Up to 75 per cent of Auckland residential properties going under the hammer are failing to sell, an investor and developer says.
David Whitburn, who runs the Fuzo development business and is building many residences throughout Auckland, said he had noticed a big drop lately.
"There's a slowdown in the market. The North Shore and west Auckland are still reasonably good clearance rates but some of the Auckland central rates are less than 25 per cent," Whitburn said in a NZH Focus interview.
That meant 75 per cent of places taken to the auction were not selling, he agreed.
Investors could not get bank loans, following the Reserve Bank's loan to value limits, he said.
However prices were not following clearance rate drops, he said. Demand remained extremely high, partly due to strong immigration numbers, he said.
Earlier this week, investor Ron Hoy Fong also said clearance rates were down.