House prices are continuing to grow in Dunedin - but at reduced rate

Residential property price rises have been kept at an average of just 2.7 percent over the past three months.

The average house price is up 20.8 percent on the same time last year, to more than 689-thousand dollars.

QV area manager Tim Gibson says Dunedin's residential market returned to normal quickly post lockdown.

He says given supply shortages and high demand they're also seeing more people opting to upgrade their existing home, rather than purchasing a new one.