Rental vacancy rates are double what they were last year as house sales continue to dawdle, according to a nationwide firm of real estate agents.
First National Group's quarterly survey of its property managers from Northland to Southland shows an overall residential vacancy rate of over 6%, twice the 3% of January 2010.
General manager John Stewart said it was unusual to see a national vacancy rate this high in January with this level more likely in winter.
The group says it reflects the current low amount of sales and lower numbers of migrants coming to the country.
A high amount of unsold houses can lead to an oversupply of rental properties.
Economic forecasters Infometrics told TVNZ today that they see the property market as "stagnant" and badly affected by low confidence in the economy.
"Sales through the latter part of 2010 have been pretty weak and that is likely to flow through to a bit more downward pressure on prices yet (this year)," Infometrics' Gareth Kiernan said on AMP Business.
Kiernan said mixed jobs data is keeping buyers cautious and this will hurt prices.
"There's a lack of buyers out there so if people are looking to sell property, they need to be pretty realistic about the prices they can achieve."
He said a recovering economy should eventually mean higher prices but they consider property is still "pretty expensive" compared to income levels and rental costs.
Kiernan said that with the impact of tax changes still to fully flow through to the property market, they foresee a 4 to 5% drop in prices this year.
Region by region
First National Group's data shows there is still strong demand in Auckland for all types of properties and the vacancy rate is just 0.7%.
Rents in New Zealand's biggest city have crept up between 3% and 10% as ex-pats return home and immigrants from the United Kingdom and Asia fuel demand.
The Nelson Tasman region and the Bay of Plenty are also experiencing strong demand consistent with summer and anticipated economic growth in their regions.
Stewart said that in the late 1980s and again later in the 1990s similar drifts to those two regions occurred, often based on climate, lifestyle and aspiration rather than real work opportunities.
But at the other end of the spectrum, Wellington had unusually high vacancy rates.
Property managers in the capital are now reporting the highest vacancy rates in 20 years especially in upper end properties and apartments.
The rest of the country had more supply than demand but rents were mostly stable.
Rents dropped in some types of property in just 14% of locations, but were stable or rising in the remaining 86% of locations.
Marlborough continues to have high vacancy rates due to the ongoing challenges in the viticulture industry and rents had dropped an average 5 - 10%.
First National Group's quarterly survey of its property managers from Northland to Southland shows an overall residential vacancy rate of over 6%, twice the 3% of January 2010.
General manager John Stewart said it was unusual to see a national vacancy rate this high in January with this level more likely in winter.
The group says it reflects the current low amount of sales and lower numbers of migrants coming to the country.
A high amount of unsold houses can lead to an oversupply of rental properties.
Economic forecasters Infometrics told TVNZ today that they see the property market as "stagnant" and badly affected by low confidence in the economy.
"Sales through the latter part of 2010 have been pretty weak and that is likely to flow through to a bit more downward pressure on prices yet (this year)," Infometrics' Gareth Kiernan said on AMP Business.
Kiernan said mixed jobs data is keeping buyers cautious and this will hurt prices.
"There's a lack of buyers out there so if people are looking to sell property, they need to be pretty realistic about the prices they can achieve."
He said a recovering economy should eventually mean higher prices but they consider property is still "pretty expensive" compared to income levels and rental costs.
Kiernan said that with the impact of tax changes still to fully flow through to the property market, they foresee a 4 to 5% drop in prices this year.
Region by region
First National Group's data shows there is still strong demand in Auckland for all types of properties and the vacancy rate is just 0.7%.
Rents in New Zealand's biggest city have crept up between 3% and 10% as ex-pats return home and immigrants from the United Kingdom and Asia fuel demand.
The Nelson Tasman region and the Bay of Plenty are also experiencing strong demand consistent with summer and anticipated economic growth in their regions.
Stewart said that in the late 1980s and again later in the 1990s similar drifts to those two regions occurred, often based on climate, lifestyle and aspiration rather than real work opportunities.
But at the other end of the spectrum, Wellington had unusually high vacancy rates.
Property managers in the capital are now reporting the highest vacancy rates in 20 years especially in upper end properties and apartments.
The rest of the country had more supply than demand but rents were mostly stable.
Rents dropped in some types of property in just 14% of locations, but were stable or rising in the remaining 86% of locations.
Marlborough continues to have high vacancy rates due to the ongoing challenges in the viticulture industry and rents had dropped an average 5 - 10%.
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