Property market strong but prices will tighten

Director Peter Thompson said sales volumes this year would be similar to last year's but there would be a plateau in the average sales price.

New Zealand's image as a haven, which grew after the September 11 terrorist attacks in the United States, remained a drawcard for expatriate New Zealanders and immigrants, he said.

Other factors, such as low unemployment, were also contributing to continued confidence. Overseas, people are still investing in New Zealand property.

Thompson said he did not expect the real estate boom to continue at the same level as last year. "We are still ahead of the volumes of last year but the average sale price will tend to level," said Thompson.

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