Houses in Queenstown continue to be some of the priciest in the country

QV's latest house price index is out this morning, and shows prices in Queenstown may be having an effect on nearby cities.

Queenstown properties are going for an average of nearly 1.2 million dollars - beaten only by a few select Auckland suburbs.

The report suggests Dunedin and Invercargill have become hotspots for people priced out of the Queenstown or Central Otago markets.

It's suspected to be one of the reasons Dunedin has seen average house prices rise ten percent in the last year.

QV also says there's a shortage of listings in the city - with not enough houses to meet demand.