New Zealand house prices rise in May, spurred by supply shortage

WELLINGTON, June 15 (Reuters) – Median house prices in New Zealand rose further last month, according to the Real Estate Institute of New Zealand (REINZ), spurred by a shortage in supply, despite measures by the government to cool the market.

Median house prices rose 32.3% to NZ$820,000 ($585,890.00) in May from NZ$620,000 in the same period last year, REINZ data released on Tuesday showed.

Seasonally adjusted median house prices rose 1.5% over the previous month, and 24.7% year-on-year, REINZ said.

“Looking at the overall picture, we’re still seeing that the lack of total housing supply is continuing to push up house prices,” said Wendy Alexander, acting REINZ Chief Executive.

Median house prices in Auckland increased by 26.9% in May over the previous year period, another new record for the country’s biggest city.

The government slapped new taxes on property market investors earlier this year, while the central bank tightened mortgage lending checks.

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