Low sales volumes the theme for 2010 - QV

QV said that looking back over 2010, values increased in the first few months of the year continuing the trend from mid 2009. However, from April 2010 onwards values in most cities and regions began to decrease and by the end of December had fallen 1.9% compared to March.

Last year was also particularly subdued in the property investment sector, largely due to tax changes to investment property announced in the May Budget.

According to QV research director Jonno Ingerson, "low sales volumes were the most notable feature of the residential property market throughout 2010."

"The year started with sales numbers similar to 2009, but from March 2010 onwards they began to drop. Between June and September volumes were at the same level as 2008 during the recession, 28% below 2009, 27% below the long term average and 57% below the peak of 2003."