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The Government's plan to slash the public sector is having an adverse impact on Wellington's property market.
According to ANZ's latest property report, Wellington's housing market is lagging behind the rest of the country as people brace for job losses.
ANZ economist Andre Castaing says housing markets all over the nation are expected to go sideways within the next year.
"The housing market in Wellington- we would characterise that as having the potential to be a touch slower. However across the country, there's a range of things impacting house prices."
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