City realtors say demand is also heating up.
Information from CoreLogic NZ’s monthly Mapping the Market tool shows a turn upwards in median property values in the last three months.
However, median values in 39 suburbs had risen since August, Shiel Hill boasting the biggest value increase, up 3.4%.
Māori Hill and Vauxhall remained the most expensive suburbs, having a median property value of more than $900,000 and South Dunedin was the cheapest suburb at $398,900.
Recent data from realestate.co.nz also showed both searches for and engagement with online property listings had increased steadily over the last 12 months.
Bayleys Dunedin managing director Chris Maclean said the results were not surprising, and were the result of positive market activity in the weeks following the general election.
The week after the election, Mr Maclean said Bayleys listed 25 properties and had committed to auctioning a further 18.
He expected values in all Dunedin suburbs would continue to rise in the next 12 months and said the city was exhibiting "positive signs".
"Dunedin has got so much happening in the near to medium future and I think people will wake up pretty positive with regards to property."
LJ Hooker Dunedin managing director Jason Hynes was not surprised by the results either.
He said LJ Hooker had noticed a strengthening in the market in the past three months which he attributed to dramatic stock level rises and increased consumer confidence.
He expected the stability to continue, which would keep aspiring homeowners happy, as long as there were no major fluctuations in either direction.
"I think the sentiment out there is that if it actually transitions now into a relative period of stability that would be quite a good thing.
"We’ve probably deserved that after the last few years."
University of Otago Associate Prof of economics Trent Smith said interest rates were the single biggest determinant of demand, with massive swings in property values arising from small changes in the interest rate.
The Reserve Bank had halted changes to the official cash rate, after raising it to combat inflation, which may have persuaded people to enter the market.
The numbers themselves did not reflect the type or quality of housing being sold, Assoc Prof Smith said
Dunedin was coming off the back of a massive building boom and newer houses would be of higher quality than the average older home in city, which may have driven up the price.
"There are a lot of people who are suffering from inflation and don’t have a lot of money in their pockets, but on the other hand there are people that made money through the pandemic and do have the money to spend on houses."
