Record median house prices were struck in Dunedin, Queenstown and Clutha during July, as demand continued to outstrip supply in the South.
Thousands of homes across Dunedin will be affected by new building rules designed to protect against the damaging effects of liquefaction during a major earthquake.
Dunedin is the darling of the property market in New Zealand, leading the country in increases in value and the speed of sales. But can the buzz continue?
Otago residential housing consents eased in June, with the overall value flat at $73million, while nationally consenting was up 9.1% against last year.
Housing value growth rates around 10% across Dunedin, Central Otago and Queenstown remains about double the national annual average, as much of the rest of the country is in single-digit growth.
Dunedin flats are being snapped up by first-home buyers, amid concerns from landlords it will be too costly to meet the Government's new housing requirements.
Central Otago Lakes remains the least-affordable region in the country, despite a $67,000 decline in house prices in the past quarter.
The annual growth in the average value of a house in Dunedin is almost double the 5.7% of the country's national figure. It is closely followed by rising house values across Central Otago and Queenstown.
Nearly half of young Kiwis believe they won't own a home by the time they retire, and most want the Government to force them to save more during their working life, research shows.
New Zealand house prices have set a national price record of $562,000, up 5% or $27,000 annually, driven by strong growth in areas like Tasman.
History shows Queenstown should be bracing for an economic slump, but an expert says ''unprecedented'' tourist numbers are keeping property prices at a peak.
Dunedin has bucked the trend of several other main centres and maintained residential property value gains of 4% during the past quarter.
New figures show the Queenstown-Lakes district has the highest proportion of homes sold to people who didn't hold citizenship or resident visas in NZ.
The number of new dwellings consented in April rose almost 30% on a year ago, but Otago and Southland were relatively flat in both numbers and value.
Housing market confidence has bounced back since the election eight months ago, with regional areas leading the way.
New Zealanders seeking a home could be given access to a second, interest-free mortgage under a scheme being considered by the Government.