9 Jun 2015

Auckland house prices still racing up

1:17 pm on 9 June 2015

Property values in Auckland have risen at the highest rate in 11 years.

The QV Residential Price Movement Index shows nationwide property values in the 12 months to May jumped by 9 percent.

In Auckland, property prices jumped by 16.1 percent to $828,502, Christchurch rose 3.8 percent to $474,403 and while Wellington increased 1.3 percent to $457,908.

QV spokesperson Andrea Rush said demand for property was spreading to places such as Tauranga, Hamilton and Cambridge, with values in these areas rising.

"National residential property values have risen at their fastest annual rate in 15 months and the Auckland market continues to drive this as it continues its meteoric rise with values in the Super City region rising at the fastest annual rate since mid-2004," she said.

Ms Rush said high migration, low interest rates and supply constraints were fuelling demand in Auckland.

"As yet there has been no obvious impact on the market from Reserve Bank's proposed changes to deposit requirements for Auckland investment properties or the Government's re-classification to investment property taxes due to be brought in on October 1," she said.

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