House values in Dunedin are continuing their upward trend, increasing 10.4% in the year to September and 2.4% over the past three months.
The latest QV House Price Index showed a significant rise in listings nationally with the onset of spring although quarterly value growth remained modest.
Despite that slow quarterly growth, annual growth rates remained strong particularly in areas where first-home buyer activity was relatively high, such as Porirua, Upper Hutt and Dunedin City, as well as many other smaller regional towns.
Nationwide residential property values had increased steadily over the past year by 4.6%, although they fell by 0.6% in the three months to September.
The nationwide average value was now $676,427 and, when adjusted for inflation, the nationwide annual increase dropped slightly to 3.1%. The average value in Dunedin City was $420,127.
QV Dunedin property consultant Aidan Young said overall market activity appeared to have increased, with a slight surge in property listings and a good level of interest across all value ranges at open homes and auctions.
''In saying this, a shortage of property supply remains and this is helping maintain property values,'' he said.
Multi-offer scenarios remained relatively common and first-home buyers remained active in the sub-$400,000 value range.
The lead-up to Christmas was expected to be busy with continued low interest rates, intense competition and the usual seasonal rush expected, he said.
Further south, Invercargill, Clutha and Gore had comparatively strong quarterly growth figures.
Residential property value growth across the Auckland region increased by 0.8% year-on-year although it dropped by 0.7% over the past quarter.
The average value for the region was now $1,047,415. When adjusted for inflation, values dropped 0.7% over the past year.
