Latest QV figures showed residential property values in the city continued to rise at a steady pace in September, up 2.2% over the past three months and 4.6% year on year.
Values were now 5.7% above the previous peak of 2007.
The average value in the city now sat at $302,651.
The central and north Dunedin areas had the greatest increase, values there rising 3.1% over the past three months and 5.8% annually.
The average price in those areas in September was $314,659; for peninsula and coastal properties it was $273,146; in Dunedin South it was $288,733; and in the Taieri it was $312,412.
''Stronger growth has been noted within the central and north Dunedin student investment property market as investors can generally obtain better yields than other urban locations.
''A fair percentage of these buyers appear to be from outside the region with a wide geographical spread throughout New Zealand noted - and not just from Auckland,'' Mr Gibson said.
There was also good demand from residents for well-located properties, particularly family homes, throughout all parts of the city, he said.
Nationally, residential property values for September had increased 12.6% over the past year, the fastest rate since October 2007.
Values had risen 4.2% over the past three months and were now 31% above the previous market peak of late 2007.
When adjusted for inflation, the nationwide annual increase dropped slightly to 12.3% and values were then at 11.8% above the 2007 peak.
The average value nationwide was now $542,277.
QV spokeswoman Andrea Rush said home values in many of the central and upper North Island centres had continued on the upward trend seen in the past few months.
Dunedin and Queenstown values had also continued on an upward trend, while the Christchurch and Wellington markets had been ''relatively flat'' in the past three months.
Nationwide sales had also been tracking at between 36% and 43% higher in the past three months when compared with the previous corresponding period, she said.
Buyer classification data showed the increase in sales was due to multiple property owners who owned fewer than 10 properties buying more properties, as well as to a rise in sales to first-home buyers.
''Some of these sales can be attributed to Aucklanders relocating out of the city or investing outside of Auckland and first-home buyers taking advantage of changes to KiwiSaver and record-low interest rates.''
The high number of sales during winter could also have been a result of buyers wanting to get in before Government and Reserve Bank changes around lending and tax rules, which came into effect on Thursday, Ms Rush said.
