The slow rate in residential property prices in New Zealand, are indicating a fall, say experts and this fall could be as much as 4% in the coming year.

QV Research Director Jonno Ingerson says that the latest index was down from 5.2% in the year to June and was up by 4.1% in the year to July; in May a rise of 5.6% was witnessed. The volume was below average following the decision made by the buyers of not enteringthe market in fear of the dipping debt.

He further said, "Unlike 2008 when the overwhelming negative sentiment of the global economic crisis drove house values down, we are now seeing more of a do nothing sentiment".

The average sales index is said to have seen a rise from NZ$404,715 to NZ$407,191, in just a gap of one month. The slowdown could further persist keeping in view, the traditional winter slowdown and the mounting issues and concerns about job security and interest rates.

A report also establishes that the house price growth was likely to see an increase by 10% a year, by the mid of 2013. Also, the alterations declared by the Government to the treatment of property tax, could make the house prices decrease by 13% in the next one or two years.