New Zealand property values are continuing to increase but at nowhere near the pace of the housing boom, says government valuer Quotable Value.
National property values rose by 1.8 per cent in the past three months to September 31 and are up 5 per cent up for the year to sit just above the market's peak in 2007.
But the rate of increase is well behind the 10-15 per cent gains during the housing bubble in the mid-2000s.
Auckland and Canterbury drove the growth with the values in the country's biggest city jumping 7.2 per cent for the year and Christchurch is up 6.6 per cent over the same period while in nearby districts values jumped 12.9 per cent in Waimakariri and by 12.2 per cent in Selwyn.
QV research director Jonno Ingerson says activity remains subdued but there were more first home buyers and investors in the market.
The traditional rise in listing in spring was evident, but Mr Ingerson says the seasonal lift was only slight.
Values in Auckland rose rose 2.8 per cent in the last three months with a shortage of housing increasing competition among buyers.
"This is leading to limited choice for potential buyers in an already heated market. As a result, further competition for quality properties that come onto the market is likely to increase," said QV operations manager Kerry Stewart.
In the major centres, Dunedin had the next biggest growth, up 2 per cent for the quarter, ahead of Christchurch and Hamilton and Tauranga.
Wellington values had moved very little in the last six months with many homeowners opting to renovate rather than move up the property ladder, QV says.
Values in provincial centres have increased slightly in the quarter apart from in Whangarei where they dropped 1.8 per cent. Gisborne was down 4.6 per cent over the past year.
NZN
