New Zealand house values rose at their fastest annual pace in more than eight years, as demand for Auckland housing overflowed to nearby regions, with Hamilton prices jumping nine per cent over the past three months, according to Quotable Value.
National property values advanced 13 per cent in the 12 months through September to an average $542,277, the state-owned agency said in a statement.
Values in Auckland jumped 23 per cent over the same period to $896,676, outpacing a 16 per cent rise in the national average value for urban areas to $649,583.
On a quarterly basis, national values increased 4.2 per cent, outpaced by Auckland’s gain of 6.7 per cent since the end of June.
Hamilton values rose at the fastest pace in the quarter, rising to an average value of $416,290, and taking the annual increase to 15 per cent.
Demand for housing in Auckland, where migrants and investors are adding to competition for a shortage of housing stock, is spilling over into other parts of the upper North Island.
Tauranga values gained 11 per cent over the past year, and were up 3.5 per cent since June, to an average value of $502,771.
QV said an increase in property investors was driving sales activity, with turnover rising ahead of new bank lending restrictions from November 1 and tax changes to cool investor activity, which has come into effect.
Sales volume was between 36 per cent and 43 per cent higher over the past three months, compared to the same period a year earlier.
Wellington showed modest annual growth of 2.4 per cent, with values down 0.1 per cent in the past three months to an average value $546,105. Christchurch values increased 2.9 per cent on the year, and were flat over the last three months at an average value of $474,814.