Auckland sales prices have jumped, which research company Crockers finds unusual considering the lack of sales numbers, plus IRD is looking at what it constitutes as a mortgagee sale in relation to collecting GST.
While sales numbers in Auckland tracked almost exactly against 2009 levels, a major jump in median prices for March was surprising, according to Crockers.
"A moderate jump is ‘normal' at this time of year, but the 5% leap on February's median price is surprising and something not seen since 2005."
The median sales price was also up 9% on March last year at $475,000.
Crockers says the continued recovery of up-market areas in Auckland City and North Shore City are the main sources of recent price rises, with Papakura also climbing out of the late 2008 trough.
"Nation-wide movements were more moderate, delivering a ‘mere' 3% rise on February price levels and an 8% year-on-year lift for a national median price of $360,500, total sales however fell 8%," the company said.
The Inland Revenue Department (IRD) is currently looking at what it deems to be a mortgagee sale in relation to claiming GST, to close a gap in the system.
At present the Goods and Services Act has powers for the IRD to claim GST from insolvent landowners who make a mortgagee sale.
However, there are ways of making a mortgagee sale look like something else, since the downturn began increasing numbers of people are using these.
The proposal here is the IRD would have powers to "deem" something a mortgagee sale if it has all or some of the following characteristics: