The Real Estate Institute has rejected suggestions that the tightening credit market is hurting sales of luxury properties.
A research economist at Westpac bank, Dominick Stephens, says people who have bought holiday homes and lifestyle blocks have taken on more debt to make their acquisitions.
Mr Stephens says the severely indebted areas of the economy are the ones suffering the most.
But Real Estate Institute vice-president Peter Macdonald says holiday homes are generally owned by people who can afford them.
Mr Macdonald says the credit crunch is affecting more high-risk ventures, rather than residential houses or luxury accommodation.
