The New Zealand residential property market rallied during July although on declining sales volume, according to the National President of the Real Estate Institute of New Zealand (Inc), Mr Graeme Woodley.

The national median selling price increased from $243,000 in June 2004 to $249,000 in the latest month, just above the May median of $248,000. But the trends were a little uneven, with five of the 11 regions surveyed showing increases, five showing declines with one region being unchanged.

The Auckland median recovered well after having been suppressed by heavier than usual turnover of cheaper apartments in the central city in recent months, to rise from the June median of $323,710 to $340,000. The year-on-year national median price increase now stands at 17.86 per cent with Taranaki and Otago sharing the lead among individual regions with both being up by more than 35 per cent.

Days to sell declined from 31 nationally in June to 30, while total sales volume declined from 8,367 in June to 7,802 in July, back to near the July 2002 level of 7,795 sales.

According to Mr Woodley it was significant that most of the reduced turnover in properties occurred in the under $400,000 category where sales were down from 6,860 in June to 6,337 in July. Sales volume in houses in the $400,001 to $600,000 category fell from 993 to 946 while sales in the over $600,000 category increased slightly from 514 to 519.

Viewing the price band sales volume on a year-by-year basis the majority of the reduced turnover occurred in the under $400,000 category with the July 2003 sales of 10,138 consisting of 8,712 sales in the bottom price band and largely unchanged sales of 903 in the $400,001 to $600,000 category and 523 sales over $600,000, a year ago.