Residential property values increased at their fastest annual pace in over a year, as Auckland housing prices clock the biggest gain in over a decade, fuelled by record migration and low interest rates. Dunedin City was up 1.2%.
New Zealand property values rose 9% in the 12 months ended May 31, the fastest pace in 15 months and accelerating from 8.3% in April, according to state-owned valuer Quotable Value.
Values in Auckland, the country's most populous city, rose 16.1% in May - the fastest pace in 11 years and speeding up from April's 14.6% gain.
The country's annual migration has broken records for nine consecutive months as people are lured by the nation's brighter economic prospects, recording a net gain of 56,800 migrants in the year through April.
Half of the inflow are heading to Auckland, where an under-supply of housing has pushed prices to record levels.
Dunedin City up, Mosgiel popular
Values in Dunedin City as a whole were up 0.4% over the past three months, 1.2% year on year, and are now 2.5% above the previous peak of 2007, QV has reported.
Dunedin-Peninsula and Coastal home values rose by 1.5% over the past three months and 2% year on year; while Dunedin-Central and North home values were just 0.1% higher than in March but rose 1.8% year on year.
Dunedin-Taieri values rose by 0.7% over the past three months and 1.9% year on year; while Dunedin-South values were up 0.5% over the past three months but decreased by 0.5% year on year.
QV homevalue Dunedin registered valuer Duncan Jack said values in Dunedin continued to move along steadily.
"The traditional winter slow-down appears to have commenced, which is evident due to there being less activity from vendors who tend to not want to sell their homes at this colder time of the year.
"However, there is still good demand from buyers across the value ranges and particularly in the lower end of the market. The drop in activity is likely to be stifling growth to a degree but perhaps offset by the continuing buyer demand.
"Mosgiel continues to be a popular location for new builds and development, with the majority of the buyers likely to be second or third time buyers purchasing larger new homes in the higher price brackets."
Other cities
Property values in Hamilton and Tauranga both increased 4.1% year on year, as demand for Auckland spilled over, QV said.
Wellington property values overall increased 2.6% year on year, but central, east and south Wellington recorded a decline, offset by gains in Lower and Upper Hutt and Porirua.
Christchurch values increased 3.8% in the year.
The official cash rate remains on hold, as the Reserve Bank looks to cool Auckland's bubbling housing market using other macro prudential tools.
