House prices kept steady as more condominiums went on the market in 2006, according to a Government report on the economy.

Growth in real estate and rent went up 0.8 percent for that year — much less than the five-year average of 4.6 percent.

According to the Department of Statistics' report, the limited supply of places available for rent meant that sector of the market remained buoyant. However, property prices were kept steady because of an "unusually higher" number of properties for sale, particularly condos.

Last year, The Royal Gazette reported that the average price of a stand-alone Bermuda home had soared to $1.6 million in 2006, leading to claims that the constant drive to expand the economy and boost tourism was creating a market where only the very rich could afford to buy a house. Former Premier Sir John Swan argued the $1.6 million figure was distorted because of top-end multi-million dollar homes.

In 2005, real estate and rent went up by 13.3 percent — its sharpest increase in recent years. In 2003 and 2004, the increase was 6.1 percent and 5.2 percent respectively. The only time the figure has gone down in the past decade was in 2002, when it dropped by 2.2 percent.

Meanwhile, the GDP report also shows a drop in the construction sector due to the completion of major projects in 2006. GDP from construction was down 4.2 percent, after three years in which it rose considerably.

"Vibrant activity in the previous year (2005) saw significantly larger expenditure outlays on education facilities and rest homes in particular, compared to 2006," stated the report.

Public sector construction had a 50 percent drop in 2006, although private sector construction went up 5.5 percent.

Employment levels in the construction industry grew by 159 jobs (4.6 percent), but the industry was replaced by international business as the highest contributor to job growth.