Strong demand and new housing stock have help push up property prices on the Taieri, LJ Hooker Mosgiel manager Lachie McLachlan says.
The average value of a house in Mosgiel has risen to $324,850, figures released by government agency Quotable Value reveal.
That is an increase of 4.5% from two years ago, while in nearby Fairfield and Green Island more modest gains of 2.1% and 2.6%, respectively, have been seen in the same period.
Mr McLachlan said the affordability and desirability of Mosgiel, particularly among retirees, was helping to push up property values in the area.
''They [retirees] are looking at Mosgiel favourably because it's easy to get around and it's only 15 minutes from the city,'' he said.
However, a strong stock of houses meant buyers were also reaping the rewards of the market.
''The market is a good, firm market,'' he said.
''There is quite a number of new homes being sold ... which can increase the dollar figure.
''There's a very good market at the moment, but it's good for everybody. It's good for the buyer and the vendor.
''We keep getting asked `where are you getting all your buyers from?' and it's just a phenomenon.''
Mosgiel Taieri community board chairman Bill Feather said the movement in housing prices reflected the community's growth.
''Our population is certainly increasing, that's for sure,'' he said.
''Mosgiel has quite a stock of established homes, but on the other side of the fence we have quite large areas of new subdivisions and new developments.''
The measured growth of the community's commercial sector also boded well for the area.
''It's quietly moving forward,'' he said.
''I wouldn't say it's bursting at the seams, but there are pockets of companies either expanding or coming on to the scene.''
