house in Central Otago decreased to $333,500 last month from $349,500 in June but is up on the July 2009 median of $327,000. Sales of 24 properties are down on the 42 sold in June and the 49 in July 2009.

From $500,000 in June the Queenstown median price dropped to $436,000 last month nearly $100,000 down on the July median last year of $530,000. Sales are also down at 24 properties sold compared with 43 in June and 35 in July last year.

Otago
In the Otago district the median price increased from $227,500 in June to $245,000 last month, a 9.9 per cent increase on the July 2009 median of $223,000. Across the region 196 dwellings sold last month, up on the 182 sales in June but less than the 229 in July 2009. 

In North Otago the median sale price recovered from $190,000 in June to $211,000 in July and is also up on the median of $207,500 a year ago. At 26, sales were down on the 29 in June and the 37 in July last year.

The median price in Dunedin City eased up further from $241,250 in May and $243,000 in June to $259,000 last month, also an increase on the July 2009 median of $230,000. At 151 sales are up on the 139 dwellings sold in June but down on the 179 in July 2009.

The number of sales in South Otago increased to 15 from just 10 in June and in July 2009, and the median price rose from $173,500 in June to $227,000 last month, significantly up on the July 2009 median of $142,500.

Southland
In Southland the median price has increased more than 10% over the past year from $190,000 in July 2009 to $210,000 last month, and is also up on the June median of $172,000. Sales volumes decreased to 109 in last month from 119 dwellings sold in June and 165 in July 2009.

In Invercargill the median price last month returned to $210,500 from $188,500 in June and is also up on the median of $205,500 in July 2009. At 80, sales are up on the 79 sold in June but down on the 120 in July 2009.

The median price for a house in Gore eased up to $183,250 from $153,750 in June and is also up on the median of $138,750 in July a year ago. But from 22 residential properties sold during June and in July 2009, sales turnover fell to 14 in last month.