TradeMe figures show strong growth in the average asking price of apartments, townhouses and units in Wellington and Christchurch over the past 12 months - up 15.4 percent and 16.1 percent respectively.
TradeMe's Nigel Jefferies says it shows rising house prices are encouraging Kiwis into smaller, more affordable properties.
He says it's attractive to first-home buyers - and those down-sizing.
And he says as the rebuild continues, it's becoming more attractive in the central city.