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Similarly, Queenstown Lakes still heads off wider Auckland with the higher $1.15 million value, but its year-on-year value gain was 9.6% against Auckland’s 1%, Quotable Value data for May shows.
QV general manager David Nagel said the QV house price index showed nationwide residential property values for May increased 6.9% over the year, while values rose 0.8% during the past quarter.
"As anticipated, nationwide sales volumes are down as we enter the usual winter slowdown, although value levels are holding," he said in a statement.
Values remained "relatively high" as low interest rates, the loosening of the Reserve Bank’s loan-to-value ratio restrictions, and the government kick-start packages, such as the KiwiSaver HomeStart grant and savings withdrawal, continued to fuel demand.
However quarterly value growth had come "virtually to a standstill" across the Auckland and Wellington regions, and was "flat" in Hamilton, Tauranga and Christchurch.
"Dunedin is the only main centre to buck the trend, where entry-level prices remain comparatively low and well-located properties continue to demand high prices," Mr Nagel said.
QV Dunedin property consultant Aidan Young said Dunedin values had continued their upward trend, rising 9.4% during the year to May and 4% over the past three months.
"Multi-offer scenarios are common-place, which gives us an indication of how busy the market is," Mr Young said of Dunedin.
The city’s average value is $408,827, while Dunedin South saw the strongest growth with values up 10.3% year on year and 4.5% over the last quarter to $390,162, he said.
He described the Dunedin market as "robust", with both entry-level properties and premium properties selling "reasonably quickly", provided they were priced right.
"The city’s premium suburbs within close proximity to the CBD or the beach, such as Maori Hill or St Clair, continue to attract demand and high values," he said.
Mr Young reported entry-level properties, below $300,000, had continued to sell quickly, particularly in suburbs such as Caversham and South Dunedin, and also Waikouaiti settlement, north of Dunedin.
He said Dunedin values should still steadily grow — or at least hold their value — over winter, given the usual winter slowdown period meant listing numbers declined, but demand was showing no signs of dropping significantly.
Mr Nagel said Queenstown Lakes district and Invercargill continued their steady value growth, respectively up 3.5% and 1.8% for the past quarter.