New Zealand property values have grown at a faster pace as the country’s two biggest cities continue to underpin the market.
Values rose 2.1 per cent in the three months ended June, accelerating from a 0.7 per cent quarterly pace in May, according to state valuer Quotable Value.
On an annual basis, the pace of property value gains continued to slow, rising at an eight per cent annual pace in June, compared to an 8.2 per cent in May.
Values are 15 per cent above the previous peak of late 2007.
“The nationwide index is still increasing but the picture around the country is mixed,” QV’s national spokeswoman Andrea Rush said in a statement on Monday.
“Residential property values in Auckland and Christchurch are still increasing at a similar rate to what they were last June.”
The Reserve Bank introduced loan-to-value mortgage lending restrictions on last October on concern rapidly accelerating house prices in Auckland and Christchurch may lead to an asset bubble and cause financial instability.
Property value growth had slowed earlier in 2014, and the central bank has hiked interest rates three times to cool the economy as inflation rises.
Monday’s figures showed Auckland market values increased by 12.3 per cent year-on-year.
Values rose 2.7 per cent in the past three months.
Values in Wellington decreased 0.4 per cent in the past three months.
Property values in Christchurch have increased 2.5 per cent in the past three months and seven per cent year-on-year.