Quotable Value figures: Regional house prices rocketing
A surge in investor activity has seen home values soar across the country.
As average Auckland houses prices close in on the million dollar mark, massive gains are being posted in some of the regions.
Hamilton City has been a standout with property prices rising 29 percent over the past year, according to the latest figures from Quotable Value.
Queenstown Lakes District is 'hot' right now, up 10.7 percent in just three months, and up 25 percent on a yearly basis.
Tauranga City continues its strong run, up almost 24 percent over 12 months.
QV national spokesperson Andrea Rush said, "Nationwide values are now rising at the fastest rate since 2004, up 5.6 percent over the past three months alone and the nationwide average value is now nearing $600,000."
Many housing markets around the country are continuing to be driven by strong investor demand, low interest rates, rapid price growth in the Auckland market and strong net migration."
Values across the super city continue to rise with Auckland's average value now $975,087.
Manukau and Papakura have been strongest performers up 20.4 percent and 22.6 percent.
Auckland central is the weakest, up 14.3 percent
"Investors appear to be heeding the recent warning by the Reserve Bank that further policy measures may be introduced later this year to curb investor activity in the housing market," says QV's James Wiilson.
"This appears to have led to a surge in investor activity with many seeking to acquire as many properties as possible under the current rules before any further restrictions are introduced."
Home values across Hamilton City continue to show exceptionally strong growth rising a total of 29.0 percent since June 2015 and 6.9 percent over the past three months. The average value in the city is now $492,403.
"A growing trend is that we have been seeing first home buyers priced out of the Hamilton market buying in townships within commuting distance of the city as they search for homes they can afford to buy. These first home buyers are now also competing with investors looking for better yields," says QV Hamilton Valuer, Stephen Hare.
Regional areas within commuting distance of the main centres also continue to see strong upward pressure on values with Queenstown Lakes District seeing the greatest increase with values rising 10.7 percent over the past three months and 25.0 percent year on year.
The QV House Price Index for the entire Wellington region shows home values rose 5.1 percent over the past three months and 12.4 percent year on year and values are now 13.3 percent higher than in the previous peak of 2007.
Home values in Christchurch City increased 3.6 percent year on year and by 1.1 percent over the past three months and they are 29.5 percent higher than the previous peak of 2007. The average value in the city is $491,148.
QV says the market is less speculative and more realistic.
The full QV report is here